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276 Diagnosing Corruption in Ethiopia what many stakeholders view as a lack of effective competition, with Chinese contractors dominating the international market and a limited set of domestic contractors dominating the national market. A preliminary study of unit output costs in these two markets appears to confirm the possibility of restricted competition, though no specific evidence of related corrupt practices was identified. Drivers of Corruption The drivers of corruption in Ethiopia’s construction sector are complex and interrelated but can be grouped into overlapping categories related to deficiencies in accountability, capacity, and trust. Success on a project can be attributed to the combination of these factors: • Capacity makes performance possible by ensuring the availability of sufficient resources, well-defined procedures for the management of those resources, and adequate training to ensure that proficiency is achieved through practice. • Accountability makes performance happen by ensuring that there is adequate transparency to allow for objective assessment of performance against agreed-on performance standards. • Trust makes performance efficient by giving contractors the confidence in the market that allows them to invest in increasing their own capacity. Conversely, deficiencies in accountability, capacity, and trust can serve as drivers of corruption risks. A lack of capacity makes corruption possible, a lack of accountability makes corruption happen, and a lack of trust allows corruption to take root. Figure 6.5 presents nine such drivers of corruption, as identified in this study. The Ethiopian government is already actively engaged, to varying degrees, in addressing most of these drivers. The recent decision to join the pilot phase of the CoST initiative is potentially highly significant as an important, though in itself insufficient, step toward improved accountability in the sector. It will not fully address the growing risk of spreading corruption as spending levels continue to outstrip management capacity.
Figure 6.5 Drivers of Corruption Risks in Ethiopia’s Construction Sector limited access to data on construction contracts no independent professional body in sector weak role of civil society reluctance to share information Accountability • transparency • professional standards • role of civil society Trust • relationship • contracts • communications Capacity • people • procedures • practice unequal contractual relationships vacant posts in civil service, skills shortage in private sector lack of experience in managing and competing within the construction market inconsistant, unclear, or unenforced systems, contracts & procedures reluctance to trust others, sense that some companies have favored status Source: Author’s analysis. 277
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DIRECTIONS IN DEVELOPMENT Public Se
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Diagnosing Corruption in Ethiopia P
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Contents Foreword Preface About the
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Contents vii Chapter 6 Construction
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Contents ix Map 3.1 Ethiopian Regio
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Contents xi 3.6 Summary of Corrupti
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Foreword The government of the Fede
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Preface Although many would argue t
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Preface xvii Goldie-Scot, Piers Cro
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xx About the Editor and Authors bil
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xxii About the Editor and Authors g
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xxiv Abbreviations GAC Governance a
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CHAPTER 1 Overview Janelle Plummer
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Overview 3 Focusing on Ethiopia, th
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Overview 5 for their knowledge of c
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Overview 7 and group discussion wit
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Overview 9 analysis, Goldie-Scot ge
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Overview 11 Chapter 8: Telecommunic
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Overview 13 might be explained by t
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Overview 15 The perceptions of corr
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Overview 17 Given the Ethiopian gov
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20 Diagnosing Corruption in Ethiopi
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44 Figure 2.4 Corruption Vulnerabil
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100 Diagnosing Corruption in Ethiop
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154 Table 4.4 Value chain area Cons
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Annex 4.1 Ethiopian RWS Borehole St
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CHAPTER 5 Justice Sector Corruption
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Justice Sector Corruption in Ethiop
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Table 5.2 Disposition of Civil and
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CHAPTER 9 Corruption in the Mining
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Corruption in the Mining Sector: Pr
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