Messages In This Digest (5 Messages)
- 1a.
- Beating the Stock Market From: Dustin Johnson
- 2a.
- The Morality of Paid Links and Google's 'Intent Algorithm' From: Bill Platt
- 3a.
- Don't Play Poker With Your Sales: Boost Sales With Flowers From: Wesley Berry. AAF
- 4.
- The Shocking Truth About How To Start An Internet Business - Part 4 From: Clinton Douglas IV
- 5.
- Corruption and Transparency From: Sam Vaknin author of "Malignant Self Love
Messages
- 1a.
-
Beating the Stock Market
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Article Title:
==============
Beating the Stock Market
Article Description:
====================
Many people dream about beating the market through their stock
investments. However, is this really worth the effort and is it
really possible?
Additional Article Information:
===================== ========= =
419 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2008-02-05 10:00:00
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Beating the Stock Market
Copyright (c) 2007-2008 Dustin Johnson
Stock Market Investors
http://www.stock-market-investors .com
Many people dream about beating the market through their stock
investments. However, is this really worth the effort and is it
really possible?
Many have attempted to beat the stock market and only a few have
managed. Some pundits have gone a step further to claim systems
that guarantee this. Nevertheless, beating the market may not be
the best goal that you can set for your stocks. The reason for
this is that there are a number of other considerations that
should be made.
People are generally unclear about the meaning behind the word
"market", which leads to its different definitions. Different
indexes are used when referred to the stock market one of them
being the S&P 500. However, this index fails to objectively
present all of the stock sizes.
Beating the market requires the undertaking of various stock
deals that enjoy short term benefits. Some experts recommend that
you purchase companies that have high customer satisfaction
attached to them. There is logic behind this argument, because
when clients are satisfied with the product or service of a
particular company they use it and become loyal to the company.
As a result, the returns increase as well as the popularity among
investors. The price of the stock of the company will be also
influenced in an upward direction. If you have managed to invest
in the company while its price was still low, congratulations you
have managed to beat the market.
If you fail to walk away of the stock market when the right time
has come you may put your money at risk. And what actually
happens is that instead you beat the stock market you are beaten
by it.
Beating the market requires you to know when is the right time to
enter it and when to exit it. You should learn its indications
and not only notice them, but also understand the signals that
they send to you.
No matter how good you may be at such things, you should consider
whether it is worth risking your money for such a goal. Beating
the market may reward you very well, but you should never forget
that its punishment can be even higher. Winning several hundred
dollars from the stock market today may result in their loss
tomorrow. Because, even if you have done it once, beating the
stock market twice cannot be guaranteed for sure. No matter what
formulas the pundits have offered and techniques applied, it is a
game in which only a few have succeeded.
--------------------- --------- --------- --------- --------- -
Dustin Johnson is a successful investor who writes for
http://www.stock-market-investors to help people educate.com
themselves more about the investment world and particularly
in the stock market field. Learn more stock market advices and
tips at: (http://www.stock-market-investors ).com/stock- market-advices- and-tips/
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http://www.stock-market-investors .com
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--------------------- --------- --------- --------- --------- -
- 2a.
-
The Morality of Paid Links and Google's 'Intent Algorithm'
Posted by: "Bill Platt" submissions@article-distribution.com article_distribution
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Article Title:
==============
The Morality of Paid Links and Google's 'Intent Algorithm'
Article Description:
====================
It is Google's fault actually. No one can be blamed for this
matter more than Google itself. Google itself planted the seeds
its own future headaches. Nobody did it to them; they did it
themselves.
Additional Article Information:
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1511 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2008-02-05 10:24:00
Written By: Bill Platt
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The Morality of Paid Links and Google's 'Intent Algorithm'
Copyright (c) 2006-2008 Bill Platt
Links And Traffic
http://www.LinksAndTraffic.com
It is Google's fault actually. No one can be blamed for this
matter more than Google itself.
Google came up with a brilliant plan for determining the best web
pages to show in their search engine results. And then without
telling us the intimate details of their plan, they told us about
part of their algorithm by explaining the importance of inbound
links --- the Google PageRank (PR) system --- in their
calculations.
Google itself planted the seeds its own future headaches. Nobody
did it to them; they did it themselves.
I am sure the fault really lies in Google's marketing
department. They wanted to tell the world what made their search
engine algorithms more powerful than the competition. It probably
was an innocent mistake on their part. But once the genie is out
of the bottle, it is impossible to put the genie back in the
bottle.
So, now the whole world knows that if you want to get good search
rankings in Google, you must have links pointing to your website
from other websites on the internet. Everyone also knows that if
you want better search rankings in Google, then you should strive
to create even more links with the appropriate keywords in the
anchor text of those links.
Building Links
There is always more than one way to skin a cat. There are many
methods that people can employ to build links to their websites.
1. Register free websites so that you can create inbound links
back to your own site.
2. Register new domains where you can place other links back to
your website.
3. Leave comments on blogs.
4. Link Exchanges.
5. Getting your own listing in any of the directories that are
available (dmoz.org, yahoo.com, etc.).
6. Signature File - getting involved in discussion forums and
actually adding value to the discussions.
7. Submit product and service testimonials to those product
distributors and service providers.
8. Social Networking - bookmark web pages through social
bookmarking sites.
9. Link Baiting - creating a resource that people will want to
link to for the benefit of their website visitors.
10. Article Marketing - writing an article and giving webmasters
the opportunity to use your content on their website, IF they
agree to post your link on the page with the article that they
are using.
11. Press Releases - writing and distributing press releases
online.
