Corruption and Human Development in Africa (ePub)

This study is, to the authors knowledge, the fi rst empiricalcross-country analysis of the relationship between corruptionand human development (HD) in Africa. In most Africancountries the current state of HD is critically poor. In spiteof two decades of democratization and substantial economicgrowth or stability corruption has become endemic and tendsto adversely affect HD conditions and needs. Using a pooledcross-section-across time-design and a sample of 40 Africancountries over many years (2003 2007) and based on an OLS Analysis, this studyattempts an empirical examination of the association between corruption and HDin Africa, while holding constant economic growth, government socioeconomic orwelfare expenditures and political system and, controlling for some major internaland external economic variables. As found, corruption adversely affects humandevelopment in Africa. Overall, based on the main study model (Model 1) a unitincrease in the corruption level (CPI) on a scale of 1 to 10 will cause a .48 percentdecrease in the state of HD (HDI).The relationship between corruption and HD ishowever non-linear: using Model 3 which incorporate a square term of corruption,it was found that at and below 4.577 RCPI (i.e. 5.42 normal CPI) corruptions islikely to positively affect HD whereas at and above 4.577 RCPI corruption rathertends to adversely affect HD with an increasing return. Besides, it was also found,using Model 2 which incorporates an interaction term of corruption and politicalsystem, that democratization has deceived scientists theoretical projections andpeoples political expectations of the 1990s. Democracy has not improved HD inAfrica. Both non-and partly democratic (i.e., authoritarian) and democratic politicalsystems adversely affect HD. The adverse impact of corruption on HD is even worsein the latter systems. After checking for the main effect (Model 2) it appears that, ascorruption increases by one unit, HD decreases by 9.48 percent in African countrieswith authoritarian systems. In contrast , the same one unit increase in corruptionwill have an additional 5.23 percent decrease in the HD of African countries with ademocratic system. This study brings new insights about public policies ineffectivenessand failures to satisfy increasing HD needs in Africa. It throws new lights on therelationship existing between economic growth, democracy and corruption and HD. It suggests some policy reforms which could improve the state of HD in Africa. Overall, it is an important contribution to the theoretical and empirical body ofadministrative theory and knowledge.