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The Curse Of Corruption In Zimbabwe

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Abstract

Corruption is very harmful and unacceptable. It is one of the major obstacles to sustainable economic growth and development. Corruption has a negative effect on every sphere of any economy. This is what many people think. We used to think so too! But, guess what? There is sufficient empirical evidence supporting the fact that corruption is not always harmful to the economy. In fact, there are some instances where corruption can be indeed fruitful, though; not, generally acceptable. Debatable, as it sounds; and yet this is the reality. Although the study neither recommend nor encourage corruption so far, the study still maintains its hyperopic view that corruption is not always harmful to the economy. In fact the research strongly argues that corruption, especially in Zimbabwe; has been and continues to be a blessing in disguise!
International Journal of Advanced Research and Publications
ISSN: 2456-9992
Volume 1 Issue 5, November 2017
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285
The Curse Of Corruption In Zimbabwe
Nyoni Thabani
57-20th Crescent Warren Park 2, Harare, Zimbabwe
nyonithabani35@gmail.com
Abstract: Corruption is very harmful and unacceptable. It is one of the major obstacles to sustainable economic growth and development.
Corruption has a negative effect on every sphere of any economy. This is what many people think. We used to think so too! But, guess
what? There is sufficient empirical evidence supporting the fact that corruption is not always harmful to the economy. In fact, there are
some instances where corruption can be indeed fruitful, though; not, generally acceptable. Debatable, as it sounds; and yet this is the reality.
Although the study neither recommend nor encourage corruption so far, the study still maintains its hyperopic view that corruption is not
always harmful to the economy. In fact the research strongly argues that corruption, especially in Zimbabwe; has been and continues to be a
blessing in disguise!
Keywords: Bribery, Corruption, Embezzlement, Transparency, Zimbabwe
1. Introduction
“With the Zimbabwean economy in the
doldrums corruption has become an
accepted and almost expected way of doing
business especially in the public sector. If a
civil servant still goes to work today it is not
because of salary but the opportunities to
enhance his or her paltry income with
corrupt acts using the organization’s
resources”-[1].
Corrupt practices are not an issue that just begins today; but
its history is as old as the world [2]. Corruption is
everywhere. In developed countries there is corruption, in
developing countries like Zimbabwe, corruption is there too.
The probability of finding a country where there is no
corruption is synonymous to the probability of experiencing a
“cold day in Hell”. In Zimbabwe, no doubt, corruption is one
of the many unresolved problems that have seriously hobbed
and skewed economic growth and development. In the same
line of argument, [3-6], assert that, in development discourse;
corruption is observed as a major obstruction to the
promotion of sustainable economic growth and sociopolitical
development of Zimbabwe. Corruption, as noted by [7], has
risen to unprecedented levels in Zimbabwe. In fact
Zimbabwe is amongst the world‟s top 25 most corrupt
counties in the world! This is confirmed by [43] whose
investigation indicates that Zimbabwe is ranked 154th nation
out of 175 countries, in terms of the Corruption Perception
Index. We, however, reject the idea that corruption is always
harmful to the economy on the basis that it is improvident.
There are some instances where corruption “greases the
wheels” and improves inefficient and bureaucratic systems.
Corruption, as already highlighted by various authors such as
[8-17]; may be considered a useful substitute for a weak rule
of law. In fact, proponents of “efficient corruption” or the so-
called “greasing hypothesis” such as [8], [10], [13] and [18-
20], strongly argue that bribery, for example, may allow firms
to get things done in an economy plagued by bureaucratic
holdups. Therefore, it is high-time policy makers ought to
divert their attention from the mere existence of corruption
but rather focus on the nature and level of corruption.
Corruption has always been and will continue to be in
existence in every country. The mere existence of corruption
in any society is something that is normal. However, the
nature and level of corruption is a matter of concern. Due to
its complexity, it is very unlikely that policy makers will ever
be able to fix corruption. The only option left is to regulate
its levels as well as its nature. In fact it is not possible to
completely remove corruption in any economic set up.
However, regulating corruption is much more sensible and
realistic.
2. DEFINING CORRUPTION
The difficulty in defining corruption is rooted in the reality
that it can be analysed on different levels and its variants
have been studied across a number of disciplines which
include psychology, economics, law as well as political
science with the use of various political perspectives [21].
