Saturday, October 12, 2013

Simple Give and Take Economic Theories and Concepts:

Good People,

Simple Give and Take Economic Theories and Concepts:

In Economics, the commercial balance or net exports of a country varies between the monetary value of exports and imports on the total output of economic GDP report over a certain period, measured in the currency of that economy…….in the relationship between a nation’s imports and exports.

The balance of trade is sometimes divided into both goods and services recorded as factsheet for the GDP (Gross Domestic Product).

Measuring the balance of trade can be problematic where actual supporting information of products are missing and does not reflect true recording of collection of data.

The discipline within the social sciences harmonizes smooth business exchange capacity of cooperation from the public sector to the Political negotiations that facilitates Government Management implementation, which having been undertaken between the international relations according to the constitutional order, the economy is fed positively both sides of the negotiating table, and in the course of times, the economy is provided with a booster to reinforce diversity, innovation, growth and expansion.

For any sustained and progressive business success that commands huge sums of money, there is need for a wider consultative professional input with a good comprehensive organizational development plan for a balanced economic standing. This is when the Government system is able to function and fizzles down to form automation of a revolving supply and demand exchange process of goods and services and these can only be successful under a regulated policy guideline by a Democratic Governing system in the respective Government service departments where Finance department is mostly crucial. Consequently, a Budget cannot be completed without Finance Department following tenets of the constitutional order of public mandate.


A functioning good Democratic Government system produces good Development agenda that provide a balanced opportunity favorable to all and that are balanced and are able to produce good results.The system that works well produces good result that improves social welfare in a short period of time and is able to transform economic progress, social stability with political principle guidelines that are simple, easy to understand and are made available with ease to all without any discrimination.

An imbalances of trade emerges when there are abuses or under-table deals of natural resources, illegal land usage and where local farmers are stolen from their cattles or shortchanged in cash crops sale that are corruptly exported in exchange for money put in politically correct network (money dipped in politicians pockets); who through graft and impunity, facilitate the bilateral business where public interest are under-cut and short-changed without value for their value.

In this case, no clear records are documented in the Government Exchequer ……. In otherwords, exchange of public goods in Trading transaction are supplemented, for example, with Blood Diamond and Gold in Congo, Titanium from Kwale, Pirating, Poaching, offshoring, currency and money laundering, exportation of sand to China, fish and water from Migingo and where human rights are violated and abused etc., the irregularities practices in Port Shipping transactions charcols and wood from the forests with the evasion of paying taxes to the Government are such processes that creates the imbalances and where GDP recorded are not justified nor are they realistic.

It is here where Peoples Government is blocked, short-changed or denied to provide opportunities to benefit the people, and where a network of business community instead shadow the Government function-ability by the engineered political machinery of conflict of interest, becomes a problem and in the long run, business community have power and control over the People Government from rendering services fairly to the people. In other instances, tender processes are made so complex earmarked for Special Interest, and Government structures for public service delivery is made so opaque, with job creation and business inequity-gap growing wider, while corruption and impunity are given lifespan to continue to thrive endlessly.

Politicians without discipline fail to observe the law.They take public subsidy as personal, which then 'disappears' into private and personal accounts without trace……..private and individual sector corruption find its way into public amenities, bankrupt public co-operation into private and personal transfer takeover thus, stripping off public assets and this is entirely corruption with impunity.

For private financial equity taking control of such for example, Central Bank Services to benefit itself in the largest source of profit, is to invest in a liquid firm with good public assets, avoid paying taxes, take management service fees at commercial rates, drain it, indebt it and then exit leaving a weaker and unstable Central Bank Institution that must be sustained and stabilized by public taxpayer finances to shoulder the expenses in ways.

Corruption, impunity with failed governance have contributed to extreme poverty, Scramble to Africas' Land Grabbing, genocide with atrocities and are therefore costing Africa billions that are unaccounted for and are the greatest obstacle to Africas development with foreign direct investment sustained Partnership needed to improve good standing cooperation with meeting challenges at the International Market Place favorably along with the rest of the world.

Accountability and Transparency:

The balance of payment records clearly must show, the international flow of goods and services and other net income received from foreign countries. The import and export of goods and services, income received from investments, payments for debt service and private and public net remittance and transfers must be tabulated on record in the Current Account.

The capital account must record the international transactions of financial asset with liquidation flows. There must be clear statement for direct foreign private investments, foreign loan received from private banks, the grants and loans received from foreign governments, the grants and loans received from international, multilateral institutions like World Bank are included in the capital account.

The value of visible imports must equal to the value of visible exports. This shows the position of balance of trade. Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. Therefore, GDP per capita is not a measure of personal income ........ say if a few group of people are wealthy, that does not determine the wealth of the Nation. It is as a matter of fact, the size of our debt compared to our income worth from business transaction exchange that form GDP value......... and in the case of corruption taking tall order, the country's GDP is ripped off by the Special Interest network and the Nations value goes down.

In other words, all goods and services must correspond to the value of the total product and Supply and Demand, must equal to people's total Income and expenditures in capacity of buying things against things sold to the people. This is what determines the principle of GDP...........
Cash received by the Government must be accounted for and clearly made to balance with items for exchange bilaterally where, it must show the net outflow of foreign reserve. The errors and omissions adjusted and the statistical discrepancies documented. A country receives international cash reserve in the following forms:-

i. Hard currency in the foreign currency received has time and again found its way in the foreign bank account of individual politicians.
ii. Gold, Diamond, Titanium, oil, fish, water, Agricultural produce, and land to include poaching, have fetched billions of dollars to Corporate Special Business Interest network, that are untaxed but instead of bringing value, it brought pain and suffering to Africa with backwardness failing development progressiveness instead.

iii. The deposit with International Monetary Fund (IMF) and the World Bank foreign exchange on loans failed to capture poverty elimination but instead enriched politically correct network corruptly.

