The issue of bribery and corruption is so massive it has become the biggest drain on improving infrastructure. The World Bank has identified corruption as among the greatest obstacles to economic and social development. Resources lost to fraud and corruption are considered an unacceptable drain on development effectiveness, not to mention the damage to the credibility of the lending institutions. Corruption has caused prices to be raised, and/or quality and performance lowered. Less qualified bidders win by rigging bids while qualified bidders become discouraged and stop bidding. In addition, citizen awareness of unchallenged corruption undermines trust in government and public institutions leads to acquiescence to poor quality and performance in public services and infrastructure projects, and to an unwillingness to report fraud and corruption.

So how is the international community dealing with this massive issue? Well, the World Bank and other Multilateral Development Banks are fighting back. The World Bank, for instance, reports that it currently spends 13% of its new lending on governance, public sector reform and the rule of law projects. All its efforts are intended to create more transparency, uniformity and accountability.

The Japan Bank for International Cooperation (JBIC) in its Handbook for Procurement under JBIC Overseas Development Assistance Loans declared its policies "will contribute to a transparent and stable operation of the system, facilitate procurement procedures, and enhance capacity building in borrower countries," thus, contributing to the governance goals that are a part of today's global market.

However, the international banking community is not going to cure this problem alone, nor simply through "new procedures." If the monies lost in the construction industry are to be recovered, allowing for increased infrastructure funding, then engineers are going to have to be more cognizant of the issue and much more involved. Leaders in the global engineering community need to recognize that corruption of all forms diverts resources from projects intended to raise living standards, threatens sustainable development, impoverishes communities, and end the end, tarnishes the reputation of the profession.

Engineers are already beginning to understand the massiveness of the issue. ASCE, taking the leadership role under its Past President, Bill Henry, and its Chair of this effort, Bob Christ, drafted a charter that it literally carried around the world-and continues to do so getting engineers to agree to the steps that must be taken in order to stamp our bribery and corruption including: that they are not personally involved in any activity that will permit the abuse of power for private gain; refusal to condone or ignore corruption, bribery, or extortion; or payments for favors; urging professional engineering societies and institutions to adopt and publish transparent, and enforcing guidelines for ethical professional conduct and anti-corruption guidelines by reporting infractions by any participant in the engineering and construction process. Many have signed up and the mission continues. ASCE continues its efforts in leading the way on this with its current effort to raise funds for the development of a new DVD and training materials on fighting corruption in the construction industry which can be used by engineering and construction firms and professional societies.

So-how bad is bribery and corruption? Bad, and engineers today must stand up to the plate and take an active role in stamping out bribery and corruption-it is imperative that we do our part-not just for today but for the future.

March 7, 2007

You ask "How bad is corruption?" Those of us working on the Global Anti- Corruption Education and Training Project, which grew out of the ASCE initiative, use a dollar measure. The "Global Construction Study" done by Global Insight puts annual global construction spending as of last November at $4.942 trillion -- based on reporting from 60 coutries. Call it $5 trillion. Then, Transparency International estimates 10% of global expenditures on construction (which it calls the most corrupt of industries)goes into pockets rather than projects. The math? Corruption costs $500 billion a year globally. Then add the human suffering and damage to national economies.

Arthur Fox, editor emeritus
Engineering News-Record

March 7, 2007

BROADER ISSUE: ABUSE OF POWER.

Bribery and corruption are the worst examples of abuse of power. Whenever a professional engineer witnesses such abuse, he/she should protest, refuse to cooperate, and resign. That is what we did recently when (in a case not involving bribery and corruption) ASCE violated the rules of professionalism and consensus by its unilateral termination of most members of the ASCE 7 Committee (without prior notice). We sincerely hope ASCE will "practice what it preaches": i.e., rescind its unfortunate action and enter into a dialogue with this prestigious Committee to address its grievances. If that occurs, we will be pleased to rejoin ASCE and work with it.

Abraham J. Rokach, S.E., P.E.