Apparently, there is no consensus on the definition of
corruption. In fact, what is considered as corruption may vary
from society to society or from country to country. The
general understanding is that once an act or behavior is
considered as corrupt; that kind of conduct is no longer
desirable. The table below summarizes some of the most
important definitions of corruption:
Definition
Source
Corruption is generally understood as the abuse of
public power for private gain
[22]
Corruption is the violation of formed rules
governing the allocation of public resources by
officials in response to offers of financial gain or
political support
[23]
Corruption refers to the dishonest or preferential
use of power or position which results in one
individual or organisation being advantaged over
another
[24]
Corruption refers to efforts to secure wealth or
power through illegal means for private gain at
public expense; or a misuse of public power for
private benefit
[25]
Corruption is the abuse of public office for private
gain
[26-28]
Corruption is behavior by public officials that
deviates from public interest
[29]
Corruption is behavior that deviates from serving
the common good, suggesting that it is an
embodiment of a state‟s original norms and
[30]
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legitimizing ideology
Corruption is the abuse of public office or private
office for personal gain
[31]
Corruption is the behaviour which deviates from
the normal duties of a public role because of
private-regarding pecuniary or status gains: or
violates rules against the exercise of certain types
of private-regarding influence
[9]
Corruption is accepting money for doing
something that one is under duty to do or that one
is under the duty not to do
[32]
Corruption is an anti-social behaviour conferring
improper benefits contrary to legal and moral
norms and which undermines the authority‟s
ability to improve the living condition of the
people
[33]
Corruption is the misuse of public office, power
or authority for private benefits through various
means such as extortion, bribery, nepotism,
influence peddling, fraud, speed money or
embezzlement
[34]
Corruption is the misuse of public office for
private gain and the abuse of entrusted power
[35]
However, corruption can also be operationally defined as the
destruction of anything from original form of purity by means
of bribery or favor for one‟s private gain.
3. TYPES OF CORRUPTION
Bribery
Bribery is often described as the most common and
frequently occuring corrupt practice [36-37]. Bribery is a
payment, in money or in kind, that is given or taken in a
corrupt relationship. A bribe is (or could be) a fixed sum, any
favour in money or kind or certain percentage of a contact on
behalf of the state or otherwise distribute benefits to
individuals, businessmen or clients. These are payments,
demanded and or needed to speed up matters, make it
progress more swiftly and or favourable through the
government bureaucratic machinery [38]. Bribery refers to
consideration, giving an inducement to influence conduct in
one‟s favour, contrary to standing procedures and regulations
[39]. Bribery is an act of offering somebody money or other
goods for the purpose of persuading him or her to do
something in return [40]. Air Zimbabwe Company bought
unsuitable aircrafts which were meant to service domestic
routes without proper evaluation, allegedly after senior
officials had received bribes from a Dutch Aircraft Company
to influence the decision to purchase such aircrafts. The
engines of these aircrafts were not designed to operate on
high temperatures that are normally experienced in
Zimbabwe [41]. According to the Global Corruption
Barometer (2013), about 60% of Zimbabweans who accessed
public services paid bribes to access the services or speed up
transactions.
Fraud
Fraud involves manipulation, distortion of information, facts
and expertise by public officials who seek to draw private
profit [38]. According to The Black‟s Law Dictionary, there
are basically three types of fraud and these are: actual fraud,
criminal fraud and bank fraud. The Black‟s Law Dictionary
provides the following definitions for these types of fraud:
actual fraud is a concealment or false mispresentation
through a statement or conduct that injures another who relies
on it in acting. Criminal fraud is fraud that has been made
illegal by statue and that subject the offender to criminal
penalties such as fines and imprisonment. Bank fraud is the
criminal offence of knowingly executing or attempt to
execute, a scheme or artifice to defraud a financial institution
or to obtain property owned by or under control of a financial
institution by means of a false or fraudulent pretence,
representation or promise. A typical example of fraud, is
highlighted by [41], who states that in 2006, the Zimbabwe
United Passenger Company (ZUPCO) board of directors was
involved in fraudulent dealings with a foreign company that
supplied the enterprise with small passenger buses. These
small buses were earmarked for servicing urban routes. The
chairperson of the board, amongst others, received bribes in
order to favour the company that supplied buses although
they were not suitable for the required operations.
Embezzlement
Embezzlement refers to cases in which property is taken by
those to whom it was entrusted. Embezzlement involves the
taking or conversion of money and other valuable items such
as property by those who are not entitled to them but who
have access to it by virtue of their position [42]. The National
Oil Company of Zimbabwe (NOCZIM)‟s resources were
used to enrich ministers and public officials; one example, is
the diverting of fuel products that include diesel, petrol and
lubricants which were meant to benefit farmers and deserving
public to the black market [41].
Extortion
Extortion is an act of utilizing one‟s access to a position of
power and knowledge, either directly or indirectly, to demand
unmerited cooperation or compensation as a result of
coercive threats [43]. Extortion relies on coercion to induce
cooperation, such as threats of violence or the exposure to
sensitive information [44].
Abuse of power
Abuse of power is the improper use of authority by someone
who has that authority because he or she holds public office
[45]. A classic example of this kind of corruption has been
noted by [41]. In 2003, Zimbabwe School Examinations
Council (ZIMSEC), senior management crafted a policy
which saw seven senior managers acquiring a vehicle each
every four years of their employment at zero book value [41].
Nepotism / Favoritism
Nepotism and favoritism are actually two different concepts.