iv. Innovation, Science and Technology

v. Security
Government Run through Proxy of Special Interest:
Special Business Interest fight proxy war for control of the Government against the people.Corrupt politicians engage in conflict of interest whereby public interest is undermined, swopped and are replaced by Special Interest translating public mandate Government service delivery to special interest instead.A proxy server from public service delivery is then made to render Government Services prioritizing Network of Corporate Business Interest, where under conflict of interest; politicians make uncensored deals with the Government employees substitute to exploit people’s vulnerability and security.
Under Proxy politics, public security and mandate are endangered, undermined and are replaced by those of special interest Ally correctness who confederate Government services to network of a small group of selfish greedy special interest. The proxy political arrangement engage in uncensored, unregulated illegal and corrupt business undertaking through evasion of taxes, segregation, marginalization, manipulation, intimidation and threats; engage in illegal occupation of land, illegal mining, illegal fishing, illegal use of the water tower and shipments, illegal agriculture and with secret drug manufacture; free importation, unchecked transportation, illegal possession and use of public wealth, incorrect use and distribution of certain public resources and substances without going through any concrete legislative regulated government measures.
Subsequently, in the event where People’s Government is compromised, it is held hostage anytime Special Interest is challenged in ways and means.Since they have created autonomy of power by proxy, they have made the Government a Special Interest preserve where, when it comes to matters of “The Budget” it is their way or the highway………In other words, the budget is made according the Special Interest prescribed proposal and not according to public mandate.Special Interest will fight tooth and nail to have their way ……..hoarding and taking more than they need from the Government……..(hoarding is a behavior associated with lack of organization and disorder to health risks, that impaired good functioning of a system and load economic burden that ultimately causes adverse effects on the stability of a Nation, the Community, friends, family members and consequently affects the whole world). and thereby deny fundamental basic rights of people to a point people would rather die and extinct than their comfort zone of hoarding is tampered with or reasonably have Government functionability shared for common good of all.
Special Interest Control of the Government Institution:
A Nation is said to be Sovereign when it honors, values and respect principles of good Democratic Rule of Law and where service to people is the priority placed top on the agenda of governance.
In the same way, God gave man freedom, dominion, Institution of marriage and possession to own and control their bodies and commanded them to love, protect, preserve and multiply to replenish and subdue the earth.
Recognizing that, the people formed our government in democratic process by design to function and serve peoples interest in consultation, exchange and in mutual sharing, and by the people, people own the Government.The three elements thus, dominion, Institution and possession appear outstandingly very clear, the fundamentals that which constitute the very definition of sovereignty.
To undercut it by special interest proxy to serve a small minority of group and taking away survival and livelihood of many is in the same vein committing a serious crime an abomination of violation and abuse of human rights to live a just, peaceful, honorable and dignified life.Something must change or all are destined to lost leaving majority people more vulnerable, Susceptible and skeptical to living a life that are of meaning.

In Conclusion:

We cannot throw our hands up in despair and quit or we keep voicing our disapproval but fight to eliminate Corruption starting at the top where the whole of Africa is rife with corruption.
A sense of awareness demands that people must begin to demand their rights of good governance with concerted pressure from both the UN, World Bank and IMF demanding report; because, if policy are breached a culture of impunity spreads pretty quickly and peace is threatened, a position we have all found ourselves today.
If Africa is to be saved from this infection, the endemic presence of corruption and impunity must be dealt with by all people of the world united and the community supported to work to improve their lives by ways and means to create jobs and improve their Social Welfare Organizing  through Community Partnership Development Agenda.

Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,

Published on Sep 20, 2013



Voice of America (Washington, DC)

Africa: Survey Lists 55 Billionaires in Africa

Johannesburg — There are at least 55 billionaires on the African continent. That's according to the Africa's Richest survey from Venture Africa, an Africa-based business magazine.

There are 10 countries represented on the list, with Nigeria leading the way with 20 billionaires, South Africa with nine and Egypt with eight.

The combined wealth of Africa's 55 billionaires is $143.88 billion, and the average wealth is $2.6 billion.

The richest man on the list is Aliko Dangote, whose investments in manufacturing three decades ago have grown into a $20.2 billion net worth. He is followed by South African investor Allan Gray and Nigerian oil and telecom businessman Mike Adenuga.

Of Nigeria's billionaires, 13 have significant or total investments in the oil business, and mining is a sector tapped by many on the list across the continent.

The Venture Africa survey has more than triple the number of billionaires reported by previous lists. Forbes Magazine noted only 16 billionaires in Africa in late 2012.

Venture Africa's Publisher Chi Chi Okonjo said his magazine's Nigerian and South African base help with having more information than some lists - which is why his survey is more comprehensive.

"We know, because we have people on ground, some of these people are actually people we know personally," Okonjo explained. "So we know their assets... .That's the difference... .You really need to be on ground to know what's happening. So we're able to provide much more detailed information."

His editorial staff calculated wealth through publicly held shares, privately held companies, investment bankers, financial analysts and other financial barometers.

Okonjo said Africans also tend to be quiet about their wealth.

"Wealth is still somewhat taboo in Africa. People prefer discuss what they are doing for their communities rather than how much money they have. It's just a cultural thing," he noted. "So people don't like to discuss how much money they have or how much they've amassed."

Johannesburg — There are at least 55 billionaires on the African continent. That's according to the Africa's Richest survey from Venture Africa, an Africa-based business magazine.

There are 10 countries represented on the list, with Nigeria leading the way with 20 billionaires, South Africa with nine and Egypt with eight.

The combined wealth of Africa's 55 billionaires is $143.88 billion, and the average wealth is $2.6 billion.

The richest man on the list is Aliko Dangote, whose investments in manufacturing three decades ago have grown into a $20.2 billion net worth. He is followed by South African investor Allan Gray and Nigerian oil and telecom businessman Mike Adenuga.

