Corruption in Water Costs Billions of Dollars, Hits Poor the Hardest – Global Report

In Africa, $148 billion leaves the continent every year because of corruption.

Shah cited unchecked water pollution and overuse in China and Spain; embezzlement and bid-rigging in large infrastructure development projects in India, Lesotho; embezzlement of water budgets in Paraguay, distorted distribution of water points in Malawi, inflated costs of infrastructure in India; local water mafias control supply in Ecuador and Bangladesh; water jobs awarded through patronage or bribery in Mauritania; bribery and extortion in bill collection, repair works in Kenya and Zimbabwe.

She said that corruption in irrigation contracts makes up to 25 percent of the contract volume in India and there are distorted subsidies where largest farmers collect disproportionate share of earnings in Mexico and US.

Hydropower, said Shah, attracts US $50 to 60 billion annual investments. The report reveals distorted environmental impact assessments in India; embezzlement, bribery, bid-rigging in construction in Argentina and Paraguay; fraud and manipulation in resettlement and compensation programmes in China, Indonesia and Zambia.

To compensate for the losses caused by corruption, TI reports that an additional $45 billion would have to be invested over the next decade in order to reach the Millenium Development Goals, particularly increasing the access to safe water.

Shah identified the fundamental characteristics of corruption in the water sector. These are: public officials have wide discretion and little accountability; lack of checks and balances; weak enforcement mechanisms; the benefits of corruption are greater than the consequences of being caught and disciplined; and, demand for accountability for services is usually missing.

Meyer, of the UNDP, cited the human cost of the water crisis. He said that some 1.8 million children die each year as a result of diarrhea—which is 4,900 deaths a day. This is equivalent to the under-five population in London and New York combined. Deaths for diarrhea in 2004 were about six times greater than the average annual deaths in armed conflict for the 1990s.

He added that 443 million school days each year are lost to water-related illnesses.

Millions of women spend up to four hours a day collecting water. Almost 50 percent of all people in developing countries are suffering at any given time from a health problem caused by water and sanitation deficits, he said.

Meyer said anti-corruption strategies can help guarantee the right to water, ensure access to affordable and safe water services by the poor, help reduce the risks on the environment and provide energy security and help reduce the impacts of climate change and impending food crises.

Shah said there is a need to forge actor alliances as the stakes are high and to empower local communities. (Bulatlat.com)

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