Canada Has a Soft Corruption Problem - Eric Lombardi of More Neighbours Toronto

Summary

In this episode of 'The Missing Middle,' hosts Cara Stern and MF interview Eric Lombardi about Canada's infrastructure crisis, highlighting issues of 'soft corruption' that inflate costs and delay projects. Lombardi argues that the convoluted procurement processes and a lack of transparency prevent effective project delivery, while suggesting a shift towards in-house expertise to reduce reliance on third-party consultants. He also emphasizes the need for rigorous audits and streamlined processes to enhance accountability. The discussion explores the complexities of urban planning and the socio-economic barriers that hinder effective governance in Ontario.

Takeaways

• 📊 Takeaway 1: Canada's infrastructure projects are experiencing a crisis marked by rising costs and reduced scopes, exemplified by Calgary's Greenline LRT project.
• ⚖️ Takeaway 2: The concept of 'soft corruption' is introduced, indicating unethical practices that are not necessarily illegal but result in inefficiencies in public projects.
• 🛠️ Takeaway 3: Lack of transparency in procurement processes contributes significantly to infrastructure issues, hindering accountability to taxpayers.
• 🔍 Takeaway 4: The podcast calls for rigorous independent audits of large infrastructure projects to ensure financial accountability.
• 🏗️ Takeaway 5: Comparison with international models, such as Spain, highlights the benefits of standardized designs and in-house expertise in managing infrastructure projects.
• 📝 Takeaway 6: The lengthy approval processes for housing developments in Canada are a symptom of bureaucratic inefficiencies and increasing complexity.
• 👥 Takeaway 7: Stakeholders often resist change that would disrupt their professional benefits, perpetuating systemic issues in public infrastructure.
• 💡 Takeaway 8: There is a need for government to reevaluate which services are outsourced and explore in-house solutions for better cost efficiency.
• 🚦 Takeaway 9: Lombardi emphasizes that infrastructure should be driven by long-term capital budgeting rather than short-term political motivations.
• 💬 Takeaway 10: The conversation encourages public engagement and dialogue about soft corruption and infrastructure reform, highlighting the importance of community involvement.

Q & A

What is meant by 'soft corruption' in the context of Canada's infrastructure projects?

Soft corruption refers to unethical practices that may not be illegal but lead to inefficiencies and increased costs in public infrastructure projects, often due to convoluted processes and the involvement of multiple stakeholders.

How has the cost and scope of infrastructure projects changed in Canada?

Infrastructure projects in Canada have seen costs skyrocket and scopes shrink, exemplified by the Calgary Greenline LRT project, which was initially planned for 46 km at $4.5 billion but has been reduced to 20 km with costs potentially exceeding $5.5 billion.

What role does transparency play in procurement processes?

A lack of transparency in government procurement processes leads to questions about accountability and efficiency, contributing to issues of soft corruption as stakeholders may exploit the system for personal gain.

How does 'piggybacking' contribute to soft corruption?

Piggybacking involves adding unnecessary projects or unique designs to infrastructure initiatives to appease various stakeholders, increasing complexity and costs without delivering proportional value.

What are some examples of excessive requirements in the housing approval process?

In some municipalities, such as Caledon, nearly 100 different reports are required to approve new housing projects, contributing to lengthy approval times and inflated costs.

How does Canada’s approach to infrastructure differ from that of countries like Spain and France?

Countries like Spain and France benefit from standardized designs and internal expertise within public institutions, allowing them to manage projects more efficiently and at lower costs compared to Canada, where there is often political motivation for bespoke designs.

What are the implications of outsourcing project risks to third parties?

Outsourcing project risks can lead to increased costs as it often necessitates higher premiums, and it diminishes accountability within the public sector, as third parties may not prioritize the public good.

What solutions does Eric Lombardi propose to address these issues?

Eric Lombardi suggests in-housing expertise for recurring government services, improving procurement processes, and establishing rigorous audits to ensure transparency and accountability.

How does the political landscape affect who runs for office in Canada?

The political landscape often attracts individuals with family wealth or those nearing retirement, leaving out younger, passionate candidates who may not have the financial means to pursue political careers.

What can individuals do if they are not in a position to run for government?

Individuals can engage in dialogue with political parties, advocate for change through community involvement, and participate in initiatives that aim to influence public policy.