Government corruption is one of the most serious age-old problems the world continues to face. Governments waste millions of dollars, hours of labor, and tons of resources by fumbling projects and pocketing funds. This is why people have lost trust in their governments. But we can still mend this distrust by utilizing blockchain, an emerging technology with the power to solve real-life problems.
How Corruption Affects Infrastructure Projects
Far too often, corruption becomes a hindrance to getting the best results in the cheapest way possible in government projects, especially when it comes to building infrastructure. A very good example of this is the national broadband network (NBN) of Australia, proposed by Australian Prime Minister Kevin Rudd in 2009.
The project aimed to connect 94% of Australians to a fiber network that extended to their premises. Back then, the project was estimated to cost 60 billion USD, making it one of the largest government expenditures worldwide.
But after a few years of political backstabbing and leadership spills, the opposition party took over and declared the $60-billion project far too expensive. Thus, they proposed an equally good project that combined various solutions and promised to deliver it for half the price—$30 billion.
Problems with the Revised NBN Project
The government implemented this project using a system of fiber to the node (FTTN), which relied on conventional copper networks. However, copper is a problematic and unreliable material for telecommunications as it is naturally prone to damage. Nonetheless, the project still pushed through.
At present, the Labor Party, which originally proposed the $60 billion project, is now back in power and wishes to address the list of problems brought about by the unreliable FTTN network plan.“Unfortunately, the government cannot recover nearly $30 billion in lost expenditure due to mismanagement and poor infrastructure maintenance.”
At first glance, blockchain is a technology that benefits only enterprises with their business solutions, and it is not seen as key to upholding government integrity. However, it has the power has the power to prevent what happened in the case of the NBN project in Australia, and rebuild trust in the government.
How Blockchain Creates Transparency in Government Projects
Blockchain creates transparency, which is why it plays a crucial role in improving government projects. During the project exploration process, researchers can cite relevant literature, and experts can easily verify the interpretations drawn from state-of-the-art networks and other large-scale infrastructure rollouts.
Competitive market forces will scrutinize publicly available data, allowing for thorough fact-checking and helping identify the most economical prices. Government-appointed experts can cross-examine the approaches of companies competing for the project, resulting in a clearer list of essential outcomes and a more robust process. By adopting a transparent and evidence-based approach, insurance providers can accurately assess what they can and cannot cover in cases of disaster or bankruptcy. While eliminating government incompetence and political corruption remains a long shot, using blockchain to promote transparency and accountability takes a significant step toward rebuilding public trust.
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