Corruption and Human Development in Africa

Copyright © 2011 by Jacques P. Nguemegne.

Library of Congress Control Number:       2011905282

ISBN:         Hardcover                               978-1-4568-9900-4

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Contents

Dedication

Foreword

Preface

Acknowledgments

Chapter I Introduction

Chapter II The Review Of The Literature

Chapter III Theoretical Framework And Methodology

Chapter IV Statistical Analysis And Findings

Chapter V Discussions, Conclusions And Suggestions

Bibliography

Appendix

About The Author

DEDICATION

To my Love, Viviane Pascale, and our babies, Allan Vianey,

William Brandon, Christian Landry, and Ivan Dimitri.

Foreword

I had the distinct pleasure of becoming acquainted with Dr Jacques P. Nguemegne when he matriculated at Jackson State University in 2003 as a Ph.D. student in Public Policy and Administration. Selected for financial support under a U.S. Department of State grant, Dr. Nguemegne was an Assistant Professor at the University of Dschang.This work follows a series of early publications also focusing on corruption.

As Dr. Nguemegne has continuously engaged in research focusing on corruption in Cameroon, there is a great possibility that he would become a political prisoner if he returns to Cameroon. The state of corruption in Cameroon as well as in most countries of Africa is such that Dr. Nguemegne’s work will provide great insights continent wide. Corruption is detrimental to the economic growth and development of countries in Africa as well as elsewhere around the globe. In particular, educational development suffers, as does the quality of health care, infrastructure, the business sector, media – freedom of press and speech, the extent of marginalized population access to social and financial systems, and the ability to implement democratic governance. Moreover the development of a middle class is thwarted.

In order to curb corruption in the various countries, citizens must be fully educated as to its impact on all aspects of their lives. For example, the lack of potable water means children and adults alike will be more susceptible to water borne diseases. As a result, sick children cannot attend school; unhealthy adults cannot work to support their families and achieve a better life.

IIn all, this book will do much to enlighten citizens regarding the nature of corruption in their respective countries along with the benefits to be gained from eliminating this scourge of evil.

by Ally Mack, PhD

Dean, Division of International Studies

Professor, Department of Political Science

Jackson State University

April 25, 2011

Preface

This book is aimed at putting at the disposal of the largest public the findings of an empirical research which purpose is to describe the nature of the relationship between corruption and human development in Africa. This research has been undertaken as a partial fulfillment of requirements for the degree of doctor of philosophy in public policy and administration at Jackson State University, Mississippi.

There are many studies on bureaucratic and political corruption in Africa. To the author’s knowledge, however, this book is the first empirical cross-country research on the relationship between corruption and human development in Africa.

This research is important. It will contribute to the enrichment of the theoretical and empirical body of administrative theory and knowledge. It shall specifically add to the already important body of literature on human development, corruption, and the association of both variables. It will also generate critical information useful to scholars in academia but, mostly, to policy makers, international aid lenders and donor organizations such as the World Bank (WB), International Monetary Fund (IMF), United Nation Development Programme (UNDP) and other United Nations’ agencies, African regional organizations, on how pervasive and harmful is corruption or in other words what is the real impact of bad governance on African government, economies and society as a whole. This study is aimed at determining in particular some of the main causes to the ineffectiveness of human development policies and the failures to satisfy increasing human development needs in Africa. It suggests policy reforms that could, if adopted, improve the state of human development in Africa.

Acknowledgments

This book is just a step in a long stream of efforts. In this academic endeavor, I have benefited from the help of so many people and institutions. Their support enabled me to acquire a world class education of which most young Africans can only dream. To all those who, directly or indirectly, have had any contribution to this outcome, I would like to extend my appreciations. I owe a huge debt of gratitude to my dad, the late Jacob Tchuinsu Tchekoking and my mom Jeanne Tchiemgnie Tchekoking, for providing me with education. My endless appreciation to my beautiful and gracious wife, Viviane P. Nguemegne, and my lovely sons for their courage and patience. A special thank you to Mrs. Elise M. Tagne and Mr. Joseph Tagne for their tireless support. My sincere gratitude goes to Dr. K. Choudhury, the chairperson of my dissertation committee as well as to my dissertation committee members.

