Confronting Kremlin and Communist Corruption

Introduction

I wish to thank Chairman Cardin, Co-Chairman Cohen, and the members of the Helsinki Commission for the opportunity to speak at today’s hearing. The commission has worked tirelessly to support U.S. economic and military security, combat corruption, and ensure the protection of human rights around the world. The commission also understands that ensuring our national security requires us to address the emerging risks posed by kleptocratic and authoritarian regimes. Refocusing on the foundations of strong democratic governance to address these threats is urgently needed.  

The commission has recognized that strengthening our defenses against authoritarian threats starts with strengthening our own defenses. Key elements of the Counter-Kleptocracy Act are now moving forward as part of the National Defense Authorization Act. If enacted, this legislation will substantially strengthen America’s commitment to combating foreign corruption. The act includes language to allow for the prosecution of foreign officials demanding bribes from American businesses. It would close U.S. immigration and money laundering loopholes exploited by kleptocrats. It would call out human rights abusers and advance efforts to document the amount of money stolen by kleptocrats. It would strengthen the U.S. commitment to transparency, enforcement, and accountability. Congress and the Biden administration should work together to advance these sound policies.  

Today, the United States faces growing aggression from kleptocrats and authoritarians who seek to erode open, rules-based systems of government in favor of closed, totalitarian regimes. Chief among these threats is China. The Chinese Communist Party (CCP) is seeking to rewrite global norms and rules of engagement with many, if not most, developing nations. Its primary vehicle to achieve this “reframing” of global engagement is its infrastructure investment monolith, the Belt and Road Initiative (BRI). However, the BRI is much more than an infrastructure program. It is a “geopolitical enterprise” and the primary vehicle through which China seeks to redefine its political and economic engagement with much of the world.

Where the BRI goes, corruption follows. The initiative deliberately favors opacity and encourages corruption while justifying both in terms of “non-interference” in the domestic politics of BRI partner states. The infrastructure projects that grow out of this flawed process often prove to have minimal economic value while saddling partner states with massive debt. The United States can and should promote a more effective model of infrastructure development that brings shared prosperity and better governance to our partners. 

Read the full written testimony here.