World Economic Forum joins forces with Inter-American Investment Corporation to fight corruption in Latin America

Deal paves the way for real and effective anti-corruption commitment among the private sector in Latin American and the Caribbean

Santiago de Chile, 25 April 2007 – The World Economic Forum’s Partnering Against Corruption Initiative (PACI) and the Inter-American Investment Corporation (IIC) signed a memorandum of understanding today aimed at countering corruption and bribery. The agreement will encourage corporations to take a “zero tolerance” stand on corruption and to implement effective anti-corruption programmes in the region. The joint activities will concentrate on Latin America and the Caribbean.

In a signing ceremony, which took place in the context of the World Economic Forum on Latin America in Santiago de Chile today, IIC Board Chairman, Luis Alberto Moreno, President of the Inter-American Development Bank, Washington DC, signed the Memorandum of Understanding with World Economic Forum Managing Director, Richard Samans, a Board member of the PACI.

The agreement will lead to the development of a PACI framework and tools tailored for supply chain entities of multinational corporations and particularly for small and medium-sized enterprises. The two parties also intend to raise awareness on the issue in the region and engage many more companies in the active fight against corruption. In addition, the IIC is in the process of revising its internal policies on anti-fraud and corruption, and intends to do so in order to be consistent with the Principles for Countering Bribery developed by PACI.
“This is a significant step for the Partnering Against Corruption Initiative,” said Rick Samans, “embedding as it does the principles in the business landscape of Latin America. The World Economic Forum has already been successful in completing a series of agreements with development banks around the world with the aim of making the transparent anti-corruption principles developed by a group of our member companies widely adopted business practice.”

Jacques Rogozinski, General Manager of the Inter-American Investment Corporation, Washington DC, and a World Economic Forum Young Global Leader, added, “we welcome this opportunity to partner with the World Economic Forum and its Partnering Against Corruption Initiative to build on its success in developing anti-corruption measures for the private sector and to work with the Forum to bring that success to SMEs in our member countries and throughout the world.”

Commenting on the agreement, Emilio Lozoya, Head of Latin America for the World Economic Forum, and responsible for organizing the meeting in Santiago, said, “Eighty percent of all companies in Latin America are small and medium enterprises. Unchecked, corruption in this sector is thus a huge brake on development, job creation and standards of living for millions of people throughout the continent. The PACI agreement signed today with the IIC will therefore not just help create transparency, accountability and good business practice but improve the lives of people in a tangible way.”

Notes to Editors:
The World Economic Forum Partnering Against Corruption Initiative (PACI) is a global, business-driven, multi-industry, anti-corruption initiative launched to develop and promote the implementation of rigorous anti-corruption principles and practices, based on integrity, fairness and ethical conduct, which will result in a level playing field for business and contribute to the goals of good governance and economic development. Since it was launched in 2004, PACI has obtained commitments from more than 125 major corporations from all locations and industries to follow its tenets. The PACI is managed by the World Economic Forum, an international not-for-profit organization under the supervision of the Swiss Federal Government, committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas. For more information please visit the PACI website: www.weforum.org/paci

The Inter-American Investment Corporation is a multilateral organization aimed at promoting the development of its regional developing member countries by encouraging the establishment, expansion, and modernization of private enterprises, preferably those that are small and medium-scale.

• More information about the World Economic Forum on Latin America is available at: www.weforum.org/latinamerica and www.weforum.org/pressreleases
• In-depth interviews with key participants can be read here: www.weforum.org/latinamerica/indepth
• Summaries of sessions can be found at: www.weforum.org/latinamerica/summaries2007 (active as of 25 April)
• Free-of-charge, print-quality photos are available at: www.pbase.com/forumweb/latinamerica2007 (active as of 25 April).

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.

Incorporated as a foundation in 1971, and based in Geneva, Switzerland, the World Economic Forum is impartial and not-for-profit; it is tied to no political, partisan or national interests. (www.weforum.org/)