In the previous 12 months survey period, 85% of the country’s people thought corruption increased and 80% public service users needed to pay a bribe ( ).įigure 7.1. 76 In 2019, the DRC ranked 168 out of the 180 countries in terms of the Corruption Perceptions Index. The DRC is one of the most corrupt countries in Africa due to its economic resources, the lack of good governance and history of repression, and corruption during as well as after colonialism. 77 The patron–client relationship, which is often informal, reaches from the state structures to small villages. 76 The DRC’s social hierarchy system is described as neopatrimonialism in which state resources are used by patrons to ensure the loyalty of clients in the general population. In most parts of the DRC, for instance, the central government authority is virtually nonexistent. As Fig. 7.1 has shown, countries associated with conflict minerals are experiencing a high degree of corruption. 75 Addressing this challenge may be no small feat.Įspecially political and institutional arrangements in many developing economies such as those in Africa are among the most salient barriers that prevent the deployment of blockchain in SCs. Since international businesses operate against the backdrop of these established old laws, customs, and institutions that are managed by human beings, implementing blockchain-based solutions can be an extremely complex task. They include maritime laws and regulations, commercial codes, laws pertaining to ownership and possession of multiple jurisdictions in the shipping routes. Global SCs operate in a complex environment that requires various parties to comply with diverse laws, regulations, and institutions. Blockchain’s effectiveness in achieving effective SC governance, thus, depends on the nature of the power struggle between actors in the broader context of the political economy. 74 A key point that needs to be emphasized is that blockchain systems are embedded in the broader political and economic systems, and they should not be viewed as a self-contained phenomenon with self-contained solutions. 73 Note that a governance system is the “totality of institutional arrangements-including rules and rule-making agents-that regulate transactions inside and across the boundaries of an economic system”. Nir Kshetri, in Blockchain and Supply Chain Management, 2021 7.4.1 The lack of institutional capacitiesĪs mentioned above, blockchains can be viewed as a technology that governs information and exchange.
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