EFFECT OF CORRUPTION ON THE ECONOMY.

Chapter One

Introduction

1.1 Background of the Study:

Political
corruption in its various forms is generally believed to be the bane of Nigeria
development and it has been devastating the country and destroys its image
among the comity of nations. It is now fast becoming a way of life in the
country as integrity is now being eroded. Little wonder why in recent times,
both the past and present government in the country made the fight against
corruption a top priority. But none seems to have made a considerable headway.

The
reflections of their efforts were made manifest in the establishment of the
Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices
and other Related Offences Commission (ICPC). Corruption is found and practiced
in every sectors of the public office in Nigeria and it is entrenched in nearly
all sections of the society with many people deeply involved in it. Although,
it is a global phenomenon but it is more prevalent in one environment than the
other and Nigeria is a typical example of such. Iyanda (2012) argued that it is
a plague that has eaten so deep into the entire fabric of the Nigerian society;
it confers undue benefits on few people contrary to legal and moral norms of
the society. It undermines authorities’ effort to provide suitable welfare for
all citizens as the resources to do this are in the hands or at the reach of
few of the populace, prior to its contagious and incurable infection.  

In
the words of Chinua Achebe as cited in Keeper (2012) that anyone who can say
that corruption in Nigeria has not yet been alarming is either a fool; a crook
or else does not live in this country. The situation has become bad to the extent
that as far back as 1993, keeping an average Nigeria from being corrupt is like
keeping  a goat from eating yam (Achebe,
1988).This brilliantly explains the state of corruption among Nigerians and why
all efforts to establish a just and egalitarian society in the country failed
ever since. Corruption made development to be stunted in Nigeria. There is no
effective and efficient administration in Nigeria that has not been frustrated
by this evil. People bribe to get almost everything done in the country. For
instance, Tokunbo (1992) alludes to the fact that you bribe to get your child
into a school, you pay to secure a job and you also continue to pay in some
cases to retain it. You pay 10 percent of every contract obtained, you dash the
tax officer to avoid paying taxes, you pay the hospital doctor and nurse to get
proper attention, and you pay the policemen to evade arrest, this catalogue of
shame can continue without end. Corruption is the single greatest obstacle to
economic and social development. It undermines development by distorting the
role of law and weakening the institutional foundation on which economic growth
depends (World Bank). It is one of the greatest challenges of the contemporary
world. It undermines good government, fundamentally distorts public policy,
leads to the misallocation of resources, harms the private sector and private
sector development and particularly hurts the poor (Transparency
International). 

1.2 Statement of the Problem: 

Corruption
remains a universal phenomenon, which has been in existence for a very long
time and always have adverse effects on the society ever since. Several people
involved in it in the pursuit of the specific purpose or interests. It has
overtime ruined the hopes for greater tomorrow and destroyed the value system
in the country so much so that the world begins to see us as men and women
without honour and dignity. 

It
has led to slow movement of files in offices, police extortion and slow traffic
on the highways, port congestion, and queues at gas stations, ghost workers
syndrome, and election irregularities among others. According to Chuta (2004)
that the image of the country in the international arena has become so battered
that every Nigerian psychologically feel a scorching hurt inflicted on his
individual psyche. The dent has gone so far that everywhere in the world,
Nigerians are said to be generally dreaded like mad dogs and criminals,
cautiously approached like dangerous snakes, and avoided .Corruption is
politically destabilizing, that is it has the capacity of engendering political
instability, breakdown of law and order, brain drain, inefficient of the public
service among others (Lawal, 2006).  

