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Complete Book PDF (4.12MB) - World Bank eLibrary

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238 Diagnosing Corruption in Ethiopia<br />

increasing the opportunities for corrupt practices and by strengthening<br />

the drivers of corrupt behavior.<br />

Through the use of structured expert interviews, confidential questionnaires,<br />

behind-closed-doors workshops, document analysis, and site<br />

visits, this preliminary study has started a process of mapping corruption<br />

and perceptions of corruption at each stage of the value chain in parts of<br />

Ethiopia’s construction sector. 1 The approach adopted has recognized<br />

the close relationship that exists between corruption and poor governance.<br />

This, and the resulting focus on perceptions and examples of corruption<br />

in the sector—rather than on hard evidence of specific cases—led<br />

to high levels of interest and participation among most of the stakeholder<br />

groups consulted.<br />

The resulting picture that emerged is complex but plausible. Ethiopia<br />

exhibits most of the classic warning signs of corruption risk, including<br />

instances of poor-quality construction, inflated unit output costs, and<br />

delays in implementation. In turn, these factors appear in some cases to<br />

be driven by unequal or unclear contractual relationships, poor enforcement<br />

of professional standards, high multipliers between public sector<br />

and private sector salaries, wide-ranging discretionary powers exercised<br />

by government, a lack of transparency, and a widespread perception of<br />

hidden barriers to market entry.<br />

Despite such risks, corrupt practices at the operational level appear to<br />

be largely opportunistic and relatively minor, capable of being kept<br />

under control through professionally managed systems and procedures.<br />

However a widespread perception remains of higher-level corruption<br />

within the sector.<br />

Mixed Perceptions<br />

An inconsistent picture emerges from existing information on perceived<br />

levels of corruption in Ethiopia’s construction sector and government<br />

attempts to address the issue. Feedback from international consultants<br />

suggests that, compared with many other developing countries, construction-related<br />

corruption within Ethiopia is relatively low and tends to be<br />

the exception rather than the rule. Such a perspective also tends to highlight<br />

the significant recent advances made by Ethiopia in infrastructure<br />

provision, compared with less-marked progress by other countries where<br />

construction-related corruption is known to be rife. These same international<br />

stakeholders are also inclined to point to the work of the Federal<br />

Ethics and Anti-Corruption Commission (FEACC), which has been bearing<br />

down on corrupt land deals related to construction projects, as evidence<br />

of government commitment to curbing corruption.

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