Many of the objections to my blog post, “Another reason why aid to Africa must increase” centered around corruption. “I disagree. Africa needs to get rid of corruption…” said one commentator, while another said, “Aid to African countries must follow country steps in good governance, democracy, fighting corruption, etc.”
I think we can agree on the following two facts:
- There is considerable corruption in Africa. The recently-released Transparency International Corruption Perceptions Index for 2009 finds 10 African countries in the bottom decile (with Somalia at the very bottom of the list). Of the 47 African countries reviewed, 31 scored less than 3 out of 10, “indicating that corruption is perceived as rampant.” Another data source, World Governance Indicators, reaches a similar conclusion.
- Corruption undermines economic growth and poverty reduction.
But even with these two facts, it doesn’t necessarily follow that aid should be cut off from countries with high corruption.
First, there is very little evidence that cutting-off aid reduces the extent of corruption in the country (think about Zimbabwe).
Second, rampant corruption is a symptom of widespread failure of institutions throughout the country. To reduce corruption, therefore, we need to strengthen these institutions, a process that takes a long time, and requires fairly continuous engagement by external experts. Unfortunately, when aid is cut off, so is the engagement. In principle, countries should be able to provide technical expertise without financial assistance; in practice, this is very hard to do.
Third, some donors think that, in high-corruption countries, their aid should be “ring-fenced.” That is, it should be provided according to the donors’ financial management procedures, to ensure that the aid money is not stolen. While this reaction is understandable, there is little evidence that this practice does much for reducing corruption in the recipient country.
In fact, as a recent paper by Steve Knack and Nicholas Eubank shows, donors will systematically over-rely on their own systems, and under-invest in recipient country systems, thereby further weakening these countries systems.


Comments
Does building instutitions really weaken corruption?
African's, not foreigners will end poverty
Effectiveness and evaluation
Aid is not the way forward
IT WOULD BE A GREAT MISTAKE TO END AID IN AFRICA
How practical is your suggestion?
Bayite- Kasule thank you for
Aid has killed Africa's entrepenuerial spirit
Africans must show they are good at something
Aid vs Corruption
Shanta: Overall, I agree with
Go back to Beginning
Africans need to be serious
I agree, the African people
Aids and corruption in Africa
Foreign aid
Its about morals
Cuting off grant will not stop corruption
Aid and Corruption
Shanta's comment
corruption in Africa and Aid
We disagree on corruption
If aid is allowed to be given
Stop the donor tap
Corruption is Complicated for Aid Recipient Nations
Africa does not need aid but investment.
Does corruption challenge the Samaritan Dilemma? "du déjà vu"
Cutting aid-will this reduce corruption?
The Disconnect - Corruption and Aid in Africa
We disagree on corruption
How is the dollar spent?
Aids to African Countries may reduce corruption
Africa does not need aid
Fight Corruption-African Leaders
AID Inevitable
One more critical comment
Corruption or no corruption,
Using aid cut as a tool to curb corruption
Using aid cut as a tool to curb corruption
Corruption
Needs to strengthen African Unity
Corruption appears tp bea
Reaction to Shanta Devarajan's blog on corruption in Africa
What is the essence
Opportunity
Using aid to curb corruption
its quite simple really. Our
COPENHAGEN FUNDS AND "GREEN" MODELS IN 3RD WORLD
Joint governance
The devil is in the detail
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