However, they are usually used interchangeably, because the
meaning or implication of the other may concur or
compliment the other in one way or the other. Nepotism, as
noted by [40], is a special form of favoritism, which is
defined by [40] as the granting of positions and or benefits to
relatives and friends regardless of their abilities. According to
the [44], nepotism takes place when officials favour relatives
or friends for positions in which they (the officials) hold
some (or sole) decision making authority. A good example of
such corruption in Zimbabwe has been noted by [41], in
which a Zimbabwe Schools Examination Council (ZIMSEC)
official awarded business contracts to unqualified bidders
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and in most cases these unqualified bidders were companies
or organisations of their friends and relatives. In the Zimbabwean scenario, the above types of corruption are
summarized by [46] using simple statistics:
Source of data: [46]
As shown in the pie chart above, bribing is the most
prevalent type of corruption in Zimbabwe, followed by
embezzlement, which is followed by fraud. Nepotism and
extortion have 14% and 10% respectively; while only 4% is
accounted for by other types of corruption besides these six
most common ones. It is imperative to note that bribing takes
the lion‟s share. This could be attributed to bureaucracy,
especially in the public sector.
4. CAUSES OF CORRUPTION
Regulations and authorisations
In most countries and especially in developing countries like
Zimbabwe, the role and functions of the state are executed
through the use of a myriad of rules and regulations. For
almost every action or transaction, licenses, permits and
authorisation of some sort are required and in some cases,
different government offices are involved to ensure that the
activity (ies) is lawful. Regulations and authorisations,
according to [27], provide a monopoly to officials who have
authorising and inspection power. Officials might be
reluctant to issue authorisations and might even delay the
decision process for months on end. Therefore, such officials
can use their public power to exert bribes from those
applying for permits or authorisation. Some individuals
become middlemen or facilitators in the permit chain. In
many cases some of the regulations are nontransparent, not
even publicly available and the granting of authorisation is
limited to one office or an individual. The absence of
competition in the granting of authorisation sets the stage and
provides both the power and opportunity to the bureaucrat to
get involved in corrupt activities [47]. The conduct of
economic and business affairs is like engaging in a sport
event where adherence to the rules of the game is essential
for activities to proceed in an orderly fashion. Rules,
regulations and authorisations are required to maintain fair
play, keep greed and conflict in check and to ensure that
participants abide by accepted standards of moral conduct
and good behaviour [48]. Regrettably, in several
circumstances regulations are non-transparent, not publically
available and authorisation is vested in a specific office or
individual. Such a state of affairs as noted by [27], presents a
situation that where there is no competition in the granting of
authorisations, bureaucrats are being given a great amount of
power and ample opportunity to exert bribes.
Institutional controls
The existence and application of institutional controls
normally reflects on the political attitude towards the
phenomenon. Countries with weak mechanisms of control
and accountability coupled with an underdeveloped civil
society, have found it very difficult to have a proper check on
corruption. The afore-mentioned aspect is particular relevant
in times of transformation when management is new
(relatively inexperienced), tensions are high and relationships
of trust still has to be established [24]. Corruption can
actually be regarded as an institutional phenomenon; it is
characterised by weak rules, too much discretionary powers
and lack of transparency.
Transparency of rules, laws and processes
Rules define the standards on how people interact with each
other and it places constraints on the behaviour of individuals
and that of the group and broader collective. Rules, however,
do not in themselves preclude the possibility of corrupt
activities and yet the absence of such rules creates the ideal
conditions for corruption and conflict of interest. The lack of
the rule of law and administrative predictability, as noted by
[50], contributes to corruption in Africa. In trying to explain
this phenomenon, [50] note that the predictability and the
rule of law are characterised by policies, procedures and
regulations which are developed and implemented according
to a set process and it (or should) presents ample
opportunities for review. Formal bureaucratic organisations
(parastatals), just like in Zimbabwe, are captured by the
ruling party which uses and/or interferes with the powers and
functions of government for gain. Circumstances like these
afford considerable discretion in decision-making and
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produces irrational decision-making, which might be both un-
procedural and illegal. Corruption thrives in an environment
where there is selective application of law and where
enforcement of the law is mainly used as a strategy for
furthering private interest instead of the broader public
interest. However, in Zimbabwe, causes of corruption also
include but are not limited to low civil service salaries, poor
working conditions and lack of transparency. [6], argues that
the approach taken by the Zimbabwe government with
regards to civil servants‟ salaries influences the prevalence of
corrupt activities. Civil servants, as noted by [51-52] and [6],
get meagre salaries which drive them to seek extra income
from services they provide. Similarly, [53], also notes that it
is commonplace in Zimbabwean politics for civil servants to
demand bribes in exchange for their services. In Zimbabwe,
corruption is now a normal thing, most people accept it. In
fact, most Zimbabwean leaders, especially political and
religious leaders, have a history of setting bad examples of
self-enrichment and extravagance at the expense of public
ethics. Several authors such as [54-55], [7] and [56] agree
that corruption is regarded as a normal thing in Zimbabwe.
