Report by the World Economic Forum: “The costs to society of public-sector corruption and weak accountability are staggering. In many parts of the world, public-sector corruption is the single-largest challenge, stifling social, economic and environmental development. Often, corruption centres around a lack of transparency, inadequate record-keeping and low public accountability.
Blockchain and distributed ledger technologies, when applied thoughtfully to certain corruption-prone government processes, can potentially increase transparency and accountability in these systems, reducing the risk or prevalence of corrupt activity.
In partnership with the Inter-American Development Bank (IDB) and the Office of the Inspector General of Colombia (Procuraduría General de Colombia), the Forum has led a multistakeholder team to investigate, design and trial the use of blockchain technology for corruption-prone government processes, anchored in the use case of public procurement.
Using cryptography and distributed consensus mechanisms, blockchain provides the unique combination of permanent and tamper-evident record-keeping, transaction transparency and auditability, automated functions with “smart contracts”, and the reduction of centralized authority and information ownership within processes. These properties make blockchain a high potential emerging technology to address corruption. The project chose to focus on the public procurement process because it constitutes one of the largest sites of corruption globally, stands to benefit from these technology properties and plays a significant role in serving public interest…(More)”.