Of Nigeria's billionaires, 13 have significant or total investments in the oil business, and mining is a sector tapped by many on the list across the continent.

The Venture Africa survey has more than triple the number of billionaires reported by previous lists. Forbes Magazine noted only 16 billionaires in Africa in late 2012.

Venture Africa's Publisher Chi Chi Okonjo said his magazine's Nigerian and South African base help with having more information than some lists - which is why his survey is more comprehensive.

"We know, because we have people on ground, some of these people are actually people we know personally," Okonjo explained. "So we know their assets... .That's the difference... .You really need to be on ground to know what's happening. So we're able to provide much more detailed information."

His editorial staff calculated wealth through publicly held shares, privately held companies, investment bankers, financial analysts and other financial barometers.

Okonjo said Africans also tend to be quiet about their wealth.

"Wealth is still somewhat taboo in Africa. People prefer discuss what they are doing for their communities rather than how much money they have. It's just a cultural thing," he noted. "So people don't like to discuss how much money they have or how much they've amassed."



Kenya: Sh300 Billion Govt Expenses Unaccounted in 2011-12

Kenyan government unable to account for Sh300 billion in the 2011-2012 financial year (file photo).
Nairobi — A report from the Auditor General's office shows that Sh338 billion of money spent by the government in the financial year 2011/2012 cannot be accounted for.
According to the document, only Sh55.2 billion of the Sh920 billion the government spent can be accounted for.
Auditor General Edward Ouko said that more than half of the statement errors were due to unsupported expenditure, failure by civil servants to surrender imprests, unauthorised spending and uncleared balances.
"A total of 252 financial statements were audited and only six percent had clean (unqualified) audit reports, 51 percent had qualified opinion reports, 10 percent had disclaimer of opinion reports and 33 percent had disclaimer of opinion reports. A trend that is worrying is that 33 percent of the financial statements or 83 financial statements cannot be regarded as having been properly accounted hence a disclaimer of opinion," he stated.
In the report, Ouko explained that there were no supporting documents for Sh561 billion which could have resulted in the misuse of the funds.
"Of major concern is the poor maintenance of accounting records. As in the previous years and as also indicated in my report, there is weak and inadequate maintenance of accounting records observed across a number of ministries and departments during the year," he said.
He said that in the 2011/2012 year, many ministries and departments prepared their statements on cash basis, making it impossible to tell what the government owns and owes.
"In addition, the ministries and departments continued to prepare their respective financial statements on Cash Basis of accounting as instructed by the Treasury. This implies that capital assets are expensed as a result of which Statements of Assets and Liabilities as at the end of each financial year do not show a complete and true and fair view of the ministry's or department's assets and liabilities," he said.
The Auditor General further explained that he was not able to establish whether expenditures reflected in these statements were incurred lawfully and in an effective way as required by Article 229(6) of the Constitution.
"This hence means that were the accounts with disclaimer of opinion be treated as accounts with no proper justification, then by implication 33pc of the total actual expenditure for 2011/2012 of Sh920bn can be regarded as having not been properly accounted for,"
He also indicated a shortfall in development revenue for the year under review.
"The revenue accounts demonstrate a shortfall of development revenue by 49 percent which translated to approximately Sh26 billion. This under collection was due to non-release of funds by development partners and low absorption of funds by projects and programmes," he said.
He stated that the revenue statements showed substantial balances of revenue amounting to approximately Sh900 million not having been received at the Exchequer Account.
"The discrepancies are due to unexplained and unreconciled differences between the statements balances and the exchequer records maintained at Treasury," he said.
Ouko said that the exchequer account showed a balance of Sh1.1 billion as at 30 June 2012 and an over issue of Sh6 billion to the Ministry of Education (recurrent vote).
He observed that the over issue arose due to the withdrawal of Sh7 billion from the Consolidated Fund on 21 June 2012, for Free Primary and Free Day Secondary Education.
"However, no evidence has been provided for audit confirmation that Parliamentary approval for the additional expenditure was granted as required under article 223 of the Constitution," he said.


Kenya: Corruption Killing Job Creation in Kenya, Says New World Bank Report

Photo: Lauren Everett/AllAfrica
Corruption report box in Kenya.

Corruption accounts for loss of resources enough to create 250,000 jobs in Kenya annually, the World Bank has said.
In its latest economic update titled 'Kenya at Work', the report says an enterprise survey found out that firms pay up to 12 per cent of value of government contracts to win them and four per cent value of their sales is directed towards bribe payment.
Total kickbacks paid on government contracts are approximated at Sh36 billion and another Sh69 billion is paid in form other related bribes.
"Kenya stands out for it's business related corruption than any other country in the world," the report says.
Currently only about 50,000 out of an estimated 800,000 youths leaving school annually get employment.
"Nepotism, tribalism, sexual harassment and corruption determine who gets these jobs leaving the rest to find their own means of survival," said World Bank country director Johannes Zutt.
Zutt said in Kenya the main barriers to creation of jobs through investments are corruption, access to electricity, and poor infrastructure. The World Bank downgraded its earlier prediction of a 5 per cent GDP growth for Kenya to 4.3 per cent, one per cent lower that 2011, but maintained its 2013 projection at 5 per cent.
The report shows Kenya's economy is stable but vulnerable due to the expected general election shocks, transition to a new governance system and the Euro crisis.
"Kenya's economy is out of balance and the external position has become even more vulnerable as the country's current account deficit has skyrocketed and could reach 15 per cent of GDP in 2012," the survey notes "This is among the worst external balances in the world and poses a significant risk to Kenya's economic stability."
Kenya's growth remains below the African average and substantially below that of its East Africa Community partners with an average of 6 per cent annual growth.
Over the last decade, Kenya's imports have grown faster than its exports since mid-2011, with earnings from top four exports not enough to pay for oil imports.
The survey recommends that Kenya should increase its manufacturing capacity and help the high number of people leaving family farming activities to create agricultural processing for export, in order to increase employment opportunities.


