Corruption and Development in Africa: A Critical Reflection, 2987 words

Introduction
The statement "Corruption must be eradicated in order for development to occur in Africa"
is a widely held belief that captures the complex relationship between governance and
progress on the continent. Corruption, encompassing various practices like bribery,
embezzlement, nepotism, and cronyism, undoubtedly hinders development efforts (Mbaku,
2007). By diverting resources away from critical sectors like education, healthcare, and
infrastructure, it stifles economic growth, exacerbates poverty and inequality, and erodes
public trust in institutions (Transparency International, 2022).

However, this statement oversimplifies the multifaceted nature of development challenges

faced by African nations. Examining the limitations of focusing solely on corruption
eradication and exploring other critical factors influencing development is essential for
devising effective and sustainable solutions.

The statement, while seemingly straightforward, necessitates a nuanced understanding of

the intricate relationship between corruption and various factors influencing development on
the continent. This essay aims to provide a critical reflection on this statement by:
• Examining the detrimental impact of corruption on development,
• Analyzing the limitations of focusing solely on corruption eradication,
• Highlighting other critical factors influencing development in Africa,
• Proposing a multi-pronged approach to development that addresses both corruption
and other challenges and,
• Examine corruption cases from three African nations.

The Detrimental Impact of Corruption on Development

Corruption is a pervasive and insidious phenomenon, manifesting itself in various forms.

Individualistic forms:
• Bribery: This involves the exchange of an illegal advantage, typically money, gifts, or
services, to influence a person's actions or decisions (Heidenheimer &
Johnston, 2017). It can be direct, involving a clear exchange of benefits, or operating
through intermediaries.
• Embezzlement: This refers to the misappropriation of entrusted funds or property for
personal gain (Rose-Ackerman, 1999). It can occur in both public and private
sectors, involving individuals entrusted with public resources.
• Nepotism: Wong & Klemer (1994) in Ombanda (2018) nepotism is defined as the hiring
and advancement of unqualified or under qualified relatives simply by virtue of their
relationship with an employee, officer, or shareholder in the firm. Nepotism fosters
resentment, distrust, and unfair competition within organizations.
• Extortion: This uses threats or coercion to obtain money or property from someone
(Klitgaard, 1991). It can be particularly damaging when individuals are forced to pay
bribes to avoid harassment, violence, or other harm.

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Large scale and systemic forms:
• Grand Corruption: Large-scale corruption involving high-level officials and significant
financial resources (Hava, 2015). It can involve embezzlement, bribery in major
contracts, and illicit wealth transfer to offshore accounts.
• State Capture: This occurs when private interests exert undue influence over state
institutions and policies (Hellman et al., 2003). It can involve lobbying, bribery among
others to manipulate the state for personal gain.
• Regulatory Capture: This occurs when a regulatory body becomes unduly influenced
by the industry it is supposed to regulate (Stigler, 1971). This weakens regulations and
fosters unfair competition.
• Systemic Corruption: This refers to the pervasive nature of corruption within a society
or organization, often ingrained in its systems and structures (Rose-
Ackerman, 1999). It can involve cultural norms of favouritism, weak institutions, and
a lack of accountability.

There is also sector specific type of corruption, for instance, judicial corruption. This involves
the misuse of judicial powers for personal gain, including bribery, favouritism, and influence
peddling (Buscaglia, 2001).

How corruption hinders development.

Corruption acts as a significant barrier to development by diverting resources away from
crucial sectors like education, healthcare, and infrastructure. These stolen funds, often
directed towards personal gain or illicit activities, cripple the ability of governments to
effectively invest in public services (Mbaku, 2007).

In education, corruption can lead to the misappropriation of funds intended for teacher salaries, school
supplies, and educational infrastructure (Rose-Ackerman, 1999). This can result in inadequate staffing
and poor-quality facilities particularly for marginalized communities. Similarly, in healthcare,
corruption can divert funds meant for medical equipment, essential drugs, and health personnel,
leading to inadequate healthcare systems and poor health outcomes for the population. Also
disproportionately burdens the poor by diverting resources from essential services like
healthcare and education, making it harder for them to escape poverty.

Furthermore, corruption hinders infrastructure development by diverting funds intended for

roads, bridges, energy grids, and other vital infrastructural projects. This results in poorly
maintained infrastructure, inefficient transportation networks, and limited access to basic
services like electricity and clean water, therefore hindering economic growth and
development (African Development Bank, 2022).

Corruption erodes public trust in institutions by fostering a perception of impunity and

injustice (Heidenheimer & Johnston, 2017). When citizens witness corruption go unpunished,
it weakens their belief in the fairness and effectiveness of institutions, leading to cynicism,
apathy, and a reduced willingness to cooperate with authorities.

