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Overview 13
might be explained by the lack of any significant capital investment, but
the corrupt practices identified in relation to recurrent costs also appear
to be relatively limited. Whereas the standard practices in Kenya,
Nigeria, and Uganda might reveal problems with textbook procurement
and distribution, widespread absenteeism in primary health clinics, or
undercutting in specifications of rural boreholes, in Ethiopia these practices
seem to be under control and subject to either self- or community
regulation.
Old sectors. The studies found a relatively higher risk of corruption in
the “old” investment sectors (such as construction, land, and mining), but
the risk was still not at the levels the sector experts saw in other contexts.
In construction (mostly roads), land, and mining, the studies found that
the trends and risks of corrupt practices typically found elsewhere are
indeed occurring in Ethiopia, albeit to a lesser extent than elsewhere. The
types and levels of corruption identified were often specific to the
Ethiopian context and to flashpoints of change and opportunity.
Nevertheless, in late 2009, risks in the construction, land, and mining sectors
were on an upward trajectory.
New sectors. Finally, a third group of sectors appeared to be set on a
trajectory similar to highly corrupt countries. We have grouped these as
the “new” investment sectors: those where there are new flows of funds,
less history, and fewer stakeholder experiences. They include, for instance,
telecommunications as well as HIV/AIDS and pharmaceuticals. In these
sectors or subsectors, the research identified significant levels of corruption
at the most vulnerable parts of the value chain, raising concerns that
new levels of corruption could take hold in the Ethiopian context.
Overall, similar value chain profiles. The overall “profile” of corruption
along the value chain is not dissimilar for each of these three sectoral
categories. In the basic service sectors, only a few instances of corruption
were identified in policy making and regulation or in planning and budgeting
(at the national level); some instances were noted in management;
more were found in procurement processes; and petty corruption was
found at the point of service delivery.
This profile also describes the risks of corruption in the construction,
land, and mining sectors—albeit with increased risk in policy making and
regulation (market entry in construction, licensing risks in mining) and
significantly higher risks in the procurement and construction stages.