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Democracy, Development and Comparative Institutional Advantage in Africa

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  • Geoffrey Schneider
  • Berhanu Nega

Abstract

Development in Africa has been stalled for decades in a vicious cycle of poverty, underdevelopment, corruption, and conflict. In this paper, we argue that donors should focus on democracy and accountability as a first priority in development aid. We use the theory of comparative institutional advantage to identify the key institutions that are most likely to facilitate economic development in communities in the modern world. These institutions include an efficient non-corrupt government sector. Subsequently, we discuss how a lack of democracy and accountability inevitably undermines development efforts and investment, referring especially to the Ethiopian experience but also considering the experiences of other African dictatorships. Finally, we discuss how donors, by emphasizing democracy and accountability along with other policies that support democratic institutions, have a greater chance of effectively contributing to African economic development.

Suggested Citation

  • Geoffrey Schneider & Berhanu Nega, 2013. "Democracy, Development and Comparative Institutional Advantage in Africa," Forum for Social Economics, Taylor & Francis Journals, vol. 42(2-3), pages 231-247, August.
    • Handle: RePEc:taf:fosoec:v:42:y:2013:i:2-3:p:231-247
    DOI: 10.1080/07360932.2013.782560
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    References listed on IDEAS

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    1. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, December.
    2. Rutherford,Malcolm, 1996. "Institutions in Economics," Cambridge Books, Cambridge University Press, number 9780521574471.
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    Cited by:

    1. Paolo Ramazzotti, 2015. "Theory, Power and the Project of a Neoliberal Society: An Introduction to the Special Issue," Forum for Social Economics, Taylor & Francis Journals, vol. 44(2), pages 109-114, August.

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