Corruption fosters an environment conducive to further exploitation and abuse of power,

creating a vicious cycle that hinders development (Klitgaard, 1991; Mbaku, 2007).

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Limitations of Focusing Solely on Corruption Eradication
While eradicating corruption remains crucial for Africa's development, viewing it as the sole
obstacle presents a limited perspective and hinders the implementation of effective solutions.

Beyond Corruption: A Web of Interconnected Challenges

Africa's development trajectory is intricately woven with a complex web of challenges. These
issues, ranging from corruption to weak institutions, deficient infrastructure, conflict, and
external factors, create a multifaceted environment that necessitates a holistic approach in
offering solutions.

1. Weak, ineffective, and fragile institutions lie at the root of many development hurdles
(Bayart et al., 1999). When governance frameworks lack transparency, accountability, and the
rule of law, corruption thrives, hindering economic growth and development.

2. Deficient infrastructure networks, encompassing insufficient transportation, energy, and

communication systems presents significant barrier to development (African Development
Bank, 2022). They impede economic activity, restrict access to essential services like
healthcare and education, and discourage investment. This lack of infrastructure further
isolates rural communities, exacerbates poverty, and deepens existing inequalities.

3. Conflict and instability create a disruptive force that significantly hinders development
efforts. They displace populations, destroy vital infrastructure, and cultivate a climate of fear
and uncertainty. As Collier, 1999 states in (Thai et al., 2002), that the economic costs of conflict
are remarkable. In general, conflicts harm economic development. In particular, conflict
affects economic productivity by devastating cities and infrastructures, interrupting economic
activities, deterring investment, and curtailing government spending, thus hindering
economic growth and thus poverty is exacerbated.

4. External Factors- Global economic trends, unfair trade practices, and the challenges posed
by climate change significantly impact Africa's development prospects. The dependence on
primary commodity exports makes the continent vulnerable to external shocks such as
volatile commodity prices. Such effects of external factors can be exhibited by the fact that
value of the total exports of Africa, at $400 billion, has decreased since 2010, mainly driven by lower
global fuel prices (UNCTAD, 2021). Additionally, climate change and climate policies affect
poverty reduction efforts both through direct impacts on the poor, such as those caused by
natural disasters, and through factors that condition poverty reduction, such as economic
growth (Hallegatte et al., 2014)

A Multi-Pronged Approach to Development

Focusing solely on anti-corruption measures without addressing underlying vulnerabilities
can be ineffective and even counterproductive. As Bardhan (1997) argues, "anti-corruption
programs that focus exclusively on enforcement and penalties may be necessary but not
sufficient."

Therefore, it is crucial to move beyond a singular focus on corruption and adopt a holistic
approach that addresses the interconnected challenges hindering African development.

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Strengthening Institutions
Weak institutions characterized by a lack of transparency, accountability, and the rule of law
create a fertile ground for corruption to flourish (Bayart et al., 1999). Addressing this
vulnerability requires comprehensive reforms in public administration, law enforcement, and
the judiciary to ensure effective governance and uphold the rule of law. Additionally,
promoting ethical leadership, fostering a culture of civic engagement, and empowering civil
society organizations are crucial for holding governments accountable.
It is worth noting that corruption thrives in environments characterized by weak institutions,
lack of transparency, accountability, and limited citizen participation (World Bank, 2015).

Investing in Key Sectors

Investing in vital sectors is essential for building human capital, fostering economic growth,
and improving the lives of citizens. The initiatives include, (UNDP, 2022):
• Providing quality education and vocational training to equip individuals with the skills
needed to thrive in the global economy. Quality education and essential social services
can reduce inequalities and create a more level playing field, thus weakening the
incentives for corruption.
• Expanding access to affordable and quality healthcare services to improve health
outcomes and reduce preventable deaths.
• Developing robust infrastructure networks, including transportation, energy, and
communication systems, to facilitate trade, connect communities, and unlock
economic potential.

Fostering Peace and Security

Conflict and insecurity disrupt development efforts, displace populations, and create a
breeding ground for corruption. Addressing these challenges necessitates:
• Promoting dialogue, mediation, and reconciliation efforts is crucial to address existing
conflicts and prevent new ones from emerging. This empowers communities to find
solutions themselves, fostering trust and collaboration (OECD, 2020).
• Strengthening the capacity of security forces through training, equipment, and
resources is essential for maintaining order and protecting citizens (UN Office on
Drugs and Crime, 2019).
• Tackling the underlying factors that fuel conflict, such as poverty, inequality, and
political marginalization, is crucial for long-term stability (World Bank, 2022).

