The government in any society serves to improve the wellbeing of its citizens now and in the future as well as protect the territorial integrity of its domain. There is nothing that affects a government ability to play this role than the malaise of corruption. Developing countries seem to be plagued with extreme resource misallocation.

The fundamental purpose of government in any society is the maintenance of basic security and public order--without which individuals cannot go about their private business. Governance encompasses all aspects of the way a country is governed. Simply put, it is the process of decision-making and the process by decisions which are implemented. Governance implies steering that is leading a set of people towards the attainment of the highest possible level of social and economic welfare.

The concept of corruption is defined as the abuse of public authority or trust for private benefit. In broad terms, political corruption is the misuse by government officials of their governmental powers or government resources for illegitimate private gain. Political corruption can occur in any of these various forms but not limited to bribery, extortion, cronyism, nepotism, patronage, graft, and embezzlement. In some countries it has become a feature of the public service and it is expected when ordinary business or citizens interact with government institutions or officials. In fact, it will not be exaggeration to say that corruption has been institutionalized in such countries.

In Nigeria, political corruption encompasses the diversion of public funds for private gains as well as the use of governmental powers to subvert the rule of law. Political corruption is not a phenomenon of modern Nigeria but dates back to post independence Nigeria. Some articles have even linked a number of our founding fathers of with corruption.

It is important to note that the end-point of political corruption is a kleptocracy, literally "rule by thieves". This is a term that gained popularity largely in response to a need to accurately describe Mobutu's regime in Congo DR. The governments in Africa and some parts of Asia have clearly demonstrated this characteristic. University of Massachusetts researchers estimated that from 1970 to 1996, capital flight from 30 sub-Saharan countries totaled $187bn, exceeding those nations' external debts. Bribery around the world is estimated at about $1 trillion (£494bn) and the burden of corruption falls disproportionately on the bottom billion people living in extreme poverty.

The two concepts are closely linked in which case a society characterized by poor governance offers greater incentives for acts of corruption to exist and vice versa. Many of the causes of corruption are economic in nature and so are its consequences. We can therefore conclude that poor governance clearly is detrimental to economic activity and welfare.

Good governance has 8 major characteristics. It is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive and follows the rule of law. It assures that corruption is minimized, the views of minorities are taken into account and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of society.

At times, governments are aligned with our goals and aspiration (political and economic) and at other times, misaligned. However, throughout the world, government seems indispensable to modern societies. It is therefore imperative to ensure good governance so that welfare can be promoted at its peak. It is to this end that a study of governance (good-governance) and corruption has become critical for a developing nation that is consistently seeking to lift more and more of its citizens out of poverty and economic abasement.

Political corruption has far reaching economic consequences that are capable of crippling the economic machinery of any nation. It undermines economic development by generating considerable distortions and inefficiency both in the private and public sector.

In the private sector, corruption increases the cost of business through the price of illicit payments themselves, the management cost of negotiating with officials, and the risk of breached agreements or detection. The availability of bribes can also induce officials to contrive new rules and delays, thereby wasting productive man-hours. Where corruption inflates the cost of business, it also distorts the playing field, shielding firms with connections from competition and thereby sustaining inefficient firms. The end is inefficiency in the system.

In the public sector, corruption breeds white elephants- projects with negative social surplus. It generates distortions by diverting public investment into capital projects where bribes and kickbacks are more rather than areas to ensure the greatest welfare. Capital projects may also be manipulated for the political interest of government officials. Officials may increase the technical complexity of public sector projects to conceal or pave way for such dealings, thus further distorting investment. Corruption also lowers compliance with construction, environmental, or other regulations, reduces the quality of government services and infrastructure, and increases budgetary pressures on government.

In general, a corrupt government typically results in many years of general hardship and suffering for the vast majority of citizens. In addition, corrupt governments routinely ignore economic and social problems in their quest to amass ever more wealth and power. The picture painted above is the exact outcome of political corruption in Nigeria. The activities of corrupt government have beyond doubt placed untold hardship on the citizenry.

From the foregoing we have been able to see the menace that corruption can breed in a society. However, corruption is not peculiar developing nations alone, it also exists in some advanced economies. So why the difference in their economic realities? The difference is that corruption in developing nations particularly those in Africa has primarily taken the form of rent extraction with the resulting financial capital moved overseas rather invested at home. Thus while their leaders (developed nations) stole, the money was used to develop their society, whereas our own leaders (developing nations) stole and used the proceeds to acquire mansions in London and practically support the economy of those nations.

The answer to this malaise of corruption as we can see is good governance and how can we arrive at good governance. We will achieve good governance if we demand accountability from our leaders and not only demand it but ensure that they are accountable for their actions in office. Although it is said that corruption has eaten deep into the fabric of the Nigerian society and that it is deeply entrenched in our lives, I believe there are still many Nigerians who live decent lifes. If we collectively demand accountability and rule of law from our leaders we will definitely be on the path of economic prosperity.

Robot  # 1 | 20.07.2008 03:09

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