Corruption Assignment
July 23, 2013
MAYOR’S ARREST DEEPENS CORRUPTION CRISIS IN MONTREAL
Course Section: SOC135BC
Course: Global Economic Issues
Location: Seneca College, Newnham Campus
Program: International Business (Newnham)
Instructor: Nancy Rodrigues
Student: Diana Ho Rodriguez
Student #: 058-196-122
Canada is not untouched by corruption as many of us would like to think. On the morning of Wednesday July 17 the Montreal replacement mayor Michael Applebaum, who recently took office amid a corruption scandal, was arrested in a bribery case. He was picked up at his home Monday by Quebec’s anti-corruption unit as part of a broader investigation into construction deals involving mafia-linked figures and involving a public official who recently committed suicide. Applebaum faces 14 charges including fraud, conspiracy, breach of trust, and corruption in municipal affairs, prompting widespread demands for his resignation. Just seven months ago Applebaum rose to his role by promising to lead Montreal out of its era of corruption. He is now being forced to step down and leave stewardship of the city to its ruling coalition until Montrealers head again to vote in November. Unfortunately for Canada corruption doesn’t stop with this arrest, there is a long list of city mayors who are under suspicion. This only further deepens the distrust and uncertainty of the citizens around the whole country. How does all this affect the economy? Around the world, long-term economic growth is correlated with a lower incidence of corruption. In other words, the more corruption there is the lower economic growth would be, if any at all. Services also suffer as money “leaks” out of a corrupt system and government priorities change. Corruption lowers tax revenues, increases government operating costs, increases government spending for wages and reduces spending on the basic needs of the citizens, like education, social programs and health care. As usual the most affected by
MAYOR’S ARREST DEEPENS CORRUPTION CRISIS IN MONTREAL
Course Section: SOC135BC
Course: Global Economic Issues
Location: Seneca College, Newnham Campus
Program: International Business (Newnham)
Instructor: Nancy Rodrigues
Student: Diana Ho Rodriguez
Student #: 058-196-122
Canada is not untouched by corruption as many of us would like to think. On the morning of Wednesday July 17 the Montreal replacement mayor Michael Applebaum, who recently took office amid a corruption scandal, was arrested in a bribery case. He was picked up at his home Monday by Quebec’s anti-corruption unit as part of a broader investigation into construction deals involving mafia-linked figures and involving a public official who recently committed suicide. Applebaum faces 14 charges including fraud, conspiracy, breach of trust, and corruption in municipal affairs, prompting widespread demands for his resignation. Just seven months ago Applebaum rose to his role by promising to lead Montreal out of its era of corruption. He is now being forced to step down and leave stewardship of the city to its ruling coalition until Montrealers head again to vote in November. Unfortunately for Canada corruption doesn’t stop with this arrest, there is a long list of city mayors who are under suspicion. This only further deepens the distrust and uncertainty of the citizens around the whole country. How does all this affect the economy? Around the world, long-term economic growth is correlated with a lower incidence of corruption. In other words, the more corruption there is the lower economic growth would be, if any at all. Services also suffer as money “leaks” out of a corrupt system and government priorities change. Corruption lowers tax revenues, increases government operating costs, increases government spending for wages and reduces spending on the basic needs of the citizens, like education, social programs and health care. As usual the most affected by