Report: Corruption, weak governance costing Africa billions

Lynley Donnelly

The African Progress Panel has revealed its assessment of the challenges that still face many countries in developing their oil and mineral wealth.
Kofi Annan. (AFP)
Combating international tax avoidance and evasion, corruption and weak governance are crucial if Africa's people are to benefit from the continent's vast natural resource wealth, former United Nations secretary general and chair of the African Progress Panel Kofi Annan said on Friday.
According to the panel's 2013 African Progress report at the World Economic Forum on Africa taking place in Cape Town, the continent is losing more through illicit financial outflows than it receives in aid and foreign direct investment.
It found that trade mispricing, or losses associated with the misrepresentation of export and import values, alongside other illicit outflows cost the continent $38.4-billion and $25-billion respectively between 2008 and 2010.
Annan called for a rule-based global system on tax transparency to be developed with the G20.
"All foreign-owned companies should be required to disclose the ultimate beneficiaries of their profits," he said.
Switzerland, the UK and the US – all major conduits – should signal their intent to clamp down on illicit financial flows Annan said.
He also extended this call to players from other developing nations who have become increasingly active in Africa in the oil, gas and minerals realm.
Poor governance of state companies
"Major investors in African extractive sectors such as China and emerging investors such as Brazil must also engage," he said.
The report raised concerns over the structure of investment activity by foreign companies operating in Africa.
It was characterised by the extensive use of offshore-registered companies and low tax jurisdictions, and in some cases the complex use of shell corporations.
"These arrangements come with weak public disclosure and extensive opportunities for tax evasion," the report said.
The revenues generated for major companies in many cases dwarfed the gross domestic product (GDP) of the countries they operate in.
In 2012 Shell's revenues sat at $467.2-billion. This is compared to Nigeria's GPD of $244-billion, Angola's GPD of $104.3-billion and Gabon's GDP of $17.1-billion.
Poor governance of state companies and assets are also associated with extensive revenues losses, the report found.
In 2012 Angola was unable to account for $4.2-billion, according to the report. Nigeria meanwhile was estimated to have lost $6.8-billion between 2010 and 2012.
'We are not poor'
But nowhere had a country lost out as much from this practise than the Democratic Republic of Congo (DRC), the report found.
It analysed five privatisation deals involving the sale of state-owned assets to foreign investors operating through offshore companies registered in the British Virgin Islands and other jurisdictions. The panel estimated that the losses sustained in these deals, through the under valuation of assets, was $1.3-billion – more than double the DRC's health and education budget.
This was in a country with the sixth highest child mortality rate, endemic malnutrition and seven-million children, out of a total of 11.2-million, not attending school.
These under-pricing activities however generated returns of around 500% for the offshore companies involved.
African countries needed to pursue greater transparency in the management of their resources according to Annan.
"We are not poor, we need to manage our resources better," Annan said.
"African governments can do better."
Transparent access to the details
States had to have "very clear rules" relating to how companies can bid for concession in their country, including using public auctions that gave the public transparent access to the details of the bidders and what they pay he noted.
Fellow member of the African progress panel, Zimbabwean-born businessperson Strive Masiyiwa said the arrival of other developing nations on the continent such as China, Brazil and India had been "a positive game changer".
"But we also need to call on them to try … help us in creating the equity we are looking for," he said.
It would be good if these new players introduced legislation in the vein of the US's Foreign Corrupt Practises Act and Britain's anti-bribery laws to help achieve this he said.

Alisdair Budd
And also the Zim Minister of Mines and his possession of large amounts of cash, property, cattle and businesses from untraceable sources:
Peter Auld
Africa has:
1. 2% of the world's GDP
2. 14% of the world's population
3. 60% of the world's arable land.
Enough said.


People losing trust in their governments after tidal waves of bribes, corruption
  • By Catholic Online (NEWS CONSORTIUM)
  • 7/9/2013
  • Catholic Online (

    A Transparency spokesman pointed to a link between poverty and graft, saying eight of the 10 countries with the highest bribery rates are African.
    A Transparency spokesman pointed to a link between poverty and graft, saying eight of the 10 countries with the highest bribery rates are African.

    For many citizens of the world, bribery of government officials is a daily fact of life. In a poll conducted by Transparency International, more than 50 percent of the global respondents said that the corruption within their own countries has worsened over the past two years. This has led to an overall mistrust in law and governments worldwide.

    LOS ANGELES, CA (Catholic Online) - Political parties are seen as the most corrupt class of organization in some 51 countries. Thirty-six countries name the police as the most corrupt, while another 20 countries say the judiciary forms the worst their government has to offer.

    Based on a survey of 114,000 people in 107 countries, more than 50 percent of the respondents said that they thought their government is controlled by small groups and special interests. In nations such as Cyprus, Greece, Lebanon, Russia, Tanzania and Ukraine, that number jumps above 80 percent.

    "The majority of people around the world believe that their government is ineffective at fighting corruption and corruption in their country is getting worse," Transparency International said in the report.

    Liberia and Sierra Leone rank at the bottom in terms of corruption, with more than three in four of those surveyed saying they had paid a bribe in the past year.

    Bribery rates were over 50 percent in Cambodia, Senegal, Cameroon, Ghana, India, Tanzania, Kenya, Libya, Mozambique, Uganda, Yemen and Zimbabwe.

    At the other end of the spectrum, the countries reporting the least amount of graft, Australia, Belgium, Portugal, Malaysia, Finland, Denmark and Croatia were among the countries reporting a bribery rate of less than five percent.

    Somewhere between 5 percent and 9.9 percent of respondents in the United States and United Kingdom said they had paid a bribe.

