Deleterious effects of corruption in the roads sector

A rational approach has been taken in Bangladesh to the maintenance of its highway network. As part of this approach it was necessary to introduce a road management system, which required the use of the economic model known as the 'highway development and maintenance tool', HDM-4, to establish logical strategies for road upgrading and steady-state maintenance. This established appropriate standards for the different road types in the network in terms of traffic, construction and road condition. During this study it was observed that the effective unit rates for road works varied as a function of the funding source. Where a source, such as the World Bank, demanded close audit of works the rates were lower than where this was not the case. This paper deals with the quanti. cation of this corruption and examines its effect in the highways sector, noting how this has consequent effects on the wealth of the nation as a whole.