The Impact of Financial Corruption on Foreign Investment Development in Arab Countries and Anti-Corruption Tools – Algerian Case as a Model-

Tahir Abassa

Public Law Dept. - Faculty of Law - University of Abdelhamid Ibn Badis - Mostaganem - Algeria

Abstract

Abstract: Corruption affects stability and adequacy of the investment climate, increases the cost of projects and weakens the positive impact of investment incentives for foreign projects, particularly when bribes are required from home owners projects to facilitate acceptance of their projects, or when bribe employees demand a share of the return on investment. In this regard, corruption is a negative tax and hindering investment. Consequently, the fight against corruption is a necessary condition for the security and efficiency of economic activities, and it is also a prerequisite for the establishment of fair competition and the creation of an environment conducive to attract foreign direct investment. Consequently, the Arab countries in general and Algeria in particular must make special efforts based on “ the establishment of an effective system of legal certainty manage foreign investments, “ create an independent national justice specialized in this area “ and “ opening up national markets and foreign trade to the logic of the world market and to the rules of international competition “, in order to provide the conditions for an effective response to the phenomenon of financial corruption. The Algerian authorities having modified and adapted their legal system in recent years in order to fight financial corruption, it is a question of improving the bad image of the business environment and of encouraging investment and attracting capital foreigners. On this basis, I started at the international level by signing and ratifying numerous regional and international agreements related to the fight against corruption, where she signed the African Convention for the prevention and fight against corruption in December 2003, and also initiated the ratification of the United Nations Convention against Corruption in August 2004 and an agreement The United Nations against organized crime in October of the same year and the Arab Convention against corruption for the year 2010. Internally, the promulgation of law n ° 06-01 of February 20, 2006 relating to the prevention and control of corruption is considered as the result of procedures in accordance with Algerian law J is in accordance with the content of the United Nations Convention that l Algeria ratified in 2004, and this law contains 73 articles which contain numerous recommendations to prevent and combat corruption, including the more important is the need to take into account elements of integrity, efficiency and transparency when employing public sector employees, and to compel them to declare their assets, and for the first time in legislation Algerian lawmaker has stipulated the crime of illegal wealth and has approved heavy prison terms and substantial financial fines against any public official who cannot justify and demonstrate substantial increases in financial or property assets compared to its legal income, because the same law provided for the creation of the National Authority to prevent and combat corruption is characterized by recent financial independence and legal personality, and provide the Commission with an annual report to the President of the Republic, including an evaluation of activities related to the prevention of corruption, as well as the fight and the prevention against this scourge and take into account the recommendations proposed, if any, and what led to notorious trials of the heads of corruption in Algeria.

Keywords

Key words: Financial Corruption - Foreign Investment - Corruption Prevention - Anti-Corruption - Illicit Richness - Algeria's Experience.