    A Transparency spokesman pointed to a link between poverty and graft, saying eight of the 10 countries with the highest bribery rates are African.

    According to the poll, corruption has also worsened in most Arab countries since their 2011 revolutions, even though anger with corrupt officials was a major reason for the uprisings.

    Most importantly, the survey suggests that corruption cuts across societies and demographics.

    Some large, sophisticated economies have governments that are perceived to be under the control of an elite few such as Italy, Spain, Belgium and Israel.

    What needs to be done? Transparency International says authorities must make sure corrupt officials do not escape punishment.

    "Impunity is anathema to the fight against corruption and, especially in the judiciary and law enforcement sectors, is a direct challenge to the rule of law," the group said.

    © 2013, Distributed by NEWS CONSORTIUM.
    Pope Francis Prayer Intentions for October 2013
    General Intention:
    People in Despair. That those feeling so crushed by life that they wish to end it may sense the nearness of God's love.
    Missionary Intention: World Mission Day. That the celebration of World Mission Day may help all Christians realize that we are not only receivers but proclaimers of God's word.


    Ugandan Minister: Corruption in Africa land sell is rampant

    by YeSat-Nebelbal » 17 Jan 2012, 22:55

    Ugandan Peasants Risk Losing Land to International Companies

    Douglas Mpuga January 15, 2012

    A UK-based timber company last week suspended operations in Uganda for the year in the wake of what it called bad publicity. The New Forest Company (NFC) says 500 tree plantation workers in Uganda will lose their jobs as a result.

    The development group Oxfam International accused the company of illegally evicting some 20,000 Ugandan peasants from arable land to plant trees.

    Audio: ... =137378598

    "I am not aware of their activities, who they employed or what the terms of their license were," said Flavia Nabugere Munaabi, Uganda's environment minister.

    She said Uganda Forest Authority (NFA), the agency that issues licenses, is an independent body which "[has] not yet reported to us what happened."

    Munaabi explained that usually a license is given [for land in] a forest reserve where there may be encroachers. "So it is likely," she said, "the people who were evicted were encroachers," she added.

    Oxfam International had raised concern about the company's eviction of more than 20,000 people from their land to make way for the forest plantation without compensation and without adequate consultation.

    The minister said although she didn't have all the details about the British timber company, she believed the people had a right to participate in any development [activities] in the forest.

    "The issue of corruption is real and in some instances there may be lack of transparency," she said in reference to allegations that large tracts of land have been reportedly sold, leased or licensed mostly to international investors in secretive deals.

    "We are losing forest cover very rapidly," she said, "however, when it comes to guidance on re-afforestation, the tendency is to allocate land to big investors at the exclusion of the indigenous people."

    That is a problem, she said, "in that there is resentment that at times leads to vandalization of the forest."

    A report by Oxfam identified 227 million hectares (561 million acres) of land - an area the size of north-west Europe – as having been reportedly sold, leased or licensed, largely in Africa and mostly to international investors in thousands of secretive deals since 2001.

    Analyst believe many of the world's poorest people are being left worse off by the unprecedented pace of land deals and the frenetic competition for land.

    Munaabi said communities need to be involved in tree planting and the value of trees rather than have foreign investors or big companies take over the land needed by local people.

    She denied accusations that international organizations, such as the World Bank, are pressurizing poor countries to sell land to international investors to help people get out of poverty.

    "I don't think its pressure from international organizations. It's pressure from our own financial needs," she said, noting that big companies have money, "but the pressure is more from our own vulnerability than from elsewhere." ... 78598.html


    Corruption and Development in Africa:

    Challenges for Political and Economic Change

    By Gbenga Lawal, Ago-Iwoye, Nigeria

    Development is seen as the process by which a type of (social) change is introduced into a system in order to produce a better production method and improved social arrangement. It involves a structural transformation of the economy, society, polity and culture of a country.

    British banks have accepted millions of pounds from corrupt Nigerian politicians, raising serious questions about their commitment to tackling financial crime
    The level and rate of development of any particular society is influenced by so many variables such as the political culture, leadership and corruption. In Africa, corruption has been at the centre of development an impediment, of true and real development in the society. Corruption has ravaged the entire African system, causing the continent to be the most corrupt in the world.

    If Africa is to be saved from this infection, the endemic presence of corruption must be dealt with. This paper therefore addresses the implication and impact of corruption in Africa and on African development; and suggested a way forward for the desired change.

    Corruption exists throughout the world, in developed and developing countries alike. In recent years there have been significant increases in the attention paid to corruption, in part due to (I) series of high level corruption cases in industrialized countries and (2) due to an increasing awareness of the costs of corruption throughout the world and (3) due to the political and economic changes which many countries are undergoing. Corruption in Africa is a development issue.

    African countries cannot bear the costs of corruption, which impedes development and minimizes the ability of government to reduce poverty. Effectively addressing corruption in African countries has become a development imperative [1].

    Corrupt practices span a wide spectrum, ranging from petty corruption whereby bribes are required before normal bureaucratic procedures are accomplished, to large scale corruption whereby considerable sums of money are paid in return for preferential treatment or access. Corruption occurs in the political, economic and administrative spheres.

    Corruption is worse in countries where institutions, such as the legislature and the judiciary are weak, where rule of law and adherence to formal rules are not rigorously observed, where political patronage is standard practice, where the independence and professionalism of the public sector has been eroded and where civil society lacks the means to bring public pressure to bear.

    Once corruption becomes entrenched, its negative effects multiply. It induces cynicism, because people begin to regard it as the norm. It undermines social values because people find it easier and more lucrative to engage in corruption than to seek legitimate employment. It erodes governmental legitimacy because it hampers the effective delivery of public goods and services. It limits economic growth because it reduces the amount of public resources, discourages private investment and saving and impedes the efficient use of government revenue and development assistance funds [2].

