AAI"

01/05/2025

25/03/2023

Abstract
Bad governance can very quickly ruin the economic situation of the whole country. However, in the conditions of the Western world, even though they can cause a lot of damage, more or less developed administrative apparatus is able to minimize the effects of bad decisions, and the society has a chance to rebuff the rulers in the next elections. In so-called dysfunctional states bad governance can damage an already weak country’s economy. Most researchers dealing with the issue of the state in Sub-Saharan Africa believe that, once the decolonisation was over, the power in the region was mostly taken by people whose leadership must be evaluated negatively, represented by such dictators. The paper is trying to explain the interconnection between bad governance experienced by Sub-Saharan African countries and state dysfunctional phenomenon from which they suffer. The AAI put together this analysis and assessment of bad governance presented in this article on the basis of his own field studies carried out in African countries and research of specialist literature related to African and political studies.

25/03/2023

Governance reforms and anti-corruption

In general, good governance is an ideal that is difficult to achieve in its totality. It typically involves well-intentioned people who bring their ideas, experiences and preferences to the policymaking table. It requires effective ethical leadership (for a further discussion on this issue, see Module 4 of the E4J University Module Series on Integrity and Ethics).

According to Johnston (2002), improved governance requires strengthening both participation and institutions - which includes an integrated, long-term strategy built upon cooperation between government and citizens. When a government is accountable and transparent, acts with integrity and upholds the rule of law, it can increase public trust, effectiveness and legitimacy. This can in turn foster the conditions for a more participative democracy where citizens are actively engaged.

Furthermore, debates over the meaning of "good governance" and its links to the quality of democracy, competent policymaking, and anti-corruption are ongoing and need to be unpacked in light of both new types of technocratic knowledge and demands for more inclusive, deliberative policymaking procedures, including anti-corruption efforts (Grindle, 2017; Rose-Ackerman, 2016).

Debates around the relationship between good governance and democracy arise because of underlying disputes over what good governance entails under different constitutional structures. Despite its flaws, liberal democracy, as a form of state organization, offers characteristics that are the most naturally congruent with good governance because it involves the empowerment of people to exercise and protect their rights, notably through their representatives. Still, democracy also requires checks and balances and well-informed, educated citizens. Yet, formal democracy, in the sense of contested elections with alterations in power, is not a necessary condition for good governance in that sense. Democracy should help to encourage good governance, but it is possible to have publicly accountable policymaking without electoral democracy. Thus, the main challenge for governance reforms is to balance expertise and democratic participation to produce public policies that solve essential social problems and are accepted as legitimate by citizens (Rose-Ackerman, 2016).

Generally, governance reforms should concentrate on improving the interface between government officials, and private individuals and businesses (Rose- Ackerman, 2016). The challenge is to create an infrastructure of integrity in government (and private sector) activity, with systems, rules and regulations that foster accountability and efficiency (in terms of making the best use of society's resources). For a discussion on integrity and ethics management in the public sector see Module 13 and in the private sector see Module 11 of the E4J University Module Series on Integrity and Ethics. The complexity of mitigating unethical behaviour is also explored in Module 6, Module 7 and Module 8 of the E4J University Module Series on Integrity and Ethics.

Yet, there are no quick fixes. Some efforts have been effective, while others have had little benefit, have wasted resources and opportunities or have done even more harm than good. Often development practitioners (such as development advisers, leaders of non-governmental organizations and government officials) provide long lists of "things that must be done" to achieve good governance, with little guidance about what to prioritize (Grindle, 2017). Johnston (2002) discusses nine major challenges that should be anticipated and must be avoided in order to increase the quality of good governance and to reduce corruption. A summary of his discussion is presented below:

Avoid excessive legislation and regulation
To improve policy and implementation it is tempting to rely too much on laws and top-down policymaking. The resulting inflexibility wastes resources and opportunities, produces policies that are unresponsive to social realities and thus erode the credibility of good governance efforts, and can increase incentives to corruption. Hence, there is a need for policies that increase the space for debate and consultation, encourage innovation, and pursue desired outcomes with positive incentives rather than through prohibitions alone.

Remember that politics is a part of good governance
Too many reformers view governance primarily as a set of technical administrative tasks, and public participation as either a pro forma exercise or a process to be orchestrated from above via high-profile, but short-lived, mass public campaigns. In either of the public participation scenarios, citizens have little opportunity or incentive to participate in any long-term way or to link official promises to the problems of their own communities.

Build broad-based support for reform and pay close attention to problems and controversies
Governance reforms require lasting leadership and commitment from the top. Even though it takes time, effort and resources, and even though it will involve sharing the credit for improved governance, it is far better to get out into communities, learn about popular concerns, and build a broad base of support.

