An Explanatory Analysis of the Economic and Social Impact of Corruption in Zimbabwe

IOSR Journal of Economics and Finance (IOSR-JEF)
e-ISSN: 2321-5933, p-ISSN: 2321-5925.Volume 6, Issue 1. Ver. I (Jan.-Feb. 2015), PP 11-20
www.iosrjournals.org
DOI: 10.9790/5933-06111120 www.iosrjournals.org 11 | Page
An Explanatory Analysis of the Economic and Social Impact of
Corruption in Zimbabwe
1
Wellington Garikai Bonga, 2
Johannes Chiminya, 3
Calvin Mudzingiri
Abstract: Corruption is a complex social phenomenon, which in addition to political and economic factors,
also has deeply rooted cultural causes and social traditions which largely determine its existence and extent.
Corruption itself in a certain sense is as old as human civilisation and it occurs everywhere in the world, in all
political-economic systems. The social and economic impact of corruption is greater in developing nations than
developed world. This paper discusses various definitions of corruption, their impacts to economic development,
the detectability of corruption and ways to minimise corruption levels. The study has found many ways that may
be followed by individuals, the government, business and anti-corruption bodies to reduce the level of
corruption.
Key Words: Corruption, Social Factors, Economic Factors, Government Solutions, Individual Solutions,
Zimbabwe.
I. Introduction
Corruption is one of the unholy trinity of dirty money, together with criminal and illegal commercial
activities (Baker, 2005).An article in NewsDay (a Zimbabwean local newspaper) reads, “Corruption has become
a grave issue in Zimbabwe with government doing little to curb the scourge.” Transparency International (TI)
launched the Corruption Perception Index (CPI) which ranks countries based on how corrupt their public sector
is perceived to be and is measured accordingly, and in 2012, Zimbabwe was ranked 163 out of 176 countries
surveyed. In 2011, Zimbabwe had an overall rank of 154 out of 182 countries assessed.On a scale of 0 (highly
corrupt) to 10 (very clean), the Corruption Perceptions Index for 2012 marked Zimbabwe 2.0. This marks an
increase in corruption since 1999, when the country ranked 4.1. Corruption has become a hot issue and is now a
major topic of political competition, even in the industrialised democracies. This paper reviews the state of
economic knowledge on the phenomenon of corruption.
In Zimbabwe, corruption seems to be now acceptable as a way of life. Over the years a lot of
corruption issues have emerged in the media from some of the key institutions and sectors such as education,
health, mining, sports, and agriculture, among others. Most worryingly, the extractive industry has been tainted
with incidents of bribery in the issuing of mining licences and claims and tendencies related to proceeds from
the mining sector. This implies that corruption in Zimbabwe has become endemic within its political, private
and civil sectors. It is during this time that every sector is trying to blacklist other ones on issues of corruption
whilst securing its status. The most commonly identified perpetrators of corruption include tax and revenue
collectors, police and judicial, the politicians, teachers and lectures as well as nurses and doctors. The private
sectors hides (avoid being pointed), yet the impact of corruption is exploding and damaging the economy.
Corruption is a social problem that has interested many scholars. Ruzindana (1999) asserts that
corruption in Africa is a problem of routine deviation from established standards and norms by public officials
and parties with whom they interact. The types of corruption in Africa have been identified as bribery, private
gain, and other benefits to non-existent workers and pensioners (called ghost workers). Corruption is found in
the award of contracts, promotion of staff, dispensation of justice, and misuse of public offices, positions, and
privileges, embezzlement of public funds, public books, publications, documents, valuable security, and
accounts. Corruption can be systematic in nature and affect the whole life of an organization or society. The
dishonest and illegal behaviour exhibited especially by people in authority for their personal gain is corruption.
Corruption is the abuse or misuse of power or position of trust for personal or group benefit (monetary or
otherwise).
“Now that we have acknowledged that corruption is rampant within the government, we have suddenly
been overcome by the triumph of materialism which has caused the illness of the spirit. Corruption has become
the ocean that we swim in and the air we breathe and as a result, poverty and family disintegration have replaced
the aspirations for a decent life and a hopeful future. We do not know what is wrong and what is right anymore,
it has become more like the struggle for the wealthiest or survival of the fittest.” - - Memory Kahuta (2011).
Given such an observation, what is the definition being applied for corruption in Zimbabwe?

