Corruption has immense impacts on the economies and politics of countries. It deeply affects the livelihood of individuals in countries such as Ethiopia. The economic impacts of corruption depress economic growth and development through distortion of market mechanisms. It also reduces efficiency and effectiveness of workers assigned to certain duties both in the public and privates sectors. It discourages both domestic and foreign investment in the country. Investors may be subjected to unfair competition or lack of transparency in the public service.
Corruption may lead to misuse and misallocation of resources. This may be due to political favoritism in the allocation of resources or support to politically connected individuals or businesses over more efficient and effective ones. Corruption has also social impact as it worsens inequality through diverting resources. It takes away resources from those who need them most to those who need them the least. It lessens the effectiveness of institutions and erodes the political relations between citizens and the state.
Corruption causes disenchantment, disappointment, cynicism, and even social disturbances. In extreme cases, experts think that it may lead to state failure or the rise of organized criminals. Local criminals seek any kind of disturbance to plunder the Ethiopian citizens through creating terrorism. This, in turn, has political impact, as corruption undermines democracy and the rule of law. It subverts law enforcement agencies and weakens institutions and processes designed to guarantee accountability and transparency.
Corruption can also lead to the concentration of power in the hands of a few individuals and groups, creating a cycle of corruption and cementing elites together. It also depletes and weakens the legitimacy of governments and can diminish efforts to build effective rule of law and governance systems. Corruption also facilitates environmental degradation through illegal logging, poaching, pollution, and other environmentally degrading activities. Bribery and embezzlement in the bureaucracy can also allow individuals and enterprises to elude and avoid environmental regulations.
Corrupt individuals and enterprises may retain contracts for the wrong and unsustainable development projects. These projects lead to long-term degradation of the ecosystems and public health. This degradation leads to deforestation, soil erosion, out migration of farmers to other areas. Both tamed and wild animals leave these areas in search of greener areas.
Corruption also impacts human rights. It may worsen human rights abuses through undermining the rule of law. It enables those who commit human rights violations to continue with their evil acts. It can also contribute to the erosion of human rights such as access to social services, including healthcare, education, and clean water. Access to these basic services is impeded as resources are diverted or mismanaged by means of corruption. This act of corruption is not limited to Ethiopia, but it has wider impacts. It is not confined within national borders; it can have spill-over effects that cross national borders. It can, for example, facilitate cross-border crime and money laundering.
Corrupt persons also finance terrorism within a country and in the neighboring countries. These persons operate in one country and they can also undermine global efforts to combat them. As mentioned earlier, corruption tends to worsen poverty, unemployment, and global insecurity.
Generally, the effects of corruption are many-sided, complicated and far-reaching. It affects virtually every aspect of society and hinders growth and sustainable development. It impedes equality among citizens and obstructs and hinders justice. Addressing corruption demands concerted efforts at all levels, including the local, national, and international levels.
It requires legal reforms with strong institutional and public awareness through widespread campaigns and promotion of transparency and accountability. These measures are instrumental in reducing and/ or eliminating corruption. The reforms also help in checking capital flight from Ethiopia, affecting its economy and social development. The country has been struggling with systemic corruption across various sectors of its economy. These sectors include government, business, and law enforcement agencies.
Corruption includes petty bribery to large-scale misappropriation, misuse and fraud of public funds. This undermines trust in government institutions and agencies. It also distorts the allocation of resources for executing development plans. As a result, it impedes economic growth. Moreover, lack of transparency and accountability worsens the problem. Experts think that the misuse and abuse of authority in Ethiopia leads to capital flight. Here, capital flight refers to the movement of assets, including money, investments, etc. out of a country.
In Ethiopia, capital flight has been caused by factors such as political instability, limited investment opportunities, and lack of confidence over property rights. Individual investors and enterprises often transfer funds abroad. They are forced to do this to seek safe havens for their investment or to avoid tax authorities and regulatory inspectors.
Also, corruption and capital flight have significant negative impacts on the various economic sectors in Ethiopia. They minimize government revenue and limit investment in critical infrastructure and services. They also exacerbate income inequality, and hinder poverty reduction efforts and programs.
Corruption leads to capital flight which causes loss of skilled workers and weakens the capacity of Ethiopia for development, growth and innovation. It is reported that the government has taken steps to address corruption and capital flight. It has also established anti-corruption commission for implementing reforms to improve governance and transparency.
However, progress has been uneven, and challenges persist due to factors such as weak institutions, lack of enforcement mechanisms and political interference. Nonetheless, international organizations and donor countries have also been involved to offer assistance to Ethiopia in its efforts to combat corruption. In so doing, they provide technical assistance in capacity building to strengthen the implementation of financial regulations. Such assistance often includes technical expertise and capacity-building initiatives. They also provide financial support for anti-corruption programs and activities. However, fulfilling effective and lasting results requires continued and sustained commitment from both domestic and international donors and stakeholders.
As mentioned earlier, addressing corruption and capital flight in Ethiopia demands comprehensive reforms that tackle root causes. These reforms are designed to strengthen concerned institutions, improve transparency and accountability. They also promote inclusive economic growth and development. It is a complex and long-term effort, but very crucial for the sustainable development of Ethiopia.
The implementation of reforms presupposes the establishment of anti-corruption institutions. In line with this, the Anti-Corruption Commission of Ethiopia (ACCE) has been established as a governmental agency with the goal of preventing and investigating corruption in the country. It is also tasked with prosecuting corruption within Ethiopia. Its major objective is combating corruption at all levels of government and society. It also has the duty of promoting transparency, accountability, and good governance. It operates with reference to relevant laws and regulations proclaimed by the Ethiopian government to address corruption efficiently and effectively. It may also engage with other law enforcement agencies, including the police and judiciary to carry out its legal mandate.
The ACCE conducts various activities including investigation, prosecution, prevention and monitoring and evaluation. It investigates allegations, claims and charges of corruption. These may involve public officials or authorities, private enterprises, or individuals. It conducts prosecution when evidence of corruption is presented. It may also prosecute those persons or agencies responsible for the acts of corruption.
The ACCE also develops and implements preventive measures including public awareness campaigns for concerned agencies. It conducts training programs and projects targeting government officials. It develops anti-corruption policies, programs and guidelines for use by all agencies. In so doing, it collaborates with international organizations that are devoted to combating transnational and cross-border corruption. It may also cooperate with international bodies and agencies to exchange information and coordinate efforts regarding corruption.
The Commission focuses on monitoring, evaluation and oversight of activities related to corruption. It may monitor and evaluate public institutions and agencies to ensure compliance with anti-corruption laws and regulations. All these efforts to combat corruption in Ethiopia are crucial for promoting economic growth and development. They foster trust in public institutions and enhance the rule of law and justice. The ACCE plays major roles in these efforts by working to root out corruption. It also promotes integrity in public service and private sector activities. The Ethiopian people have to cooperate with the Commission to achieve the goal of development through fighting corruption at all levels.
Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald
BY GETACHEW MINAS
THE ETHIOPIAN HERALD FRIDAY 10 MAY 2024
