On April 30th, Jeffrey Sachs, Professor of Economics at Columbia, published at Project Syndicate an article about the global economy’s corporate crime. In his text, Sachs stresses that the actual increase of corruption within corporate organizations is mainly related to two factors: 1) the fact that “companies are now multinational, while governments remain national”; and 2) “companies are the major funders of political campaigns, while politicians themselves are often part owners, or at least silent beneficiaries of corporate profits”.
Meanwhile it is clearly evident that Montesquieu’s doctrine of the separation of powers has to be revised, adding a fourth power to the list of executive, legislative and judicial functions of government: the financial power. The question is what can be done against this close connections between politics and the financial sector. Sachs points out on one hand the fact that “the rapid and pervasive flow of information nowadays could act as a kind of deterrent or disinfectant”; and on the other hand that we urgently need a new kind of politician and political campaign, that is not that dependent on the financial sector: “When politicians can emancipate themselves from corporate donations, they will regain the ability to control corporate abuses.”
In this video-interview, which has also been published by Project-Syndicate, Sachs goes deeper into this topic: