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Diagnosing Corruption in Ethiopia - Ethiomedia

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<strong>Corruption</strong> <strong>in</strong> the Telecommunications Sector <strong>in</strong> <strong>Ethiopia</strong>: A Prelim<strong>in</strong>ary Overview 345<br />

prevalence or frequency. In cases where a high <strong>in</strong>cidence of low-value corruption<br />

results <strong>in</strong> a low overall risk rat<strong>in</strong>g, the narrative draws attention to this.<br />

Summary of Comparative Assessment of <strong>Corruption</strong> Risks<br />

In most develop<strong>in</strong>g countries, a risk analysis will show that the areas of<br />

telecommunications most prone to corruption are those where large sums<br />

of money are <strong>in</strong>volved or where there is a lack of accountability. High-risk<br />

areas tend to <strong>in</strong>clude the issu<strong>in</strong>g of network operat<strong>in</strong>g licenses and<br />

appo<strong>in</strong>tment of equipment suppliers, followed by award<strong>in</strong>g and execution<br />

of equipment supply contracts and construction of telecoms facilities and<br />

<strong>in</strong>frastructure. <strong>Corruption</strong> <strong>in</strong> the design of the telecoms network is subject<br />

to higher risk of state capture, but lesser risk <strong>in</strong> relation to other corrupt<br />

practices. <strong>Corruption</strong> <strong>in</strong> other areas, such as theft of equipment and provision<br />

of telecoms services to the public, may occur more frequently but are<br />

more likely to <strong>in</strong>volve small-scale or petty corruption.<br />

There is a considerable <strong>in</strong>herent challenge <strong>in</strong> attempt<strong>in</strong>g to compare<br />

telecoms sector corruption risks <strong>in</strong> <strong>Ethiopia</strong> with those <strong>in</strong> other countries.<br />

Not only is the nature of <strong>Ethiopia</strong>’s government unique, but so too is the<br />

<strong>in</strong>stitutional nature of its telecoms sector, which is characterized by a<br />

comb<strong>in</strong>ation of monopolistic service provision and apparently weak<br />

accountability mechanisms.<br />

Nevertheless, some comparison is possible, albeit on a tentative basis,<br />

as figure 8.7 illustrates.<br />

All the factors that make the <strong>in</strong>ternational telecoms sector prone to<br />

corruption are largely present <strong>in</strong> the <strong>Ethiopia</strong>n telecoms sector as well. As<br />

Figure 8.7 Indicative Comparative Assessment of <strong>Corruption</strong> Risks <strong>in</strong> <strong>Ethiopia</strong><br />

corruption risk<br />

1.<br />

licens<strong>in</strong>g a<br />

2.<br />

design<br />

a. Risk level <strong>in</strong> <strong>Ethiopia</strong> assessed as “none.”<br />

3.<br />

supply<br />

4. 5.<br />

delivery construction<br />

and<br />

<strong>in</strong>stallation<br />

area of corruption risk<br />

<strong>in</strong>ternational <strong>Ethiopia</strong><br />

6.<br />

theft<br />

7.<br />

service<br />

delivery

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