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