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Construction Sector Corruption in Ethiopia 239
By contrast, some international media and web-based sources paint a
much less positive picture, identifying the construction sector as being
particularly corrupt and portraying the FEACC to be at best ineffective
and at worst unduly influenced by government. As one extreme of a
broad spectrum of views that may be unduly motivated by political considerations,
such a perspective needs to be viewed with some caution.
However, other more mainstream web-based sources present a view that,
although less extreme, nevertheless includes strong statements about
alleged high levels of corruption. Such a view derives in part from international
contractors who previously worked in Ethiopia but no longer do
so, considering access to the market to be affected by corrupt practices
despite relatively low levels of petty corruption. Taken at face value, these
perspectives would be sufficient to deter some responsible potential new
entrants from trying to compete in the construction market in Ethiopia. 2
The view is widely held that market entry is difficult for newcomers
and that some individuals, companies, or groups of companies enjoy
favored status. Fueling this perception of favoritism is the perceived hidden
influence of the ruling party on the sector, a tendency toward topdown
development planning, and the government’s dominant role as
client, regulator, and upholder of professional standards. Though this
study encountered no evidence of such powers being abused, it was
found that limited competition may be playing a role in driving up unit
output costs.
The polarization of views may be self-reinforcing. Prospective new
entrants to the market may either decide that the risks are too high and
look elsewhere, or alternatively conclude that they have no choice but to
bribe their way into contracts. Both such categories of businesses may
report high levels of corruption, whereas some more-established businesses
may not. By exploring and looking beyond these initial perceptions,
this study represents a modest attempt—in itself only a small
step—to clarify and help address both the perception and the reality of
corruption within the construction sector.
Methodology
The lack of any existing sectoral analysis of corruption in Ethiopia led the
World Bank, with the agreement and cooperation of the FEACC, to commission
this study. It has been conducted in two phases, each of which
comprised about three weeks of in-country consultation. 3 These two
phases are considered as a single study. A simple stakeholder survey
initiated in the first phase was extended in the second phase using an
identical questionnaire. 4