    Strategies to limit corruption have to be realistic and achievable and tailored to the needs of particular countries. In order words, policies intended to address corruption have to be consistently implemented over the long term.

    Corruption is essentially a governance issue. Increased governmental accountability and transparency, enhanced public participation in decision making, strengthened public sector and civil society institutions and greater adherence to the rule of law will not only improve governance but will help counter corruption. Free and open competition is ultimately the greatest weapon against corrupt practices - whether political, economic or bureaucratic [3].

    At the national level, specialized agencies and anti-corruption bodies can be extremely effective, but only provided that they have sufficient independence, authority and resources to function efficiently. Government actions alone will not be effective. A broad coalition against corruption, encompassing governments and the public, is necessary. In this, organizations and society, the press and the business sector all have a crucial role to play. Public opinion has to be supportive to anti-corruption efforts and public opinion is the major force in creating an environment in which corruption is not accepted or condoned.

    Public education as to the detrimental effects of corruption is important in creating public awareness and an active public response in support of anti-corruption measures. For this, free and professional press and media and accessible channels of information, are crucial [4].

    While the ultimate responsibility of combating corruption lies with countries themselves, there is a role for both regional cooperation and international support. Many corrupt practices are localized or are confined within the boundaries of individual countries. Many more, however, are not. International business transactions have long been recognized as fertile ground for corruption. Much of the money gained as a result of corrupt practices is kept in safe havens outside of Africa.

    Some parties to corrupt activities may be based in neighboring countries and those accused of corruption often simply move to other countries to avoid prosecution. Regional cooperation and development of regionally agreed legal mechanisms to address these problems would be useful, while international efforts to stop large scale corruption in business transactions are essential.
    Corruption is now recognized as a global phenomenon, which has to be addressed coherently and consistently.

    The need for concerted action in Africa is evident. African countries have to become more integrated into the global economy and attract greater levels of foreign and domestic investment if they are to achieve the growth rate necessary to reduce poverty and improve the well being of their populations. Though, these will only make it possible to limit and not altogether eradicate corruption and to reduce the corrosive effects it has on African nations and societies.

    This paper therefore provides an overview of corruption and the consequences of corrupt practices in Africa as these also affect and hinder political and economic development in Africa. It also discusses measures which have to be implemented at reducing the acts and consequences towards achieving a desired political and economic change.


    Corruption: Corruption is a term that has been perceived in various ways by various scholars. Its conceptualisation has attracted in recent past competing and numerous views and approaches. It is therefore seen as a worldwide phenomenon which has long been with every society in the world. It has been identified as the bane of most political and economic problems in societies [5].

    Corruption is again considered as an enemy of economic development because of its various vices. A nation that condones corruption is often besieged with a lot of economic, political and social vices. Khan (1996) defines corruption as an act which deviates from the formal rules of conduct governing the actions of some one in a position of public authority because of private - regarding - motive such as wealth, power or status [6].

    “Corruption is the perversion of integrity or state of affairs through bribery, favor or moral depravity” ... It takes place when at least two parties have interacted to change the structure or processes of society or the behavior of functionaries in order to produce dishonest, unfaithful or defiled situations” [7]. In other words - corruption is a systematic vice in an individual, society or a nation which reflects favoritism, nepotism, tribalism, sectionalism, undue enrichment, amassing of wealth, abuse of office, power, position and derivation of undue gains and benefits.

    Corruption also includes bribery, smuggling, fraud, illegal payments, money laundering, drug trafficking, falsification of documents and records, window dressing, false declaration, evasion, underpayment, deceit, forgery, concealment, aiding and abetting of any kind to the detriment of another person, community, society or nation [8]. Again careful study of the presentation of Otite shows that corruption transcends bribery but includes “treasury looting and also the deliberate bending of rules of the system to favour friends or hurt foes. It is clearly the evidence of absence of accountability, law and order.”

    Corruption exists everywhere in the world and it becomes the norm particularly if the chances of being caught and severely punished are low and if it is a generally accepted or tolerated mode of behaviour. Corruption in Africa is a development and social issue which becomes an impediment to change and a serious constraint on economic growth and poverty reduction. Corruption in African countries has become endemic, as such, it is found almost in all aspects of life.

    Endemic corruption implies a breakdown of the rule of law and in most instances a loss of state legitimacy. It perverts the normal use of connections, networks and reciprocity and leads to increased personalization of power. As a result, people come to rely on connections and favors instead of formal political, social and economic rules and illegitimate use of state resources becomes acceptable. Where corrupt practices have become entrenched, large scale corruption by which government officials amass large fortunes co-exists with petty corruption by which officials at almost every level request payment to perform tasks or provide services which they should be doing as part of their job.

    An average African comes to see corruption and the inefficiencies and distortions it creates, as an inevitable facet of life. Over-time, the public sector becomes dysfunctional, the legal system proves ineffectual and the institutions of government lose legitimacy. Such degraded situations cause growing percentages of economic and administrative activity to become informal, thereby further widening the gap between the government and the people.

    In the final analysis, corruption can be described as the conscious attempt or deliberate diversion of resources from the satisfaction of the general interest to that of self (personal) interest. The disdain for corruption is clearly felt mainly on ground of morality. There is no doubt that it inflicts some sorts of adverse effects on any society where it exists and persists until such society is purged of its immorality [9].

    Development: Development has been one of the most ambiguous terms in social sciences discourse and it continues to generate debate among various scholars. Development in human society is not a one-sided process but rather a multi-sided issue. Individuals perceive development as increase in the skill and ability; they view it as maximum freedom, the ability to create responsibility and so on [10].

