The recent white paper on the state of the economy paints a grim picture of corruption’s pervasive grip on large-scale public projects.
Our newspaper reported on Monday that with cost escalations averaging 70 per cent and delays extending beyond five years, the consequences of corruption are not just fiscal; they are profoundly human.
Over the past 15 years, between $14 billion and $24 billion has been lost to political extortion, bribery, and inflated budgets, severely undermining the potential benefits of vital infrastructure and social investments.
The findings, presented by Dr Debopriya Bhattacharya to Chief Adviser Prof Muhammad Yunus, highlight a systemic crisis that transcends financial mismanagement.
The misappropriation of funds during land acquisitions and the appointing of politically favoured project directors have further strained resources, depriving citizens of essential services and infrastructure that could uplift their lives.
Moreover, the white paper reveals a staggering average of $16 billion in illicit financial outflows annually between 2009 and 2023 — more than double the combined value of net foreign aid and foreign direct investment inflows.
This loss of resources is not just a statistic; it represents missed opportunities for education and health funding, where halving tax exemptions could potentially double educational budgets and triple health allocations.
The impact of corruption ripples through various sectors.
Erratic procurement policies favour powerful business groups at the expense of consumers, while manipulated domestic production figures have destabilised markets for essential commodities.
The banking sector is not immune either, with politically influenced lending practices exacerbating a crisis that could have financed multiple major infrastructure projects.
Additionally, the exploitation of migrant workers through syndicates and corrupt recruitment practices has diminished remittance contributions, further straining the economy.
Alarmingly, misallocations in social safety nets have left millions vulnerable, with 73 per cent of beneficiaries classified as non-poor — a stark reminder of the systemic inequities that corruption breeds.
As we confront these challenges, policymakers must prioritise transparency and accountability.
The mismanagement of climate adaptation funding threatens not just economic growth but the very resilience of our environment.
To reclaim lost opportunities and restore public trust, a concerted effort to eradicate corruption is essential.
Only then can we hope to build a future where resources are allocated equitably, and every citizen has the chance to thrive.
