Corruption and Human Development in Africa

This study is, to the authors knowledge, the fi rst empirical
cross-country analysis of the relationship between corruption
and human development (HD) in Africa. In most African
countries the current state of HD is critically poor. In spite
of two decades of democratization and substantial economic
growth or stability corruption has become endemic and tends
to adversely affect HD conditions and needs. Using a pooledcross-
section-across time-design and a sample of 40 African
countries over many years (2003 2007) and based on an OLS Analysis, this study
attempts an empirical examination of the association between corruption and HD
in Africa, while holding constant economic growth, government socioeconomic or
welfare expenditures and political system and, controlling for some major internal
and external economic variables. As found, corruption adversely affects human
development in Africa. Overall, based on the main study model (Model 1) a unit
increase in the corruption level (CPI) on a scale of 1 to 10 will cause a .48 percent
decrease in the state of HD (HDI).The relationship between corruption and HD is
however 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 is
likely to positively affect HD whereas at and above 4.577 RCPI corruption rather
tends to adversely affect HD with an increasing return. Besides, it was also found,
using Model 2 which incorporates an interaction term of corruption and political
system, that democratization has deceived scientists theoretical projections and
peoples political expectations of the 1990s. Democracy has not improved HD in
Africa. Both non-and partly democratic (i.e., authoritarian) and democratic political
systems adversely affect HD. The adverse impact of corruption on HD is even worse
in the latter systems. After checking for the main effect (Model 2) it appears that, as
corruption increases by one unit, HD decreases by 9.48 percent in African countries
with authoritarian systems. In contrast , the same one unit increase in corruption
will have an additional 5.23 percent decrease in the HD of African countries with a
democratic system. This study brings new insights about public policies ineffectiveness
and failures to satisfy increasing HD needs in Africa. It throws new lights on the
relationship 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 of
administrative theory and knowledge.