    Dudley Seer (1977) sees development to mean not only capital accumulation and economic growth but also the condition in which people in a country have adequate food and job and the income inequality among them is greatly reduced. It is the process of bringing about fundamental and sustainable changes in the society. It encompasses growth, embraces such aspects of the quality of life as social justice, equality of opportunity for all citizens, equitable distribution of income and the democratization of the development process [11].

    Development is all about the capacity of members of the society to actualize themselves by participating actively in the social engineering of their life and destiny. It entails the ability of the individuals to influence and manipulate the forces of nature for their betterment and that of humanity” [12].

    Rodney (1972) sees beyond the individual or people’s perception of development and conceived development whether economic, political or social to imply both increase in output and changes in the technical and institutional arrangement by which it is produced. In other words and more importantly, development is a multi-dimensional concept and in spite of the various conceptions, development is basically about the process of changes which lies around the spheres of societal life [13].

    From the above descriptions, it is clear to us that there is a linkage between corruption and development. In other words, there is a direct reaction of the devices of corruption on development. If, for instance, development is conceived to include the capacity of a government or system to manage resources efficiently to improve the well being of the citizens and then corruption can be thus regarded as one of the main obstacles to good governance and development.

    In Africa, therefore, the system lacks the capacity to manage its resources effectively and efficiently to improve the quality of life of the African people because corruption has become significantly a major threat to good governance and expected development.


    Since the post-colonial Africa, corruption has been a cause for concern because it diverts already limited funds, undermines economic progress and impedes policy changes required for development. Africa presents a typical case of the countries in the world whose development has been undermined and retarded by the menace of corrupt practices.

    A series of reforms have been carried out in all the African countries so as to make the system African states) efficient and result oriented. However, the anticipated gains of such efforts or reforms have not been visible due to series of factors which include that of corruption. Without doubt, corruption has permeated the African society and anyone who can say that corruption in Africa has not yet become alarming is either a fool, a crook or else does not in this continent [14].

    The situation has gone so bad to the extent that which ever way one views corruption, it involves a violation of public duty or deviation from high moral standards in exchange for (or in anticipation of) personal pecuniary gains. It is connected with moral and dishonest acts [15]

    The effects of corruption are felt in the political and social, as well as the economic, spheres. Although the direct costs of corruption may be high in terms of lost revenue or funds diverted from their intended use, the indirect costs in terms of the economic distortions; inefficiencies and waste resulting from corrupt practices are more problematic over the long-term and thus make it more difficult to address.

    Corruption increases the costs of doing business, wastes resources, hence radically reduce revenues accruing to the state. It also results in poor service delivery, “moonlighting” or multiple concurrent sources of employment and refusal to perform normal functions without additional payment. Moreover, corruption deepen poverty and make it difficult for ordinary people to get ahead as the result of their own efforts.

    There is increasing evidence that the social and economic cost of corruption disproportionately affects the poor, who not only suffer from the lack of services and efficient government, but who are also powerless to resist the demands of corrupt officials. Different arguments have been put forward to explain the pervasiveness of corruption in Africa these include poverty, the personalization of public office, the political culture and the inability of leaders to overcome their colonial mentality in respect of their perception of public office [16].

    To these end the fortunes of some African heads of state were published by French weekly (May, 1997) as presented by (George Ayittey, 2002) are as follows:-

    - General Sani Abacha of Nigeria -- $20billion.
    - President H.Boigny of Ivory Coast -- $6 billion.
    - General Ibrahim Babangida of Nigeria --$5billion.
    - President Mobutu of Zaire -- $4billion.
    - President Mouza Traore of Mali -- $2billion.
    - President Henri Bedie of Ivory Coast - $300million.
    - President Denis N’gnesso of Congo -- $200million
    - President Omar Bongo of Gabon -- $80million.
    - President Paul Biya of Cameroon -- $70million.
    - President Haile Mariam of Ethiopia -- $30million.
    - President Hissene Habre of Chad --$3million. -- To mention but a few [17].

    If corruption is relatively confined, growth will not be unduly affected. In other words, growth would be higher and more evenly distributed without corruption. Also, if the ‘profits’ from corrupt practices are re-invested into the economy, the negative effects of corruption may be some what mitigated.

    According to a United Nations estimate in 1991 alone, more than $200 billion in capital was siphoned out of Africa by the ruling elites. This amount was more than half of Africa’s foreign debt of $300 billion (George Ayittey, 2002). This wealth resulting from corruption also forms part of capital flight and on an annual basis, exceeds what comes into Africa as foreign aid [18].

    Ayittey (2002) therefore argued that “the inviolate ethnic of the ruling elite in Africa is self-aggrandizement and self perpetuation in power. To achieve those objectives, they take over and subvert every key institution of government to serve their needs and not that of the people. The Aid service, Judiciary, Military, Media and Banking. Even various commissions with lofty ideals that are supposed to be non-partisan and neutral are also taken over and debauched” [19].

    The effects of corruption in Africa can be analysed from three main perspectives - The political, economic and socio-cultural. From the political view point, corruption has the capacity of engendering political instability, breakdown of law and order, brain drain, inefficiency of the public service among others.

    Viewed from the economic perspective, corruption is no doubt an enemy of economic development in the international scene, as it gives the continent a poor image in the international scene and in interpersonal and business relationships [20]. Mores, a nation that condones corruption is often besieged with a lot of economic and social vices.

    Economic and social infrastructural facilities are vandalized to create room for unnecessary replacement and purchases or conversion to personal use. Trade and commerce cannot thrive, as investors will be unwilling to invest much trade or business in this part of the world, the overall resulting effects of all these malpractices will be increase in the rate of inflation, unemployment and decline in output, foreign reserves and deterioration in the standard of living of the people [21].

    In the socio-cultural context, corruption apart from engendering poverty has the capacity of changing the social values of a good and progressive society dramatically to nothing else than the crazy pursuit of wealth affluences, power and society recognition. People no longer appreciate the virtues of good morale, conduct and practices. Without doubt corruption has eaten deep into the fabric of the African people and the African society and it continues with the people almost permanently. Africa presents a typical case whose development and the desired change have been undermined and retarded by the menace of corrupt practices.