12. Buy advertising on a website.
13. Buy Link Placements on a website.
Good Links Versus Bad Links
I have always focused my attention on practicing White Hat Search
Engine Optimization (SEO) techniques, instead of Black Hat SEO
techniques.
Most of you know what I am talking about, but I have been
surprised a number of times when people did not understand what
was meant by "white hat" and "black hat." So, for those of you
who do not know what I am talking about, here is a brief
description. "White hat" and "black hat" are references to the
old serial cowboy westerns. The good guys always wore "white
hats," and the bad guys always wore "black hats."
By far, the link building techniques I employ most often are
article marketing, press releases, and link baiting. I still
frequently participate in forums and buy advertisements on other
websites, but I do those for public exposure and not for search
marketing.
A Black-and-White Issue
I have always been extremely concerned with White Hat techniques
for building links to my websites and from my websites.
"Providing good quality content as the foundation for my linking
activities" has always been my golden rule. And, it still is that
main driving force behind everything that I do.
I like a black-and-white world where everything makes sense, and
I had no reservations about my thoughts on this topic.
The Morality of Paid Links
A couple weeks ago, I was reading Matt Cutt's thoughts about
paid links on his blog. Most folks in internet marketing know who
Matt Cutt's is, but if you don't, he is a software engineer
that works behind the scenes with Google in their quality
department.
Generally, if Matt Cutts says anything at all about improving
your rankings in Google, you can take his words to the bank.
Now, Matt has made it more than clear that we do not want to buy
"paid links" to our websites as part of our link building
campaigns. Paid links are a big no-no according to Matt. That is
his advice, and I have always trusted it at face value.
That is why I have focused my entire link building activities
towards "content-driven linking."
I was reading a discussion of paid links in Matt Cutts' blog at:
http://www.mattcutts.com/blog/ text-links- and-pagerank/
After I read Matt's thoughts, I continued reading the comments
on the page. Many good points were made and responded to by Matt.
It was an interesting read.
And then, my black-and-white world was turned upside-down when I
read the comments presented by Dan Thies of SEO Research Labs at:
http://www.seoresearchlabs.com/
Here is what Dan said:
Search engines are free to develop their algorithms as they
see fit. They're free to decide which links they want to trust.
Maybe I'm the heretic here, but I don't see anything wrong with
Google identifying sites that are selling text links, and dealing
with that however they like.
I just hope Matt and his co-workers aren't expecting this to
solve their problem. He's already seen that people are looking
for better ways to game the system. I hope Matt and his
co-workers don't seriously expect the entire web to start
labeling paid links for them.
The Google ideal may be that "the best links are earned and
given by choice," but what does that mean?
If I add text links to my favorite florist, favorite online
casino, favorite unlicensed pharmacy, favorite travel site, etc.
will Google decide that my site isn't worthy to participate in
developing their "democratic" search results? If I "vote" for
George Bush or Michael Moore as a miserable failure, am I no
longer qualified to vote?
What's the algorithm for determining intent, Matt?
Intent Is Abstract and Important At The Same Time
There is the rub. How can Google know the heart of the webmaster?
They can't, unless the webmaster pointedly describes their
intent.
If the webmaster calls those links "paid links" or "sponsored
links," then Google can know that webmaster accepted money to
provide those links.
If I buy advertising on a website, to attract potential buyers to
my website, how does Google know my intent? Did I do it to get
traffic from that website, or did I do it to game the Google
results? They cannot know my heart.
Even if the webmaster does not call the shown links "paid links"
or "sponsored links," does the suspicion of the pay-for-placement
model label the webmaster as a "bad egg?" How does Google really
know if Dan is linking to a site because he wants to, or whether
he has accepted payment for that link? They cannot know.
And the final example on this topic comes from a poster named
Shelley who participated in the discussion at:
http://weblog.philringnalda. com/2005/ 08/19/
Shelley stated that she allowed two "paid links" on her
well-respected blog, because she had a car payment to make. She
traded on her brand name to get enough cash to make the car
payment in tight times. Will she be penalized for selling "link
space" to advertisers on her website?
In Conclusion...
Based on the comments that I have read from Matt, Shelley should
not be worried about her acceptance of "paid links" on her
website. If I have interpreted his comments correctly, her site
will not be hurt by her outbound links.
However, we are meant to believe that if you and I were to buy
links on her page, then we should be concerned about our future
in connection to the Google search results.
So these questions remain for the search companies to figure
out...
Webmaster's Intent:
1 Which links are paid links, and which links are freely given
links?
2 Who is selling links to pass on their PageRank value, and who
is providing a useful or valuable link for their visitors?
Link Buyer's Intent:
1. Who is trying to game the Google results, and who is trying to
attract buyers to their website?
2. Who should be treated as a spammer, and who should be treated
as an honest performer?
This last question is the tricky one. We all know a spammer's
website when we see a spammer's website. But, how can the search
engines deal with the spammer's, without damaging the innocent
in their quest for search results perfection?
Yes, that is their problem, not mine. But, if Google's paid
links policy hurts my own placement in the search engines, then
the paid links equation becomes my problem too.
More Questions Than Answers...
Yes, it is true. I have posed more questions than what I have
presented answers. But sometimes, the questions are more
important than the answers. This is one such case.
--------------------- --------- --------- --------- --------- -
Bill Platt has been involved in article marketing professionally
since 2001, as the owner of http://www.thePhantomWriters. Hecom.
and his staff have literally ghost written 1000's of articles for
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- 3a.