Hence corruption in Zimbabwe is now taken as a norm
despite various anti-corruption initiatives that have always
been put in place by the government. [3] and [57], points out
that the problem of corruption in Zimbabwe is related to the
climate of unethical leadership and bad governance which in
turn has generated a situation in which corruption has
flourished. [58], states that there are some MPs, Councillors
and government bureaucrats who think that they should make
the most out of the present political arrangement because
there is no guarantee they will retain their positions when a
new government is elected into office in the next elections.
National leaders, as noted by [3] and [57], are unethical due
to their roles and conduct in plundering resources meant to
benefit the country as a whole. A classic example of this
scenario, according to [59], [41] and [60], is the land
repossession of the years 2000-2005.
5. EFFECTS OF CORRUPTION
Negative Effects of Corruption
High transaction cost
The most terrible effect of corruption in Zimbabwe, which
has always been lamented by the business community; is the
increased cost of transaction; which is mainly attributed to
the fact that in a highly corrupt society, resources are
required not only to measure the features of a good or service
in economic exchange but also to define and measure the
rights that are transferred and to protect these rights by
policies and enforcing agreements. Developing countries
such as Zimbabwe have low levels of information
transparency; there are rather high levels of information
asymmetry. Property right are weakly defined and protected
in Zimbabwe. These are some of the reasons why it is
difficult to set up a business and or invest in Zimbabwe;
transaction cost is meaninglessly high. It is imperative to note
that this situation gives much leeway to bureaucrats, to
frequently use their arbitrary power to create delays and
barriers in granting licenses and permits in order to collect
more bribes.
Positive Effects Of Corruption
Bureaucracies in developing countries such as Zimbabwe are
sometimes indifferent to the desires of economic agents
(investors and or entrepreneurs) wanting to carry on
economic activities. This usually happens when the
government has other priorities. Such a situation, as strongly
argued by [8], is quite likely in the absence of effective
popular pressure for economic development, or in absence of
effective participation of business interests in the
policymaking process. In fact, when a government turns a
blind eye on the economic growth and development agenda,
it may be reluctant to move actively in the support of
economic activity. Bureaucracies in developing countries
such as Zimbabwe are usually oriented towards maintaining
their political legitimacy. All economic activities are served
for this purpose. The bureaucracy, as noted by [61], plays an
extensive interventionist role in the economy, and its consent
or support is a sine qua non for the conduct of most
economic enterprise. [61], goes on to argue that when
bureaucrats are indifferent to business and/or have other
priorities, corruption works like piece-rate pay for
bureaucrats, which induces a more efficient provision of
government services, and it provides a leeway for
entrepreneurs to bypass inefficient regulations. In this case,
there is no doubt, corruption indeed has positive effects on
productivity. Corruption, according to [61], also maintains
efficiency by offering contracts to the lowest-cost firm, hence
promotes economic growth. It is imperative to note that
licenses and favors are actually scarce. Therefore, they are
allocated by competitive bidding among entrepreneurs.
Because payment of the highest bribes is one of the major
criteria for allocation, the ability to collect revenue is prior.
Corruption can be seen as part of a Coasean bargaining
process on which a bureaucrat and the private agent may
negotiate to an efficient outcome. The corrupt official awards
the contract to the highest bidder in bribes, and then
allocation efficiency is maintained, because only the lowest-
cost firm can afford the largest bribe [61]. The situation
would be more complex when incomplete information exists,
in other words, the briber does not have full information
about the costs and the bribing capacity of competitors.
However, the situation can be considered as an n-person
symmetric game with incomplete information [62-63].
Assuming suppliers know the bureaucrats‟ policy of
awarding the contract to the firm offering the largest bribe
and suppliers are also assumed to know their own costs, but
have incomplete information about competitors [62]. The
lowest-cost firm is always the winner of the contract, and
thus bribery regenerates the efficiency consequences of
competitive bidding procedures under imperfect information
[8]. Some degree of corruption may be part of the optimal
allocation of resources in the presence of incomplete
contracts or on account of market failure [18]. This point of
view is partly acceptable on the grounds that illegal payments
are required to expedite matters and favorably through the
state bureaucracy [64]. By implication, corruption has the
potential of producing efficient economic agents and in the
long run it virtually enhances economic growth and
development. Therefore, corruption, in such circumstances,
improves efficiency of economic activities. A classic
example of how corruption commences in Zimbabwe is given
by [54] when she writes “In Zimbabwe people are often
simply told „sit there while we try to sort out your problem‟
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and they are made to wait until business closes down, and
then they are told to come back on the next day and the day
after that”. This clearly tells you that there is something
grossly missing in our country. Food for thought! And our
argument is that in face of such adversity, economic agents
will resort to corruption in order to speed up their business
activities. According to [65], despite being restrictive,
corruption can also be economically expansionary. For
example, economic agents can bribe (public) officials to
evade bad laws. Bad laws hamper investment and growth. In
most instances, informal economies, such as is in Zimbabwe,
are a result of effective evasions of bad laws. In Zimbabwe,
as already highlighted by [66], the informal economy is fast
growing as compared to the formal economy. This is
precisely attributed to corruption. According to [67], business
licensing procedures and restrictions on labour have led to
the rise of an informal economic sector outside of the range
of government vision. Economic agents favour the
underground economy (informal economy) due to its
efficiency in both resource allocation and production.
