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Construction, corruption, and developing countries

Author: Charles Kenny; World Bank. Finance, Economics, and Urban Department.
Publisher: [Washington, D.C.] : World Bank, Finance Economics and Urban Dept., [2007]
Series: Policy research working papers, 4271.
Edition/Format:   Print book : International government publication : EnglishView all editions and formats
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  Read more...
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Additional Physical Format: Online version:
Kenny, Charles.
Construction, corruption, and developing countries.
[Washington, D.C.] : World Bank, Finance Economics and Urban Dept., [2007]
(OCoLC)647614001
Material Type: Government publication, International government publication, Internet resource
Document Type: Book, Internet Resource
All Authors / Contributors: Charles Kenny; World Bank. Finance, Economics, and Urban Department.
OCLC Number: 166215861
Notes: "June 2007"--Cover.
Description: 31 pages : illustrations ; 28 cm.
Series Title: Policy research working papers, 4271.
Responsibility: Charles Kenny.

Abstract:

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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