-
Don't Play Poker With Your Sales: Boost Sales With Flowers
Posted by: "Wesley Berry. AAF" submissions@article-distribution.com article_distribution
Tue Feb 5, 2008 7:36 am (PST)
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Article Title:
==============
Don't Play Poker With Your Sales: Boost Sales With Flowers
Article Description:
====================
USA Today recently offered some great tips for helping your
retail sales to flourish. Among those tips are:
Additional Article Information:
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529 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2008-02-05 10:36:00
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Don't Play Poker With Your Sales: Boost Sales With Flowers
Copyright (c) 2006-2008 Wesley Berry, AAF
Wesley Berry Flowers
http://www.800wesleys.com/
Sometimes getting your items to sell seems like an awful gamble.
You may even feel like you're involved in a daily poker game
where you're literally betting your livelihood on getting your
customers to open their wallets and purchase your goods.
USA Today recently offered some great tips for helping your sales
to flourish. Among those tips are:
* Signature Scents: Have you ever heard that the smell of
freshly baked cookies can help your home sell faster? Well,
certain scents may boost your retail sales, too. Some stores are
even creating their own "signature scents" that they're piping
in through their vent systems. For example, Thomas Pink clothier
pipes in the fresh scent of laundered shirts and Sony Style uses
a combination of vanilla and mandarin orange.
* Enticing Displays: Gone are the days where endless racks and
shelves of goods were enough to sell the items. Shoppers want an
eye-catching, pleasant shopping experience. Instead, create
pleasant displays to show off your wares.
* Comfy Nooks: Weary shoppers appreciate a comfortable area to
rest their tired feet and set down their heavy bags. Cozy sitting
areas may entice customers into the store where your fabulous
displays and great products will prompt them to buy. Abercrombie
& Fitch has begun to utilize this trend, creating areas with soft
lighting, cushy furniture, and books to lure teen customers in
with the hopes they'll stay and shop.
* Hot Items On The Right: Which way do you turn when you enter a
store? If you're like most shoppers, studies indicate you turn
right. So, place your best items and impulse buys on the right!
These are all really great suggestions, but I'd like to add one
more. Use flowers to help you sell! Think about this-are you more
likely to buy items in a cheerful setting that makes you feel
welcome and happy, or in a dreary one that just makes you want to
leave? Using flowers to decorate your store offers your customer
a quick pick up that may just get them to pull out their wallets,
too. Let's take a quick look at how flowers can play into the
suggestions offered by USA Today:
* Signature Scents: There are many varieties of fragrant
flowers. Choose one that brings the right feel to your store and
set up a standard delivery of the flower to your store.
* Enticing Displays: Flowers are always pleasant to look at, and
they can add a lot to your displays. Choose colors that will
catch your customers' eyes and compliment the items on display.
* Comfy Nooks: Studies have shown that flowers help people to
feel welcome in your home, so why not in your store? Flower
arrangements can be created to match any décor.
* Hot Items On The Right: To make sure those impulse buys draw
maximum attention, place brightly colored flowers near them. Your
customers will be drawn to the flowers and will be more likely to
notice the goods near them.
Sales needn't be a poker game. Use some creativity in setting up
your store, drawing customers in, and making them feel welcome.
While USA Today offered some excellent ideas, adding flowers will
increase your sales even more.
--------------------- --------- --------- --------- --------- -
Wesley Berry is member of the American Academy of
Floriculture (AAF) and President of Wesley Berry Flowers
(http://www.wesleyberryflowers. ), a successfulcom
multi-million dollar floral business that was established
in 1946. His shops provide flower delivery worldwide through
http://www.flowers-worldwide. and Flower Delivery Expressnet
(http://www.flowerdeliveryexpress. ). Visit Wesley Berrycom
Flowers on the web at http://www.800wesleys.com
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- 4.
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The Shocking Truth About How To Start An Internet Business - Part 4
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The Shocking Truth About How To Start An Internet Business - Part 4
Article Description:
====================
As your business grows, so does your need for support staff.
Whether that's professional project management, accounting, call
center or distribution support, these new employees should align
with your core business values and objectives.
Additional Article Information:
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Distribution Date and Time: 2008-02-05 11:00:00
Written By: Clinton Douglas IV
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The Shocking Truth About How To Start An Internet Business - Part 4
Copyright (c) 2008 Vasrue.com, All Rights Reserved
Written by: Clinton Douglas IV
Vasrue
http://www.Vasrue.com
Finding People
As your business grows, so does your need for support staff.
Whether that's professional project management, accounting, call
center or distribution support, these new employees should align
with your core business values and objectives.
Before you recruit employees, define your business vision and
mission. Identify your ideal business culture. Do you support an
open-door policy or a more formal structure? Do you want a casual
atmosphere or conservative team? Are you looking for progressive
or diversified employees? Hire right the first time to ensure
long-term loyalty and minimal turn-over.
When you're first starting out, it's more financially feasible
to outsource work. For instance web and graphic design,
programming and IT, copy writing, legal and
accounting/CPA/payroll are common services businesses outsource
both at the outset and into establishment. Outsourcing eliminates
payroll, annual salary increase, unemployment, insurance and
retirement benefit, equipment and space expenses while offering
improved experience and expertise. You gain the advantage of
using services without a costly long-term commitment should your
business slow.
Other alternatives include temporary staffing centers or employee
leasing. Cash-strapped start-ups can even hiring paid or unpaid
interns. Temporary staffing gives you immediate access,
experienced personnel, lower training requirements and overtime
fees plus reduced turnover. When your needs extend beyond six
months, hire your new temp as a permanent employee, or recruit a
long-term, permanent candidate.