An Explanatory Analysis of the Economic and Social Impact of Corruption in Zimbabwe
Meaning Of Corruption In Zimbabwe
The word corruption is defined in the 1st schedule of the Zimbabwe Anti-Corruption Commission Act
[9.22] as any offence related to corruption; there is no specific definition of the word corruption. The definition
of the word is derived from offences related to corruption which are listed below:
 Giving or receiving a bribe as an inducement or reward
 Corruptly using a false document
 The intentional non-disclosure of/or concealment of a transaction from one principal in order to deceive
 The deceitful non-disclosure or concealment from one principal of a personal interest in a transaction
 Criminal abuse of power by a public officer
From this definition being employed in Zimbabwe, some of the elements of corruption have been
explored, while there are some missing activities like nepotism and discrimination.
II. Basic Corruption Model
In general, the players in the corruption field are the general public, the bureaucrats and the firms. It is
how they interact that defines any misbehavior to be taken for personal benefits. Such happenings distort the
competitive nature of the market, since there will be no level playing ground with other innocent agents. From
these players, the solutions to corruption becomes of three approaches; the lawyer’s approach, the economist’s
approach and the business approach. The approaches simply defined include tighter enforcement of laws, higher
wages in the bureaucracy and more competition in the product market.
Most cases of corruption occurs in a similar structure as follows;
General Public Objectives:
 Maximise Social Welfare
Actions:
 Chooses rules and regulations
 Sets market structure of firms and Bureaucrats
 Designs formal and informal incentives
 Carries out monitoring of activities and outcomes
Constraints:
 Resources
 Participation
 Information
Bureaucrats Objective:
 Maximise Utility
Actions:
 Decide to participate
 Apply regulations to please voters and receive wages
 Not apply regulations to please firms and demand bribes
 Invent regulations to relax later in exchange of bribes
Influences:
 Monitoring by the public
 Formal and informal incentives specified by the public
 The market structure in which the bureaucrats operate.
Firms Objective:
 Maximise profits net of
bribes
Actions:
 Decide to participate
 Obey rules set up by the public and bureaucrats
 Disobey rules and offer bribes
 Denounce bribe demands to the public
Influences:
 Regulations imposed by bureaucrats
 Monitoring by the public
 The market structure in which firms operate.
The corruption process is all explained in the above table. It shows what each player wishes to attain
and at the same time what factors it meets in the process, hence there is an issue of probability of success and
failure to engage in corruption. The bureaucrat is at the center stage as he/she can decide to participate or not.
However depending on laws governing mischief the public and firms may also decide whether to participate or
not.
III. Significance Of The Study
The study is very important in the transformation of the Zimbabwean economy as it is on its recovery
path. A lot of revenue has been lost and it is continuing to get lost through corruption in the country. Although
corruption is common in many economies in the world, it has to be understood that its impact is greater for
fragile economies where each dollar received has to be channeled through formal ways. The study seeks to
explore various sectors of the economy and the nature of corruption being experienced.

Globally the cost of corruption amounts to more than five percent of global GDP, approximately $2,6
trillion, with more than $1 trillion paid in bribes each year.The World Economic Forum estimates corruption
adds up to 10 per cent to the cost of doing business globally and up to 25 per cent of the cost of procurement
contracts in developing countries. According to the African Development Bank and a United States-based think
tank Global Financial Integrity, Zimbabwe has lost a cumulative $12 billion between 1980 and 2010 through
illicit financial outflows ranging from secret deals and illegal commercial activities. Zimbabwean has topped
many newspapers and forums on corruption, and this on its own poses a question of what is being done to curb
it.
According to the World Economic Forum, The top 10 most corrupt countries in 2013
1. Democratic Republic of Congo
2. Somalia
3. Burma
4. Sudan
5. Zimbabwe
6. Equatorial Guinea
7. Guinea
8. North Korea
9. Cambodia
10. Venezuela
The list is dominated by African countries, and Zimbabwe rests on number five, this makes it worth to
really study what the driving force on corruption is, and how best we can solve such vice.
A recent research undertaken by Transparency International Zimbabwe (TIZ), found out that about
77% of Zimbabweans think corruption in the country has increased during the past two years. The TIZ 2012
Corruption Report shows that the most corruption issues involved the Zimbabwe Republic Police, politicians,
Registrar-General’s Office, football authorities and Grain Marketing Board (GMB) depots. According to the
research, 62% of Zimbabweans have paid a bribe to the education system, judiciary system, medical and health
services, the police, registry and permit services, utilities, tax revenue and land services.The most common
reasons for paying a bribe in Zimbabwe is to speed up things and to ensure that one gets services.
The highest cases of bribes recorded were 53% bribes paid to the police, 42% to registry, 35% to land
services, 31% to the judiciary system, 27% to utilities, 27% to education system, 26% to taxes and 22% to
medical and health services. According to the report, 67% of the people were willing to report incidents of
corruption. Most respondents cited national corruption issues that the country has witnessed over the past years
such as the Asiagate match-fixing scandal, abuse of the Constituency Development Fund, corruption at the
passport offices, GMB depots, road traffic corruption, inter alia,” read the TIZ report.
IV. Degree Of Impact Of Corruption On Nations
Corruption is a world cause of concern and many countries have entered into agreements to jointly
monitor the act of corruption. According to Shakeel Ahmad (2011), “To a varying degree, corruption exists in
almost all countries. However, the degree to which it impacts the common people’s lives and increases poverty
is directly proportional to the level of this scourge and how widespread it is in society.” The economic and
social effects of corruption are greater in developing nations than the developed world. In developed countries,
where corruption is limited to a small number of projects and where common people do not encounter it on a
daily basis, the adverse impact tends to be marginal and does not jeopardise the welfare of its people. A recent
World Bank report lists corruption and lack of transparency as the two core reasons that hamper Zimbabwe’s
drive for development. However, these indices do not convey the terrible pain and sufferings that the brutal
practice of corruption has caused to the common people of Zimbabwe. Then, the question will be, is Zimbabwe
going to achieve its goal for economic recovery given the level of corruption that has become a culture.
Whilst the widespread of corruption is known, it should not act as a guarantee of not addressing it.
Corruption is a global phenomenon found in all countries - but evidence shows it harms poor people more than
others, stifles economic growth and diverts desperately needed funds from education, healthcare and other
public services. An estimated one trillion US dollars get siphoned off through bribes every year according to the
World Bank.
"Corruption is a global threat. It is a serious roadblock to economic development," said the Executive
Director of the United Nations Office on Drugs and Crime (UNODC), Yury Fedotov. "Corruption aggravates
inequality and injustice, and undermines stability, especially in the world's most vulnerable regions."

