2. Why this theme matters

By siphoning away vital resources corruption is making massive adverse impact on the development sector as a whole; it has been estimated that as much as 30% of international loan funding is being lost through illegal activities. In water and sanitation the losses are to similar scale, a major contributory factor being the close connection with construction, a sector that for many reasons is particularly prone to dishonesty and lack of transparency.

Section 2 of the TOP offers some striking illustrations of the extent of these impacts, such as the outcome of a study of 21 African water companies, estimating that up to 70% of operating costs could be put down to corruption. Losses to that scale emphasize the impact that current funding alone might make on the water and sanitation MDGs if dishonesty could be replaced by transparency and good governance. The need to do so becomes increasingly urgent in the current climate of increased funding; it is essential that all additional resources are used efficiently.

That challenge has not yet been met despite the large number of modern international conventions and donor policies describing the best way to do so. (They are listed in Appendix 4). Implementing these various guidelines remains a prime challenge for the future and, as this section of the TOP says, there needs to be an increased focus on the specific problems of the water and sanitation sector.

The text specifies several basic questions that have to be answered and makes the point that the answers can only come from a platform of knowledge that has yet to be developed. Little is known, for example, of the impact of preventive efforts on corrupt practices or on the vital question of how to properly engage the intermediate and local levels of government.