Wouldn't a variant of this works internationally also? First, you lobby your government to hand out huge loans to a poor country with the stipulation that the money should be used for something good, say providing drinking water. Then you go around and win the contract for providing the pipes. After a while you escalate costs as mentioned in the OP. The net result is that, officials in both countries can make great speeches, but the citizens of the poorer country are now saddled with a huge debt.