Corruption acts like a tax or rate that different people pay to
bureaucrats; it also makes government services more efficient
and provides a leeway for entrepreneurs to avoid established
(weak) rules. From the perspective, corruption acts as a
lubricant that smoothens operations and so increases the
efficiency of an economy [68]. Corruption is rampant in
Zimbabwe, especially in the public sector. However, it is
important to note that, as it has been shown, not all
corruption is corrupt. Corruption in additional productive
transactions is actually fruitful corruption; the so-called
efficient corruption. Instead of harming growth, it virtually
improves it. This usually happens when legal options for
doing business are significantly limited. The formal sector in
Zimbabwe is too bureaucratic and economically inefficient.
Therefore, economic agents resort to corruption, especially in
form of bribery, in order to “grease the sticky wheels”. This
is one of the reasons why bribery is the most common form
of corruption in Zimbabwe. There are lots of bureaucratic
hold-ups, especially in the public sector. In a developing
country like Zimbabwe, where there is excessive bureaucracy
and a serious lack of property rights, corruption becomes the
only way of doing business.
6. CONCLUSION & RECOMMENDATIONS
Given that tyranny and corruption are the primary causes of
Zimbabwe‟s poverty, and also that the government has firm
control of the country, little can be done to immediately ease
its situation [53]. It is imperative to highlight the fact that the
president of the Republic of Zimbabwe, His Excellency,
President Robert Gabriel Mugabe, has a zero-tolerance
approach towards corruption and organisations such as the
Zimbabwe Anti-Corruption Commission (ZACC) should
continue investigating known and alleged corruption scandals
amongst other national assignments. While these solutions,
according to [53], may seem common sense, though, actually
implementing them is easier said than done. It is also
important to remember that corruption is not always bad.
Corruption that seeks to “grease the sticky wheels” is
“efficient corruption”. Corruption in Zimbabwe, especially
bribery, can be thought of as a blessing in disguise because it
is indeed a replacement of weak rules and unnecessary
bureaucracy! And as such relevant authorities may never
come to a point where they meaningfully eliminate
corruption unless they first address issues to do with
governance. Our line of thinking is hinged on the fact that
countries (e.g Canada, Netherlands, Switzerland, Norway and
Sweden amongst others) that have a low Corruption
Perception Index score exhibit better governance or at least
there is meaningful existence of rule of law.
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Author Profile
Author, born on the 20th of December
1990 in Gweru, Zimbabwe; received the
Bsc (Hons) Economics degree from
Bindura University of Science Education
(BUSE, Bindura, Zimbabwe) in 2015. He previously worked
at the Employers‟ Confederation of Zimbabwe (EMCOZ).
He has authored and co-authored more than 10 research
papers in internationally recognized scholarly journals. Mr.
Nyoni is currently an independent Researcher & Economist
based in Harare, Zimbabwe.
... This article explores how a national quality assurance agency, the Zimbabwe Council for Higher Education (ZIMCHE), improved academic integrity in Zimbabwe, a country whose high quality education 11 contrasts with high levels of corruption in the wider society 12,13 thus posing an enigma. The case study approach is premised on using the widely recognised method of concentrating on a context/locality and generalising therefrom. ...
... Corruption was reported to be the major cause of both Zimbabwe's economic downturn and the persistent failure to resolve the problem. 12,13 These authors 12,13 used the Corruption Perception Index wherein Zimbabwe featured at position 154 out of 175 most corrupt nations in the world to premise their proposition that economic improvement in the country will only commence after serious and concerted efforts to root out corruption. ...
Article
Academic integrity is a key measure of the quality, efficiency and competitiveness of higher education systems. This article explores how a quality assurance agency can foster a conducive environment for academic quality and integrity. A self-study methodology was used, with a focus on the insights and experiences of the Zimbabwe Council for Higher Education over a 10-year period. The findings show that by assuming an innovative and transformational leadership role in instilling a culture of self-evaluation, as well as maintaining its own integrity, an external quality assurance agency can improve academic integrity. The article adds value to the existing knowledge by advancing the higher education ecosystem approach as an integrity-based panacea and conducive way to induce integrity to flow from all players as opposed to the use of heavy-handed regulatory approaches. Significance: • This article highlights the importance of academic integrity and situates quality assurance agencies as playing a central role in fostering academic integrity.
... When Mugabe's regime came to power, it soon became embroiled in corruption which included the looting of funds in various government ministries, as has happened elsewhere in Africa and beyond (Ayittey 2011). This was apparent in a number of scandals from the 1980s (including Zisco Steel blast furnace in 1987 and Willowgate in 1988), in the 1990s (War Victims Compensation in 1994 and Boka Banking in 1998), and then from the year 2000: the most famous is the pillaging of diamonds in Chiadzwa from 2006 onwards (Shana 2006;Yamamoto 2014;Nyoni 2017). In the case of Chiadzwa, it is alleged that US$15 billion worth of diamond revenue disappeared in mid-2016 (three times more than Zimbabwe's annual national budget), which triggered critical cash shortages (Ndlovu 2016). ...
