In the construction industry, the scale of corruption is magnified by the size and scope of the sector, estimated globally at some USD 3,200 billion per year. The lack of transparency in contracting processes for large-scale infrastructure projects can have devastating consequences for economic and social development. The negative impact becomes especially obvious in the context of post-conflict reconstruction and relief projects after humanitarian catastrophes.

Corruption in the construction sector not only plunders economies; it actually shapes them. Corrupt government officials steer social and economic development towards large capital-intensive infrastructure projects that provide fertile ground for corruption, and in doing so neglect health and education programmes. The opportunity costs are tremendous, and they hit the poor hardest.

Corruption also steers public spending towards environmentally destructive projects. Huge construction projects have gone ahead only because bribes were paid, and environmental standards were not applied. Too frequently, corruption results in redundant infrastructure projects.

In the space of a few hours on 26th December 2004, the Indian Ocean tsunami resulted in a humanitarian catastrophe on an unprecedented scale. The disaster left nearly 300, 000 dead and thousands of coastal communities destroyed. One estimate of the cost of recovery for the affected region is USD 11.5 billion (Asian Development Bank Review, April 2005).

In the aftermath of the tsunami, TI-Secretariat produced a series of documents and guidelines to prevent corruption risk in relief and reconstruction situations one of them with a special focus on procurement/contracting activities. TI-S also helped to bring together key stakeholders at an "Expert Meeting on Corruption Prevention in Tsunami Relief" held in Jakarta on 7-8 April 2005. The meeting, jointly convened with the Asian Development Bank and OECD, saw representatives of affected countries, international donors and civil society identify concrete measures to ensure that aid efforts are not tainted by corruption has worked to address the risk of corruption in relief and reconstruction efforts on several levels.
For more information, please also see the in Focus on the TI website.

Further, TI’s national chapters in affected countries have sought to strengthen the accountability of relief operations, for example by advocating proper accountability by all stakeholders, organising coalitions of local NGOs and communities to monitor aid delivery and establishing appropriate management systems for such NGOs.