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Measuring and reducing the impact of corruption in infrastructure

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  • Kenny, Charles

Abstract

This paper examines what we can say about the extent and impact of corruption in infrastructure in developing countries using existing evidence. It looks at different approaches to estimating the extent of corruption and reports on the results of such studies. It suggests that there is considerable evidence that most existing perceptions measures appear to be very weak proxies for the actual extent of corruption in the infrastructure sector, largely (but inaccurately) measuring petty rather than grand corruption. Existing survey evidence is more reliable, but limited in extent and still subject to sufficient uncertainty that it should not be used as a tool for differentiating countries in terms of access to infrastructure finance or appropriate policy models. The paper discusses evidence for the relative costs of corruption impacts and suggests that a focus on bribe payments as the indicator of the costs of corruption in infrastructure may be misplaced. It draws some conclusions regarding priorities for infrastructure anti-corruption research and activities in projects, in particular regarding disaggregated and actionable indicators of weak governance and corruption.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4099.

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Date of creation: 01 Dec 2006
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Handle: RePEc:wbk:wbrwps:4099

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Keywords: Corruption&Anitcorruption Law; Public Sector Corruption&Anticorruption Measures; Poverty Monitoring&Analysis; Social Accountability; Government Diagnostic Capacity Building;

This paper has been announced in the following NEP Reports:

References

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  1. Benjamin Olken, 2006. "Corruption perceptions vs. corruption reality," Natural Field Experiments 00318, The Field Experiments Website.
  2. Alejandro Gaviria, 2002. "Assessing the Effects of Corruption and Crime on Firm Performance: Evidence from Latin America," INVESTIGACIÓN ECONÓMICA EN COLOMBIA 001902, FUNDACIÓN PONDO.
  3. Lederman, Daniel & Loayza, Norman & Reis Soares, Rodrigo, 2001. "Accountability and corruption : political institutions matter," Policy Research Working Paper Series 2708, The World Bank.
  4. Benjamin A. Olken, 2005. "Monitoring Corruption: Evidence from a Field Experiment in Indonesia," NBER Working Papers 11753, National Bureau of Economic Research, Inc.
  5. Shantayanan Devarajan & William R. Easterly & Howard Pack, 2002. "Low Investment is Not the Constraint on African Development," Working Papers 13, Center for Global Development.
  6. Estache, A. & Goicoechea, A. & Trujillo, L., 2007. "Utilities reforms and corruption in developing countries," Working Papers 07/07, Department of Economics, City University London.
  7. Knack, Stephen, 2006. "Measuring corruption in Eastern Europe and Central Asia : a critique of the cross-country indicators," Policy Research Working Paper Series 3968, The World Bank.
  8. J. Vernon Henderson & Ari Kuncoro, 2004. "Corruption in Indonesia," NBER Working Papers 10674, National Bureau of Economic Research, Inc.
  9. Reinikka, Ritva & Svensson, Jakob, 2006. "Using Micro-Surveys to Measure and Explain Corruption," World Development, Elsevier, vol. 34(2), pages 359-370, February.
  10. Clarke, George R. G. & Lixin Colin Xu, 2002. "Ownership, competition, and corruption : bribe takers versus bribe payers," Policy Research Working Paper Series 2783, The World Bank.
  11. repec:ese:iserwp:2005-29 is not listed on IDEAS
  12. Dollar, David & Levin, Victoria, 2005. "Sowing and reaping: institutional quality and project outcomes in developing countries," Policy Research Working Paper Series 3524, The World Bank.
  13. Charles Oman & Christiane Arndt, 2006. "Governance Indicators for Development," OECD Development Centre Policy Insights 33, OECD Publishing.
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Citations

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Cited by:
  1. Antonio Estache & L. Wren-Lewis, 2008. "Towards a Theory of Regulation for Developing Countries: Following Laffont's Lead," Working Papers ECARES 2008_018, ULB -- Universite Libre de Bruxelles.
  2. Kenny, Charles, 2009. "Is there an anticorruption agenda in utilities?," Utilities Policy, Elsevier, vol. 17(2), pages 156-165, June.
  3. Gregmar Galinato & Suzette Galinato, 2010. "The Effects of Corruption Control and Political Stability on the Environmental Kuznets Curve of Deforestation-Induced Carbon Dioxide Emissions," Working Papers 2010-9, School of Economic Sciences, Washington State University.
  4. Kenny, Charles, 2007. "Construction, corruption, and developing countries," Policy Research Working Paper Series 4271, The World Bank.
  5. Søreide, Tina, 2009. "Too risk averse to stay honest?: Business corruption, uncertainty and attitudes toward risk," International Review of Law and Economics, Elsevier, vol. 29(4), pages 388-395, December.
  6. Charles Kenny, 2011. " Publishing Construction Contracts as a Tool for Efficiency and Good Governance - Working Paper 272," Working Papers 272, Center for Global Development.

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