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8. The impact of Corruption on Economic Development: Comparing the Experience of Nigeria and Indonesia (1967–1998)

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Chapter Summary

By mid-1998, when Nigeria began its economic and political reform programme, it was clear to all stakeholders that all the efforts and strategies that were formulated and implemented in the preceding decades had not translated into the development expectations of Nigerians. This chapter utilizes two methods for data collection, library-based research and in-depth interviews which were conducted in March 2010 with selected stakeholders, including policy makers, officials of Indonesia's anti-corruption bodies, and academics with deep knowledge of corruption, journalists, and members of civil society. The lesson from Nigeria highlights the following: Indonesia comparison is that while corruption is harmful for economic development and therefore should be discouraged, its effects can be mitigated by reducing political and business uncertainty and inducing public officials and local businessmen to begin to invest most of their loot locally, especially in growth-generating ventures.

Keywords: corruption; economic development; Indonesia; Nigeria; policy makers; stakeholders



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