The General Assembly has also recognized that corruption is a barrier to development and diverts
resources away from poverty-eradication efforts and sustainable development and has urged States which have
not yet done so to ratify and accede to the UNCAC.
Corruption indicates poor governance as indicated by Hassan (2004: 32). In his words,
In the political realm, corruption undermines democracy and good governance by subverting formal
processes and rules of conduct. It erodes the institutional capacity of government as established procedures are
disregarded, resources are siphoned off, and officials are assigned or promoted without regard to performance.
Corruption in elections usually elects the wrong people, those who are parasites and put personal greed over
national interests. Corruption in legislative bodies undermines accountability and representation in policy
making. In the administrative realm, corruption results in the unequal provision of services, which undermines
the States legitimacy and, in extreme cases, may render a country ungovernable and lead to political instability
and social conflict. Corruption in the judiciary circumvents the rule of law, and justice is often delivered late or
even denied.
In summary, the idea to combat corruption via the promotion of good governance has spread across the
globe. At the same time, nations in the world are not isolated from international economic and political
interactions, which makes joint efforts worthwhile.
V. Social And Economic Impacts Of Corruption
Gaurav Tanwar (2012), in his thesis “Corruption and Its Impact on Development: A Cross-National
Study,” examined the relationship between corruption and development by using OLS and fixed effects
regressions to quantitatively measure corruption’s impacts. As development is an ambiguous concept, the
impact of corruption was measured on both Gross Domestic Product (GDP) per capita and Human Development
Index (HDI). This was done for a general measure of corruption as well as sectoral corruption measures,
obtained from Transparency International. The results indicate that corruption has a much greater impact on
GDP per capita than on HDI. Additionally, the study found out that there seems to be a strong indication that
corruption in parliament, political parties, and the law enforcement branches have the greatest negative impact
on a country and correlates most closely with people’s perception of corruption.
Mauro (1995) analysed a myriad of indices of corruption for a cross section of countries. He finds that
corruption lowers investment, thereby lowering economic growth, even when he uses ethno-linguistic
fractionalization as an instrumental variable in an effort to tackle the inherent endogeneity. Treisman’s (2000)
work, “The Causes of Corruption,” was a landmark for several reasons. First, he used a great deal of empirical
data from the 1980s and 1990s, making the dataset one of the most extensive corruption datasets to be used in a
study. Second, his findings challenged the assumption that just by democratizing, a country can shed its corrupt
practices. He suggests that it takes decades of democracy to shake off corrupt practices; cultural and
institutionalized practices are much more deeply rooted in the perception of corruption than any state policy.
Lastly, his findings offer some encouragement by suggesting that economic development reduces corruption and
that corrupt practices do not necessarily inhibit economic growth, but this too is along run solution.
Corrupt practices contribute to the inadequate number of beds in hospitals, no medicines for patients, as
these are paid for but not procured or disposed of after their delivery at the hospital store. Fuel shortages, there
will be no fuel in vehicles meant for transporting patients to hospitals. Most experts think that corruption is one
of the most difficult problems in society today. Its impact on the country’s towns and villages is extremely
profound and poses a long-term threat to its culture, economics, and general well-being of the people and the
provinces where they reside.
Some of the social and economic causes include;
 It cause people in corrupt countries to stay poor and illiterate, and to suffer from high infant and child
mortality rates, low birth-weight babies, as well as high dropout rates in primary schools (Kaufmann et al.,
1999; Gupta et al., 2001).
 Corruption is also said to deteriorate countries' distribution of income (Li et al., 2000)
 Deteriorates quality of public infrastructure (Tanzi and Davoodi, 1997).
 Reduce productivity (Lambsdor, 2003a).
 Corruption is likely to distort markets and to impose major costs on the economy.
 Corruption hinders investment (both domestic and foreign),
 Reduces economic growth,
 Restricts trade,
 distorts the size and composition of government expenditure,
 Weakens the financial system
 Strengthens the underground economy.

