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The Causes of Corruption

Recently, the International Olympic Committee (IOC), had to relieve some of its officials of their posts because they had taken bribes. And all the commissioners of the European Union (EU), resigned because they, too, had been found to be corrupt beyond acceptable limits. In the United States, Enron Corporation, an energy giant and WorldCom, a telecommunication company, were charged with fraud. The companies manipulated their balanced sheets, profit and loss account and tax liabilities. Enrons accountant, Arthur Andersen, collapsed for greed and fraud as it was charged with obstruction of justice in connection to the Enron probe (Reuters June 27, 2002; The Observer (UK), June 9, 2002). These are tip of the iceberg!

Yet, analysts tend to believe that developed countries are less corruption than developing nations. One of them points out that 'throughout the fabric of public life in newly Independent Stateruns the scarlet thread of bribery and corruption' (Wraith and Simpkins 1963). Another writer notes that it will probably be "difficult to secure [by honest means] a visa to a developing country that would be the subject of a corruption study (Nye 1967).

Why is corruption a viable enterprise in the Third World, nay, Nigeria? The causes of corruption are myriad; and they have political and cultural variables. Some evidence points to a link between corruption and social diversity, ethno-linguistic fractionalization, and the proportions of countrys population adhering to different religious traditions (Lipset and Lenz, 2000). And studies note also that corruption is widespread in most non-democratic countries, and particularly, in countries that have been branded neo-patrimonial, kleptocratic and prebendal (NORAD 2000). Thus, the political system and the culture of a society could make the citizens more prone to corrupt activities. However, we shall focus on the fundamental factors that engender corrupt practices in less developed nations, including Nigeria. Some of the factors include:

1) Great inequality in distribution of wealth;

2) Political office as the primary means of gaining access to wealth;

3) Conflict between changing moral codes;

4) The weakness of social and governmental enforcement mechanisms; and

5) The absence of a strong sense of national community (Bryce, 1921).

The causes of corruption in Nigeria cannot deviate significantly, if at all, from the above factors. However, obsession with materialism, compulsion for a shortcut to affluence, glorification and approbation [of ill-gotten wealth] by the general public, are among the reasons for the persistence of corruption in Nigeria (Ndiulor, March 17, 1999). It has been noted that one of the popular, but unfortunate indices of good life in Nigeria, is flamboyant affluence and conspicuous consumption. Because of this, some people get into dubious activities, including 'committing ritual murder for money-making.' The cases of ritual murder abound in Nigeria, but a few examples will suffice. A middle-aged woman and an SSS3 female student were reportedly beheaded in Akure, the Ondo State capital recently (ThisDay News, July 7, 2002). Another case was that of the 1996 Clement Duru (alias 'Otokoto') ritual killing episode at Owerri in Imo State. A well-known proprietor of 'Otokoto' hotel, Clement Duru was reported to have been killing and selling the body parts of some of the travelers that checked into his hotel at Owerri. And recently, another incident of ritual killing was reported in the area (see Ogugbuaja, The Guardian, May 16, 2002).

The lack of ethical standards throughout the agencies of government and business organizations in Nigeria is a serious drawback. According to Bowman, ethics is action, the way we practice our values; it is a guidance system to be used in making decisions. The issue of ethics in public sector [and in private life] encompasses a broad range, including a stress on obedience to authority, on the necessity of logic in moral reasoning, and on the necessity of putting moral judgement into practice (Bowman 1991). Unfortunately, many officeholders in Nigeria (appointed or elected) do not unfortunately, have clear conceptions of the ethical demands of their position. Even as corrupt practices are going off the roof, little attention, if any, is being given to this ideal.

Other factors are poor reward system and greed; Nigerias reward system is, perhaps, the poorest in the world. Nigeria is a society where national priorities are turned upside down; hard work is not rewarded, but rogues are often glorified in Nigeria. As Authur Schlesinger said of America in the 60s, Our [the] trouble [with Nigeria] is not that our capabilities are inadequate. It is that our priorities - which means our values are wrong (Howard (ed.) 1982). And peer community and extended family pressures, and polygamous household are other reasons (Onalaja & Onalaja, 1997). The influence of extended family system and pressure to meet family obligations are more in less developed societies. Lawrence Harrison acknowledged that the extended family system is an effective institution for survival, but notes that it posses a big obstacle for development (1985, p.7).