Article
Full-text available
This article discusses the discontent that increased against the Robert Mugabe led government as a result of grave socio-economic and political grievances, and in the context of accessible social media platforms which mobilised and empowered disenfranchised Zimbabweans to challenge the regime after the 2013 elections. Among other factors, the mounting discontent was caused by the belated payment of civil servants’ salaries, inability to create employment opportunities, refusal to enact electoral reforms, rampant corruption and the introduction of import ban restrictions. This led to the formation of civic organisations which demanded the resignation of Mugabe and these included, but were not limited to, #Tajamuka and #ThisFlag. In response, the Mugabe led government used rigid and repressive measures targeting the protesters, as well as traditional and social media platforms to safeguard itself.
... vi. Corruption is very harmful and unacceptable (Nyoni, 2017) and therefore all stakeholders in the construction sector should not engage in corrupt practices for any reason. It is quite interesting and encouraging to note that the new political dispensation in Zimbabwe does not entertain corruption at all levels. ...
Article
Full-text available
Cost overruns (the amount of money by which actual costs exceed the initially approved costs) continue to characterize a plethora of construction projects, especially large projects. This is the reason why the hot debate in the construction industry on how to minimize cost overruns has been on for some time, especially among construction economists and engineers and yet the inability to complete construction projects within the budget remains a chronic problem worldwide. In Zimbabwe, it is now almost obvious that once a construction project has commenced; it will not be completed within the initial project budget. This study seeks to empirically determine cost overrun factors in the construction industry in Zimbabwe. From the analysis of the questionnaire, cost overrun factors were ranked using the Relative Importance Index (RII) technique. The overall results analysis indicate that poor estimation of original cost, lack of timeous reports during construction stage, corruption, construction productivity and contractual claims are amongst the top ten most important factors causing construction cost escalation. The study managed to come up with recommendations which are 7-fold and are envisaged to help construction economists, managers and policy makers in initiating positive changes in the construction industry in Zimbabwe.
... Investors face both high-level corruption in the form of nepotism, patronage and abuse of power, as well as petty bribery and extortion. Formally corruption is generally understood as the abuse of public power for private gain and also as the abuse of public office for private gain [24]. The last definition best describes our case in Zimbabwe. ...
... Corruption is very harmful and unacceptable (Nyoni, 2017). Rebuking corruption is quite important but the most important thing after all has been said; is to walk the talk (Nyoni, 2018f). ...
Article
Full-text available
Zimbabwe is open for business. This is the mantra that has gained amazing popularity since the ouster of the former president of Zimbabwe, Mr. R. G. Mugabe in November 2017. In his first 100 days as president of Zimbabwe, President E. D. Mnangagwa tried his best to make sure that Zimbabwe is "opened for business". Indeed, after a period of over three decades of self-inflicted economic stagnation; Zimbabwe is finally open for business! This is a meritorious development in the history of this country. The limitation to a new Zimbabwe, the new Zimbabwe that we all desire; is the serious lack of entrepreneurs, opportunity-based entrepreneurs. Without opportunity entrepreneurs, the unemployment puzzle in Zimbabwe is likely to remain unsolved. Opportunity entrepreneurs have the capacity to solve the unemployment problem, especially considering the fact that Zimbabwe is a beautiful country characterised by many business opportunities. As Zimbabweans, we are unemployed because we are not able to identify and exploit business opportunities in our beloved country: we are good at seeking jobs! That kind of mentality, that kind of attitude, that line of thinking must stop forthwith. It's high time we must switch from seeking jobs to creating jobs. We do not want people to engage in entrepreneurship because they are left with no option. We want to avoid a situation whereby businesses die in their embryonic stages simply because, in the first place; there was no entrepreneurial opportunity to be exploited. We want people who are business-minded: people who take time to identify business opportunities in the economy and subsequently exploit them strategically. While there are a number of entrepreneurs in Zimbabwe, it is not surprising that their contribution to economic growth remains minimal because the bulk of them are necessity instead of opportunity entrepreneurs. For the economy of Zimbabwe to grow in a sustainable manner, there is need to transmogrify necessity entrepreneurs into opportunity entrepreneurs. The time to do away with the job seeking mentality is now! Zimbabwe is open for business; indeed, Zimbabwe is open for job creators. This paper looks at entrepreneurship, but from an interesting point of view: opportunity-based entrepreneurship view. I systematically make it clear why policy makers in Zimbabwe need to prioritize opportunity entrepreneurs as opposed to necessity entrepreneurs. Policy implications from this analysis are envisioned to assist policy makers in light of enhancing entrepreneurship, promoting sustainable economic growth and fostering job creation in the new Zimbabwe.
... These theories let us understand why FDI exists.4 already discussed inNyoni (2017). ...
