Costes de la Corrupcion en los puertos del mundo

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The Cost of Maritime Corruption to the Industry and Society

The Imperative for Businesses and Governments to Combat Maritime Corruption

 

For over a decade, the Maritime AntiCorruption Network (MACN) has gathered first-hand data to map the extent of maritime corruption. A significant portion of this data stems from our extensive work in the Nigerian port and maritime sector. Although we have detailed accounts of the direct cost of corruption, we have not yet assessed its overall monetary impact on the maritime industry and society, including indirect costs such as extended lead times and delays resulting from corrupt practices. Understanding these hidden costs is crucial, as they profoundly affect both the industry and society.

This study, developed by QBIS, puts a dollar value on the cost of corruption for the private sector, government, and society, taking into account some of the hidden indirect costs resulting from corrupt practices across the maritime supply chain. The findings demonstrate a clear economic benefit and a compelling business case for proactive anticorruption measures by both governments and businesses. These benefits have positive ripple effects for the entire economy, domestic revenue mobilisation, the business climate, and people’s livelihoods. Further, the study sheds light on the impact of MACN’s current anticorruption initiatives. Through a combination of steadfast industry commitment and proactive government measures, significant strides have been made in reducing corruption within the Nigerian port sector. Prior to 2019, resolving a single bribery case took 7 to 10 days, but current data shows that over 90% of corruption incidents are now resolved within 24 hours by relevant government agency in Nigeria.

This study contextualizes these results and demonstrates how MACN’s efforts are promoting socioeconomic development, trade, and more inclusive economies. In a rapidly changing world economy and political landscape, strong anti-corruption commitments and actions are fundamental to resolving many of the global challenges ahead. This study strengthens our case for such actions. Maritime Corruption – A key Obstacle to Global Trade and Development More than 80% of world trade is transported by sea, and societies and businesses depend on the efficient clearance of vessels and goods in ports worldwide to function, develop, and prosper. In a seaport, multiple agencies hold administrative monopolies over essential services intended to facilitate trade.

This creates opportunities for ‘coercive’ corruption [1] where government officials extract bribes from companies for performing routine tasks during vessel and cargo clearance. Maritime corruption of this kind causes commercially damaging delays to ships [2], generates higher trade costs [3], endangers the wellbeing of seafarers [4], exposes companies and seafarers to the risk of criminal prosecution. Corruption in the maritime value chain drives up the cost of doing business [5], and a portion of these additional costs is ultimately passed on to the end consumer. This impact is particularly severe in low- and middle-income countries, which rely heavily on essential imported goods such as cooking oil, fuel, and pharmaceutical products.

 

How Maritime Corruption Hits Nigerian Households

 

Nigeria is heavily reliant on imports of essential products and imports most of its food and other daily consumables via seaports. In 2021, Nigeria’s imports were estimated to consist of 14% food products, 20% petrol, 9% construction materials, 10% textiles products, 18% production inputs, 9% vehicles, and 22% other products. As evident, food and petrol account for around a third of total imports, highlighting the importance of these products to everyday life. This means that rising import costs due to corrupt payments will heavily impact household demand rather than, for example, domestic manufacturing. This further underscores the vulnerability of the Nigerian economy to rising import costs driven by corruption in the maritime and import supply chain. This is a vulnerability shared by several low- and middle-income neighbouring countries in West Africa.

Estimating the Import Costs This study examines costs across the entire supply chain for importing petrol and food products transported by dry and wet bulk vessel to Nigerian ports and terminals. The assessment captures the import costs from sea transport to the price to the end consumer in the supermarket excluding profit, considering some of the hidden indirect costs from long lead times and delays as well as corrupt payments. The study has broken down the import supply chain in the following 15 steps, and studies costs associated with each step (figure 1)

 

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MACN-Cost-of-Corruption-Study_2024_06.pdf