Relational impacts of corruption on the procurement process: implications for economic growth in developing countries

Governments allocate considerable amounts to spending on infrastructure (about 30 percent of GDP in developing countries). Such high budgetary allocation renders public procurement vulnerable to corruption. This chapter examines two critical indicators of corruption which pose a threat to economic growth. They are: the proneness of the procurement activities to corruption; and the criticality of the causal factors of corruption and their impact on the procurement process. Sixty-two experts involved in construction-related works in the developing context participated in the study. The findings revealed that the leading causes of corruption were personal greed, inadequate sanctions, inappropriate political interference, and lack of rigorous supervision. Network analysis showed that the impact of causal factors is critical at the contract, contract administration and post-contract stages. This chapter contributes to enhancing understanding of the causes of corruption in the procurement process. The findings will help project stakeholders and policymakers in developing countries to reduce corruption.