Boom—@PowerUSAID announces at #DIA_ZCC she'll create a task force to elevate, strengthen & integrate anticorruption across @USAID, plus a $50 million rapid response effort.

Strong way to sustain last week's anticorruption momentum & stand by Ukraine before Biden-Putin next week.
"President Biden issued a presidential memorandum last week identifying corruption as a core national security priority. This is the first time a US president has ever elevated this issue in this way. whitehouse.gov/briefing-room/…
"The President’s memo recognizes what everyone here knows: Corruption cripples societies, steals from the pockets of tax-paying citizens, breaks down public trust in governing institutions, and undercuts the world's decades-long investments to improve lives across human society.
“But make no mistake: The reason certain leaders and certain individuals are pursuing those that do anticorruption work ... is that corruption is their Achilles' heel. Autocrats and oligarchs cannot concentrate power without concentrating wealth through illicit means.
"So our ability together to identify and expose that behavior needs to be at the heart of our support for democracy around the world.
"That's why anticorruption is the core goal of @USAID’s work in Ukraine, whether that's through programs that support he digitization of public services, that support decentralization … or that supports civil society and media reformers ...
"But I’m pleased to announce today we're going further. In the coming weeks, @USAID will stand up an anticorruption task force that'll elevate, strengthen, & integrate anticorruption work throughout our whole agency, drawing on the knowledge of top internal & external experts ...
"This task force is going to shape our anticorruption commitments. We will conduct a comprehensive review of our programs to identify how our foreign assistance—whether it is for judicial reform or global health programs—can best be put to use to limit and prevent graft.
"And most importantly, this task force is going to establish a rapid response mechanism, so that we can quickly seize on crucial windows of opportunity for democratic and anticorruption reform, the way @HopkoHanna and @dkaleniuk did in 2014.
"President Biden's new budget commits $50 million for this new rapid response effort and we look forward to expanding on these commitments and encouraging other nations to make their own at an upcoming international democracy summit that President Biden himself is going to chair.
"I want everyone in this forum to know the United States stands with you as you bravely work to build a more honest, just, and democratic world.
"I want to thank you for your work. I can only imagine how demoralizing it can be sometimes for each of you, as for every two steps forward it can feel like there's another step back. But please know that you are making a profound difference.
"Your vision of zero corruption in Ukraine and what that will mean concretely for your loved ones, your neighbors, your countrymen, and the inspiration you will give the rest of us, that knowledge will sustain you in the toughest moments and will always win allies to your cause."

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More from @JoshRudes

8 Jun
The key to seeing whether Biden stands up to Putin from a position of strength won't be gleaned from next Wednesday's summit itself.

It'll be whether this next week succeeds at sending Biden into Geneva at the head of a strong, productive, and reunited transatlantic alliance. 🧵
When facing down Putin behind closed doors and standing next to him afterward, it's safe to assume that Biden won't take the Kremlin's side against America's own intelligence community or get duped into signing up for an "impenetrable Cyber Security unit" (whatever that meant).
Rather, the key is whether Biden's engagements w/ allies in England & Belgium start delivering results showing that democracies are more capable than autocracies at meeting challenges and are sufficiently united to stand together against modern threats. Seven questions stand out:
Read 13 tweets
15 Apr
Two new sets of Russia sanctions are reportedly coming today:

1⃣ Designations of 20-30 entities (plus a dozen individuals and 10 PNGs)

2⃣ Executive order barring US financials from buying ruble sovereign debt after June 14

In both cases, the severity depends on the details. 🧵
Bloomberg says the designations hit "about dozen individuals, including gov't/intel officials, and roughly 20 entities ... The US is also expected to expel as many as 10 Russian officials/diplomats." CBS says it's "more than 30 Russian entities" & 10 PNGs. bloomberg.com/news/articles/…
More important than the number is whether the 20-30 entities are obscure and isolated entities that directly perpetrated the malign activity (usually not costly) or Kremlin-tied companies with international supply chains and financing (could be costly). ⬇️
Read 27 tweets
15 Apr
The key to whether this will impose any real costs is whether the ~20 entities were selected because of their direct involvement in malign activity (generally not costly) or because they’re owned by Kremlin-connected oligarchs (can be costly if they have international ties).
Here are four examples of entities that could be costly, although they could also risk being too costly to be sustained (like Rusal), so Treasury, State, and others would have to vet their economic exposures and diplomatic considerations carefully. ⬇️
Major update: WSJ reports that the new Russia sanctions will include sovereign debt. Will have to see the details (like whether new debt can be bought on the open market), but that could be calibrated impose a real and manageable cost, could be a good move.wsj.com/articles/u-s-t…
Read 4 tweets
14 Apr
Thank you @freedomhouse, @CSIS, and @McCainInstitute, for citing our work at @SecureDemocracy on #CovertForeignMoney to explain why elections need defending in your excellent new report on democracy and authoritarianism!
The fact that #CovertForeignMoney is now viewed as a top vector of interference shows how far we've come in seeing the financial threat, like how we realized in 2017-2018 that it wasn't just "hacking" but also social media disinfo. Here's our full report. securingdemocracy.gmfus.org/covert-foreign…
The European Parliament is halfway through an 18-month process of using our research on #CovertForeignMoney as the basis for policy reforms & common EU standards to close all of the loopholes through which foreign donors covertly fund political activities. europarl.europa.eu/meetdocs/2014_…
Read 4 tweets
13 Apr
Solid Russia sanctions options by @AmbDanFried & @brianoftoole, who name 10 companies starting with Gazprom, Rosneft, & VTB.

I'd emphasize a point I learned from Dan & @offspring about escalatory options & activity buckets: You gotta keep 'em separated. 🧵atlanticcouncil.org/blogs/new-atla…
Right now the Kremlin appears to be to be escalating against two victims at once: Ukraine and Navalny. In keeping his options open, Putin may be hoping he will have an opportunity to take out one victim and then avoid severe sanctions by backing down on the other.
The way to disabuse Putin of that notion is to clarify—together with credible signals from allies—that each Kremlin behavior will be treated separately as a standalone matter, and that the West has strong options ready to ratchet up sanctions in response to each situation.
Read 7 tweets
16 Feb
This is a fantastic interview with Gary Kalman, who explains how beneficial ownership reform got done and says the top priority on the US anticorruption agenda is now regulating gatekeepers like lawyers, accountants, real estate agents, private equity, etc.soundcloud.com/kickback-gap/4…
Gary's absolutely right: @USTreasury has the authority to regulate many such sectors, and the easiest place to start is to immediately finalize the rule proposed at the end of the Obama admin. to regulate private equity & hedge funds. It's ready to go! ➡️ fincen.gov/sites/default/…
After that, @USTreasury should revoke the regs pictured below that have been around for two decades granting "temporary exemptions" to ten important sectors, from real estate professionals to sellers of yachts and airplanes.
Read 5 tweets

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