Pay close attention to incentives
Governance reforms often emphasize public goods, such as efficiency, honesty, cultural empathy, and the like, to the exclusion of private benefits. Other kinds of appeals - such as that better governance would cut taxes, make it easier to find jobs in a revived economy, protect one's family and property - receive too little attention, even when the goal is enlisting the participation and support of civil society. Extensive efforts must be made to persuade citizens, government officials and political leaders that they stand to benefit from reform.

Public opinion matters
Even in emerging democracies, reformers ignore public opinion at their peril. Surveys and community meetings to identify what people believe about the current state of affairs and expect of reform are essential. So are sustained efforts to educate the public about key problems, the justification for proposed changes, the costs of better governance, and actual results.

Strengthen checks and balances
While a measure of coordination among segments of government is essential, it is only part of the picture. The government must also be able to check its own excesses. The judiciary is essential to interpreting and enforcing new laws and standards, and if it is not independent of the government of the day it will be ineffective (resources on judicial independence and integrity are available on the website of UNODC's Global Judicial Integrity Network. If governance structures are in place, such as rules regarding procurement, hiring, firing and promotion criteria, laws allowing freedom of gathering and access to information along the lines of the governance principles, corrupt activity can be obviated. Similarly, executive agencies require oversight, and here legislative scrutiny and credible external watchdogs can enhance effective policy implementation and check abuses. An ombudsman system to which citizens can submit complaints and reports may also be valuable, but citizens must be able to trust that they will not face retaliation nor intimidation, that their reports will be taken seriously and that information is handled confidentially.

Never underestimate opposition to reform
Serious reforms may encounter increasing resistance within government or from segments of the public. Transparency and accountability problems are particularly likely to persist because of vested interests in government and society, and reformers must be aware that, at times, those resisting enhanced transparency and accountability will go through the motions (e.g. filing reports, producing data, carrying out reviews and assessments) in ways that actually conceal, rather than reveal and resolve, governance problems. Outside monitors such as auditors, legislative oversight bodies and investigating judges will be essential.

Do not focus only on nation states
Neighbouring societies and governments may well be coping with similar problems and constraints and may find ways to adapt the rule of law, accountability and transparency mechanisms to new and complex situations. Sharing ideas, experiences and resources, coordinating rule of law functions on a regional basis, and peer review of governance procedures can all contribute to reforms appropriate to social realities and can make better use of limited resources.

Stay focused on the long term
Too often governance reform is a short-lived issue, in particular, following crises or corruption scandals. With respect to the rule of law and its social foundations, governance reform will take at least one generation to achieve, and not just a few months or years. This is also the case for transparency and accountability, in the sense that agency, the political elite, and civil service "cultures" may need to be changed. More rapid progress may be possible in those areas to the extent that individuals can be replaced and the incentive systems of institutions overhauled. Bureaucrats will need periodic re-training, elected officials will need continuous information on governance problems (and continuous incentives to fix them), and citizen support will be required over the long term. Public education will be an integral part of any effort to deepen the rule of law, and to improve transparency and accountability.

Good governance requires adopting a multi-pronged approach, with several systems of checks and balances that can be achieved through separation of powers of different agencies, through civil society and media involvement, and through partnership or pacts with the business sector.

A variety of policies and tools that could improve governance are also discussed in other forthcoming modules of the E4J University Module Series on Anti-Corruption, such as Module 6 (Detecting and Investigating Corruption), Module 10 (Citizen Participation in Anti-Corruption), Module 12 (International Anti-Corruption Frameworks), and Module 13 (National Anti-Corruption Frameworks).

25/03/2023

Corruption and bad governance

Until the mid-1990s, scholars and practitioners were relatively oblivious to issues of bad governance and corruption. Many of them even argued that some types of corruption could have a functional impact on economic development since they could "grease the wheels". But ever since different indices and measurements became available, such as the World Bank's WGI, numerous studies have demonstrated that government institutions that are reasonably free from corruption and related practices have a strong positive impact on a large set of outcomes related to human well-being. Central to this discussion has been the link between the quality of government institutions that implement policies (control of corruption and the rule of law) and economic development (Holmberg, Rothstein and Nasiritousi, 2009).

Ineffective institutions undermine the provision of public services such as health care, education and law enforcement. When public officials do not act as bureaucrats delivering services as they are expected to do, people can try to obtain these services in other ways. In many countries, people are usually able to access public services without having to engage in any form of bribery, but the same cannot be said for every country. The role of the media in promoting good governance and contributing to perceptions about the quality of governance at the international, national and local level is also worth nothing. For a further discussion on the role of the media, see Module 10 of the E4J University Module Series on Integrity and Ethics and Module 10 of the E4J University Module Series on Anti-Corruption.

