Corruption In the Oil Industry (Situation in Alaska, UN Oil-for-food Essay

Corruption In the Oil Industry (Situation in Alaska, UN Oil-for-food Program) - Essay Example oil back in December 1996, the Security Council allowed Iraq to deliver a maximum of $4 billion worth of oil each year wherein two-thirds of the profit will be used in the purchase of humanitarian goods and services. (Office of the Iraq Programme Oil-for-Food, 2007b) This value was eventually increased to $10.52 billion a year in 1998. Due to the huge demand for oil globally, the Security Council removed the export limit in December 1999. Despite the huge amount of money that is expected to be collected from this program, the United States Government Accountability Office (GAO) reported that more than $67 billion of oil revenue has accumulated over-the-years but only $31 billion or less than 50% was spent on the humanitarian program in Iraq. (United States Government Accountability Office - Report to Congressional Committees, 2006, p. 2) The Oil-for-Food program has been successful in achieving its main objectives. As of March 2003, a lot of positive improvements with regards to the Iraqi’s socio-economic status were reported to have increased the living status of its local people. (Office of the Iraq Programme Oil-for-Food, 2007b) However, negative issues related to the oil corruption scandals connected to this program have been tremendously debatable for many years. (United States Government Accountability Office - Report to Congressional Committees, 2006; Asman, 2004) In line with the act of removing the export limit of oil under the Oil-for-Food program, the study will examine the major causes and effects of oil corruption; the well-known personalities who are directly and indirectly involved behind the oil corruption scandals; the negative impact of oil corruption to the local people in Iraq; and the strength and weaknesses of Alaska’s regulation on oil corruption. At the end of the study, the researcher will discuss and suggest several ways on how the government of Alaska could prevent and minimize the negative impact of oil corruption among its