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Combating corruption in service provision in Nepal

Development depends on the provision of public goods and services. Despite considerable investment, infrastructure services have been unsatisfactory in many countries. This failure can often be traced back to corruption, which not only diverts funds but also discourages investment.

Infrastructure services are those public goods provided by physical installations or infrastructure networks such as electricity, water, sewerage and roads. These are usually provided by local, municipal governments, but may also involve the private sector, non-governmental organisations or community-based organisations. A paper from Loughborough University in the UK reviews corruption in the infrastructure sector and service delivery at the municipal level in Nepal.

Corruption can be defined as the misuse of public office for private gain. It occurs in many forms, and could be initiated by an individual in public office (e.g. fraud) or an external party (e.g. bribes). It has been estimated that corruption costs African economies over US$148 billion a year.

In Nepal, major services include networks of roads and pavements, drainage and sewerage, solid waste management, and centrally-provided goods such as water and electricity. Many opportunities for corruption in service provision exist, particularly where community participation is limited. There may be irregularities during project formulation and execution, such as in the awarding of contracts and during account settlement. Corruption may continue during service delivery, for example while providing electricity connections, metering and billing.

Key causes of corruption in Nepal include:

lack of public awareness of the regulations, and a culture of corruption
increasing materialism, and cultural changes such as the breakdown of systems like joint families and community organisations that support the individual
organisational immaturity: including a lack of accountability, as municipal officers are responsible to their superiors, not the public; abuse of authority; lack of a system of awards and punishments; and lack of information disclosure
a general acceptance of irregularities
low salaries that provide the incentive to engage in corruption.

Widespread corruption disproportionately affects poor people. They usually cannot afford the payoffs necessary to obtain services. Further, corruption means providers do not have the funds, capacity or even the motivation to extend services to more disadvantaged groups.

Anti-corruption mechanisms have had varying degrees of success in Nepal:

Preventive measures: codes of conduct and laws exist to anticipate acts of corruption and prevent them, but in practice these are usually ignored.
Curative measures: organisations such as the Commission for the Investigation of Abuse of Authority (CIAA) have the power to investigate corruption, but have had limited success despite several high-profile trials.
Awareness-raising measures: organisations such as Pro-Public and Transparency International are involved in spreading messages against corruption, in the hope of effecting long-term changes in society.
The Federation of the Nepalese Chambers of Commerce (FNCCI) has adopted an anti-corruption programme in the form of a code of conduct and a complaints hearing unit.
Urban poor people have various coping mechanisms: developing contacts in service provider agencies; organising to put pressure on officials; and community solutions to sharing services.

Source(s):
‘Corruption in Infrastructure Provision and Service Delivery at the Municipal Level in Nepal: A Case Study’, Partnering to Combat Corruption Series, by Purusottam M. Shrestha, WEDC: Loughborough, 2007 (PDF) Full document.
Further details about this research project ‘Accountability arrangements to combat corruption’ can be found on the DFID Research for Development website Full document.

Funded by: Department for International Development (UK)

id21 Research Highlight: 22 June 2007

Further Information:
M. Sohail
Water, Engineering and Development Centre
Loughborough University
Leicestershire
LE11 3TU
UK

Tel: +44 (0) 1509 222890
Fax: +44 (0) 1509 211079
Contact the contributor: m.sohail@lboro.ac.uk

Water, Engineering and Development Centre, Loughborough University, UK

Purusottam M. Shrestha

Tel: +977 1 5013532
Fax: +977 1 5013530
Contact the contributor: npm@pppue.org.np

UNDP Public-Private Partnerships for the Urban Environment

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