Mitigating External Factors

Africa's development faces external challenges: unfair trade, climate change, and heavy debt.
To overcome these, advocate for fair trade and international cooperation for economic
stability, support climate adaptation and resilience, and promote debt relief and sustainable
financing mechanisms (Chaudhary et al., 2022).

Bridging the Digital Divide

A growing body of evidence demonstrates that digital technologies can enable economic
transformation in Africa and help create more jobs for its people World Bank (2021,
September 24). Hence poverty reduction.

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Other strategies involve strengthening democratic institutions. As Diamond (1999) argues,
vibrant democracies characterized by free and fair elections, rule of law, and independent
media act as a powerful deterrent to corruption. By empowering citizens to hold officials
accountable and ensuring transparency in decision-making processes, strong democratic
institutions create an environment less conducive to corruption (UNODC, 2023). Both men
and women are affected by corruption in its various forms. However, in cases where women
find themselves in a social, political, organizational or cultural context where they are more
disempowered relative to men, and they are direct victims of corruption (UNDP, 2010).

Case Studies
This section explores the consequences of corruption in three selected African countries,
utilizing statistics and evidence to illustrate its detrimental effects.

Nigeria
Nigeria, Africa's largest economy, faces rampant corruption, scoring a mere 25 on
Transparency International's 2023 Corruption Perception Index (CPI) (Transparency
International, 2023). Despite all the enormous resources, Nigeria is unarguably among the
most underdeveloped nations in the world (Akanle and Nkpe, 2022)

For the past fifty years or so, corruption has manifested in bribery, graft, treasury looting,
subsidy and pension theft, money laundering, advance fee fraud, general indiscipline,
favouritism, and nepotism. The deep-seated nature of corruption and its drawbacks have
earned Nigeria all manner of rankings by the eagle-eyed and whistleblowing global corruption
monitoring agency, Transparency International, which once placed Nigeria as the fifth most
corrupt nation among 191 countries of the world sampled (Folarin, 2021).

Due to corruption, investment in infrastructure leads to dilapidated roads, bridges, and power
grids, hindering economic activities. Corruption in public procurement leads to substandard
infrastructure projects, evident in the country's dilapidated roads, unreliable electricity, and
inadequate water supply (African Development Bank, 2007).

Here is a brief overview of some recent developments in 2023:

• N134 Billion NSITF Fraud: In September, a former Director-General of the National
Social Insurance Trust Fund (NSITF) was arraigned for allegedly diverting N134 billion
(US$317 million) meant for workers' welfare (Premium Times Nigeria, 2023). The case
has sparked outrage and renewed calls for accountability within public institutions.
• The ongoing investigation into the Alpha Beta Consulting firm, allegedly linked to a
former Lagos State governor, continues to dominate headlines. The firm is accused of
receiving billions of Naira in contracts without due process, raising concerns about
potential conflict of interest and mismanagement of public funds (BBC News, 2023).
• The Economic and Financial Crimes Commission (EFCC) has made several high-profile
arrests in recent months, targeting individuals suspected of defrauding various
government agencies and private institutions of over N30 billion (US$71.4 million)
(Vanguard Nigeria, 2023). These ongoing investigations highlight the agency's
continued efforts to combat economic and financial crime.

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Public hospitals are often under-resourced and lack essential equipment and medications. A
2018 report by the World Health Organization (WHO) revealed that Nigeria has one of the
highest maternal mortality rates globally, with over 500 women dying every 100,000 live
births (WHO, 2018). This alarming statistic can be attributed, in part, to the lack of access to
quality healthcare due to corruption in the allocation of resources.

The education sector is another victim of pervasive corruption. Teacher absenteeism

phenomenon in Nigeria is common. Because of education corruption that contributes to
delayed or nonpayment of salaries and benefits, these teachers often look elsewhere to
satisfy their personal needs. In Nigeria, there is no open and transparent procedure for the
recruitment of teachers and even, their training, retraining and promotion. This brings about
corruption and frustrates most young teachers out of the noble profession (Ugoani, 2016)

It is worthy to note that Nigeria's "Whistleblower Protection Act" (2016) empowers citizens to
anonymously report corruption, with legal shields and potential financial rewards. Over
10,000 reports have led to billions recovered and high-profile cases prosecuted.

Kenya
Kenya, with a CPI score of 32 (Transparency International, 2023), has witnessed its fair share
of corruption scandals. This translates to roughly 25% of the national budget (World
Bank, 2022), depriving the government of resources critical for healthcare, education, and
infrastructure development.

