Diagnosing Corruption in Ethiopia: Perceptions, Realities, and the Way Forward for Key Sectors

by World Bank

Overview

For decades, corruption in Ethiopia has only been discussed at the margins. Perhaps because many have not experienced corruption as a significant constraint to their lives and businesses, or perhaps because a culture of circumspection has dampened open dialogue, Ethiopia has neither seen the information flows nor the debate on corruption that most other countries have seen in recent years. This study attempts to fill this information gap. Conducted by the World Bank (with financial support from the UK, the Netherlands and Canada) in conjunction with the Federal Ethics and Anti-Corruption Commission of Ethiopia (FEACC), the study is an independent overview of corruption. It attempts to map the nature of corruption in eight sectors in the country. The studies focuses on three key objectives: (i) to develop sector frameworks that enable mapping of the potential areas of corruption on a sector-by-sector basis; (ii) to map the different forms, and types of corrupt practices in the selected sectors; and (iii) to consider the higher risk areas and identify appropriate sector or cross cutting responses for Government and other stakeholders. The sectors covered are health, education, water, justice, construction, land, telecommunications and mining. In designing the methodologies for undertaking the diagnostics, the sector experts developed approaches that most suited the sector and stakeholder context. However, a number of universal principles have guided the approach. One commonality in the methodology has been the effort to tap into the perceptions and knowledge of all stakeholders, be they politicians, senior government officials, private sector businessmen, civil society advocates or consumers of services. The diagnostics strongly suggest that, in Ethiopia, corrupt practice in the delivery of basic services is comparatively limited and is potentially much lower than other low-income countries. When viewed together, the findings of the study point towards an emerging pattern in sector level corruption, with interesting variations in the levels of corruption across the sectors studied.

Product Details

ISBN-13:	9780821395318
Publisher:	Bernan Distribution
Publication date:	07/06/2012
Series:	Directions in Development
Pages:	444
Product dimensions:	5.90(w) x 8.80(h) x 1.10(d)

Table of Contents

Foreword xiii

Preface xv

About the Editor and Authors xix

Abbreviations xxiii

Chapter 1 Overview 1

Introduction 1

Unraveling the Issues and Challenges 2

Methodologies for Sector Diagnostics 3

Contributions of this Volume 5

The Overall Picture 12

Note 17

References 17

Chapter 2 Health Sector Corruption in Ethiopia 19

Introduction 19

Context for Analysis 21

Framework for Analysis 29

Extent and Sources of Corruption: Findings 34

Next Steps 54

Notes 62

References 63

Chapter 3 Education Sector Corruption in Ethiopia 67

Introduction 67

Analytical Framework 71

The Education Sector in Ethiopia: An Overview 75

Mapping Corruption in Education in Ethiopia 78

Other Study Findings 107

Summary and Conclusions 113

Recommendations 116

Notes 117

References 118

Chapter 4 Rural Water Supply Corruption in Ethiopia 121

Introduction 121

Corruption in the Water and Sanitation Sector 124

Ethiopia's Water Sector 129

Rural Water Supply Corruption in Ethiopia 134

Summary and Recommendations 164

Annex 4.1 Ethiopian RWS Borehole Study and Perception Survey Results 172

Notes 174

References 177

Chapter 5 Justice Sector Corruption in Ethiopia 181

Introduction 181

The Justice Sector and Corruption Defined 186

Justice Sector Value Chains 194

Ethiopia's Justice Sector: An Overview 194

Corruption and Political Intervention in Ethiopia's Justice Sector 208

Conclusions on Justice Sector Corruption in Ethiopia 224

Recommendations 226

Notes 230

References 233

Chapter 6 Construction Sector Corruption in Ethiopia 237

Introduction 237

Corruption in Construction 241

Corruption Risks in Ethiopia's Construction Sector 246

Assessment of Corruption Risk in Ethiopia's Construction Sector 258

Perceived Lack of Effective Competition in Paris of Ethiopia's Road Sector 267

Conclusions and Recommendations 275

Notes 281

References 283

Chapter 7 Land Sector Corruption in Ethiopia 285

Introduction 285

Corruption in the Land Sector 288

Corruption and Land Governance 295

The Land Sector in Ethiopia 296

Corruption in Ethiopia's Land Sector 299

Mapping Corruption to the Value Chain 304

Recommendations 315

Annex 7.1 Country LGAF Scorecard for Ethiopia 320

Notes 324

References 324

Chapter 8 Corruption in the Telecommunications Sector in Ethiopia: A Preliminary Overview 327

Introduction 327

Corruption in the International Telecommunications Sector 329

The Context: The Ethiopian Telecoms Sector 333

Corruption in the Ethiopian Telecoms Sector 343

Procurement of Equipment Suppliers: The 2006 Vendor Financing and Supply Agreement 346

Current Anticorruption Mechanisms for Ethiopia's Telecoms Sector 353

Recommendations 367

Concluding Remarks 372

Notes 373

References 374

Chapter 9 Corruption in the Mining Sector: Preliminary Overview 377

Introduction 377

Corruption in the International Mining Sector 380

Overview of the Ethiopian Mining Sector 384

The Legislative and Institutional Framework for Mining in Ethiopia 385

Corruption Risk in the Ethiopian Mining Sector 390

General Recommendations 412

Notes 416

References 417

Boxes

4.1 An Uneasy Coexistence of State and Private Drilling? 136

4.2 The Intergovernmental Fiscal Transfer Formula: Dividing Money Fairly among Regions 140

4.3 Contract Design, Tendering, and Procurement: Corruption Risk Examples 146

4.4 The Drillers' Take on Corruption Risk 147

4.5 The Costs of Shallow Well Construction: Where are the Corruption Risks? 152

4.6 Calculating Total Variance in Borehole Construction 156

4.7 Borehole Design and Construction: What Role for Community Oversight? 160

4.8 Proclamation on the Establishment of Rural Water User's Associations 163

6.1 Market Entry Strategies for Chinese Construction Companies in Africa 270

7.1 Land Administration and Management Defined 288

7.2 Land Governance Assessment Framework 294

7.3 Areas of Weak Land Governance in Ethiopia 299

7.4 Urban Land Speculation in Ethiopia 301

7.5 Access to Land in Addis Ababa 302

7.6 Use of Forged Land Documents in the Finance Sector 303

7.7 Key Areas of Land Sector Corruption in Ethiopia 305

7.8 New Process to Allocate Leases in Addis Ababa 318

8.1 Stakeholder Perceptions of Corruption in the Ethiopian Telecoms Sector 351

8.2 General ETC Safeguards Applicable to all Projects 363

9.1 Falsification of Quality: Corruption Investigation by the FEACC 411