Corruption impacts service delivery. When corruption misdirects the assignment of unemployment or
disability benefits, delays eligibility for pensions, weakens the provision of basic public services, it is usually
the poor who suffer most. Such corruption undermines the social safety net and may deter the poor from seeking
basic entitlements and other public services.
VI. Sector By Sector Analysis Of Corruption
Corruption is found in all sectors of the economy including the very least groups in the society. Its
solutions will range from ensuring integrity and transparency at home. Corruption also involves nepotism at
work, and nepotism at allocating country resources.
Shabbir and Mumtaz (2007) do and theorize that corruption has two dimensions: public sector
corruption, the study’s focus being the “misuse of public office for private benefits,” and private sector
corruption. They look at 41 developing countries to investigate the determinants of public sector corruption,
which are sub-divided into economic determinants and non-economic determinants. The economic determinants
include economic freedom, globalization, level of education, distribution of income, and average level of
income. The non-economic determinants consist of press freedom, democracy, and share of population affiliated
with a particular religion. Empirical findings of the study indicate that all economic determinants are negatively
related to the perceived level of corruption, except for the distribution of income. Non-economic determinants
are not significant in explaining the variation in the levels of corruption. The authors conclude that government
should focus on economic factors to curb the level of corruption.
VII. Corruption In The Public Sector
The public sector dominates corruption. In Zimbabwe the most reported corruption involves the
politicians, the police, vehicle inspection deports, registry, ministries civil servants, tax collectors, universities
and schools on exams. The findings of a 2011 survey commissioned by Transparency International Zimbabwe
found that Zimbabwean citizens regarded the public sector as the most corrupt sector in the country. In this
survey respondents favoured the police as being most corrupt followed by political parties,
parliament/legislature, public officials/civil servants and the judiciary. In 2008, a Transparency International
director announced that Zimbabwe loses US$5 million to corruption every day.
While the reasons are indeed many, there is no doubting that Zimbabwe has collapsed because of
unprecedented corruption in all facets of our society. It is acknowledged that corruption is as old as history and
is not just a Zimbabwean problem, however its impact to a recovering economy is greater. Again they say it
takes two to tango, therefore, for corruption to take place there has to be a corruptee and a corruptor and for this
reason, corruption cannot be blamed on one party but two parties that enter into an unholy alliance.
There are many types of corruption that can occur in government entities. Some of these are extortion,
nepotism, embezzlement, bribery, cronyism, patronage, and graft. Some of the more common types that are
found are extortion, embezzlement and bribery.
VIII. Corruption In The Private Sector
Corruption is well hidden in the private sector and is not just a problem in government. The private
sector suffers too, where corruption erodes corporate identity, undermines confidence between business partners
and can destroy the reputation of once-trusted companies. The contribution of the private sector in fighting
corruption is essential.
There are four concrete steps businesses can take to proactively tackle corruption: firstly adopt anti-
corruption policies and put in place the checks and balances necessary for strengthening accountability and
transparency; secondly establish their own credible review mechanism to audit businesses' probity; thirdly
invest in developing the public integrity infrastructure of developing countries; and fourthly create an
environment so internal wrong-doing can be reported and whistle-blowers protected.
The message to the private sector is clear - it is good business to fight corruption, and business cannot
expect governments on their own to create a level playing field - there is a role for business too.
IX. Who Offers And Why Offering A Bribe?
Bribery is an act of giving money or gift giving that alters the behavior of the recipient. Bribery
constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of
any item of value to influence the actions of an official or other person in charge of a public or legal duty.
Employees, managers, or salespeople of a business may offer money or gifts to a potential client in exchange for
business. Referees and scoring judges may be offered money, gifts, or other compensation to guarantee a
specific outcome in an athletic or other sports competition. Politicians receive campaign contributions and other
payoffs from powerful corporations, organizations or individuals in return for making choices in the interests of
those parties, or in anticipation of favorable policy. Pharmaceutical corporations may seek to reward through