When its in your best interest to expand your team, talk with
friends, professional associates, customers, vendors, colleagues
and others in your personal and professional network to get
recommendations. You can also contact college, trade, vocational
or high school placement offices and the local employment agency
to find candidates. Trade or industry publications offer targeted
advertising, while online job websites and newspaper
advertisements are a more traditional and broad-reaching option.
Once you have a loyal and established employee base, save money
on recruiting by implementing an employee referral program. These
programs give employees cash bonuses for referrals resulting in a
hire. You should also establish a competitive employee retention
plan to sustain qualified workers, keep your recruiting expenses
low and productivity high.
Planning and Building Your Online Storefront
Organization is key to making sales and offering a pleasant
shopping experience. Your customer is busy and wants to
accomplish tasks quickly with minimal frustration. They also want
to find a clean and pleasing atmosphere, layout and design. Once
you intrigue your visitor with your main landing page, your goal
is to keep them there with simple navigation and fast check-out.
Jacob Nielsen, Ph.D., a leading website usability authority, User
Advocate and principal of the Nielsen Group, explains: "The
first law of e-commerce is that if users cannot find the product,
they cannot buy it either." Your website is basically just an
electronic catalog with a bit more technology. Use design, copy,
multimedia and photographs that inform your visitor and help them
buy your products. In studies, researchers found that nearly half
of all sales are lost because visitors simply cannot use the
site. Multiply this by the repeat business lost from the same
customers and your numbers grow exponentially.
While many businesses strive to be unique, websites should use
the standard navigation structure and labels of major brands.
Pioneering Internet firms like Amazon have set the standard in
customers' minds, making it intuitive to visit links like:
* Your Account
* Shopping Cart
* About Us
* Contact Us
* Help
* Search
* Press
* Careers
Before contacting a website designer, analyze your products and
audience carefully. Outline your navigation structure ensuring it
takes few clicks to reach your intended objective - a sale. Know
the expectations and experience level of your user. For instance,
teenagers will be more fluent with computers and the Internet in
general, though they may also be less sophisticated in reading or
research strategies and have a lower patience threshold. They'll
further need clever graphics and innovations to keep their
interest.
Jacob Nielsen offers ten important website usability guidelines.
These are:
Make the Site's Purpose Clear: Explain Who You Are and What You
Do
1. Include a One-Sentence Tagline
2. Write a Window Title with Good Visibility in Search Engines
and Bookmark Lists
3. Group all Corporate Information in One Distinct Area
Help Users Find What They Need
4. Emphasize the Site's Top High-Priority Tasks
5. Include a Search Input Box
Reveal Site Content
6. Show Examples of Real Site Content
7. Begin Link Names with the Most Important Keyword
8. Offer Easy Access to Recent Homepage Features
Use Visual Design to Enhance, not Define, Interaction Design
9. Don't Over-Format Critical Content, Such as Navigation Areas
10. Use Meaningful Graphics
Send your planned navigation outline to your website designer.
Then, once your website's developed, gather a test group of
about 10 people. Let each person run through various tasks on
your website without offering help or guidance. Take notes on
areas of confusion and make adjustments. If you have heavy
traffic, phase in changes gradually to minimize confusion. We've
all gone to the grocery store right after a reorganization, only
to become even more frustrated when we can't locate the Lays or
light bulbs. People get used to the way things are, good or
bad.
(Author's Note - If you have missed any article in this five-part
series, you can find the missing articles here:
http://www.thephantomwriters. )com/recent/ author/clinton- douglas-iv. html
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Home Business: http://www.clintondouglasiv. com
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30 Days Starting From Scratch" By Sending a Blank Email ==>
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- 5.
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Corruption and Transparency
Posted by: "Sam Vaknin author of "Malignant Self Love" palma@unet.com.mk vaksam
Wed Feb 6, 2008 3:57 am (PST)
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Corruption and Transparency
By Sam Vaknin
Author of "Malignant Self Love - Narcissism Revisited"
I. The Facts
Just days before a much-awaited donor conference, the influential
International Crisis Group (ICG) recommended to place all funds pledged to
Macedonia under the oversight of a "corruption advisor" appointed by the
European Commission. The donors ignored this and other recommendations. To
appease the critics, the affable Attorney General of Macedonia charged a
former Minister of Defense with abuse of duty for allegedly having channeled
millions of DM to his relatives during the recent civil war. Macedonia has
belatedly passed an anti-money laundering law recently - but failed, yet
again, to adopt strict anti-corruption legislation.
In Albania, the Chairman of the Albanian Socialist Party, Fatos Nano, was
accused by Albanian media of laundering $1 billion through the Albanian
government. Pavel Borodin, the former chief of Kremlin Property, decided not
appeal his money laundering conviction in a Swiss court. The Slovak daily
"Sme" described in scathing detail the newly acquired wealth and lavish
lifestyles of formerly impoverished HZDS politicians. Some of them now
reside in refurbished castles. Others have swimming pools replete with wine
bars.
Pavlo Lazarenko, a former Ukrainian prime minister, is detained in San
Francisco on money laundering charges. His defense team accuses the US
authorities of "selective prosecution".
They are quoted by Radio Free Europe as saying:
"The impetus for this prosecution comes from allegations made by the Kuchma
regime, which itself is corrupt and dedicated to using undemocratic and
repressive methods to stifle political opposition ... (other Ukrainian
officials) including Kuchma himself and his closest associates, have
committed conduct similar to that with which Lazarenko is charged but have
not been prosecuted by the U.S. government".
