WEF tests Ethereum anti-corruption project in Colombia

The World Economic Forum (WEF) and the Colombian government are testing an Ethereum-based project forincreasing transparency of government processes and the fight against corruption.

According to a published report prepared byWEF, in collaboration with the Inter-American Development Bank (IDB) and the Office of the Inspector General of Colombia, WEF will use the Ethereum blockchain to create a proof of concept to combat corruption in Colombia.

Using Ethereum Blockchain GovernmentColombia will be able to make “corruption-prone government processes” more transparent. Testing will begin with a nutritional program at Programa de Alimentación Escolar (PAE) public high schools.

Corruption is a long-standing problem in Colombia.The country's government has estimated that corruption costs the country $18 billion annually. The school feeding program was likely chosen by the WEF because its participants had previously been convicted of corruption. In 2016, a food company was accused of embezzling funds for school meals in one of Colombia's poorest provinces.

According to the report, “the vast majority"PAE providers are selected through direct contracting, which maximizes opportunities for corruption and minimizes the transparency of program administration." Testing of the project aims to increase the transparency of public procurement in Colombia. Subsequently, the WEF plans to use the gained experience to fight corruption in other areas.

Colombia is not the first South American countrywhich wants to use blockchain to fight corruption. Last year, the Peruvian government and the Inter-American Development Bank said they intended to use blockchain startup Stamping.io to create a transparent contract procurement system.

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