gifts doctors for heavy prescription of their drugs. Many types of bribes exist: tip, gift, sop, perk, skim, favor,
discount, waived fee/ticket, free food, free ad, free trip, free tickets, sweetheart deal, kickback/payback, funding,
inflated sale of an object or property, lucrative contract, donation, campaign contribution, fundraiser,
sponsorship/backing, higher paying job, stock options, secret commission, or promotion (rise of position/rank).
Some say the best way to resist temptation is to give in. Public officers sometimes do not ask for
bribes, but they are offered some bribes, usually with a guarantee of safety. Well the question now is why are
some places more prone to bribery and corruption than others? Part of the answer seems to be the level of
collective feeling in a society, according to research by Pankaj Aggarwal, University of Toronto Scarborough
(UTSC) professor of marketing in the Department of Management, and Nina Mazar, University of Toronto
professor of marketing. Aggarwal and Mazar (2011), discovered that people in more collectivist cultures – in
which individuals see themselves as interdependent and as part of a larger society – are more likely to offer
bribes than people from more individualistic cultures. Their work suggests that people in collectivist societies
may feel less individually responsible for their actions, and therefore less guilty about offering a bribe.
Philippine Vice President Jejomar Binay has asked his fellow lawyers to shun bribes from illegal
recruiters, human traffickers, and international drug traffickers and instead help the government jail them
"where the evidence warrants." The cash that they may dangle to subvert and corrupt the justice system may be
tempting or even materially gratifying in the short term. But the damage to individual lives and to the society
will often be beyond repair.
X. Nepotism
Nepotism is one type of economic and social disease that has dominated the country of Zimbabwe. It is
now difficult for one to access some services unless a certain relationship exists. Nepotism is defined as the
unfair practice by a powerful person of giving jobs and other favours to relatives and friends. In another
definition, nepotism is the favoring of relatives or personal friends because of their relationship rather than
because of their abilities. Nepotism at the top is very common at family companies. In many companies workers
are employed in vacancies which have never been advertised. Or in some cases a formality of advertisement and
interviews is just done, yet the one to be taken for the position is well known already. This has caused
incompetent staff to be employed and hence it affects the overall production. The level of economic production
becomes a function of the number of nepotised workers.
The government employs the bulk of its workers through recruitment exercises conducted by labour
and Public Service Commission offices, in a bid to stamp out unfair employment conditions. Unscrupulous
labour employment officers are reportedly abusing the trust bestowed upon them by government.
XI. Theoretical Review Of Corruption
According to Rajesh Chakrabarti (2000), most theoretical studies of corruption tend to focus on the
micro models of the phenomenon studying individual acts of corruption, while the empirical papers typically
study corruption at the country level. Corruption is to be viewed as a risky activity with harmful macro effects.
Individual choice of corruption levels lead to a societal level of corruption, which in turn, affects the risk and
return of corruption at the individual level. If corruption is not controlled, it possible for corruption to go on an
ever-increasing trajectory till it stifles all economic activity.
To understand corruption, economic theory has developed two basic views of corruption, one that
considers corruption to be exogenous and the other endogenous to the political process. Applying either
theoretical view, three basic types of corruption can be identiﬁed: corruption for the acceleration of processes,
administrative corruption, and state capture. While in most cases, corruption can be attributed to rent
appropriation, self-interested individuals seeking to maximize their own personal welfare as well as
complicated, ambiguous, and unenforceable laws are also to blame.
According to the economic theory, one view of corruption is set within the framework of the principle-
agent theory. This approach is based on the assumption that there is an asymmetric information between
principals and agents. Accordingly, benevolent politicians are not informed about the misdemeanours of their
subordinates. The approach is analytically very clear, it is very well developed, and the models of theoretical
models of corruption based on this approach are analytically rich, as they can explain a wide range of behaviour
of civil servants, including administrative corruption. However, this approach cannot explain political
corruption. According to the main assumption, the state is benevolent, so there is no possibility for political
corruption. Only administrative corruption can be explained and predicted. Political corruption simply cannot be
explained within this methodological framework. The crucial feature of this approach is that corruption is
exogenous to the political process; hence principal- agent relations are not as inﬂuenced by the political process
and political constellations as by the outcomes of that process. In other words, corruption is not institutionalized.
In another view of economic theory corruption is considered endogenous to the political process,
corruption is institutionalized and its level and pattern depend on the political constellation, i.e. the political

