Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa

Abstract

Aside economic factors causing low human development which have been extensively studied in literature, the implications of high level of corruption and weak governance prevalent in sub- Saharan African (SSA) countries have not been explored. The study assessed the effects of corruption, government effectiveness and their joint effect on human development in SSA. Data collected on thirty-seven (37) countries within the period of 2005 to 2018 were analyzed using system Generalized Method of Moment which was most suitable for the dataset. Results indicated that lagged human development index (P<0.01), government effectiveness (P<0.05), economic growth rate (P<0.1) and government health spending (P<0.1) had significant positive effect on human development while corruption and its interaction with government effectiveness did not. The results of Arrelano-Bond test of first order autocorrelation and second order autocorrelation of error term as well as the Sargan test and Hansen J test for validity of instrumental variables confirmed the validity of the model. The robustness of the estimation was established as the coefficient of the lagged dependent variable fell between the values in the fixed effect and pooled ordinary least square regression. The study recommended retraining and reorientation of government employees towards the mindset of effective service delivery and strong political will to achieve it, diversification of SSA economies alongside other growth stimulating policies such as reduced lending interest rate on loans meant for the real sector, improvement in the ease of doing business, improved funding of the health sector and proper monitoring of activities in the public service by concerned agencies to curb corruption where it is present.

Does the Effect of Different Governance Channels Depend on the Level of Development of African Countries?

“…However, the results found that good governance worsens human well-being in the short run. Consequently, this study suggests that the implementation and strengthening of governance institutions should take a holistic pace Akinbode & al [25] study assessed the effects of corruption, government effectiveness and their joint effect on human development in SSA. Data collected on thirty-seven (37) countries within the period of 2005 to 2018 were analyzed using system Generalized Method of Moment which was most suitable for the dataset.…”

A Move towards Improving Good Governance in Kenya- Roles of Citizens in Promoting Good Governance

“…The misuse of funds and other resources has over the years, left the general public in a state of economic, social, and political quagmire as many Kenyans have been left poorer and on their deathbeds (Gok, 2020). Whereas the status of corruption is still high globally with more cases experienced in sub-Saharan Africa, there is still a dire need for human development which has gained and continues to gain more attention in development economics in recent time (Akinbode et al 2020). Scholars links this development various measures but in particular, citizen's centered approach.…”

The Role of Government Effectiveness in the Light of ESG Data at Global Level

“…In this sense GE is positively associated to high individualism and low uncertainty avoidance [43]. GE has a positive effect on Humand Development Index-HDI in sub-Saharian Africa [44] and South Asia [45]. The application of a machine learning approach has questioned the presence of a linear relationship between digitalization and GE, and further analysis has showed that the relationship between digitalization and GE has a non-linear U-shaped form [46].…”

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