John Dramani Mahama, a former president of Ghana, has urged African leaders and entrepreneurs to fight corruption.
If the threat is not handled, the growth of the continent would be halted, according to the NDC flagbearer.
The canker, which Mr. Mahama also referred to as a “economic malady,” flourishes on the willful negligence of institutions and governmental actors, according to him.
As the Special Guest at the 53rd Annual Conference of the Nigeria Institution of Surveyors and Valuers (NIESV) and under the topic “Asset Valuation as a Global Anti-Corruption Tool: The Nigeria Experience,” Mr. Mahama pleaded with all parties to join the battle against the canker.
“Since corruption is a global issue, calls for a global reaction and collaboration in the fight against it have grown as a result of its scale and gravity. Corruption is a problem for the economy. Mr. Chairman, corruption impedes economic growth, diverts funds from institutions, infrastructure, and social services, and sabotages attempts to meet other nation-specific development objectives.
“And we all know the reason. The layered irresponsibility of organisations and governmental actors who must combat graft is the reason it grows. Any way you look at it, whether it happens in the public or private sector, corruption needs to be combated.
Strong legal structures and discretionary power are two prerequisites, according to Mr. Mahama, for the growth of corruption.
“Corruption requires at least three factors to take place. First, someone needs to have discretionary authority, which includes the capacity to shape and carry out regulations.
Second, there must be a connection between economic rent and discretionary power, particularly when greater rents are brought on by the abuse of discretionary authority. Third, when there is a relatively low likelihood that misconduct will be discovered or punished, he continued.
Additionally, he asserted that corruption scares away potential investors from a nation.
“Corruption also slows growth because it raises the cost of conducting business and, as a result, makes it less attractive for people to invest in a nation. This includes bribes paid by investors to get investment licences, such as construction permits. The productivity is also negatively impacted by corruption.
The introduction of new products or technologies to the marketplaces of many economies may be hampered if the permissions and licences required by innovators or new manufacturers are gained through the payment of bribes, he insisted.