A special gratitude to Dr. Ally Mack, dean of the JSU’s Division of International Programs [JSUDIP] and director of the Mississippi Consortium for International Development (MCID), for the opportunity given to me to be part of an enriching experience. Thank you to Dr. Mary D. Coleman, director of the Center for University Scholars of JSU (JSUCUS), for providing me with a research assistantship. My appreciation also goes to Mrs. Adrienne Graham, associate director of MCID, to Mrs. Kathy Sims, the student advisor at JSUDIP, and to the MCID’s staff for their support and assistance. I owe a debt of gratitude to the Owens at Canton, the Tches at Clinton, and Mr. Ray Patel at Jackson, Mississippi. Sincere gratitude to Moye Godwin B., Sandra Park, David Wright, Fabiano Dikiefu, Eugenev Kashkin, Ruth de Olivera, Maria E. Gomes, and Bassirou Diatta for their help and joyful camaraderie. My gratitude finally goes to the government of Cameroon and the leadership of the University of Dschang for their institutional support.

Although I benefited from the help of many people and organizations, I am solely and fully accountable for the views and opinion exposed, as well as mistakes that may appear in this book.

CHAPTER I

INTRODUCTION

1.0 Introduction

As argued by investigators, the serious deterioration in human conditions in Africa makes it imperative that no task is more central or urgent than mounting an all-out and persistent attack on the root causes of human deprivation(Rasheed and Chole 1994: 6). Bad governance and related phenomena are likely to cause or enhance such a deprivation.

Indeed, the adverse effects of corruption or the misuse of public office for selfish gains (Anassi 2004:17), on growth and development, largely ignored in the past, are now recognized. It is believed that excessive corruption in Africa represents an important constraint to the emancipation and development of the continent (Chabal and Daloz 1999: 4; Mbaku 2000, 2007).

The continent has been consistently ranked as the most corrupt on the face of the earth in both the Transparency International (TI)’s Global Barometer[1] (TIGB) for 2006 and 2007 and the World Bank (WB)’s Global Monitoring Report (WBGMR) for 2006. Indeed, corruption is pervasive or widespread in many African countries (WB 1997; Mbaku 2004; Medard 2005). Based upon existing studies, surveys, and reports, most policy makers and practitioners agree on the idea that, pervasive corruption could be the cause, the symptom and the consequence of the failure of development in Africa.[2] It is argued that, if nothing is done, the adverse effects of generalized and entrenched corruption could also significantly jeopardize Africa’s chances to achieve human development.

Past studies found that corruption determines economic growth and development (Bailey 1966; Krueger 1974; Bardhan 1997; Ades and Di Tella 1993; Mauro 1993). It is argued that pervasive rates of corruption may adversely affect development in many ways. Elliott (2005:925) captured some of these negative consequences in the following words:

When it is pervasive and uncontrolled, corruption thwarts economic development and undermines political legitimacy. Less pervasive variants result in wasted resources, increased inequity in resource distribution, less political competition, and greater distrust of government. Creating and exploiting opportunity for bribery at high levels of government also increases the cost of government, distorts the allocation of spending, and may dangerously lower the quality of infrastructures. Even relatively petty or routine corruption can rob government of revenues, distort economic decision-making, impose negative externalities on society, such as dirtier air and water and unsafe building.

Recent studies have examined conceptually (United Nation Development Programme (UNDP) 1990), theoretically (Qizilibash 2001; Salem 2003) and even empirically (Akther 2004) the association between corruption and human development.[3]Consistent with early studies findings, Akcay’s (2006) empirical study, based on a sample of sixty-three countries, found that endemic corruption also inflicts serious damages to human development.

In most African countries corruption is pervasive in public institutions, government and politics; the economy and society as a whole (WB 1997; Mbaku 1997; De Sardan 1999). This exceptionally high level of corruption (see table 1.1. appendix)[4] is now a public issue (Desta 2004) [5] It is believed that such pervasive corruption could harm development, and particularly human development, in developing regions such as Africa.

1.1 The Problem of this Study

1.1.1 Some Paradoxical Social Trends

Over the past two to three decades some illogical or nonsensical social trends have been observed in Africa. On the one hand, there has been democratization and economic growth in Africa. As from the late 1980’s, there has been democratization in Africa. From only four countries in 1989, nearly all the fifty-three African countries now claim to be democracies with multiparty systems, observing good governance principles and free and fair elections systems. Only eight African countries can now be viewed as nondemocratic (or not free) according to The Freedom House Report 2007 (See table 3.1. appendix). The recent democratization of Africa was accompanied by the hope for a real improvement in governance. Such hope is a consequence of the general theory of political science. In theory, democracy and political competition inhibit corruption (Montinola and Jackman 2002:147; Bardhan 1997:33). It is argued that in the long run democracy goes together with low corruption (Warren 2004; Amundsen 1999). It was therefore projected that the democratization of the late 1980’s would encourage a regression of corruption in Africa (Medard 2005:388).

