The Role of Harambee Contributions in Corruption: Experimental Evidence from Kenya By Abraham K. Waithima1 Daystar University Nairobi, Kenya ICBE-RF Research Report No. 16/12 Investment Climate and Business Environment Research Fund (ICBE-RF) www.trustafrica.org/icbe Dakar, April 2012 1 Contact:
[email protected] This research report was supported by a grant from the Investment Climate and Business Environment (ICBE) Research Fund, a collaborative initiative of TrustAfrica and IDRC. It’s a working paper and hence research in progress, circulated for discussion and comments. The findings and recommendations are those of the author(s), and do not necessarily reflect the views of the ICBE-RF Secretariat, TrustAfrica or IDRC Abstract This paper uses an experiment involving a public good game and a common pool resource game to investigate if individuals compensate their "Harambee" contributions by engaging in corruption. The results show an inverse relationship between public good contributions and common pool resource extractions, in that cooperator in public good contributions extract less from the common pool resource. To the extent that the experiment mimics the alleged link between contributions to harambee and corrupt acts of embezzlement ex-post, the basis for blaming harambee on corruption is not established by the results. Consistent with the findings documented in Henrich et al, 2001 which showed that Kenyan subjects brought their everyday experience of harambee into the public good setting, this paper also documents the fact that participants in the games brought their real life experience of harambee to bear on their decisions. This highlights the important and potentially positive reinforcing role that social norms and institutions can have on individual decisions.