Corruption and Conflicts of Interest
Show Less

Corruption and Conflicts of Interest

A Comparative Law Approach

Edited by Jean-Bernard Auby, Emmanuel Breen and Thomas Perroud

As in all periods of swift economic development and political upheaval, our era of globalization has brought corruption and conflicts of interest into the spotlight. This comprehensive study highlights the difficulties of devising global legislative and judicial responses to these issues.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 15: How Multilateral Development Banks invest corruption in their funded projects

Mariangela Benedetti


According to the aim of helping the poorest countries, the International Financial Institutions (IFIs)provide loans, both to the public and private sectors, in order to support economic and social development projects (i.e. dams, hydroelectric power, bridges, etc.). Such internationally funded projects present a significant corruption risk. In fact, borrower governments are usually plagued with weak procurement systems, insufficient supervisory personnel, inadequate resources for investigating and prosecuting corruption and poor legal rules and procedures to prevent, detect and address corruption. In addition to this, international loans mainly involve developing countries that are particularly subject to corruption. Moreover, at the national level, the projects are often implemented through public-private joint ventures, company consortia or by engaging private multinational corporations that operate simultaneously in different countries. In this way, corruption risk goes beyond the national boundaries and involves a variety of public-private actors within and outside borrower countries. This chapter illustrates the importance of investigating and punishing corporate corruption in Multilateral Development Banks (MDBs), which refer to the World Bank (WB) and four other regional development banks, including the African Development Bank (AFDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD) and the Inter-American Development Bank (IDB). These MDBs represent a small group of the IFIs.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.