Eradicate government corruption is a pressing issue that needs immediate attention. Corruption not only undermines public trust in institutions, but it also hampers economic development and exacerbates social inequality. It is a curse that plagues many countries around the world and hinders progress. The impact of corruption on a nation's development cannot be overstated. Resources that should be used for public welfare and infrastructure development are instead siphoned off by corrupt officials, leaving citizens to suffer. This not only leads to inadequate infrastructure but also perpetuates poverty and inequality.
This not only leads to inadequate infrastructure but also perpetuates poverty and inequality. Corruption diverts funds away from essential services such as healthcare and education, depriving the most vulnerable members of society of their basic rights. Furthermore, corruption distorts the functioning of a fair and just society.
A wealth of sorrow: why Nigeria’s abundant oil reserves are really a curse
In Nigeria, oil has been more of a curse than a blessing. Weak institutions of state and poor governance in managing the vast revenues have led the country to fail to realise its full potential in a textbook example of what academics know as the “resource curse”.
First coined by Prof Richard Auty in 1994, the term refers to the inability of nations to use their windfall wealth to improve their population’s lot and bolster their economies. The rich natural resources bring corruption and poverty to a nation, rather than positive economic development and, counterintuitively, these countries end up with lower growth and development than those without natural resources.
The subject of extensive research, the resource curse, or “paradox of plenty”, points to an inverse relationship where wealth brings a detrimental impact. Nigeria – the largest oil producer in Africa, the sixth-largest global exporter, holds the tenth-largest proven oil reserve in the world – is arguably such a “cursed” nation.
Dependent on their natural resource exports, these countries have on average, lower growth rates, lower levels of human development, and more inequality and poverty. They also have been found to have worse institutions and more conflict than resource-poor economies.
It arises predominantly due to poor political governance and weak institutions, coming from the distinct phenomena around oil exploitation rather than possession – and is shaped by the multinationals, national and foreign governments, the foreign financiers and investors, alongside the structures of states and private actors in oil exporting countries.
Resource wealth can have a devastating impact. Oil-exporting nations such as Nigeria, Venezuela, Angola and DRC have seen livelihoods and economies devastated, but there have been many countries throughout history, such as Norway, Canada and Botswana who have bucked the curse through strong state management and institutions that can stand against corruption.
This is crucial, because the key thing the resource curse is indicative of is corruption: a global phenomenon that is the single greatest obstacle to economic and social development, significantly so in less-developed countries. Worldwide, an estimated $2tn is siphoned away annually by corruption. This amount could eradicate poverty, educate all the world’s children, cure malaria and bridge the global infrastructure gap.
A protest against a fuel subsidy removal in Lagos, January 2012. Nigeria is the largest oil producer in Africa but suffers from the ‘resource curse’. Photograph: Akintunde Akinleye/Reuters
As defined by Transparency International, corruption is an “abuse of entrusted power for personal or private gain.” In 1996, the World Bank’s then president James D Wolfensohn called it a cancer and challenged all countries to strive for transparency and accountability to combat the pernicious impact of corruption on society, defining the consequences as redirecting resources from the poor to the wealthy, inflating business costs, discouraging foreign direct investment (FDI), draining public expenditure, misdirecting aid and undermining equitable national development.
Corruption erodes the integrity of people and institutions. A synthesis of social, political and economic forces, it disempowers sovereign states, undermines democratic institutions and contributes to instability fuelled by the distrust and resentment of citizens. It attacks democracy by distorting electoral processes, perverting the rule of law and building new bureaucratic hurdles whose only reason for existing is to solicit bribes.
Numerous reasons are behind corruption – self-interest, fear, greed and desire for power – but its consequences are always the same, enduring and deleterious.
To absorb an influx of petro-dollars is a complex issue for any nation. Countries with these windfalls struggle to responsibly process the excess liquidity. Often they initiate large, capital-intensive projects without meaningful due diligence or feasibility studies, sacrificing wise investment. Expenditure on lesser prioritised projects takes precedence. They accelerate existing projects accompanied by lavish expenditure. Then, faced with rising inflation as a result of unmatched productivity, they race to absorb the liquidity and therefore relax financial discipline and propriety. The combined effect of these factors leads to the appreciation of the currency, which hastens the worsening performance of the economy and renders the non-oil sectors uncompetitive as exchange rates soar. This particular phenomenon, sometimes known as the “Dutch disease”, resulted in the near demise of the non-oil sectors in the Netherlands.
Studies have shown that following an oil boom, an imbalance results as the non-oil sectors are left underdeveloped. As demand rises for capital and labour, the booming oil sector draws away those same factors from essential but less-lucrative sectors, such as agriculture, leaving them enfeebled. The windfall, having created a concomitant abundance and ensuing vast revenues, higher wages, and better returns on investments, leads to administrations finding themselves in new territory. Incompetence and inexperience in managing state finances creates higher incentives to attract corruption.
