Planet Money: The U.S. is the World's Bribery Cop. Is That About to Change?
Released on June 20, 2025
Introduction: The Glencore Scandal and U.S. Bribery Enforcement
The episode opens with the dramatic story of Glencore, one of the world's largest commodity trading companies, and its involvement in bribery to secure oil contracts in the newly independent South Sudan. Host Erica Barris sets the stage by highlighting how Glencore's actions drew the attention of U.S. authorities, leading to significant legal repercussions.
Key Quote:
"So anything that has been extracted, drilled, grown on planet Earth, probably they have their hands into it." — Javier Blass [02:09]
Origins of the Foreign Corrupt Practices Act (FCPA)
The discussion shifts to the historical context of the FCPA, a pivotal U.S. law enacted in 1977 to combat corporate bribery of foreign officials. The origins of the FCPA are traced back to the Watergate scandal, emphasizing the role of Stanley Sporkin, a federal employee whose observations during the hearings highlighted the rampant corruption in corporate America.
Key Quote:
"That whole law started on the basis of my going home in the evening in the early 70s and watching the Watergate hearings." — Stanley Sporkin [07:30]
FCPA Development and International Cooperation
Initially, the FCPA saw minimal enforcement, with only eight cases in its first decade. However, as American companies faced increasing competition from foreign firms that did not adhere to similar anti-corruption standards, the U.S. realized the necessity of stronger enforcement. This led to international cooperation, particularly through the Organization for Economic Cooperation and Development (OECD), culminating in the 1997 anti-bribery treaty signed by 29 nations.
Impact on Companies and the Global Economy
Experts like Rachel Brewster, a Duke Law School professor, explain how bribery was once seen as a mere "grease in the wheels" to expedite business deals, especially in developing countries. However, economic studies revealed that bribery distorted competition, enriched corrupt officials, and ultimately hindered global economic efficiency.
Key Quote:
"Bribery might help an individual company secure a deal, sure. But it did not help a country's economy." — Rachel Brewster [11:27]
Glencore's Bribery Case: A Deep Dive
The narrative returns to Glencore, detailing how the company engaged in widespread bribery across multiple countries, including South Sudan, Venezuela, Brazil, and Nigeria. The U.S. Department of Justice (DOJ) meticulously documented these illicit activities, demonstrating the substantial profits Glencore reaped from their corrupt practices.
Key Quote:
"So it's a rather good investment. I mean, they more than doubled their money." — Javier Blass [23:06]
Despite Glencore's eventual compliance measures and the imposition of over $1.1 billion in fines, the episode underscores the persistent challenges in curbing corporate corruption.
Changes in FCPA Enforcement Under the Trump Administration
A significant turn in the episode addresses the Trump administration's approach to the FCPA. President Trump criticized the FCPA as "crippling American businesses," advocating for a rollback of its stringent enforcement to enhance U.S. competitiveness, especially in critical sectors like mining and the acquisition of essential minerals.
Key Quote:
"The President's foreign policy is inextricably linked with how competitive American companies are abroad." — Executive Order Excerpt [26:03]
Legal expert James Kukios elaborates on this shift, suggesting that the administration's stance is motivated by the need to compete with countries like China, where bribery is not as heavily sanctioned.
Key Quote:
"We need access to those ports, we need access to those critical minerals. If we do not pay bribes like China does, we will lose those things to China." — James Kukios [27:07]
The DOJ's reduction in FCPA investigations, including the early termination of Glencore's compliance monitoring, signals a departure from previous rigorous enforcement practices.
Conclusion: The Future of U.S. Anti-Corruption Leadership
The episode concludes by pondering the implications of the Trump administration's policies on the U.S.'s role as the global enforcer against corporate bribery. With reduced enforcement and a more lenient approach towards FCPA violations, there are concerns that the U.S. may be retreating from its leadership in combating international corruption.
Key Quote:
"We need to be able to fight fire with fire or bribes with bribes." — James Kukios [27:46]
The episode leaves listeners contemplating whether this shift will undermine global anti-corruption efforts and alter the balance of economic power on the international stage.
Notable Contributions:
- Hosts: Amanda Aronczyk and Erica Barris
- Expert Insights: Javier Blass (Bloomberg), Stanley Sporkin (SEC), Rachel Brewster (Duke Law School), James Kukios (Morrison Forrester)
Final Thoughts
"Planet Money" effectively weaves together historical context, expert analysis, and contemporary policy changes to provide a comprehensive look at the U.S.'s role in combating international bribery and how recent administrative shifts may alter this landscape. The episode serves as an essential resource for understanding the intricate interplay between economic policies, corporate behavior, and international relations.