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Blockchain to shake the world to fight corruption

The world has been surrounded with different governance, each of which has a 15% gross domestic product that goes to public services to build roads, bridges and tends to the nation’s call for healthcare services. Issues like corruption from government officials to corporate executives is a widely known issue as they are involved in the procurement process.

The Organization for Economic Cooperation and Development and the United nations have estimated rounding up to 30% of a public’s value are lost due to corruption. The huge number led the World Bank to make a conclusion that cutting off the procurement corruption may actually be a key to an effective economic development. Common reasons of the procurement corruption are: record-keeping capacity, low accountability and close interactions between the private sector and government officials and controlled processes. These reasons are enough to create a complex and high-maintained process that is vulnerable to corruption.

A reported titled “Exploring Blockchain Technology for Government Transparency: Blockchain-Based Public Procurement to Reduce Corruption” has been presented to the World Economic Forum or WEF. This presents the viability of the blockchain technology to process public procurement and minimize or clear out the corruption happening, in general.

The WEF made a partnership with the Office of the Inspector General of Colombia and the Inter-American Development Bank to make a public Ethereum-based blockchain procurement system. With the support of the blockchain security firm Quantstamp and the University of California, Berkeley. The concept is to select vendors for Colombia’s school meals program that helps to feed low-income youth. As this is a revolving issue that exponentially inflates prices and to resolve issue of the non-delivery of tens of millions of meals.

The goal of the project is to identify the value of blockchain to increase the transparency and to apply the same methods and concept to undergo research and testing worldwide.

During the Covid-19 pandemic numerous countries have turned to cut-off budgets that has been selected to tend to their nation’s necessary health services and daily supplies. Some countries citizens have protesters that are questioning where all the funds went as the spread of the pandemic arises and very minimal actions are taken.

Blockchain may not abolish this problem completely but will definitely lessen the risk that occurs outside the electronic platform which is mainly bribery. There will be multiple challenges that this project may face however, it is believed that this will definitely be an effective action. Combined with the constant policy making and support of the governance, this may be a solution of a cultural problem that every governance has been facing for long.

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