The cost of corruption

Corruption is one of the greatest obstacles to the development of safe and adequate infrastructure.  This can have the following consequences:

 

HUMAN COST:

• Fewer good roads, schools and hospitals.
• Poor safety and environmental procedures.
• People die due to lack of food and healthcare, and dangerous infrastructure.
• CORRUPTION KILLS.

 

ECONOMIC COST:

• Global cost:
  • Corruption is concealed.  Much corruption is never discovered.  So it is impossible to quantify accurately the cost of corruption.
  • If you estimate the global cost at 5% of the world’s gross product, this would equate to US$1.5 trillion per annum.
  • If you estimate the cost of corruption in the international construction sector at 5% of the global construction sector, this would equate to US$200 billion per annum.

• National cost:  Corruption in a country results in:
  • Reduced investment
  • Distortion of public expenditure
  • Depletion of public funds
  • Circumvention of safety and environmental safeguards
  • Inadequate infrastructure
  • Slower economic growth

• Project cost:   Corruption on a project:
  • Increases financing, capital, operating and maintenance costs
  • Produces defective projects
  • Damages project companies:
    • Those which are not corrupt lose work
    • Those which are corrupt risk prosecution, fines and debarment
  • Damages individuals:
    • Those who are not corrupt face extortion and danger
    • Those who are corrupt risk imprisonment, fines and loss of work.

 

Consequently, it is vital that corruption is stopped.  You can play a role in this.