The recent democratization process in Africa has been paralleled by economic liberalization and strong growth performance. [6] According to the WB (2008c), after 1990, African economies were in a better shape. Trade has expanded and foreign direct investment (FDI) has rocketed. Also, in many African countries, the policymaking process has been tremendously improved. Inflation, budget deficits, exchanges rates, and foreign-debt payments have been cancelled or are more manageable. Also, economies are more open to trade and private enterprise. As a consequence, beginning in the mid-1990’s many African economies appeared to have turned the corner of the economic recession and moved to a path of faster and steadier economic growth. In 1995-2005, their performance reversed the economic collapse of 1975-1985 and the stagnation of 1985-1995. For the first time in three decades African economies were growing in tandem with the rest of the world. Since the mid-1990s the average income in Africa has been rising in tandem with those of other regions.

Despite the unanticipated oil shock, growth has remained important. For example, average growth in 2005 was 5.5 %. It was estimated at 5.3 % in 2006 and projected to be 5.3 % in 2007. More than a third of Africans now live in economies that have grown at more than 4 % a year for ten years. In 2005, growth varied substantially from -5.3 % to 20.6 % and eight African countries were near or above the 7 % threshold needed to sustain poverty reduction. Even sub-Saharan Africa experienced a growth of 5.4 % in 2005-2006, and the consensus projection among economists was that the growth will remain strong. Leading the way were the oil and mineral exporters, thanks to high prices. But the eighteen non mineral economies, with 36 % of sub-Saharan Africa’s people, have also been doing well[7] (WB 2007, 2008c; Erlich and Liu 2008). Economists believe that, such improved economic growth is significantly correlated with less corruption (Mauro 1973, 1975; Mo 2001; Rose-Ackerman 1978, 2006).

On the other hand and paradoxically, against the above positive political and economic trends, most African countries have experienced rather pervasive corruption and poor human development conditions. On both parameters, Africa displays the worst performances. Facts do not in effect concur with WB’s (2008c) notion of a current improvement of governance in Africa.[8] More than two decades of democratization associated with a substantial economic growth has apparently had little effect on corruption.

In many African countries, corruption[9] has become both systemic and pervasive in all spheres of social, economic, political and administrative life (Heidenheimer and Johnston 2005: 379; Friedrich 2005). Both bureaucratic corruption (Le Vine 1975; Lodge 2005; Mbaku 2000, 2007), political corruption (Reno 1975; Williams 1987; Medard 1990; Bayart 1996) and even social corruption (De Sardan 1999) are pervasive. Evidence of corruption pervasiveness has been carefully gathered. Over the period from 2002 to 2008, TI CPI rankings show that none of the surveyed African countries has been a minimum-corruption country (9.0-10.00 CPI) or a low-corruption country (7.00-8.99 CPI). Moderate-corruption countries (5.00-6.99 CPI) ranged only from 2.27 % (2005) to 9.52 % (2002). In contrast, a greater number of African countries have been high-corruption countries (3.0-4.99 CPI), ranging from 26.41 % (2007) to 39.96 % (2008). Indeed an overwhelming majority of African countries have been "hyper-high-corruption countries’’ (1.0-2.99) and ranged from 52 % (2002) to 70.45 % (2005) (The WB Global Monitoring Report (WBGMR) 2006 and TI Global Barometer (TIGB) 2006, 2007) (See figure 1 and table 1.1 appendix).

African countries’ corruption rates are not only high but the highest in the world. Most African countries display exceptionally high levels of corruption, compared to those of non-African countries. For example, TI CPI Report of 2007 placed 39 African countries out of 53 (73.58 %)[10] in the bottom half of the 180 countries included in the index. [11] Likewise, TIGBs have consistently reported Africa’s corruption rates that were higher than those of other world regions including, European Union and other Western European countries (EU+), South East Europe, Newly Independent States (NIS), Latin America, Asia Pacific and North America. In The TIGBs of 2006 and 2007, not only does corruption in Africa appears to be growing, but also at a significantly higher rate, compared to that of other regions. Overall, as shown by bribery the most familiar and visible act of corruption, in 2006 and 2007 Africa has been the most corrupt of all continents (TIGB 2006, 2007) (see figure1and table 1.1. appendix).