In 2020, the National Audit Office reported that over 10 billion USD in public funds could not
be accounted for, raising serious concerns about financial mismanagement and corruption
(National Audit Office, 2020).

The World Bank reports that 25% of infrastructure projects in Kenya suffer from
corruption, leading to poor quality, delays, and cost overruns (World Bank, 2022). This
undermines economic productivity and hinders development initiatives.

Public procurement marred by corruption often results in inflated costs and subpar
infrastructure projects. For instance, the construction of a multi-billion-shilling dam project
was plagued by allegations of corruption, leading to delays, cost overruns, and ultimately, a
compromised structure (Ndung'u, 2021). The "Anglo Leasing Scandal" of 2004 involved the
fraudulent procurement of government contracts worth billions of shillings, highlighting the
systemic corruption within public procurement processes (Bachelard, 2010).

Corruption diverts resources away from vital social services, particularly in rural areas. The
World Health Organization estimates that 40% of Kenyans lack access to essential
healthcare, with disparities heavily skewed towards lower socioeconomic groups (Kenya
Ministry of Health, 2023).

A 2021 report by Global Witness revealed that Ksh. 10 billion worth of timber is illegally
extracted from Kenyan forests annually, fueled by corruption within the forestry sector (Global
Witness, 2021). This deforestation has detrimental consequences for biodiversity, water
resources, and climate change mitigation.

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Bribery and manipulation of land records facilitate large-scale land grabbing, displacing
communities and destroying livelihoods. Land Transparency International estimates that 2
million Kenyans have lost their land due to corruption since 2010 (Land Transparency
International, 2021).

Angola
Angola, a nation rich in natural resources and brimming with potential, faces a formidable
enemy in the pervasive issue of corruption (Afrobarometer, 2021). This deeply ingrained
problem has had devastating consequences across various sectors, hindering development
and undermining the well-being of her citizens. Transparency International estimates that
Angola loses an estimated $25 billion annually to corruption, equivalent to roughly 20% of the
national GDP. This significant loss of resources hinders economic growth and investment
opportunities (World Bank, 2022).

Corruption often diverts public funds away from crucial infrastructure projects and essential
services. This leads to dilapidated roads, unreliable electricity grids, and inadequate water
supply, hindering economic activity and diminishing the quality of life for Angolan citizens.
Corruption diverts funds away from essential social services, particularly in rural areas. This
leads to limited access to quality education and healthcare, disproportionately impacting the
poorest and most vulnerable communities. UNICEF (2022) reports that only 70% of Angolan
children complete primary education, highlighting the lack of access to quality education.

Corruption in public procurement leads to inflated costs and subpar projects. The Luanda
International Airport, estimated to cost over $4 billion, has been plagued by delays, cost
overruns, and allegations of corruption. Transparency International (2022) found that 65% of
Angolan citizens believe corruption is widespread in public procurement.

Concerns about corruption deter foreign investors, hindering economic diversification and job
creation. The World Bank (2022) estimates that foreign direct investment in Angola is only
2.5% of GDP, significantly lower than the regional average.

Corruption facilitates illegal logging, wildlife trafficking, and unsustainable resource

extraction. Global Witness (2022) estimates that Angola loses $2 billion annually due to illegal
logging. This unsustainable resource exploitation has devastating impacts on the
environment.

The "Operation Car Wash" an international investigation exposed a vast network of corruption
involving Angolan officials, oil companies, and other entities. The case revealed how
corruption undermines transparency and accountability, leading to significant losses for the
Angolan people (BBC News, 2019).

In 2015, in the "Fishgate" Scandal, millions of dollars were diverted from the Angolan fishing
industry through a series of fraudulent contracts. This case illustrated how corruption can
exploit public resources and undermine economic development (Human Rights Watch, 2015).

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Concluding Remarks
Corruption's tentacles reach far and wide, strangling development in Africa. From siphoning
vital resources to eroding trust, its impact is undeniable. While tackling corruption is crucial,
a nuanced approach is necessary. We must address the complex web of challenges – weak
institutions, poor infrastructure, conflict, and external factors – with a multi-pronged
strategy. Strengthening institutions, investing in infrastructure, fostering peace, and
empowering civil society are key.

The case studies of Nigeria, Kenya, and Angola offer a glimpse into the devastating impact of
corruption and the multifaceted nature of Africa's development challenges. However, they
also showcase the resilience and determination of its people. Initiatives like Nigeria's
"Whistleblower Protection Act" demonstrate the potential for progress when communities
come together to demand change.

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