regime in the country. Corruption is nothing but a consequence of the political process. The methodological
approach is based on the recent contributions to literature on the economics of conflict and appropriation, the
economics of organized crime, and the political economy of dictatorship. Within such a framework, corruption
is considered as a form of rent appropriation by the ruler. Corruption is the answer to the problem of internal
cohesion of predatory teams. Corrupt civil servants are created to satisfy ruler desire to foster loyalty through
patronage. Corrupt civil service is nothing but the extension of efficient rent appropriation by the ruler. The rent
is extracted through sales of a limited number of permits and licenses for economic activity. Finally, civil
servants are cooperative because they have their share in the spoils. Corruption serves as a hostage mechanism
to minimize the probability of defection or insurrection by lower level insiders of corrupted civil servants; they
are effectively constrained, due to their own participation, from turning to the public to denounce the system.
Dictators can, when and if necessary, find a reason why an uncooperative civil servant is found guilty
of corruption. Hence, there is both the carrot and the stick to strengthen loyalty. This approach is tempting
because it provides grounds for understanding and explaining the relationship between corruption and the
political process. Nonetheless, this methodological approach does not provide a clear analytical framework for
consideration, given the level and structure of corruption. The main problem is that the structure of incentives to
the political decision makers and the change of that structure are not explained, hence we have no information
on the driving force of the change, although the model provides information on the structure of incentives for
rent appropriation.
According to the economic theory, the basic causes of corruption is the issue of maximisation by
economic agents. All economic agents are maximizing their individual utility, i.e. personal wealth. Accordingly,
selfish interests of economic agents are the basic motive for economic transactions between them. Resources are
allocated to the activities that provide the greatest returns on investment. In short, people in all conceivable
conditions behave economically rationally. Hence corruption is deemed a rational decision.
XII. Causes Of Corruption In Zimbabwe
The level of corruption in Zimbabwe has attracted attention from all angles, it has become a norm and
hence immediate and intense attention is needed. With unchecked, unbridled, and uncontrolled, power, humans
become corrupt. According to Thomas Hobbes, “life becomes solitary, nasty, brutish, and short."
Some of the causes of corruption includes:
 Political instability and economic crisis. The crisis suffered in Zimbabwe has caused many people to resort
to unholy practices to earn a living. The government was incapacitated to control and monitor the action of
civil servants and business.
 Poor remuneration of civil servants as compared to the private sector. Low salaries makes it cheaper to
bribe civil servants as it is very tempting to the lowly paid workers.
 Trade Restriction. This is Government-induced source of rent a seeking/corruption. The restriction on
importation of foreign goods gives a lee-way for corruption.
 Government subsidies. When government allocates scarce recourses to individuals and firms using legal
criteria other than the ability or willingness to pay, corruption is likely to be the result. Corruption can
thrive under industrial policies that allow poorly-targeted subsidies to be appropriated by firms for which
they are not intended.
 Price controls. The purpose is to lower the price of some goods below market value. For social and political
reason, these are also a source of corruption.
 Sociological factors. Multi-ethnic societies may be more likely to fall prey to corruption as a result of
failure to manage ethnic conflict in a way that is fair to everyone.
XIII. Effect Of Corruption On Nation-Building
It is very obvious that of the many enemies the Zimbabwean Nation has had to face in the past,
corruption has become Zimbabwe’s biggest enemy that has led to the worst economic recession that has ever
been experienced in the whole world. The same country that was known to be the bread basket of Africa has
become a poverty-stricken nation that is constantly being aided by non-governmental and other charitable
organizations because the situation has become too big for the Zimbabwean government to deal with.
Many have noted the effects of corruption on nation-building. Development scholars observe this
effect. Corruption has an adverse effect on social and economic development and also in building a nation. The
effects include:
 Diversion of development resources for private gain
 Misallocation of talent
 Lost tax revenue
 Negative impact on quality of infrastructure and public services

