Or borders, such as the illegal trafficking of people, weapons, eer and drugs.‘ International corruption also undercuts good No problem does more to alienate citizens governance and impedes USS. efforts to promote freedom . . Coo, and democracy, end poverty, and combat crime and terror- front oer pio tie leaders amd institutions, ism across the globe.’ and to undermine political stability and Corruption is also bad for business. Corruption is . . anti-competitive, leading to distorted prices and disadvan- cucnamie developinent inan Eneents taging honest businesses that do not pay bribes. It increases corruption among the government, political the cost of doing business globally and inflates the cost of . government contracts in developing countries.6 Corruption party camer, ueges, and bureaucrats. also introduces significant uncertainty into business trans- — USAID Anti-Corruption Strategy actions: Contracts secured through bribery may be legally unenforceable, and paying bribes on one contract often results in corrupt officials making ever-increasing demands.’ Bribery has destructive effects within a business as well, recognized when it passed the FCPA, corruption imposes undermining employee confidence in a company’s manage- enormous costs both at home and abroad, leading to mar- ment and fostering a permissive atmosphere for other kinds ket inefficiencies and instability, sub-standard products, of corporate misconduct, such as employee self-dealing, and an unfair playing field for honest businesses.’* By embezzlement,* financial fraud,? and anti-competitive enacting a strong foreign bribery statute, Congress sought behavior.'° Bribery thus raises the risks of doing business, to minimize these destructive effects and help companies putting a company’s bottom line and reputation in jeop- resist corrupt demands, while addressing the destruc- ardy. Companies that pay bribes to win business ultimately tive foreign policy ramifications of transnational brib- undermin