Alongside with corruption pervasiveness is the poor state of human-development in Africa. The state of human development in Africa is the worst compared to that of other regions of the world. Overall, Africa has experienced protracted human development deterioration during the1980’s and first half of 1990’s. The absolute number of people now living in poor human development conditions has remained stagnant (WB 2007) or has increased (table 1.2. appendix). Thus, among African countries surveyed by UNDP from 1997 to 2007, only few countries could be classified as medium human development countries and ranged between 17.6 % and 34.6 %. Very few African countries were high human development countries and ranged between 0 % and 5.8 %. In contrast, the overwhelming majority of African countries surveyed was low human development countries and ranged between 65.3 % and 76.4 %.[12]

Hence, despite democratization and a steady economic growth, corruption has become pervasive while human-development condition has worsened in most African countries. The contradictory trends described above suggest that there could be an association between high corruption and low human development in Africa.

1.1.2 Statement of the Problem

The state of human development in many African countries is critically low or poor. Despite democratization and a stable or growing economy in many countries, an endemic level of corruption tends to adversely affect human development conditions. Base on the observation and the literature, it is likely that human development is also influenced by some intervening variables such as economic growth, government socioeconomic or welfare expenditures, political system as well as some major internal economic variables (IEVs) ( income, domestic investment and capital formation ) and external economic variables (EEVs) ( FDI and official development assistance and aid received).

1.2 The Contribution and Purpose of the Study

1.2.1 The Contribution of the Study

In Africa, despite democratization and better economic-growth prospects, corruption has become pervasive while the state of human development is likely to worsen. However, even though evidence exists that pervasive corruption adversely affects human development (UNDP 1990; Salem 2003; Akther 2004; Akcay 2006) and, in spite of scholars’ warning that misgovernment and corruption may have corrosive effects on human development prospects (Rasheed and Chole 1994; UNECA and CODESRIA 2008) [13]the research on these issues in Africa has lagged behind.

Actually, many studies have been conducted on bureaucratic and political corruption in Africa (Medard 1986, 1990, 2005; Williams 1987; Harsh 1993; Reno 1995; Bayart 1996; Bayart, Ellis, and Hibou 1997; Mbaku, 1997a, 1997b, 2000). However, most of these studies are essentially monographs, single-country or case studies seeking to define corruption and describe its causes, manifestations and/or effects. Others focus on the effects of corruption and related behaviors, institutions, politics, growth or economic development in Africa. There are also those who examine anti-corruption strategies or ways through which corruption can be prevented, controlled or reduced. In general, Nigeria (Tignor 1993; Eker 1981; Brownsberger 1983; Smith 2007), Kenya (Anassi 2004), Sierra Leone and Uganda (Kpundeh 1994, 2005), Ghana (Le Vine 1957; Werlin 1972, 1973) and South Africa (Lodge 2005; Feinstein 2007), Botswana (Good 1994) and Cameroon (Friedrich Erbert Stifung 1995; Tchoupie 2006) are some of the African countries where corruption has been mostly studied.

The few works on corruption that attempted a transversal and/or longitudinal approach using a sample of many countries have been bedeviled by the dilemma of social specificity or cultural endogeneity (Mauro 1995; Sandhotlz and Koetzle 2000). These early studies were limited particularly by the use of non-universal definitions of corruption (Scott 1969; Bardhan 1997). Perhaps for these reasons, past comparative studies on corruption in Africa have rather been speculative (Feinstein 2007; Smith 2007; Chabal and Daloz 1999) or at best exploratory (Anassi 2004). For example, Harsh’s (1993) study entitled Accumulators and Democrats: Challenging State Corruption in Africa was purely anecdotal. Mbaku’s (2000) public-choice analysis that views corruption essentially as a colonial legacy has been firmly criticized for not providing a better understanding of corruption in Africa. African reality itself supprimer, it is argued, shows the limitations of this author’s approach (Engelbert 2001).

Moreover, the study of Ades and Di Tella (1999) on market competition factors, especially oil rents and corruption was not empirical but hypothetical. Also, Epsko’s (1979) book entitled Bureaucratic Corruption in Sub-Saharan Africa is simply a collection of published articles on corruption.

Thus, with the exception of few remarkable studies such as Frimpong’s (1999) comprehensive analysis entitled Corruption, Democracy and Good Governance in Africa or Williams’(1987) Political Corruption in Africa, most studies have failed to provide the full empirical examination of the social, economic and political consequences