Corruption and Good Governance in Nigeria

4,494 views
4,277 views

Published on

This was my capstone project. The paper is much more informative but the slideshow portrays the bulk of the research.

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
4,494
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
66
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Corruption and Good Governance in Nigeria

  1. 1. Corruption vs. Good governance<br />How International Business Can Improve for Nigeria<br />
  2. 2. Plan of Study<br />Corruption Good Governance<br />Reputable sources<br />Primary research<br />Major NGOs<br />Transparency International<br />Global Integrity<br />World Bank<br />
  3. 3. Topic:<br />
  4. 4. Nigeria<br />
  5. 5. Nigeria<br />Corruption perceived to be at high levels<br />Weak policies that deter investment<br />Political instability<br />Weak infrastructure<br />Complex tax system<br />Large labor force<br />Natural resources (oil)<br />Coast Line and Ports<br />String private sector<br />Lots of FDI<br />Cons<br />Pros<br />
  6. 6. Research Questions<br />What is corruption and how is Nigeria ranked?<br />What do businesses consider when deciding to invest in a country?<br />What have other countries done to combat corruption and improve good governance?<br />
  7. 7. Findings: Corruption<br />State corruption is the misuse or abuse of entrusted power via legislation, mutual understanding or agreement for private gain.<br />Corruption can involve bribery, embezzlement, extortion, fraud, patronage (nepotism, cronyism), rent seeking and graft<br />
  8. 8. Findings: Ranking Nigeria<br />Different organizations that rank countries on governance and corruption<br />Transparency International<br />Global Integrity<br />World Bank<br />Nigeria’s ranks and scores are weak<br />
  9. 9. Corruption Perceptions Index (CPI)<br />
  10. 10. Global Integrity Index <br />
  11. 11. Worldwide Governance Indicators (WGI)<br />
  12. 12. Findings: What Businesses Look For When Investing in a Country<br />Ease of doing business<br />Starting and closing a business<br />Dealing with licenses<br />Employing workers<br />Registering property<br /><ul><li>Getting credit
  13. 13. Protecting investors
  14. 14. Paying taxes
  15. 15. Trading across borders
  16. 16. Enforcing contracts</li></li></ul><li>Comparative Study<br />Nigeria<br />Federal Republic<br />Independence: 1 Oct. 1960 (from UK)<br />Population Growth Rate: 2.4%<br />GDP- per capita (PPP): $2,200<br />Malaysia<br />Constitutional Monarchy<br />Independence: 31 Aug. 1957 (from UK)<br />Population Growth Rate: 1.6%<br />GDP- per capita (PPP): $14,400<br />Botswana<br />Parliamentary Republic<br />Independence: 30 Sept. 1966 (from UK)<br />Population Growth Rate: 1.5%<br />GDP- per capita (PPP): $14,700<br />Chile<br />Republic<br />Independence: 18 Sept. 1810 (from Spain)<br />Population Growth Rate: 0.9%<br />GDP- per capita (PPP): $14,400<br />
  17. 17. Research Questions<br />What are the cultural perceptions of governance?<br />Do the people feel the government is corrupt?<br />Do they feel it could do more to attract international investment?<br />Are the people interested in attracting more FDI?<br />What do business and international organizations generally define as good governance?<br />What institutions and policies are necessary for international business and investment?<br />
  18. 18. Findings: Cultural Perceptions<br />Nigerians still perceive their government to be corrupt<br />Corruption has become an institution, but not a cultural institution<br />Citizens are not seeing improvements, despite substantial oil revenues<br />Calling for improvement of basic conditions<br />Unemployment<br />Poverty<br />Infrastructure<br />
  19. 19. Findings: Attracting Business<br />Government has been seeking international investment: China, Libya, India<br />Many NMCs still unwilling to make risky investment<br />People and companies seek improvements: infrastructure, transparency, property rights, land use<br />Trade and imports vs. industry protection<br />Benefits of FDI<br />
  20. 20. Findings: Good Governance<br />Governance process of making and implementing decisions<br />Can be applied to all organizations: political institutions; local, national, international governments and corporations<br />Several organizations and institutions have developed guidelines for good governance<br />
  21. 21. Findings: Institutions and Securities<br />Common themes among all definitions, applicable to Nigeria, will address the corruption problem as well as stimulate international confidence and investment<br />
  22. 22. Research Questions<br />What are the impacts of corruption? <br />How does corruption affect the investment climate and international business? <br />What are the economic and social costs of corruption? <br />What can be quantified? <br />How far-reaching are the affects of corruption? <br />What is the economic potential of Nigeria? <br />With good governance, what kind of investment could Nigeria expect to attract? <br />
  23. 23. Findings: Impacts of Corruption<br />Costs higher<br />Threatens stability<br />Skews development <br />Uneven playing field<br />Harms reputation and trust in the state<br />Deters investment<br />
  24. 24. Findings: Costs of Corruption<br />Impossible to know exact cost <br />Measure erosion of public confidence and gov’t legitimacy? <br />Possible to estimate magnitude of corruption<br />Bribes: $1 trillion of $30 trillion world economy <br />(World Bank survey, 2001-2002) <br />Not counting embezzlement or fraud<br />President Abacha: $5 billion (Transparency International)<br />Also favors, presents, services<br />Halve corruption = 400% increase in income/capita<br />Corruption = 20% tax on foreign investors<br />
  25. 25. Findings: Economic Potential <br />Strong, large private sector<br />Educated professionals<br />Many foreign firms already present<br />FDI greater than most other African countries<br />Many natural resources<br />Lots of oil <br />Trying to attract more FDI with incentives<br />
  26. 26. Conclusions<br />
  27. 27. Potential Policy?<br />Simplify complex tax system & customs<br />Increase privatization <br />Encourage democratic processes: free press, auditors<br />Increase transparency <br />Accountability<br />Focus on incentives, prevention, & reforms<br />

×