The UNDP estimated, in 1997, that, even in rich, industrialized, countries,
15% of all firms had to pay bribes. The figure rises to 40% in Asia and 60%
in Russia.
Corruption is rife and all pervasive, though many allegations are nothing
but political mud-slinging. Luckily, in countries like Macedonia, it is
confined to its rapacious elites: its politicians, managers, university
professors, medical doctors, judges, journalists, and top bureaucrats. The
police and customs are hopelessly compromised. Yet, one rarely comes across
graft and venality in daily life. There are no false detentions (as in
Russia), spurious traffic tickets (as in Latin America), or widespread
stealthy payments for public goods and services (as in Africa).
It is widely accepted that corruption retards growth by deterring foreign
investment and encouraging brain drain. It leads to the misallocation of
economic resources and distorts competition. It depletes the affected
country's endowments - both natural and acquired. It demolishes the tenuous
trust between citizen and state. It casts civil and government institutions
in doubt, tarnishes the entire political class, and, thus, endangers the
democratic system and the rule of law, property rights included.
This is why both governments and business show a growing commitment to
tackling it. According to Transparency International's "Global Corruption
Report 2001", corruption has been successfully contained in private banking
and the diamond trade, for instance.
Hence also the involvement of the World Bank and the IMF in fighting
corruption. Both institutions are increasingly concerned with poverty
reduction through economic growth and development. The World Bank estimates
that corruption reduces the growth rate of an affected country by 0.5 to 1
percent annually. Graft amounts to an increase in the marginal tax rate and
has pernicious effects on inward investment as well.
The World Bank has appointed last year a Director of Institutional
Integrity - a new department that combines the Anti-Corruption and Fraud
Investigations Unit and the Office of Business Ethics and Integrity. The
Bank helps countries to fight corruption by providing them with technical
assistance, educational programs, and lending.
Anti-corruption projects are an integral part of every Country Assistance
Strategy (CAS). The Bank also supports international efforts to reduce
corruption by sponsoring conferences and the exchange of information. It
collaborates closely with Transparency International, for instance.
At the request of member-governments (such as Bosnia-Herzegovina and
Romania) it has prepared detailed country corruption surveys covering both
the public and the private sectors. Together with the EBRD, it publishes a
corruption survey of 3000 firms in 22 transition countries (BEEPS - Business
Environment and Enterprise Performance Survey). It has even set up a
multilingual hotline for whistleblowers.
The IMF made corruption an integral part of its country evaluation process.
It suspended arrangements with endemically corrupt recipients of IMF
financing. Since 1997, it has introduced policies regarding misreporting,
abuse of IMF funds, monitoring the use of debt relief for poverty reduction,
data dissemination, legal and judicial reform, fiscal and monetary
transparency, and even internal governance (e.g., financial disclosure by
staff members).
Yet, no one seems to agree on a universal definition of corruption. What
amounts to venality in one culture (Sweden) is considered no more than
hospitality, or an expression of gratitude, in another (France, or Italy).
Corruption is discussed freely and forgivingly in one place - but concealed
shamefully in another. Corruption, like other crimes, is probably seriously
under-reported and under-penalized.
Moreover, bribing officials is often the unstated policy of multinationals,
foreign investors, and expatriates. Many of them believe that it is
inevitable if one is to expedite matters or secure a beneficial outcome.
Rich world governments turn a blind eye, even where laws against such
practices are extant and strict.
In his address to the Inter-American Development Bank on March 14, President
Bush promised to "reward nations that root out corruption" within the
framework of the Millennium Challenge Account initiative. The USA has
pioneered global anti-corruption campaigns and is a signatory to the 1996
IAS Inter-American Convention against Corruption, the Council of Europe's
Criminal Law Convention on Corruption, and the OECD's 1997 anti-bribery
convention. The USA has had a comprehensive "Foreign Corrupt Practices Act"
since 1977.
The Act applies to all American firms, to all firms - including foreign
ones - traded in an American stock exchange, and to bribery on American
territory by foreign and American firms alike. It outlaws the payment of
bribes to foreign officials, political parties, party officials, and
political candidates in foreign countries. A similar law has now been
adopted by Britain.
Yet, "The Economist" reports that the American SEC has brought only three
cases against listed companies until 1997. The US Department of Justice
brought another 30 cases. Britain has persecuted successfully only one of
its officials for overseas bribery since 1889. In the Netherlands bribery is
tax deductible. Transparency International now publishes a name and shame
Bribery Payers Index to complement its 91-country strong Corruption
Perceptions Index.
Many rich world corporations and wealthy individuals make use of off-shore
havens or "special purpose entities" to launder money, make illicit
payments, avoid or evade taxes, and conceal assets or liabilities. According
to Swiss authorities, more than $40 billion are held by Russians in its
banking system alone. The figure may be 5 to 10 times higher in the tax
havens of the United Kingdom.
In a survey it conducted last month of 82 companies in which it invests,
"Friends, Ivory, and Sime" found that only a quarter had clear
anti-corruption management and accountability systems in place.
Tellingly only 35 countries signed the 1997 OECD "Convention on Combating
Bribery of Foreign Public Officials in International Business
Transactions" - including four non-OECD members: Chile, Argentina, Bulgaria,
and Brazil. The convention has been in force since February 1999 and is only
one of many OECD anti-corruption drives, among which are SIGMA (Support for
Improvement in Governance and Management in Central and Eastern European
countries), ACN (Anti-Corruption Network for Transition Economies in
Europe), and FATF (the Financial Action Task Force on Money Laundering).