    “Corruption involves choices- it does not just happen. Fraud and corruption require that people both choose to engage in corrupt practices and have the opportunity to do so. Strategies to address corruption therefore have to address the element of choice as well as that of opportunity. They have to make corruption a high-risk and low-gain, as opposed to a low-risk and high-gain, endeavor. Such strategies have to be country-specific and what works in one country may not necessarily work in another” [22].

    Measures to address corruption have to be put in place in and by individual countries themselves. In virtually all African countries where corruption is widespread and entrenched there is need to re-establish governmental legitimacy and re-build institutions as well as hitting hard at corrupt practices. Combating corruption is neither straightforward nor easy, but it is not impossible. “A good number of countries have moved from being generally quite corrupt to a situation in which corruption exists but is not widespread and pervasive.

    It is true that many of the industrialized countries did this over time, as political and economic competition became institutionalised and as adherence to the rule of law became more widespread” however, a number of African countries have made series of effort with dealing with corruption, many others have not made any serious attempt. Out there at the governmental and at the nongovernmental level exists a growing awareness in most African countries of the need to forcefully address corruption.

    The problem and consequences of corruption are not only felt in Africa - it has more than ever become increasingly a global issue, as the costs are felt beyond national borders. African countries must therefore constantly develop new strategies to meet the changing challenges which corruption presents. The need to prevent and combat corruption requires a consistent, coherent, broad-based approach and a long-term perspective.

    It has also shown that leadership, political will and public support are essential to the success of any anti-corruption effort and that the causes and not just the consequence of corruption must be addressed. Political leadership is required to both set an example and to demonstrate that no-one is above the law by setting a high profile focus on specific actions which can be extremely useful in sending a strong signal that corruption will not be tolerated.

    Indeed most African countries have long had legislation to prevent corrupt practices and stringent penalties for those found engaging in them, including blacklisting, seizing of assets, mandatory dismissal from public office and some time, legal action. In most cases however, these have been ineffectual because they have not been invoked or because important figures have been exempted. Political will is therefore essential to ensure that anti-corruption legislation and administrative measures are enforced [23].

    Again, governments implementing anti-corruption measures have to demonstrate seriousness and achieve results to build public confidence. This implies that they will have to pursue longer-term governance improvements and institution building goals as well as focus on specific actions which can have an impact in the short term.

    Attention should be given to a mutually supportive broader policy of reforms - reducing government involvement in the economy, streamlining government functions and limiting the discretionary decision making authority of officials will reduce opportunities for corruption, while economic reforms can eliminate the government monopolies and economic distortions which facilitate it.

    Again, there is a need for African countries to develop institutions such as the civil service, parliament and the judiciary, which in turn will create interlocking systems of oversight and self-regulation. All of these institutions have to be free of corruption themselves and active players in the fight against corruption. Rule of law is also important to guarantee protection of human rights, ensure governmental predictability, create a climate conducive to private sector activity and domestic and foreign investment and to enforce adherence to formal rules of behavior.

    Court rulings have to be protected from political interference and judicial independence has to be assured. A functioning and professional legal system and access to justice are also necessary. Further more, parliaments should create the legislature frame work for addressing corruption, as well as promoting governmental accountability and acting as a check on the executive.

    The creation of a meritocratic civil service is a basic requirement for limiting corrupt practices and rebuilding public confidence in the government bureaucracy. Similarly, a culture of honesty and professionalism needs to be created and this incentives as well as sanctions have to be employed.

    Corruption cannot be seen in isolation. Its effects permeate societies. Without the active involvement of civil society, including the private sector and the population at large, it will not be possible to combat corruption. Societal attitudes can either encourage or discourage corruption. Changing attitudes is also a slow process, but the creation of a normative environment in which corruption is not condoned is essential.

    Until the public at large is convinced that corrupt practices do not pay, they will continue [24]. Anti-corruption strategies in Africa will be most effective when they are participative and inclusive of all stakeholders in the society. Participatory efforts should be made possible in order to ensure that the reforms (anti-corruption strategies) and political will to act against corruption and to strengthen governance generally is sustainable [25].


    Corruption in Africa is costing the continent so much and restricting its development. The consequences and effects are also on the increasing side. In a bid to improve its (African) reputation and ensure an environment conducive to rapid economic and political change, Africa must be prepared to look inward at tackling the problems that is besetting the continent for a long time. It is hoped that many of the reforms which some African countries are establishing if sincerely implemented will over a long time create the conditions which make corruption both more difficult and more risky to engage in.

    1. Policy Forum - Document on “Corruption and Development in Africa” GCA/PF/N.2/11/1997.
    2. ibid.
    3. ibid.
    4. Khan, M.H., 1996.“A Typology of Corrupt Transactions in Developing Countries” IDS Bulletin.
    5. Lawal, O.O. and A.A. Tobi, 2001.“Bureaucratic Corruption, Good Governance and Development: The Challenges
    and prospects of institution Building in Nigeria”. A paper presented at the IPSA RC4 mid-term International
    conference at Abuja, Nigeria.
    6. Khan, M.H., 1996. op cit
    7. Otite Onigu, 2000.“Corruption against the Norms of African life” in O. Femi (ed.) “Effective and efficient
    Implementation of Nigeria’s Recent Anti-corruption legislation.
    8. Ojaide Francis, 2000.“The professional Accountant and Anti Corruption Crusade” in ICAN News - July/September.
    9. Lawal, O.O. and A.A. Tobi, 2001. op. cit
    10. Schumpeter, J.A., 1934. Business Cycle. The Theory of Economic Development. London Oxford University Press

    Gbenga Lawal, Department of Political Science, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria

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