Wednesday, February 16, 2011

Construction

You may think I am coming to the conclusion that all human (economic) activity causes pollution.

By and large, that's what I mean.

Nonetheless, there is a reason that I am particularly concerned with construction and infra-structure projects: Because their economic benefit is typically skewed in favour of the exceedingly rich and business leaders, while the poor people often do not gain much - and sometimes have an enormous price to pay, especially in societies where the corruption rate is high.

Oh, I am not inventing all these. You know, there is now good evidence showing that construction industry is particularly prone to the effect of corruption. For example, over 80% of all deaths from building collapse in earthquakes over the past 30 years occurred in countries that are anomalously corrupt. (See Ambraseys N. Nature 13 January 2011, p. 153-155.)

Seriously, I don't think that needs a study.

PS. The reason for the tendency to have corruption in the building industry roots from the very nature of the business: oligopoly market, subjective tender and bidding process, and a complicated government-business interaction.

Go read The Art of Strategy.

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