The cost of corruption

Corruption is one of the greatest obstacles to the development of safe and adequate infrastructure.  This can have the following consequences:



  • Fewer good roads, schools and hospitals.
  • Poor safety and environmental procedures.
  • People die due to lack of food and healthcare, and dangerous infrastructure.



  • Global cost:
    • Corruption is concealed.  Much corruption is never discovered.  So it is impossible to quantify accurately the cost of corruption.
    • If you estimate the global cost at 5% of the world’s gross product, this would equate to US$1.5 trillion per annum.
    • If you estimate the cost of corruption in the international construction sector at 5% of the global construction sector, this would equate to US$200 billion per annum.
  • National cost:  Corruption in a country results in:
    • Reduced investment
    • Distortion of public expenditure
    • Depletion of public funds
    • Circumvention of safety and environmental safeguards
    • Inadequate infrastructure
    • Slower economic growth
  • Project cost:   Corruption on a project:
    • Increases financing, capital, operating and maintenance costs
    • Produces defective projects
    • Damages project companies:
      • Those which are not corrupt lose work
      • Those which are corrupt risk prosecution, fines and debarment
    • Damages individuals:
      • Those who are not corrupt face extortion and danger
      • Those who are corrupt risk imprisonment, fines and loss of work.


Consequently, it is vital that corruption is stopped.  You can play a role in this.