CORRUPTION IN THE CONSTRUCTION SECTOR ? THE OTHER SIDE OF EMERGING NATIONS

Emerging markets are, ï¾Ãƒâ€šÃ‚Æ’??countries that are restructuring their economies along market oriented lines and offer a wealth of opportunities in trade, technology transfers, and foreign direct investment.ï¾Ãƒâ€šÃ‚Æ’?? A major characteristic of emerging markets is that they are transitional societies that are undertaking domestic economic and political reforms. These countries have seen increases in administrative, political, judicial and private sector corruption in recent years. Efforts to fight corruption are plagued by a plethora of problems such as gaps in implementation, lack of coordination between anti-corruption agencies and lack of independent oversight and monitoring. The risks involved include: Potential for political instability Financial conditions Currency fluctuations Regulatory environment Volatility Higher costs to invest Reasons for corruption, particularly in developing countries: A large population comprising a great proportion of impoverished and uneducated sect. A political and economic elite enjoying monopoly. An environment of aggressive competition to garner maximum power. Lack of effective controls and enforcement. A complicated and unclear set of rules and regulations, allowing laxity in interpretation and ï¾Ãƒâ€šÃ‚Æ’??bendingï¾Ãƒâ€šÃ‚Æ’?? of rules. Underpaid civil servants Major changes are occurring, such as a shift from?? dependence on agriculture to manufacturing, modernization of infrastructure