The
menace of corruption by Nigerian leaders has certainly emerged as one of the
main impediments to national development. Corruption by Nigerian leaders has
caused the country severe losses economically, politically and socially, and
these facts are responsible for decayed infrastructure, downturn of indicators
of national development. Agreeing with this, Human Rights Watch (2007:40)
stated that Nigeria has some of the worst socio-economic indicators in the
world and the overall picture has not improved since the end of the military
rule. Research has shown that the prevalence of corrupt leaders in Nigeria has
a tremendous adverse effect on the quality of life, living standard and
national psyche. The study tends to proffer answers to the questions of whether
there are relationships between corruption and sustainable development in
Nigeria. And also, to what extent has corruption undermined sustainable
development in the country?

1.3 Objective of the Study

The
main focus of the study is to assess the nexus between corruption and
sustainable development in Nigeria. The following are the specific objectives
of the study:

–
To examine if embezzlement of public treasury affect the provision of
sustainable welfare for all citizens in Nigeria;

–
To examine if mismanagement of public fund is responsible for the decay of
infrastructural development in Nigeria;

-To
determine if corruption in the public offices has reduced poverty in Nigeria.

1.4 Research Questions:

1.
Has embezzlement of public treasury hinder effort to provide suitable welfare
for all citizens in Nigeria?

2.
Could mismanagement of public fund been responsible for decayed infrastructure
in Nigeria?

3.
Is there a link between corruption in the public offices reduced and in Nigeria?

1.5 Significance of the Study:

The
significance of this work upon completion will provide administrative
strategies on how to manage the menace of corruption and provide a strong
institutional solution toward the daring fight against corruption which will in
turn engender economic development. Thus, this work will be significant to
EFCC, legislative body, public offices, academic body and the students’ of
political science and public administration in Nigerian University.

1.6 Limitation of the Study:

During
this research work, the researcher encountered some challenges, one of which is
time factor, I was hooked up with so many activities in school such as
assignments, presentations etc, that I gave little time into carrying out a
detailed research work which has always been my desire to do and coupled with
the limited time given to submit the work, I had no choice than to maximize the
little time I had, I was able to complete the work within the time frame
stipulated for it.

Due to
the nature of our country where there is limited internet access, I encountered
the problem of gathering enough fact through online journals, books and
articles. To get an accurate information needed for the research, I had to buy
internet bundle for the research work which requires money and getting this
finance to facilitate the free flow of the this research work was the major
impediment that I encountered during the course of this study.

However,
I was able to combat these impediments with the help of my parents who worked
assiduously in providing me with financial support to ensure the success of the
work.

1.7 Research Hypotheses:

To
further guide the study, the following hypotheses were put forward for
investigation:

1.
Embezzlement of public treasury has hindered effort to provide suitable welfare
for all citizens in Nigeria.

2.  Mismanagement of public fund been responsible
for the decayed infrastructure in Nigeria?

3. There is a link
between corruption in the public offices and poverty in Nigeria.

1.8 Operational Definitions:

Political Corruption:
politicalcorruption is a form of dishonest or unethical conduct by a person
entrusted with a position of authority, often to acquire personal benefit. Political corruption may include
many activities but in this study it emphasizes embezzlement of public
treasury, mismanagement of public fund and bribery and corruption, although it
may also involve practices that are legal in many countries.
Government,
or ‘political’, corruption
occurs when an office-holder or
other governmental employee acts in an official capacity for personal gain.
Public sector corruption includes corruption of the political process and of
government agencies such as the police as well as corruption in processes of
allocating public funds for contracts, grants, and hiring. Recent research by
the World Bank suggests that who makes policy decisions (elected officials or
bureaucrats) can be critical in determining the level of corruption because of
the incentives different policy-makers face.

Economic development: is the process by which a nation improves the
economic, political, and social well-being of its people. The term has been
used frequently by economists, politicians, and others in the 20th and 21st
centuries. The concept, however, has been in existence in the West for
centuries. Whereas economic development is a policy intervention endeavor with
aims of economic and social well-being
of people, economic
growth
is a phenomenon of market productivity and
rise in GDP. However, in
this study the empirical indicator to address sustainable economic development
are the welfare of the citizens, infrastructural development, and poverty and
unemployment.

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