According to Edward Lotterman, bad rules and ineffective taxing system, which makes it difficult to track down peoples financial activities, breed corruption (Pioneer Press, April 25, 2002). Ineffective taxing system is a serious problem for Nigeria. The society should institute appropriate and effective taxing system where everyone is made to explain his or her sources of income, through end-of-the-year income tax filing. The recent ban on importation of Tokumbo (used car) over five years of manufacture, is in our opinion, an example of a bad policy that could breed corruption. If this anti-business ban is not reviewed or discarded completely, it will, as many critics have noted affect the economy, as those making a living in the business will be exposed to poverty, and subsequently, corruption. Businessmen would be forced to bribe the corrupt custom officials (to allow the cars in), causing the state to lose the needed tax revenue. In addition, the policy will divert business to other neighboring countries (The Vanguard, June 4, 2002). To tame corruption, the society should try to get rid of regulations that serve little or no purposes.

The lukewarm attitude of those who are supposed to enforce the laws of the land (judges, police officers and public officials) could lead to people engaging in corrupt behavior, knowing fully well that they would get away with it. Some cultural and institutional factors lead to corruption. For instance, Nepotism and the strength of family values are linked to the feeling of obligation. The work of Robert K. Merton has demonstrated the relationship between culture and corruption (1968). His means-ends schema implies that corruption is at times a motivated behavior responding to social pressures to violate the norms, so as to meet the set goals and objectives of a social system.

Lipset and Lenze note that those going through corrupt means (through the back door, so to say), to achieve their objectives have little or no access to opportunity structure. The hindrance to economic opportunity, according to the study, could be a result of their race, ethnicity, lack of skills, capital, material and other human resources. They note that cultures that stress economic success as an important goal but nevertheless strongly restricts access to opportunities will have higher levels of corruption (2000, pp. 112-117). This probably explains the high incidence of corrupt behaviors in Nigeria. Many Nigerians are highly achievement oriented, but they have relatively low access to economic opportunities. For example many civil servants work for months without getting paid (ThisDay, July 7, 2002; Daily Trust, July 9, 2002). Yet, the society expects them to be honest and productive. Many of those civil servants working without pay are parents, who are expected to train their children in schools with empty wallet. How can they do that? Are they magicians? No! Under this condition, many citizens would reject the rule of the game (societal norms) and criminally innovate to make ends meet.

The brazen display of wealth by public officials, which they are unable to explain the source, points to how bad corruption has reached in the society. Many of these officials before being elected or appointed into offices had little or modest income. But now, they are owners of many properties around the world (ThisDay Online, June 24, 2002). In contrast with the United States, many of the elected officials are known to be modest in living (There are some bad eggs in their midst, but they face the laws when they are found wanting). The 2000 financial disclosure forms released in 2001, which is required annually for all 535 members of Congress (House and Senate members), show that many of them live relatively modest. (The financial forms show sources of outside income, assets, liabilities, speech honoraria donated to charity and travel paid by private interests; by law, honoraria are donated to charity). The main asset of the Senate Majority Leader, Tom Daschle (the nations highest-ranking Democrat, with direct influence over billions of federal dollars), is a one-half share in a house in Aberdeen, South Dakota, given by his mother and worth between $50,000 and $100,000 in income (CNN News, June 14, 2001). If he were a Nigerian, he could have owned many million-dollar homes in beautiful areas in London and the United States (all over Nigeria too), and decorated himself with countless traditional titles.

The work of Edward Banfield shows a relationship corruption and strong family orientation. The study, which helped to explain high levels of corruption in southern Italy and Sicily, notes that corruption is linked to the strong family values involving intense feelings of obligation. That was the case with the Mafia in Italy where some people were seen to have the attitude of anything goes that advances the interests of ones self and family (1958). All these, including bad practices of non-payment or late payment of workers, bad business culture of delays and refusal, or late payment for services executed by business establishments in Nigeria are forms of corruption. These kinds of behaviors have the tendency to scare away foreign and local investors, with tremendous negative effects on the economy (Daily Trust, July 9, 2002).

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