 Slowing of economic growth.
XIV. Solutions
Corruption is a complex social phenomenon, which in addition to political and economic factors, also
has deeply rooted cultural causes and social traditions largely determine its existence and extent. It is important
to note thisbecause if corruption is treated only as a deviance of economic relations, it would not be possible to
reduce corruption to a socially acceptable degree and lower its efficient operation to a non-threatening level. As
supported by Blackburn et al (2009), Anticorruption agencies need to analyse and understand the nature of
corruption if they want to fight against it effectively.
Zimbabwe must ensure that its public services are subject to safeguards that promote efficient,
transparency and recruitment based on merit. Civil servants once recruited should be subject to codes of
conduct, requirements for financial and other disclosures and appropriate disciplinary measures. Transparency
and accountability in matters of public finance must also be promoted and specific requirements are set up for
preventing corruption in critical areas of the public sector such as the judiciary and public procurement.
Preventing corruption also requires the involvement of non-governmental and community-based organizations
and other elements of civil society.
In order to prevent corruption from happening at all, Zimbabweans should emphasis transparency,
integrity, and accountability in all their private and public transaction. There is need to adopt the Achanism
Model, which is named for Achan who appears in the Old Testament of the Bible. Achan in the scripture was
avaricious (Joshua 7). He was caught and his entire family was severely dealt with. His children, who might
have expected to inherit the proceeds of his illegal act were not allowed to do so.
The solutions to corruption include;
 Social Transformation. Transformation in education of the public is a necessary factor in social
transformation. There is need for formation and reformation, orientation and re-orientation of the minds and
heart of Zimbabweans, for them to see that corruption is the enemy of development.
 Enforcement of Anti-Corruption Law. The law should be enforced to its fullest and without fear and favour.
As is noticed in Zimbabwe, the anticorruption body is being selective on its mandate to curb corruption,
targeting what can be termed minor/insignificant corruption and letting politicians and businessman termed
clean.
 Improvement of Socio-political and Economic Life. This is another weapon against corruption in
Zimbabwe. The multiplying effects of this improvement will reduce the tendency of public servants to
demand and take bribes and get involved in other corrupt practices.
 Addressing political differences. We want a government that will bring a real change, a government that
does not tolerate any sort of corruption, and a government whose interest and purpose is to serve the
country and not to be served by the country’s wealth. We want a government that distinguishes right from
wrong, that has its people at heart. When corruption has taken place and is exposed, individuals involved
must be seriously dealt with no matter who they are or what position they hold in the goverment, this would
serve as a warning to the majority of the people who are corrupt.
 Adopting Mahatma Gandhi’s lessons. I think Mahatma Gandhi’s lessons many years ago are instructive
here and they are applicable to what Zimbabwe is going through today. Gandhi warned against what he
called seven social sins, namely politics without principle, wealth without work, commerce without
morality, pleasure without conscience, education without character, science without humanity and worship
without sacrifice.
 Empower civil society – at the global, national and local level – to build coalitions against corruption. Use a
holistic approach to fighting corruption, including an integrity system with elements such as whistleblower
protection and exit opportunities for offenders.
 Coalitions between government, private enterprise and civil society organizations are required. Solutions
have to come from inside countries by empowering civil society, by creating an anti-corruption culture and
by creating governance structures that work.
 A holistic approach to fighting corruption requires not only criminal sanctions but other elements of an
“integrity system.” The most effective elements of a concrete integrity system will have to be tailored to the
needs and opportunities of the society it is designed to protect. They may include whistle-blower protection
and exit opportunities for offenders and other solutions suggested by the organizers.
 Stop global companies from bribing. Stop global companies from bribing decision-makers in developing
countries.
 Gain experience in measuring the costs of corruption at the micro level. Define good practice by improved
indicators of corruption.
 Use checks and balances within government to fight systemic corruption.