Article
Full-text available
This study attempts to model and forecast net FDI inflows in Zimbabwe over the next 2 decades. Spanning from 1980-2017, annual time series data for net FDI inflows in Zimbabwe was used. The ADF test indicates that FDI data is I (1). The study identifies the minimum AIC value and subsequently presents ARIMA (1, 1, 1) model as the optimal model to forecast FDI in Zimbabwe. The ADF test also indicates that the residuals of the ARIMA (1, 1, 1) model are I (0), thus confirming its adequacy. A diagnosis of the inverse roots of AR/MA polynomials confirms that our estimated model is stable. The predicted net FDI inflows over the next 2 decades show a relatively poor and unimpressive growth trend. Amongst the main policy prescriptions, the study recommends that policy makers in Zimbabwe ought to come up with investor-friendly policies in order to attract the much needed FDI.
... The ruling elite use their power to selfishly squander national resources. According to [23], bad laws hamper investment and growth. The existence of rampant corruption in Burundi can be attributed to selective application of law and selfaggrandizement by the political elite. ...
Article
Full-text available
The economy of Burundi is currently under life support and private investment is still in its embryonic stage, after a series of civil wars that have characterised Burundi's post-independence era. The political woes that Burundi continues to experience are one of the fundamental hindrances to private investment growth and development. Probably, this is the reason why most researchers, academicians and observers analyze the situation of Burundi only with political glasses; thereby undermining the role played by the economic structure. The perspective adopted in this study is quite different: the idea is to present a picture of Burundi from an economic point of view, partially leaving politics in the background and yet based on empirical evidence. This kind of approach does not imply that politics is unimportant! Our humble view is that politics is often constrained or even controlled, by economics! Private investment is the backbone of every economy and Burundi cannot be an exception. The study, while restricted to non-political determinants of private investment; seeks to uncover those factors that really matter to private investment, other than politics. Results indicate that population growth; exports and private sector credit are the most powerful factors that affect private investment in Burundi. The results provide a concrete justification for the policy recommendations suggested.
... Corruption is the misuse of entrusted power or a dishonest use of one's office or position for personal gain (Ijewereme, 2015). Corruption can also be operationally defined as the destruction of anything from original form of purity by means of bribery or favor for one's private gain (Nyoni, 2017). Corruption is a monster and enemy to a country by which dishonest persons abuse and exploit public wealth (Usman, 2011;Okoye, 2016). ...
Article
Full-text available
That corruption abounds in Nigeria is an indisputable fact (Agbiboa, 2012). The corrupt man is everywhere, the man on the street, the man next door, the man in the church or mosque, the man in the market or the departmental store, the policeman on beat patrol and the soldier at the check point (Okadigbo, 1987). Corruption in Nigeria has passed the alarming and entered the fatal stage (Achebe, 1983). The rate of corruption is so high that the Federal House of Representative in Nigeria is now contemplating hanging for treasury looters as a solution to corruption (Ige, 2016). Corruption is a clog in the wheel of progress in Nigeria and has incessantly frustrated the realization of noble national goals, despite the enormous natural and human resources in Nigeria (Ijewereme, 2015). Corruption cases have been on the increase despite anti-corruption crusades (Izekor & Okaro, 2018). Corruption dynamics in Nigeria reveal that politicians and public office bearers in Nigeria have proven beyond any reasonable doubt that they are not able to translate their anti-corruption "gospel" into action; theirs is to devour rather than share the "national cake". Today Nigerians continue to languish in extreme poverty and yet Nigeria is one of the few African countries with abundant natural and human resource endowments. Nigerian political leadership (ruling or opposition) should be more serious when dealing with corruption, if economic growth and development is anything to go by in Nigeria. This study seeks to demystify the dynamics of both political and electoral corruption in Nigeria in relation to the Nigerian political landscape. Amongst other policy recommendations, the study urges Nigerian politicians to walk their talk on corruption.
... They promote economic growth and increase a country's competitiveness and wealth (Aris, 2007;Mahmood, 2008;Dobbs & Hamilton, 2007;Franco & Haase, 2010;Bouri et al, 2011;Iraj & Besnik, 2011;McLarty et al., 2012), facilitate rapid industrialisation ( Arando et al., 2009;Dickson & Weaver, 2008;Harris & Gibson, 2006;Smallbone et al., 2010;Sauser, 2005) and are a key driver to innovation and R&D (Azimzadeh et al., 2013;Caca, 2010;European Union, 2015;Halabi & Lussier, 2014;Robbins et al., 2000). Small businesses are further regarded as a vehicle for invigorating the enterprise economy and an "engine of growth" to stimulate recovery in the wake of recession (Cabinet Office, 2013;Holmes et al., 2010;Simpson et al., 2012;Unger et al., 2011). 1 The following economic ills have become persistant in Zimbabwe: gross macroeconomic mismanagent (Nyoni & Bonga, 2017a), corruption, nepotism and bad governance ( Bonga et al, 2015;Nyoni, 2017;Nyoni & Bonga, 2017a, f & i), liquidity crisis (Nyoni & Bonga, 2017d, e & f), informality (Nyoni & Bonga, 2016;Nyoni, 2017;Nyoni & Bonga, 2017f), high costs of production (Nyoni & Bonga, 2017a & f), political volatility, poverty & excessive unemployment (Nyoni & Bonga, 2017f). Properly managed SMEs have the potential to solve some of these economic ills e.g unemployment and poverty. ...
