Water is an important factor in many economic sectors, including agriculture, fisheries, industry, transportation and tourism. Corruption can inhibit the productive allocation of water among these competing uses while inflating the overall cost of supplying and treating water. Furthermore, corruption discourages investments and leads to inefficiency, poor performance and ineffectiveness in both the public and private sectors (WIN, n.d.).
Corruption that leads to water pollution not only has serious consequences for human and animal health and sustainable water supply, it also contributes to the degradation of wetlands and other valuable ecosystems, with long-term consequences for development and wildlife preservation and restoration.
Water allocation, particularly in water scarce environments, can favour specific groups or business interests, resulting in adverse consequences for poverty reduction, social equality and political stability.
Moreover, corruption in the water sector decreases and diverts government revenues that could be used to improve water and other services, especially for poor and marginalized population (WIN, n.d.*).
It also raises the cost of services, so that poor people are more likely to pay a greater proportion of their income to access services (including by paying bribes and unauthorized fees) than their wealthier counterparts.
*WIN (Nd) Preventing corruption in the water sector.