Moreover, The moral authority of those who preach against corruption in poor
countries - the officials of the IMF, the World Bank, the EU, the OECD - is
strained by their ostentatious lifestyle, conspicuous consumption, and
"pragmatic" morality.
II. What to Do? What is Being Done?
Two years ago, I proposed a taxonomy of corruption, venality, and graft. I
suggested this cumulative definition:
1.. The withholding of a service, information, or goods that, by law, and
by right, should have been provided or divulged.
2.. The provision of a service, information, or goods that, by law, and by
right, should not have been provided or divulged.
3.. That the withholding or the provision of said service, information, or
goods are in the power of the withholder or the provider to withhold or to
provide AND That the withholding or the provision of said service,
information, or goods constitute an integral and substantial part of the
authority or the function of the withholder or the provider.
4.. That the service, information, or goods that are provided or divulged
are provided or divulged against a benefit or the promise of a benefit from
the recipient and as a result of the receipt of this specific benefit or the
promise to receive such benefit.
5.. That the service, information, or goods that are withheld are withheld
because no benefit was provided or promised by the recipient.
There is also what the World Bank calls "State Capture" defined thus:
"The actions of individuals, groups, or firms, both in the public and
private sectors, to influence the formation of laws, regulations, decrees,
and other government policies to their own advantage as a result of the
illicit and non-transparent provision of private benefits to public
officials."
We can classify corrupt and venal behaviors according to their outcomes:
1.. Income Supplement - Corrupt actions whose sole outcome is the
supplementing of the income of the provider without affecting the "real
world" in any manner.
2.. Acceleration or Facilitation Fees - Corrupt practices whose sole
outcome is to accelerate or facilitate decision making, the provision of
goods and services or the divulging of information.
3.. Decision Altering (State Capture) Fees - Bribes and promises of bribes
which alter decisions or affect them, or which affect the formation of
policies, laws, regulations, or decrees beneficial to the bribing entity or
person.
4.. Information Altering Fees - Backhanders and bribes that subvert the
flow of true and complete information within a society or an economic unit
(for instance, by selling professional diplomas, certificates, or permits).
5.. Reallocation Fees - Benefits paid (mainly to politicians and political
decision makers) in order to affect the allocation of economic resources and
material wealth or the rights thereto. Concessions, licenses, permits,
assets privatized, tenders awarded are all subject to reallocation fees.
To eradicate corruption, one must tackle both giver and taker.
History shows that all effective programs shared these common elements:
1.. The persecution of corrupt, high-profile, public figures,
multinationals, and institutions (domestic and foreign). This demonstrates
that no one is above the law and that crime does not pay.
2.. The conditioning of international aid, credits, and investments on a
monitored reduction in corruption levels. The structural roots of corruption
should be tackled rather than merely its symptoms.
3.. The institution of incentives to avoid corruption, such as a higher
pay, the fostering of civic pride, "good behavior" bonuses, alternative
income and pension plans, and so on.
4.. In many new countries (in Asia, Africa, and Eastern Europe) the very
concepts of "private" versus "public" property are fuzzy and impermissible
behaviors are not clearly demarcated. Massive investments in education of
the public and of state officials are required.
5.. Liberalization and deregulation of the economy. Abolition of red tape,
licensing, protectionism, capital controls, monopolies, discretionary,
non-public, procurement. Greater access to information and a public debate
intended to foster a "stakeholder society".
6.. Strengthening of institutions: the police, the customs, the courts,
the government, its agencies, the tax authorities - under time limited
foreign management and supervision.
Awareness to corruption and graft is growing - though it mostly results in
lip service. The Global Coalition for Africa adopted anti-corruption
guidelines in 1999. The otherwise opaque Asia Pacific Economic Cooperation
(APEC) forum is now championing transparency and good governance. The UN is
promoting its pet convention against corruption.
The G-8 asked its Lyon Group of senior experts on transnational crime to
recommend ways to fight corruption related to large money flows and money
laundering. The USA and the Netherlands hosted global forums on corruption -
as will South Korea next year. The OSCE is rumored to respond with its own
initiative, in collaboration with the US Congressional Helsinki Commission.
The south-eastern Europe Stability Pact sports its own Stability Pact
Anti-corruption Initiative (SPAI). It held its first conference in September
2001 in Croatia. More than 1200 delegates participated in the 10th
International Anti-Corruption Conference in Prague last year. The conference
was attended by the Czech prime minister, the Mexican president, and the
head of the Interpol.
The most potent remedy against corruption is sunshine - free, accessible,
and available information disseminated and probed by an active opposition,
uncompromised press, and assertive civic organizations and NGO's. In the
absence of these, the fight against official avarice and criminality is
doomed to failure. With them, it stands a chance.
Corruption can never be entirely eliminated - but it can be restrained and
its effects confined. The cooperation of good people with trustworthy
institutions is indispensable. Corruption can be defeated only from the
inside, though with plenty of outside help. It is a process of
self-redemption and self-transformation. It is the real transition.
III. Asset Confiscation and Asset Forfeiture
The abuse of asset confiscation and forfeiture statutes by governments, law
enforcement agencies, and political appointees and cronies throughout the
world is well-documented. In many developing countries and countries in
transition, assets confiscated from real and alleged criminals and tax
evaders are sold in fake auctions to party hacks, cronies, police officers,
tax inspectors, and relatives of prominent politicians at bargain basement
prices.
That the assets of suspects in grave crimes and corruption should be frozen
or "disrupted" until they are convicted or exonerated by the courts - having
exhausted their appeals - is understandable and in accordance with the
Vienna Convention. But there is no justification for the seizure and sale of
property otherwise.
