Today the World Economic Forum (WEF) published a report exploring blockchain as a tool to aid transparency in government procurement and combat corruption. The project involved a proof of concept (PoC) using the public Ethereum blockchain as well as providing policy proposals and civic engagement.
The work was done in collaboration with the Inter-American Development Bank (IDB) and the Office of the Inspector General of Colombia (Procuraduría General de Colombia).
Governments spend roughly $9.5 trillion (15% of global GDP) a year on procurement contracts. The OECD estimates that 10-30% of the value of those contracts is lost through corruption and mismanagement. By eliminating bid rigging, procurement prices could be reduced by 20%.
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