‘Ufisadi’ (Corruption) and Development : An Economic Framework for the Analysis of Corruption

Given a growing recognition by both the general public and international development agencies that a fundamental requirement for economic and social development is a corruption free governance, this article analyzes the macroeconomics of corruption within the context of Cost-Benefit analysis; the model from which the causes, consequences, scope and possible corrective actions of corruption can be developed. It then presents some flashbacks on the family of scandals of corruption in some East Africa countries. This study is purely a deskwork (with no empirical estimation) that is supplemented by readings as well as individual observations from vast working experiences. The study found that bad economics, bad politics and institutional failure on the enforcement of laws, and actual punishment for the individuals involved in corruption are the major cause of corruption. It then observed that the East Africa governments may be achieving at least modest success via their current efforts; public perceptions of their efforts to combat the problem are improving, the public is giving governments better marks for their handling of the problem now than in the past, and if the top leaders can maintain their commitment to this battle, and pass it over to other potential leaders, then their countries can be free from potential ‘time bombs' and may hope to see further improvements in future in all walks of peoples' life