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Governance, Corruption and Economic Development: Reflections on Corruption and Anti-Corruption Initiatives in Nigeria

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Governance, Corruption and Economic Development: Reflections on Corruption and Anti-Corruption Initiatives in Nigeria Governance, Corruption and Economic Development: Reflections on Corruption and Anti-Corruption Initiatives in Nigeria By Iremiren Benjamin Akhigbe A Doctoral Thesis Submitted in partial fulfilment of the requirements for the award of Doctor of Philosophy of Loughborough University 17/11/2011 © by Iremiren Benjamin Akhigbe (2011) Abstract This thesis is about the complex relationship between governance, corruption and economic development. It seeks to extend the literature via exploring the complex web of connections between corruption, development and the quality of political institutions in the specific case of Nigeria. In so doing the thesis explores some of the limitations of mainstream approaches to corruption and postulates that, rather than being a simple issue of rent-seeking that requires a prescription of orthodox economic policy reforms, corruption is an issue that requires contextualizing within the evolution of particular political cultures in specific places and a sensitivity to the impacts of culture on the definitions, causes and impacts of corruption. The thesis also reflects upon the impacts of market reforms on the opportunities for corrupt activity and the potential role of civil society in rendering anti-corruption interventions more effective. Accordingly, the thesis places the current high-profile debates over corruption and poor governance in Nigeria within an historical analysis of the patterns of governance in Nigeria over the years since independence in order to understand the intricate issues surrounding the historical, cultural and socio-political context of the problems of governance and corruption and their influence on anti-corruption reforms in the Nigerian context. Data were collected and analyzed using both qualitative and quantitative methods; the methods used in data collection included questionnaires and in particular a series of in-depth semi-structured interviews with key political stakeholders. The analysis culminates in an extensive exploration of the anti- corruption measures and strategies adopted by Nigerian administrations and the efforts of the international organisations which have supported them in tackling corruption. Key Words: Good governance, Corruption and Anti-Corruption, Development, Nigeria. Contents List of Figures..............................................................................................................vi List of Tables..............................................................................................................vii Dedication..................................................................................................................viii Acknowledgments.......................................................................................................ix Abbreviation.................................................................................................................x Introduction................................................................................................................1 Chapter 1: Governance and Economic Development............................................6 1.1 Introduction............................................................................................................6 1.2 Conflicting Concepts of Good Governance...........................................................9 1.3 The Evolving Concept of Good Governance.......................................................12 1.4 Conditionality and Adjustment Programmes........................................................16 1.5 The IFIs and their Governing Structure...............................................................20 1.6 The Need for Restructuring of the IFIs................................................................22 1.7 Governance and African Underdevelopment.......................................................24 Chapter 2: Corruption: Key Debates and Issues..................................................32 2.1 Introduction..........................................................................................................32 2.2 Definitions............................................................................................................33 2.3 Neo-liberalism and Corruption.............................................................................36 2.4 Corruption, a Global Problem..............................................................................39 2.5 Types of Corruption.............................................................................................42 2.6 The Effects of Corruption.....................................................................................45 2.7 Causes of Corruption...........................................................................................49 2.8 The International Anti-Corruption Campaign.......................................................52 2.8.1 The OECD Anti-Bribery Convention..........................................................55 i 2.8.2 The United Nations Convention Against Corruption..................................56 2.8.3 World Bank and IMF Anti-Corruption Campaigns......................................58 2.8.4 The Role of Civil Society in the Global Anti-Corruption Crusade...............64 Chapter 3: Contextualising Governance and Corruption in Nigeria...................70 3.1 Introduction..........................................................................................................71 3.2 Nigeria’s Economic Development Policies Between 1962 and 2007..................73 3.2.1 Economic Liberalisation Period (1986-1999)..............................................77 3.2.2 Economic Development Planning in the Fourth Republic: 1999-2009...... .79 3.3 Dictatorship and Civilian Government in Nigeria since 1960…...........................87 3.4 Nigeria’s First Successful Transition from One Civilian Government to Another...............................................................................................................91 3.5 The Colonial Legacy and the Character of the Nigerian State............................92 3.6 Corruption in Nigeria: Major Features and Influences.........................................95 3.7 Major Influences upon Corruption in Nigeria.......................................................98 3.8 Anti-Corruption Activities in Nigeria: (1999-2007)..............................................103 3.9 International Support for Nigeria’s Anti-Corruption Campaign Exercise............107 Chapter 4: Methodology........................................................................................113 4.1 Methodological Techniques...............................................................................113 4.2 Primary Data Collection.....................................................................................117 4.3 Interview Approach............................................................................................120 4.3.1 Semi-Structured Interviews.......................................................................120 4.3.2 Sectors that were interviewed at the National Level.................................122 4.3.3 State Level Interviews...............................................................................129 4.3.4 Local Level Interviews..............................................................................130 4.4 Overview of the Primary Research Experience.................................................132 ii 4.5 Secondary Data Sources...................................................................................133 4.6 Data Analysis.....................................................................................................134 4.8 Ethical issues: Positionality and Reflexivity.......................................................135 Chapter 5: Corruption in Nigeria: Perceived Scope and Magnitude.................138 5.1 Analysing the Perceived Extent of Corruption in Nigeria: Transparency International Corruption Perception Index 1980-2009.........................................144 5.2 Exploring the Perceived Degree of Poor Governance and Corruption in Nigeria............................................................................................................147 5.3 Nigeria’s Major Development Problem..............................................................154 5.4 The Perceived Level of Corruption under Different Government Administrations in Nigeria: 1976-2007..............................................................156 5.5 The Perceived Degree of Corruption in Nigeria’s Public Sector........................160 5.6 The Nigerian Electoral System and Political Parties..........................................163 Chapter 6: Corruption in Nigeria: Perceived Major Impacts and Causes........171 6.1 Perceived Impacts of Corruption in Nigeria.......................................................172 6.1.1 Corruption in Nigeria: Perceived Socio-Economic and Development Impact.......................................................................................................173 6.1.2 Reduction In and Misuse of Scarce Public Revenues..............................177 6.1.3 Negative National Image..........................................................................188 6.2 Corruption in Nigeria: Perceived Major Causes of Corruption...........................190 6.2.1 Perceived Causes of Corruption in Nigeria: The Influence of Prolonged Military Rule..............................................................................................190
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