In Switzerland, financial institutions are obliged to automatically freeze
suspect transactions for a period of five days, subject to the review of an
investigative judge. In France, the Financial Intelligence Unit can freeze
funds involved in a reported suspicious transaction by administrative fiat.
In both jurisdictions, the fast track freezing of assets has proven to be a
more than adequate measure to cope with organized crime and venality.
The presumption of innocence must fully apply and due process upheld to
prevent self-enrichment and corrupt dealings with confiscated property,
including the unethical and unseemly use of the proceeds from the sale of
forfeited assets to close gaping holes in strained state and municipal
budgets.
In the United States, according to The Civil Asset Forfeiture Reform Act of
2000 (HR 1658), the assets of suspects under investigation and of criminals
convicted of a variety of more than 400 minor and major offenses (from
soliciting a prostitute to gambling and from narcotics charges to corruption
and tax evasion) are often confiscated and forfeited ("in personam, or
value-based confiscation").
Technically and theoretically, assets can be impounded or forfeited and
disposed of even in hitherto minor Federal civil offenses (mistakes in
fulfilling Medicare or tax return forms)
The UK's Assets Recovery Agency (ARA) that is in charge of enforcing the
Proceeds of Crime Act 2002, had this chilling statement to make on May 24,
2007:
"We are pursuing the assets of those involved in a wide range of crime
including drug dealing, people trafficking, fraud, extortion, smuggling,
control of prostitution, counterfeiting, benefit fraud, tax evasion and
environmental crimes such as illegal dumping of waste and illegal fishing."
(!)
Drug dealing and illegal fishing in the same sentence.
The British firm Bentley-Jennison, who provide Forensic Accounting Services,
add:
"In some cases the defendants will even have their assets seized at the
start of an investigation, before any charges have been considered. In many
cases the authorities will assume that all of the assets held by the
defendant are illegally obtained as he has a "criminal lifestyle". It is
then down to the defendant to prove otherwise. If the defendant is judged to
have a criminal lifestyle then it will be assumed that physical assets, such
as properties and motor vehicles, have been acquired through the use of
criminal funds and it will be necessary to present evidence to contradict
this.
The defendant's bank accounts will also be scanned for evidence of spending
and any expenditure on unidentified assets (and in some cases identified
assets) is also likely to be included as alleged criminal benefit. This
often leads to the inclusion of sums from legitimate sources and double
counting both of which need to be eliminated."
Under the influence of the post-September 11 United States and the FATF
(Financial Action Task Force on Money Laundering), Canada, Australia, the
United Kingdom, Greece, South Korea, and Russia have similar asset recovery
and money laundering laws in place.
International treaties (for instance, the 1959 European Convention on Mutual
Legal Assistance in Criminal Matters, the 1990 Convention of the Council of
Europe on Laundering, Search, Seizure and Confiscation of the Proceeds from
Crime (ETS 141), and The U.N. Convention against Corruption 2003- UNCAC) and
European Union Directives (e.g., 2001/97/EC) allow the seizure and
confiscation of the assets and "unexplained wealth" of criminals and
suspects globally, even if their alleged or proven crime does not constitute
an offense where they own property or have bank accounts.
This abrogation of the principle of dual criminality sometimes leads to
serious violations of human and civil rights. Hitler could have used it to
ask the United Kingdom's Assets Recovery Agency (ARA) to confiscate the
property of refugee Jews who committed "crimes" by infringing on the
infamous Nuremberg race laws.
Only offshore tax havens, such as Andorra, Antigua, Aruba, the British
Virgin Islands, Guernsey, Monaco, the Netherlands Antilles, Samoa, St.
Vincent, the US Virgin Islands, and Vanuatu still resist the pressure to
join in the efforts to trace and seize suspects' assets and bank accounts in
the absence of a conviction or even charges.
Even worse, unlike in other criminal proceedings, the burden of proof is on
the defendant who has to demonstrate that the source of the funds used to
purchase the confiscated or forfeited assets is legal. When the defendant
fails to furnish such evidence conclusively and convincingly, or if he has
left the United States or had died, the assets are sold at an auction and
the proceeds usually revert to various law enforcement agencies, to the
government's budget, or to good social causes and programs. This is the case
in many countries, including United Kingdom, United States, Germany, France,
Hong Kong, Italy, Denmark, Belgium, Austria, Greece, Ireland, New Zealand,
Singapore and Switzerland.
According to a brief written by Jack Smith, Mark Pieth, and Guillermo Jorge
at the Basel Institute on Governance, International Centre for Asset
Recovery:
"Article 54(1)(c) of the UNCAC recommends that states parties establish
non-criminal systems of confiscation, which have several advantages for
recovery actions: the standard of evidence is lower ("preponderance of the
evidence" rather than "beyond a reasonable doubt"); they are not subject to
some of the more restrictive traditional safeguards of international
cooperation such as the offense for which the defendant is accused has to be
a crime in the receiving state (dual criminality); and it opens more formal
avenues for negotiation and settlements. This is already the practice in
some jurisdictions such as the US, Ireland, the UK, Italy, Colombia,
Slovenia, and South Africa, as well as some Australian and Canadian States."
In most countries, including the United Kingdom, the United States, Austria,
Germany, Indonesia, Macedonia, and Ireland, assets can be impounded,
confiscated, frozen, forfeited, and even sold prior to and without any
criminal conviction.
