Author
Abstract
Economic governance is measured by economic freedom, while political governance is measured by the electoral competitiveness index. How can political instability and poor governance in SSA be coped with? This is often seen as the overarching problem that exacerbates many others. Systemic corruption at all levels deprives the state of much-needed revenue, increases the cost of doing business and undermines public trust in institutions. In addition, weak institutions, such as an inefficient judiciary, inadequate public administration and barely existing public services, hinder development. Conflict and fragility displace people, destroy infrastructure and tie up resources that could be invested in education or healthcare. Without reliable contracts and property rights, both foreign and domestic investments are at great risk. Poor governance, reflected in a lack of rule of law, property rights, a regulatory burden, political violence and ineffective government, impedes growth in per capita revenue. In African politics, neo-patrimonialism appears to be the default setting, described as the 'moral economy of corruption' or the 'economics of affection. However, bad governance is not culturally specific; it is a universal challenge that affects all nations at some point in their development history. Good governance must be pursued and implemented in all SSA countries. Even with the support of the donor community, governments may develop ambitious plans to improve governance and strengthen institutions, yet fail to improve the standard of living of their citizens. Since the Second World War, Africa, and Sub-Saharan Africa in particular, has had the poorest economic performance of any region in the world. By the end of the 20th century, incomes per capita had barely improved since independence, and in some cases had worsened considerably. The main problem was the failure to improve the efficiency of resource use. In contrast to many other developing countries, total factor productivity was static or negative for much of the time. With few exceptions, African countries have lacked a sound social and political foundation conducive to growth and development, and this foundation has tended to deteriorate over time. Good governance practices are supported by institutions such as the World Bank and the International Monetary Fund. Good governance practices are also supported by such institutions. In order to receive development aid, states must apply and accept the principles of good governance. If they neglect to do so, African states risk not receiving financial aid. Accountability is a positive aspect of good governance. However, African states have developed a 'new culture', especially after decolonisation. There is a significant difference in perspective between Africans and Westerners regarding governance. The clientelist forms of politics that define postcolonial states do not stem from a class project, but are a contemporary manifestation of a dynamic national, African and ethnic culture.
Suggested Citation
Kohnert, Dirk, 2025.
"The African Governance Gap: How Societies Cope When the State Falters,"
MPRA Paper
126144, University Library of Munich, Germany.
Handle:
RePEc:pra:mprapa:126144
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JEL classification:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
- N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania
- O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
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