Delusion, deception,and corruption in major infrastructure projects: Causes, consequences, cures.

The successful delivery of major infrastructure projects is increasingly vital to the global economy, with an estimated $22 trillion in projected investments to be spent in emerging economies alone (The Economist, June 7, 2008). Projected benefits include employment, the purchase of domestic inputs, improvements in productivity and competitiveness as a consequence of lower producer costs, provision of higher quality services to consumers, and environmental benefits arising from the use of new environmentally sound technologies (Helm, 2008). Yet, the track record for delivery of major infrastructure projects is poor, typically characterized by enormous cost overruns and benefits shortfalls (Merrow et al., 1988; Miller and Lessard, 2000; Flyvbjerg et al., 2003). Further, infrastructure is the third member of an ‘unholy trinity’ of high-risk sectors alongside arms and energy, suffering from substantial exposure to corruption (Transparency International, 2010). Global economic and development ambitions, therefore, rest on shaky foundations.