 Do not restrict the fight against corruption to prosecution of senior officials involved in graft; instead fight
corruption at all relevant levels. Deal with corruption politically and head-on.
XV. Individual Solutions To Avoid Paying Bribes
It is difficult to solve corruption when some individuals are benefiting from it, however there are clever
ways of minimising corruption and avoid it completely. Sometimes the structures themselves renders a
conducive environment for possible corruption. Juwairia Mehkri (2012), an Aspiring Journalist came up with
various ways that when implemented well can be used in the Zimbabwean context.
Here are some suggestions to avoid bribery in Zimbabwe, and this works well when implemented by the
majority.
 Individuals should hunt for correct information from relevant offices. There is a low scope for manipulation
when an individual who is better informed. Be informed about procedures before you approach a
government office for anything. For instance, one should visit the website of the concerned department to
understand government rules and regulations, especially the frequently asked questions (FAQs) section.
 Avoid the use of liquid cash and do not set out to do something illegal. For instance, it is better to buy a
property or a flat it by a cheque rather than liquid cash.
 Avoid middlemen as much as possible. Middlemen are well known for favouring short-cuts, so as for them
to make an earning. There are middlemen who operate in almost every transaction, such as builder’s agents,
touts in a sub-registrar’s office. It is better to avoid them. If the worst comes to the worst engage well
known reputable middlemen, who can be located and traced.
 When being served be firm and confident and be polite but do not show unnecessary respect, and do not
address the official by calling him/her as Sir/Madam.
 Group transactions avoids it all. Try to approach government officers as a group and not as an individual.
People in corrupt offices hesitate to demand a bribe when an approach is made as a group.
 Delaying tactics. Be patient when faced with delaying tactics. When an official is consistently unavailable
in office, leave a letter that says (for example) that we came to visit the official at a particular date and date
and found the official’s seat empty.
 Submission of documents. Do not submit any applications or papers without obtaining a written
acknowledgment that such papers have been submitted.
 Oral instructions are not traceable. Do not accept any oral instructions from any government official. If any
government official speaks of a procedure, that you do not know of or is not in the rule book, then ask him
to show the government rule under which he is dealing with any application that you make.
 Relevant documents for processing. If you are asked to bring some additional papers and then an official
offers to do the work without these additional papers for a bribe, then it is conclusive proof that such papers
are unnecessary in the first place.
 The need to see senior officials. Talk about going to senior officials of the department, with a complaint in
case your work is not done. Most people who engage in petty corruption are also cowards! They will
immediately do the work.
 Report any mischief. Individuals should always be ready to send complaints to public grievance cells with
all details.
 Carry recording instruments, even a mobile will do. Every conversation will be recorded and then
documented, including time and day.
XVI. Conclusion
A striking fact about government corruption is that, no matter how you measure it, it is higher in poor
countries. Corruption in Zimbabwe is systematic, and to address the problem a systematic approach is needed.
To curb and eventually eradicate corruption, children, youth, and adults must be given the power to distinguish
right from wrong. All schools should return to the teaching of moral education to empower children with the
spirit of stewardship, while adults live exemplary lives, reflecting truth, kindness, dignity of labour, and
integrity.
The study has managed to explore the nature of corruption in Zimbabwe, the extent of it to
unfavourable levels, the economic and social impacts it has brought to the majority and the economy as a whole,
the collective and individual solutions that may be employed to solve the rampant corruption. The study is rich
with facts, making it worth to have strong policies at hand to manage and destroy the corruption culture that has
prevailed in the struggling economy.

References
[1]. Alberto Aldes and Fafael di Tella (2003), “Rents, Competition and Corruption,” The American Economic Review, Volume 89,
Issue 4.
[2]. Ali Al-Sadig (2009), “The Effects of Corruption on FDI Inflows,” Cato Journal, Vol. 29, No. 2 (Spring/Summer 2009).
[3]. Boehm Fredrick (2007), “Regulatory Capture Revisited – Lessons from Economics of Corruption,” Anti-Corruption Training &
Consulting (ACTC), and Research Center in Political Economy (CIEP, Universidad Externado de Colombia).
[4]. Bryan B. Coleman (2011), “THE IMPACTS OF CORRUPTION ON ECONOMIC DEVELOPMENT IN AFGHANISTAN: A
STUDY OF THE EFFECTS OF NEPOTISM AND BRIBERY” Indiana University of Pennsylvania, Indiana, Pennsylvania.
[5]. Chakrabarti, A. (2001) “The Determinants of Foreign Direct Investment: Sensitivity Analyses of Cross-Country Regression.”
Kyklos 54 (1): 89–114.
[6]. Harry Seldadyo Gunardi (2008), “CORRUPTION AND GOVERNANCE AROUND THE WORLD: An Empirical Investigation”
PPI Publishers, Enschede, The Netherlands.
[7]. Houston, D. (2007) “Can Corruption Ever Improve an Economy?” Cato Journal 27 (3): 325–42.
[8]. Mauro, P. (1995) “Corruption and Growth.” Quarterly Journal of Economics 110 (3): 681–712.
[9]. PALDAM, M. (2002): The cross-country pattern of corruption: economics, culture and seesaw dynamics. European Journal of
Political Economy. 18. pp. 215–240.
[10]. Sergei Guriev (2004), “Red tape and corruption,” Journal of Development Economics 73 (2004) 489– 504.
[11]. Susan Rose-Ackerman, “Corruption and Post-Conflict Peace-Building,” Draft for Ohio Northern University Law Review, January
4, 2008.
[12]. Tackas et al (2011), “Corruption as a Deviant Social Attitude,” Public Finance Quarterly, Volume 1 (56).
[13]. Tullock, G. (2003): The Origin Rent-Seeking Concept. International Journal of Business and Economics 2(1), 1-8

An Explanatory Analysis of the Economic and Social Impact of Corruption in Zimbabwe

More Related Content

What's hot

Viewers also liked

Similar to An Explanatory Analysis of the Economic and Social Impact of Corruption in Zimbabwe

More from IOSR Journals

Recently uploaded

An Explanatory Analysis of the Economic and Social Impact of Corruption in Zimbabwe