A “recursive framework” of corruption and development. Comparison between economic and sustainable outcomes
| Date | 10 October 2016 |
| Pages | 282-298 |
| Published date | 10 October 2016 |
| DOI | https://doi.org/10.1108/WJEMSD-05-2016-0027 |
| Author | Joseph Ato Forson |
| Subject Matter | Strategy,Business ethics,Sustainability |
A“recursive framework”of
corruption and development
Comparison between economic and
sustainable outcomes
Joseph Ato Forson
Graduate School of Public Administration,
National Institute of Development Administration, Bangkok, Thailand
Abstract
Purpose –The purpose of this paper is to provide a conceptual framework on the relationship
between corruption and development. The paper demonstrates how the impact of corruption on
economic development might vary substantially from sustainable development (SD).
Design/methodology/approach –A combination of literature-based analysis was employed by
considering concepts from corruption and development. A synthesis of these two concepts leads to the
development of the conceptual framework.
Findings –The findings shows that corruption originates from three main sources, and that the effect
of corruption on development might differ depending on how it is conceptualized, but the spate of
corruption is contingent on institutional quality and gains in previous development trajectory.
Originality/value –Relating the concept of corruption and SD and linking it to theories of
development brings a sense of novelty. This paper has in its essence contributed to the
conceptualization of the relationship between corruption and development which will help deepen
understanding on this contentious subject. The framework will help to improve theory, research and
practice in development studies and allied fields.
Keywords Governance, Management, Economic development (ED), Sustainable development (SD)
Paper type Conceptual paper
1. Introduction
Exactly 15 years ago, a roadmap to eradicate the world of poverty among others was
set at the millennium summit of the United Nations following the adoption of the United
Nations Millennium Declaration. All the 189 member states and 23 international
organizations at that time, were made to take bold steps by committing to help achiev e
these goals which eventually came to be known as the Millennium Development Goals
(MDGs). A pragmatic approach was therefore evolved and adopted. The United
Nations Millennium Declaration and Monterrey consensus in Mexico in 2002 as a result
made conscious effort to commit industrialized countries to grant more overseas
development assistance (ODA) on the heels that substantial increases in ODA would be
required to push agenda MDGs (UN-DESA, 2003). That notwithstanding, the link
between aid and development have also been so contentious that, there are ongoing
World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 12 No. 4, 2016
pp. 299-322
©Emerald Group Publis hing Limited
2042-5961
DOI10.1108/WJEMSD-05-2016-0027
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5961.htm
JEL Classification —D6, I3, O1
The author wishes to thank Professor Ponlapat Buracom (National Institute of Development
Administration, Thailand) who was the author’s doctoral dissertation supervisor. His insightful
comments, direction and encouragement proved vital in the successful completion of the author’s
doctoral research. This publication is the second chapter of the said dissertation. Many thanks
to the anonymous reviewers and the editor for the invaluable comments. Any remaining
errors are of the author’s.
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and
development
debate questioning aid effectiveness among disadvantaged economies in the face of
corruption (Forson et al., 2015; Ohler et al., 2012). Although there have been some
progress in meeting the MDGs, challenges still persist that points to a glaring depiction
of disparity among developing economies (UN-MDG, 2013).
One of the key challenges to making head-way in achieving an all-inclusive
development outcome which is human-centered has been the conceptualization of
progress on the basis of a narrow measure using per capita GDP albeit the flaws it
harbors (see Costanza et al., 2009; Smits and Hoekstra, 2011). Yet according to Aidt (2010),
development is supposed to be concerned with sustainable improvements in human
welfare and not spontaneous improvement. Indeed, development is too broad to be gauged
narrowly which may not necessarily be a good measure of such improvements. There is
therefore a general call to direct research questions to a broad-based outcome such as
sustainable development (SD) (Costanza et al., 2009; Sen, 2000, 2001; Smits and Hoekstra,
2011). The emergence of the Sustainable development goals (SDGs) otherwise known as
“Global Goals”resonates this claim by building on the MDGs. The adoption of “agenda
2030 for sustainable development”encapsulates seventeen (17) SDGs to fight inequality
and injustice, end poverty and tackle climate change by 2030 (UNDP, 2016). One of the
existential pillars of the SDGs that warrants further attention in the corruption-
development nexus is the sixteenth (16) goal on peace and justice and strong institutions.
Strong institutions guarantee peace, stability and human rights and thus enhances
governance contingent on the rule of law. In effect, good governance which is the
cherished aspiration of all and sundry reflects reduction in corruption, is an indispensable
conduit for SD.
This paper therefore seeks to propose a conceptual framework on the relationship
between corruption and development. The paper demonstrates how the impact of
corruption on economic development (ED) might vary substantially from SD. Two
implications can be drawn from such comparison. First GDP per capita may be
misleading as opposed to a broad-based measure that encapsulate the dimensions
espoused by the concept and principles of sustainability (Brundtland Commission,
1987; Harris, 2000). Second, GDP fails to account for the sources and damages a
resultant output has on an economy. A higher GDP could possibly imply an
unbalanced social welfare. However, when the impact is inferred from genuine wealth
per capita, the true state of the economy is known. In other words, the compromises
GDP makes in its estimation is accounted for in genuine wealth per capita.
This comparison comes at a time when resource-rich economies are fast depleting
natural endowments without redress in pursuit of the “GDP is good”phenomenon.
The argument and proposition made in this study contributes to the literature of
sustainability and at the same time allay all misconceptions regarding the meaning and
application of SD (see Bamidele, 2013; Claros, 2013; Nwaobi, 2013).
This is a conceptual paper hence the data presented mostly came from secondary
sources that included journal articles, books, working papers, webpages, and reports
from reputable databases. With the intuitive and scholarly judgment of the author,
there is a refinement to the raw data to make sense. The synthesis of the concepts that
emerged proved to be vital in the development of the conceptual framework.
The rest of the paper is organized as follows. The next section takes a quick look at
the concept of development by focussing on two development perspectives.A discussion
on how these have been conceptualized is outlined. Section 3 considers the theories of
development. Section 4 examines the contentious subject of corruption and its sources.
The fifth section providesa simple framework with the logical linkageson the sources of
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