Article
Full-text available
The contribution of a vibrant Small and Medium Enterprises (SMEs) sector in the socio-economic development of Zimbabwe has been widely recognized. In view of its increasing importance, the success of SMEs has been of interest to a plethora of researchers and economists and has therefore, become the subject of a great deal of analysis. SMEs in Zimbabwe continue to perform badly and hence have not yet played the expected vital and vibrant role of materializing the much needed economic growth and development. This study investigated the role of accounting information in the success of SMEs. The research was prompted by poor performance of many SMEs in Harare. The study was based on a survey. Sample selection was done using both random sampling and researchers' judgement. Amongst other findings, the study indicates that the majority of SMEs do not use accounting information for decision making. Amongst other policy prescriptions, SMEs in Zimbabwe are encouraged to keep full accounting records in order to facilitate meaningful decision making for their own success.
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The current trends in water resources management underscore management of the resource as an economic good. Consequently, management strategies overlook demographic and social factors that influence domestic water consumption. Adopting water as an economic good conceptual framework, in a case study approach, a total of 120 household heads and two officials from Zimbabwe National Water Supply Authority (ZINWA) were selected in Karoi. While quantitative data were analysed using descriptive (frequency, percentages, etc.) and inferential statistics (t-test, ANOVA etc.), content analysis was used to analyse qualitative data. Findings revealed that while economic factors play a role in influencing domestic water consumption, demographic and social factors play equally the same in determining water consumption at the household level. The study recommends a further study to understand the role of demographic and socio-economic factors which affect water consumption.
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The worst of the ailments distressing the economy of Zimbabwe continue to be sycophantically dubious and characteristically dystopian policies that are still causing malicious effects on private investment and yet private investment is an indisputably powerful means for sustainable economic growth and development. Private investment in Zimbabwe has been significantly low for the past three decades and yet the private investment that private investment is the backbone of every economy, of which Zimbabwe is not an exception. Motivated by the concern on the persistent retrogressive contribution of private investment to GDP as well as the incessant underwhelming economic growth in Zimbabwe, this study systematically reviews the determinants of private investment in Zimbabwe. Results show that GDP and public investment are the most powerful factors that affect private investment in Zimbabwe. The study recommends attention to be made to all identified factors (that is, GDP, public investment, interest rate, private sector credit and political uncertainty), paying particular attention to the main determinants of private investment, that is GDP and public investment.
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The construction industry plays a strategic role in developing countries like Zimbabwe. This research seeks to empirically determine the main factors affecting construction labour productivity in Zimbabwe. Questionnaires comprising of structured and unstructured questions were used to for data collection. The research employed heterogeneous sampling to select the target population, and fifty (50) questionnaires were completed and analyzed. Using a simple ordinal scale, based on a 5-point Likert Scale; contractors, consultants and professionals expressed their views on the relative importance of twenty-two (22) pre-selected factors on construction labour productivity. Data was analyzed using the Relative Importance Index (RII). The results show that late and or non-payment of wages and salaries, suitability and/or adequacy of capital, non-payment to suppliers, availability of experienced labour as well as education and training are amongst the top thirteen (13) most important factors impinging construction labour productivity in Zimbabwe. Timeous payment of salaries and wages as well as investment in staff training and development are amongst the recommended intervention strategies to improve construction labour productivity in Zimbabwe.
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This now-classic examination of the development of viable political institutions in emerging nations is a major and enduring contribution to modern political analysis. In a new Foreword, Francis Fukuyama assesses Huntington's achievement, examining the context of the book's original publication as well as its lasting importance. "This pioneering volume, examining as it does the relation between development and stability, is an interesting and exciting addition to the literature."-American Political Science Review. "'Must' reading for all those interested in comparative politics or in the study of development."-Dankwart A. Rustow, Journal of International Affairs.
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This paper tests whether corruption may act as an efficient grease for the wheels of an otherwise deficient institutional framework. We analyze the interaction between aggregate efficiency, corruption, and other dimensions of governance for a panel of 54 developed and developing countries. Using three measures of corruption and five measures of other aspects of governance, we observe that corruption is consistently detrimental in countries where institutions are effective, but that it may be positively associated with efficiency in countries where institutions are ineffective. We thus find evidence of the grease the wheels hypothesis.
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Corruption has become an issue of major political and economic significance in recent years. This has led to a resurgence of interest in analysing the phenomenon and the diverse forms that it assumes in developing countries with an expectation that democratisation and economic liberalisation offer potential routes to dealing withthe problem. Anti-corruption strategies range from institutional reforms through to concerted efforts at the international level, but the efficacy of these approaches has not been subject to careful empirical research.