In Australia, Austria, Ireland, Hong-Kong, New Zealand, Singapore, United
Kingdom, South Africa, United States and the Netherlands alleged and
suspected criminals, their family members, friends, employees, and partners
can be stripped of their assets even for crimes they have committed in other
countries and even if they have merely made use of revenues obtained from
illicit activities (this is called "in rem, or property-based
confiscation"). This often gives rise to cases of double jeopardy.
Typically, the defendant is notified of the impending forfeiture or
confiscation of his or her assets and has recourse to a hearing within the
relevant law enforcement agency and also to the courts. If he or she can
prove "substantial harm" to life and business, the property may be released
to be used, though ownership is rarely restored.
When the process of asset confiscation or asset forfeiture is initiated,
banking secrecy is automatically lifted and the government indemnifies the
banks for any damage they may suffer for disclosing confidential information
about their clients' accounts.
In many countries from South Korea to Greece, lawyer-client privilege is
largely waived. The same requirements of monitoring of clients' activities
and reporting to the authorities apply to credit and financial institutions,
venture capital firms, tax advisers, accountants, and notaries.
Elsewhere, there are some other worrying developments:
In Bulgaria, the assets of tax evaders have recently begun to be confiscated
and turned over to the National Revenue Agency and the State Receivables
Collection Agency. Property is confiscated even when the tax assessment is
disputed in the courts. The Agency cannot, however, confiscate
single-dwelling houses, bank accounts up to 250 leva of one member of the
family, salary or pension up to 250 leva a month, social care, and alimony,
support money or allowances.
Venezuela has recently reformed its Organic Tax Code to allow for:
" (P)re-judgment enforcement measures (to) include closure of premises for
up to ten days and confiscation of merchandise. These measures will be
applied in addition to the attachment or sequestration of personal property
and the prohibition against alienation or encumbrance of realty. During
closure of premises, the employer must continue to pay workers, thereby
avoiding an appeal for constitutional protection."
Finally, in many states in the United States, "community responsibility"
statutes require of owners of legal businesses to "abate crime" by openly
fighting it themselves. If they fail to tackle the criminals in their
neighborhood, the police can seize and sell their property, including their
apartments and cars. The proceeds from such sales accrue to the local
municipality.
In New-York City, the police confiscated a restaurant because one of its
regular patrons was an alleged drug dealer. In Alabama, police seized the
home of a senior citizen because her yard was used, without her consent, for
drug dealing. In Maryland, the police confiscated a family's home and
converted it into a retreat for its officers, having mailed one of the
occupants a package of marijuana.
Note - The Psychology of Corruption
Most politicians bend the laws of the land and steal money or solicit bribes
because they need the funds to support networks of patronage. Others do it
in order to reward their nearest and dearest or to maintain a lavish
lifestyle when their political lives are over.
But these mundane reasons fail to explain why some officeholders go on a
rampage and binge on endless quantities of lucre. All rationales crumble in
the face of a Mobutu Sese Seko or a Saddam Hussein or a Ferdinand Marcos who
absconded with billions of US dollars from the coffers of Zaire, Iraq, and
the Philippines, respectively.
These inconceivable dollops of hard cash and valuables often remain stashed
and untouched, moldering in bank accounts and safes in Western banks. They
serve no purpose, either political or economic. But they do fulfill a
psychological need. These hoards are not the megalomaniacal equivalents of
savings accounts. Rather they are of the nature of compulsive collections.
Erstwhile president of Sierra Leone, Momoh, amassed hundreds of video
players and other consumer goods in vast rooms in his mansion. As
electricity supply was intermittent at best, his was a curious choice. He
used to sit among these relics of his cupidity, fondling and counting them
insatiably.
While Momoh relished things with shiny buttons, people like Sese Seko,
Hussein, and Marcos drooled over money. The ever-heightening mountains of
greenbacks in their vaults soothed them, filled them with confidence,
regulated their sense of self-worth, and served as a love substitute. The
balances in their bulging bank accounts were of no practical import or
intent. They merely catered to their psychopathology.
These politicos were not only crooks but also kleptomaniacs. They could no
more stop thieving than Hitler could stop murdering. Venality was an
integral part of their psychological makeup.
Kleptomania is about acting out. It is a compensatory act. Politics is a
drab, uninspiring, unintelligent, and, often humiliating business. It is
also risky and rather arbitrary. It involves enormous stress and unceasing
conflict. Politicians with mental health disorders (for instance,
narcissists or psychopaths) react by decompensation. They rob the state and
coerce businessmen to grease their palms because it makes them feel better,
it helps them to repress their mounting fears and frustrations, and to
restore their psychodynamic equilibrium. These politicians and bureaucrats
"let off steam" by looting.
Kleptomaniacs fail to resist or control the impulse to steal, even if they
have no use for the booty. According to the Diagnostic and Statistical
Manual IV-TR (2000), the bible of psychiatry, kleptomaniacs feel "pleasure,
gratification, or relief when committing the theft." The good book proceeds
to say that " ... (T)he individual may hoard the stolen objects ...".
As most kleptomaniac politicians are also psychopaths, they rarely feel
remorse or fear the consequences of their misdeeds. But this only makes them
more culpable and dangerous.
===================== ========= ========= ========= ========= =====
AUTHOR BIO (must be included with the article)
Sam Vaknin ( http://samvak.tripod.com ) is the author of Malignant Self
Love - Narcissism Revisited and After the Rain - How the West Lost the East.
He served as a columnist for Global Politician, Central Europe Review,
PopMatters, Bellaonline, and eBookWeb, a United Press International (UPI)
Senior Business Correspondent, and the editor of mental health and Central
East Europe categories in The Open Directory and Suite101.
Visit Sam's Web site at http://samvak.tripod.com
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