Construction, Corruption, and Developing Countries
The construction industry accounts for about one-third of gross capital formation. Governments have major roles as clients, regulators, and owners of construction companies. The industry is consistently ranked as one of the most corrupt: large paym...
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/06/7773841/construction-corruption-developing-countries http://hdl.handle.net/10986/7451 |
| Summary: | The construction industry accounts for
about one-third of gross capital formation. Governments have
major roles as clients, regulators, and owners of
construction companies. The industry is consistently ranked
as one of the most corrupt: large payments to gain or alter
contracts and circumvent regulations are common. The impact
of corruption goes beyond bribe payments to poor quality
construction of infrastructure with low economic returns
alongside low funding for maintenance-and this is where the
major impact of corruption is felt. Regulation of the sector
is necessary, but simplicity, transparency, enforcement, and
a focus on the outcomes of poor construction are likely to
have a larger impact than voluminous but poorly enforced
regulation of the construction process. Where government is
the client, attempts to counter corruption need to begin at
the level of planning and budgeting. Output-based and
community-driven approaches show some promise as tools to
reduce corruption. At the same time they will need to be
complimented by a range of other interventions including
publication of procurement documents, independent and
community oversight, physical audit, and public-private
anticorruption partnerships. |
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