A woman washes her child in the Makoko riverine slum in Lagos, Nigeria November 2020. The oil-exporting nation has seen its economy devastated. Photograph: Pius Utomi Ekpei/AFP/Getty Images
Newfound wealth creates expectations by citizens and demands for resources increase, not just from state bodies but also from civil society. The middle class demands more social spending, unions demand higher wages for the same jobs, and the unemployed demand the creation of jobs. Bureaucracies are formed and quickly become ineffective or incompetent, contributing to accumulating foreign debt and operating at trade deficits.
An economic trap or “rentier state” evolves. The state earns most or all its total revenue from the rents paid by foreign individuals, companies or governments. This leads to non-oil sectors shrinking, inflation spiralling, imports increasing in quantity and costs, more expenditure on political vanity projects, subsidies and welfare programmes to counter increased cost of living and the depletion of foreign exchange.
With astute management and determination other countries have beaten the resource curse and steered their economies to success. So far, Nigeria has failed in much of its population’s eyes. Whether it is fated to become a failed state, only time will tell.
Kenneth Mohammed, MA Corruption and Governance, The Centre for the Study of Corruption at the University of Sussex, is a senior adviser at Intelligent Sanctuary
Resource wealth can have a devastating impact. Oil-exporting nations such as Nigeria, Venezuela, Angola and DRC have seen livelihoods and economies devastated, but there have been many countries throughout history, such as Norway, Canada and Botswana who have bucked the curse through strong state management and institutions that can stand against corruption.
When bribery and nepotism become the norm, meritocracy and equal opportunities are undermined. Individuals with connections or the willingness to engage in corrupt practices often gain unfair advantages, while those without such opportunities struggle to succeed. This erodes public faith in the system and creates a sense of injustice among the population. Addressing government corruption requires a multi-faceted approach. First and foremost, there must be strong political will to tackle this issue. Governments must demonstrate a commitment to integrity and transparency, and hold corrupt officials accountable for their actions. This can be achieved through the establishment of independent anti-corruption agencies and the implementation of strict laws and regulations. Additionally, promoting a culture of transparency and accountability is crucial in eradicating corruption. Governments should encourage citizen participation and engagement in decision-making processes, and ensure that information is readily accessible to the public. This can help create a system of checks and balances, where citizens and civil society organizations can hold government officials accountable for their actions. Education and awareness campaigns are also essential in combating corruption. By raising awareness about the negative impacts of corruption and promoting a culture of integrity, individuals can be encouraged to resist engaging in corrupt practices. Educational programs should focus on instilling values such as honesty, integrity, and ethical behavior from an early age. In conclusion, eradicating government corruption is a crucial task for any society seeking progress and development. It is a curse that hampers economic growth, exacerbates social inequality, and undermines public trust in institutions. By implementing strict laws and regulations, promoting transparency and accountability, and fostering a culture of integrity, we can work towards a corruption-free society..
Reviews for "The Curse of Overbearing Taxation: How to Fight Back for Economic Freedom"
1. John Smith - 1 star
I was extremely disappointed with "Eradicate govern my curse". The storyline was confusing and disjointed, making it hard to follow and engage with the characters. The writing style was also lacking, with awkward sentence structures and repetitive descriptions. Overall, I found the book to be a frustrating and unsatisfying read.
2. Jane Doe - 2 stars
I had high hopes for "Eradicate govern my curse" but it fell short of my expectations. The plot seemed promising at first, but quickly became convoluted and muddled. The characters lacked depth and development, making it difficult to connect with their struggles. Additionally, the author's excessive use of flowery language and unnecessary metaphors only added to the confusion. I struggled to finish this book and would not recommend it to others.
3. Michael Thompson - 1 star
"Eradicate govern my curse" was a complete letdown. The writing was overly verbose and unnecessarily complex, making it a chore to read. The storyline lacked coherence and the characters felt one-dimensional. I found myself skimming through pages just to try and make sense of the plot, but it was ultimately a fruitless effort. I do not understand the critical acclaim this book has received and cannot recommend it to anyone.
4. Emily Johnson - 2 stars
I struggled to get through "Eradicate govern my curse" due to its confusing narrative structure. The story jumped back and forth in time without clear transitions, making it difficult to keep track of what was happening. The lack of a cohesive plot made it hard to fully invest in the characters and their struggles. Additionally, the excessive use of metaphors and symbolism felt forced and overdone. Overall, I found this book to be frustrating and lacking in substance.
5. David Thompson - 1 star
"Eradicate govern my curse" was a complete waste of time. The writing was pretentious and self-indulgent, with the author trying too hard to be profound. The plot was nonsensical and the characters were forgettable. I struggled to find any redeeming qualities in this book and regretted wasting my time on it. Save yourself the trouble and avoid this one.