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Corruption in the Telecommunications Sector in Ethiopia: A Preliminary Overview 345
prevalence or frequency. In cases where a high incidence of low-value corruption
results in a low overall risk rating, the narrative draws attention to this.
Summary of Comparative Assessment of Corruption Risks
In most developing countries, a risk analysis will show that the areas of
telecommunications most prone to corruption are those where large sums
of money are involved or where there is a lack of accountability. High-risk
areas tend to include the issuing of network operating licenses and
appointment of equipment suppliers, followed by awarding and execution
of equipment supply contracts and construction of telecoms facilities and
infrastructure. Corruption in the design of the telecoms network is subject
to higher risk of state capture, but lesser risk in relation to other corrupt
practices. Corruption in other areas, such as theft of equipment and provision
of telecoms services to the public, may occur more frequently but are
more likely to involve small-scale or petty corruption.
There is a considerable inherent challenge in attempting to compare
telecoms sector corruption risks in Ethiopia with those in other countries.
Not only is the nature of Ethiopia’s government unique, but so too is the
institutional nature of its telecoms sector, which is characterized by a
combination of monopolistic service provision and apparently weak
accountability mechanisms.
Nevertheless, some comparison is possible, albeit on a tentative basis,
as figure 8.7 illustrates.
All the factors that make the international telecoms sector prone to
corruption are largely present in the Ethiopian telecoms sector as well. As
Figure 8.7
Indicative Comparative Assessment of Corruption Risks in Ethiopia
corruption risk
1. 2.
licensing a design
3.
supply
4. 5.
delivery construction
and
installation
area of corruption risk
international Ethiopia
6.
theft
7.
service
delivery
a. Risk level in Ethiopia assessed as “none.”