Canada Has a Soft Corruption Problem - Eric Lombardi of More Neighbours Toronto
Oct 30, 2024
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Eric Lombardi, founder of More Neighbours Toronto and an expert on infrastructure, delves into Canada’s soft corruption issue. He explains how convoluted processes are inflating infrastructure costs, causing projects to exceed budgets dramatically. Lombardi compares Canada’s approach to European methods, advocating for improved governance and standardization. He addresses the long delays in housing approvals, critiquing 'process parasites' that stifle development. Ultimately, he shares innovative solutions to create a more accountable and efficient system that better serves taxpayers.
Eric Lombardi highlights that Canada’s soft corruption in infrastructure leads to inflated costs and diminished outcomes due to convoluted processes and lack of transparency.
The podcast emphasizes the need for simplified and standardized procurement processes, as demonstrated by more efficient international practices, to maximize taxpayer value in Canadian projects.
Deep dives
Understanding Soft Corruption in Infrastructure
Soft corruption in Canada’s infrastructure projects is characterized by ethical dilemmas rather than legal violations, affecting the cost and scope of such projects. For instance, the Calgary Green Line LRT project was initially designed as a 46-kilometer route with a $44.5 billion budget, which has since been reduced to just 20 kilometers while costs have ballooned to over $5.5 billion. This situation reflects a broader trend across the country where lack of transparency in procurement processes allows various stakeholders to benefit financially, contributing to inflated project costs. Ultimately, as taxpayers, there is a pressing need to ensure that these projects deliver real value for the money invested by the public.
The Role of Complexity in Project Delays
The complexity of approval processes and heightened regulatory requirements in housing and infrastructure projects in Canada leads to significant delays and escalated costs. For instance, in Toronto, the average approval time for new housing is around 25 months due to the need for numerous reports, creating inefficiencies known as 'process parasites' that hinder timely completion. This bureaucratic quagmire raises concerns about who truly benefits from the added layers of compliance and reporting, as many requirements seem excessive compared to previous standards. While some argue that these complexities stem from increased societal awareness towards issues such as environmental conservation, it is essential to critically examine whether they indeed serve the public interest.
Learning from Global Infrastructure Models
International examples, particularly from countries like Spain and France, illustrate a more efficient approach to public infrastructure that contrasts sharply with Canada’s current practices. These countries utilize standardized designs for transit systems alongside strong public institutional expertise, resulting in substantially lower costs per kilometer for projects like transit lines. For example, while Paris managed to construct a fully underground transit line for $300 million per kilometer, Toronto’s Ontario line has seen estimated costs exceed $1 billion per kilometer. This disparity underscores the importance of institutional capacity and standardization in developing infrastructure, emphasizing that simplifying processes could lead to more effective public spending.
Over and over again, we see the same problems come up when building anything physical in this country, such as a house or a train. Costs start to balloon and every project seems to end up over budget – or at least costs us more than it would cost to build in other countries.
More Neighbours Toronto’s founder Eric Lombardi attributes this largely to a system of soft corruption.
In this conversation, he highlights how convoluted processes and lack of transparency lead to inflated costs and diminished outcomes. He compares Canada's approach to infrastructure with that of European countries, emphasizing the need for standardization and in-house expertise. Lombardi proposes solutions to improve procurement processes and accountability, advocating for a more efficient and transparent system that prioritizes taxpayer value.
Links: Canada can no longer afford to ignore its ‘soft corruption’ problem https://thehub.ca/2024/10/03/eric-lombardi-canada-can-no-longer-afford-to-ignore-its-soft-corruption-problem/
Altus Group https://www.altusgroup.com/ https://www.bildgta.ca/wp-content/uploads/2024/09/2024-GTA-Municipal-Benchmarking-Study-Our-number-7147-Final.pdf More Neighbours