World Economic Forum: ‘Blockchain can help dismantle corruption’

World Economic Forum: 'Blockchain can help dismantle corruption'
12 months ago
2 mins read

In a publication released on July 5, 2021, the World Economic Forum (WEF) has detailed how blockchain technology can help reduce corruption in government systems. 

In a blog post, WEF believes blockchain can solve corruption in areas such as procurement, noting that the sector is highly vulnerable to graft. The report notes that corruption in the sector is potentially due to financial gains. 

WEF identifies procurement stages of planning, bidding, bid evaluation, and implementation, and blockchain that are highly susceptible to graft. 

The post notes that transparency is an aspect of blockchain technology that can manage the process to avoid unfair awarding of tenders. According to the WEF:

“Evaluation criteria could be retroactively changed or company bids altered, for example. Blockchain can guarantee any change is public, the original information is retained, and there is a record of who made the change.”

The forum adds that blockchain technology can also promote collaboration between stakeholders in course procurement.  WEF notes that the technology can also provide an easily accessible, tamper-proof, and real-time window into ongoing procurement processes.

Blockchain in registries 

Elsewhere, WEF points out that blockchain can also be utilized in land registries to solve inefficiencies. The institution states that land titling systems are a major zone for corruption. 

WEF singles, developing regions that can benefit from blockchain technology due to historical issues on legal stability. Already the system is applicable in Georgia, where as of 2018, the country had registered over 1.5 million land titles through the blockchain-based system.

Furthermore, in Africa, an urban land registry project is underway to test blockchain technology in addressing the problems of digitizing land registries. The project seeks to eliminate the burden on courts in solving land issues.

The forum notes that blockchain technology has several advantages; however, the main challenges lie with implementation.

According to the WEF, implementing blockchain on a wide scale needs sufficient education and the necessary tools for institutions’ size. 

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Justinas Baltrusaitis

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.