Last week we covered the latest Corruption Perceptions Index and Trust Barometer. This week, we kick off with the Economist Democracy Index. The results aren’t pretty – just 8.4% of the world’s population live in a “full democracy” while more than a third live under authoritarian rule. Norway tops the list.

Uganda is ranked 98 in the Index – categorized as a “hybrid regime,” and the recent election will have done little to bolster credentials. So, perhaps no surprise again that President Museveni has ordered the suspension of an European-backed fund for governance. The group, which supports rights watchdogs, anti-corruption agencies, and even journalists doing investigative work, is now labeled a tool of foreign influence.

Perhaps no surprise that the U.S. now falls in the “flawed democracy” ranks. Fuel for Ted Piccone to urge the Biden Administration to make headway on the “essential work of accountability” at home before convening any Democracy Summit with other countries. Time for steps to restore “rule of law principles and practices.”

Of course, reputation rebuilding extends to U.S. foreign aid. Charles Kenny offers four ideas for Samantha Power as she takes over at USAID, and one, in particular, caught our eye: “Providing support to civil society to strike down laws that enforce discrimination on the grounds of gender, sexual orientation or religious belief worldwide.”

Meanwhile, approximately 100 days after the #EndSARS protest in Nigeria, investigative reporter Fisayo Soyombo uncovers details of the massacre at Lekki toll gate in a three-part investigative report despite cover-up attempts. Lynsey Chutel asks if there will be accountability or more impunity for the police involved. All signs point to the latter.

U.S. Senators Mark Warner and Mike Rounds explain how the recent U.S. ban on anonymous shell companies “will take a hammer-blow” to Beijing’s purported use of shell structures to channel illicit funds and enable its influence. Yet, changes within China may prove more significant. Chinese authorities' domestic anti-corruption campaign is well documented (including its politicization), but toughness may be extending to environmental regulation. A high-level environmental inspection committee has slammed the domestic energy watchdog for neglecting inefficiency, environmental failures, and ideological wavering. Michael Davidson gives context to the report, noting the open rebuke is the surest signal that China's plan will reduce coal mining capacity through 2025.

No shortage of Chinese investment in Southern Africa, but how did the mining sector do in a tough 2020? Southern Africa Resource Watch are here to tell you. One bright spot, more firms are taking up ESG frameworks, including a Mining Local Procurement Reporting Mechanism. One firm reported a 72% increase in procurement within South Africa.

Some of the world’s biggest mining deals continue to cause problems. Last week we noted that magnate Benny Steinmetz got the gift of a temporary reprieve from U.S. sanctions, but he is still fighting to stay out of jail in Israel for corruption in the Simandou deal in Guinea. Meanwhile, the Mongolian government is hoping Rio Tinto will agree to cancel the agreement to expand the giant Oyu Tolgoi copper mine given cost overruns and feared failure to secure local economic benefits.
 
Turning to oil, Nigeria’s Economic and Financial Crimes Commission (EFCC) announced an arrest warrant for the managing director of ExxonMobil Nigeria for failure to appear before investigators. The EFCC is investigating potential procurement fraud worth over $213 million in a pipeline project.

Returning to South Africa. A new study shows that introduction of a wealth tax could raise $10.7 billion. When the top 1% own 55% of all personal wealth in the country, one can imagine the pressures builds for such measures.

No mention of wealth taxes or equity in Mark Plant and W. Gyude Moore’s recap of African tax experts discussing mobilizing revenue amid COVID. However, encouraging to see recognition of the need to focus reform on the politics of tax and taking on entrenched interests.  

A boost to global momentum for tax transparency this week as Norway’s wealth fund confirmed it had ditched investments over company failures to meet tax transparency demands. Can other pension funds follow? A pleasant surprise, too, that several Norwegian lawmakers nominated the Global Alliance for Tax Justice and the International Consortium of Investigative Journalists for a Nobel Peace Prize for their work in exposing and tackling illicit financial flows.