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Julian_Williams

Stamping on Corruption

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Question:  I have been wondering for a while whether digital payment systems on the internet of Value could be used for stamping out corruption?

We hear many stories of foreign aid payments for good causes in underdeveloped countries being stolen by corrupt government officials.  Would the features of digital money, things like two way information of where money is cashed, smart contracts etc provide ways of ensuring money given to a country for a given project gets used for that project?  I can imagine the combination of conditional smart contracts and escrow accounts would be an excellent way of overseeing how money is being spent in otherwise remote parts of the world?

 

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I'm pretty sure it's like it's like 10:1 for corrupted and I'm pretty sure I'm being generous :D

I have asked myself similar questions before, why would the corrupt world (and it IS corrupted) accept such transparency?

Wouldn't they fight it just like other smart solutions just cause of their greed? 
Or will they (after trying to fight it?) use what they must, so to speak, and have the rest using new way of being "invisible" to those they don't wan't to see it?

An interesting question, for sure. Looking forward what other might say.

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12 minutes ago, Kiir said:

I'm pretty sure it's like it's like 10:1 for corrupted and I'm pretty sure I'm being generous :D

I have asked myself similar questions before, why would the corrupt world (and it IS corrupted) accept such transparency?

Wouldn't they fight it just like other smart solutions just cause of their greed? 
Or will they (after trying to fight it?) use what they must, so to speak, and have the rest using new way of being "invisible" to those they don't wan't to see it?

An interesting question, for sure. Looking forward what other might say.

The donors could for instance make a grant for fertilisers in Africa.  The payments could go direct to a fertiliser supplier who would be inspected by the donors.  The fertiliser supplier would have to provide receipts that are itemised and authorised by the recipient farmers on their iphones.  So you have a direct chain of events tied to the provision of money.

The same applies to grants.  Instead of providing huge lump sums for a project the money can be itemised and supplied to authorised suppliers

Edited by Julian_Williams

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You read the recent IMF speech by Christine Lagarde? Some interesting stuff. The world is looking towards tech to offer better solution in combating corruption and money laundering. When money goes digital, everything can be monitored.  - https://www.imf.org/en/News/Articles/2018/12/04/sp120418-md-kissinger-speech

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At best, IoV could alter the attack points. Corruption is too powerful a force, and has survived a few millennia of technological advancement. It's a deep part of human nature, and in many ways it's the rule rather than the exception. 

Those who benefit from corruption are by definition some of the sliest, and they're well motivated to work hard for sums just below the cost of being pursued with any efficiency.

Making a payment directly to a fertilizer supplier is possible already today. What's hard is auditing that company on a cost efficient basis. All they need is enough excuses for being wasteful in their production (and there will be many in a 3rd world country) for the inspectors to turn away because they can't waste half their resources on audit expenses. 

Also, you can have farmers authorizing receipts on their iphones, or farmers authorizing receipts on their iphones under the instruction of someone who has leverage over them. It's never the tech that's the problem, it's the interface/attack point. 

Public ledgers would help if the way corruption worked was government officials intercepting money flows and running away with cash. But real-world corruption is far more deeply entrenched than that. 

I think charities with a local presence and human intelligence steering the funds to the best of their ability will continue to be the best chance of doing more good than harm. 

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23 minutes ago, peanut56 said:

unfortunately, I don't think it will be much better than today. As long as the paperwork looks right then it must be right. It may be harder for a while, but criminals will adjust.

A big function of blockchain is to do with monitoring paperwork and creating trust between participating partners.  For instance blockchain will be used for certification of fish, where were they legally caught and where were they sold.  Cross border regulation etc etc. Blockchain provides an audit trail that can be cross referenced and inspected and monitored.  This is just the sort of service we need to ensure that money provided gets to the place where it is needed.

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48 minutes ago, Julian_Williams said:

A big function of blockchain is to do with monitoring paperwork and creating trust between participating partners.  For instance blockchain will be used for certification of fish, where were they legally caught and where were they sold.  Cross border regulation etc etc. Blockchain provides an audit trail that can be cross referenced and inspected and monitored.  This is just the sort of service we need to ensure that money provided gets to the place where it is needed.

Not only that but the world has been in desperate need for an international Real Time Gross Settlement system since post World War 2. The need to monitor the world economy and keeping balances in check has been a pipe dream for the IMF. DLT and Blockchain provided an opportunity where the international monetary system is on a single ledger.

The XRP ledger is a wet dream for international bodies but that dream is about to become a reality. I'm seriously not into tin foil hat stuff to manage my expectations but if the world populace needs to accept a single source of truth then it needs to remain private because no one will accept what the governments provide in current climate so a private company creating a ledger that anybody and anything can tap into has a huge potential. 

At this point only time will tell what the world organisations are going to do and its either make or break but as far as I can see, Ripple is winning the populace slowly but surely. 

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I am not disputing that money will get from point A (donators) to point B (recipient). That will happen, I was just thinking of Point B to where the money is suppose to go. Ethiopia has all they need to secure food, water, shelter. The problem wasn't the supply it was getting the supply to the farmers that needed it. It had to do with their road systems and factions with in the country. This was years ago. I don't remember the specific conflict. The conflict itself, not the supply of goods, caused major famine..

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