19 Sep 2022

52

Corruption and Economic Growth in Africa

Format: Chicago

Academic level: University

Paper type: Essay (Any Type)

Words: 1128

Pages: 3

Downloads: 0

Introduction 

Africa has for some time now been in the spotlight for having corrupt nations that are hindering its growth as a continent. It is for this reasons that scholars have found it necessary to address the vice. The aim of this article is to examine critically the views put across by various authors about corruption and growth in Africa. 

Kwabena, Gyimah-Brempong. “Corruption, Economic Growth, and income inequality in Africa.” Journal Economics of Governance vol. 3 (2002):183-209. 

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His article is one that addresses the issue corruption in Africa and its effects on growth. He examines the effects of corruption on economic growth and the distribution of income. He uses data from African countries and an estimator to investigate. He discovers through his research that corruption decreases both, directly and indirectly, economic growth through a decrease in investing in physical capital. Kwabena states, “A unit increase in corruption reduces the growth rates of GDP and per capita income by between 0.75 and 0.9 percentage points and between and between 0.39 and 0.41 percentage points per year respectively. 1 ” After his research, he found out that increased corruption is correlated with increased income inequality. When outcomes of diminished income growth and amplified inequality come together, it shows that corruption benefits the rich in the society and pains the poor in African countries. This is so because the rich use their resources to harass the poor. They, through corrupt means, amass wealth that would have otherwise been used to develop the poor. Many African countries are marked by poverty, unequal income, slow economic growth and wealth distribution. Africa has made the least progress when it comes to growth thus many countries are still in the developing categories. The major aim of economic development is to enhance the quality of life from all aspects including but not limited to material well-being, expanding the range of choices availed to all citizens. Whatever hinders the chances of providing these choices for any group but more so the poor equally blocks the chances for development and may stagnate economic growth? He thus concludes that the resources of the African countries lie with the politicians who only care to make themselves rich at the expense of the citizens. He, however, feels that Africa doesn’t need external aid to redeem itself but rather it should use domestic resources to increase the well-being of the citizens by reducing corruption. When this is done the economic growth with be realized. 

Mbaku, John, M. “Bureaucratic corruption in Africa: The futility of Cleanups”. Cato Journal vol. 16, no. 1 (1996): 99-118 

Mbaku is yet another author who also investigates corruption In Africa. However his major focus was on examining corruption cleanup strategies in Africa and find out why they have been ineffective. He concurs that African countries are faced with the challenge of corruption that is hindering growth. Strategies have been derived from tackling the levels of bureaucratic corruption, but none seems to work. The strategies include legal, market, judicial and political. These approaches represent the manipulation of the outcomes within institutions. Evidence has been provided that most judicial systems and police in African countries are not properly directed by the law and that even the civil servants are themselves corrupt thus cannot deal with corruption case brought to them. This greatly hinders economic growth in the African countries. Bureaucratic corruption is usually the outcome generated within a given set of rules. According to Mbaku the cleanup can only be effective if the rules are thoroughly examined and do not provide room for manipulation 2 . He concludes that the only way that corruption can be wiped out in Africa is to have the rules reformed so that economic order can be established. 

Amadi, Luke, and Ekwekwe, Eme. “Corruption and Development Administration in Africa: Institutional Approach.” Journal of Political science and International Relations vol. 8, no. 6 (2014): 164-172 

Ekwekwe and Amadi, on the other hand, address the problem of corruption in African from a different angle. They provide dynamics of corruption and development of administration failure in Africa. According to them, democracy transition has not reformed corruption in Africa since 1990s.This does not, however, presuppose pessimism but rather that African countries should rise up and confront the development failures that have for a long time made the continent lag behind in terms of development. A scholar like Chinua Achebe states, “The trouble with Nigeria is simply and squarely a failure of leadership” 3 . This does not apply to Nigeria country alone but for most of the African countries. The corruption begins with the leaders in the country. Thus, they cannot deal with the menace as it squarely involves them. It would be like shooting them in the foot.Ekwekwe and Amadi agree that African states lack a clear and focused development orientation with the aim of bringing their countries out of poverty. They thus suggest that the countries should borrow a leaf from countries like Japan, Africa has potential but still fails to develop. 

Mulinge, Munyae and Gwen, Lesetedi. "Corruption in sub-Saharan Africa: Towards a more holistic approach." African Journal of Political science vol. 7, no. 1 (2002): 51-77. 

Munyae, and Gwen focus on the genesis of corruption in Sub-Saharan Africa, and they took a holistic approach. They link the origin and spread of corruption to the colonization of African nations. They integrate the historical and international contexts of the issue. A holistic approach is that which is urged, necessary if it is to be comprehended in its historical perspective. Mulinge and Gwen state that corruption is a multi-faceted and complex issue that requires a comprehensive approach that touches all disciplines. Aspects such as economic, legal social, administrative and moral are targeted 4 . In as much as the effort has been put to address the issue of corruption so much more still has to be done. They thus concluded that commitments from governments, bureaucracies, and international agencies are necessary if the fight against corruption is to be successful. 

Ades, Alberto and Di Tella, Rafael. “National champions and Corruption Unpleasant Interventionist Arithmetic.” Economic Journal vol. 107 no. 443 (1997): 1023-1042 

In this article, corruption is looked at in terms of its impact on private and public investment in African countries. The focus here is exploring one channel through which corruption undermines economic growth and how it affects economic Growth. The impact is negative but then significant to both the private and public investment. The positive interaction between public investment and corruption are in support of the view that corrupt bureaucrats increase expenditure to maximize private gain 5 . Contrary to that, though, results confirm that private investment is discouraged by corruption. This is so because it increases the cost of doing business but at the same time raising Uncertainty over the returns expected. This is what affects many African countries. This is thus in support that corruption prevents growth and that it is the duty of the government to establish institutional reforms in order to improve the quality of governance as a requirement for achieving investment led growth. 

In conclusion, it is evident based on the different views of the articles discussed above that corruption has what has sown the seed of lack of economic growth and development in Africa. It is also a shame that the same governments we look up to solve the problem are the root of all the corruption and that the rules are manipulated thus the common citizens are the ones that suffer. 

Bibliography 

Ades, Alberto and Di Tella, Rafael. “National champions and Corruption Unpleasant Interventionist Arithmetic.” Economic Journal vol. 107 no. 443 (1997): 1023-1042 

Kwabena, Gyimah-Brempong. “Corruption, Economic Growth, and income inequality in Africa.” Journal Economics of Governance vol. 3 (2002):183-209 

Amadi, Luke, and Ekwekwe, Eme. “Corruption and Development Administration in Africa: Institutional Approach.” Journal of Political science and International Relations vol. 8, no. 6 (2014): 164-172 

Mbaku, John, M. “Bureaucratic corruption in Africa: The futility of Cleanups”. Cato Journal vol. 16, no. 1 (1996): 99-118 

Mulinge, Munyae and Gwen Lesetedi. "Corruption in sub-Saharan Africa: Towards a more holistic approach." African Journal of Political science vol. 7, no. 1 (2002): 51-77. 

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StudyBounty. (2023, September 15). Corruption and Economic Growth in Africa.
https://studybounty.com/corruption-and-economic-growth-in-africa-essay

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