The concepts of corruption and good governance have a two-way causal relationship with each other and feed off each other in a vicious circle. If good governance principles and structures are not in place, this provides greater opportunity for corruption. Corruption, in turn, can prevent good governance principles and structures from being put in place, or enforced. Violations of the principles of transparency, accountability and rule of law appear to be most closely associated with corruption. In the end, corruption and poor governance are security challenges which undermine democracy, the rule of law and economic development. For a further discussion on how corruption relates to peace and security, see Module 11 of the E4J University Module Series on Anti-Corruption.

There is a large body of literature that reveals the negative consequences of bad governance, primarily in the form of corruption and lack of property rights, for areas such as population health and people's access to safe water (Swaroop and Rajkumar, 2002; Holmberg and Rothstein, 2011). The perception of poor quality of government, including authoritarian rule, corruption and economic downturn, affect whether people vote and participate in the political process (Hooghe and Quintelier, 2014; Kostadinova, 2009). Råby and Teorell (2010) show that measures of good governance are stronger in predicting the absence of violent interstate conflicts than measures for democracy, and Lapuente and Rothstein (2010) provide similar results for civil wars. Gilley (2006, p. 57) even demonstrates that "general governance (a composite of the rule of law, control of corruption and government effectiveness) has a large, even overarching importance in global citizen evaluations of states". He further states that these governance variables have a stronger impact on political legitimacy than variables measuring democratic rights and welfare gains.

25/03/2023

Africa must urgently invest in economic recovery, Finance Ministers Urge
21 March, 2023
Africa must urgently invest in economic recovery, Finance Ministers Urge
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Addis Ababa, 21 March 2023 (ECA) - Africa should deploy innovative resource mobilization and accelerate economic recovery from multiple crises which have eroded two decades of development gains and increased poverty, Ministers of Finance have urged.

In a Ministerial Statement adopted at the 55th session of the Conference of African Ministers of Finance, Planning and Economic Development, in Addis Ababa, Ethiopia, ministers reiterated the urgency of transforming Africa’s economies and driving industrialization. They underscored the need to expedite economic recovery in Africa which is likely to miss many of the Sustainable Development Goals (SDGs).

Noting that the COVID-19 pandemic, the war in Ukraine and climate change will hinder Africa’s efforts to achieve the SDGs and Agenda 2063, the Ministers said the triple crises have disrupted food and energy markets, exacerbated food insecurity and caused high inflation rates which have pushed millions of Africans into poverty and economic hardship.

Africa needs to invest approximately $66 billion in its health systems and health infrastructure. Furthermore, financing to close infrastructure deficits amounts to between $137 billion and $177 billion by 2025.

In addition, the Ministers recognised that meeting SDG targets to eradicate extreme poverty and reduce inequality within seven years in line with the 2030 Agenda, is becoming increasingly unlikely. Poverty and inequality in Africa will therefore pose high risks to prosperity, peace and security, and to the social contract.

The Ministers, therefore, acknowledged the need to stimulate economic recovery and to protect vulnerable populations against soaring inflation – which was forecast to reach 12.4 per cent in Africa in 2023. Rising interest rates, and the tightening of monetary policy by central banks to combat inflation have contributed to the worsening of the already limited fiscal space, the Ministers statement said.

The Agreement establishing the African Continental Free Trade Area (AfCFTA) will increase intra-African trade in agrifood, services, industry, energy and mining while attracting cross-border investments, the Ministers noted in the statement calling on the ECA to support the continent with strategic thinking and new perspectives achieve prosperity by 2030 and realize the objectives of the 2030 Agenda and Agenda 2063.

ECA Acting Executive Secretary, Antonio Pedro, in closing the conference, said in order to foster recovery and transformation in Africa, the continent should prioritize skills enhancement, industrialization and economic diversification, infrastructure development, intra-Africa trade and innovative financing.

“We have the mandate to deliver on our promise of shared prosperity to the people of Africa,” Mr. Pedro said, adding that sustainable solutions must be developed by Africa and partnership and collaborations were key to a transformed Africa.

29/01/2023

AAI was established in December 2022 primarily to assess the impact of all manner of Aid packages offered to African countries who apply for them from the Bretton Woods Institutions.

AAI’s focus is on the sources of the aid packages, their objectives coupled with the quantum of the aid resources made available. The provision of such aid programmes in the estimation of the providing organizations seeks to make substantial impact in the targeted sectors of the recipient countries.

We delve into the extent of impact that these aid programmes make through the conduct of varied forms of assessment exercises in the bid to establish the results that have achieved, the conclusions that have been arrived at. We believe that our task at ascertaining progress with aid from international organizations is crucial and meant to come up with relevant recommendations.