The world economic forum (WEF) and the government of Colombia are testing an Ethereum-based project to increase transparency of government processes and fight corruption.
According to a published report prepared by the WEF in collaboration with the inter-American development Bank (IDB) and the office of the inspector General of Colombia, the WEF will use the Ethereum blockchain to create a proof of concept to fight corruption in Colombia.
With the help of the Ethereum blockchain, the government of Colombia will be able to make “corruption-prone state processes” more transparent. Testing will begin with the programa de Alimentación Escolar (PAE) nutrition program in public high schools.
Corruption is a long-standing problem in Colombia. The government has estimated that corruption damages the country by $18 billion annually. The school meal program was probably chosen by the WEF, since its participants had already been exposed before
in corruption. In 2016, a food company was accused of misappropriating funds for school meals in one of the poorest provinces in Colombia.
According to the report, “the vast majority of PAE providers are selected through direct Contracting, which maximizes opportunities for corrupt practices and minimizes transparency in program administration.” Testing of the project is aimed at increasing the transparency of public procurement in Colombia. Subsequently, the WEF plans to use this experience to fight corruption in other areas.
Colombia is not the first South American country to want to use blockchain to fight corruption. Last year, the government of Peru and the inter-American development Bank announced that they intend to use the startup’s blockchain Stamping.io to create a transparent system of contract purchases.