Emerging Market Strategies

William Gamble

Help Nigeria with Legal Reform Before it is too late

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This entry was posted on 7/28/2009 9:32 AM and is filed under uncategorized.

According the Financial Times David Miliband, the UK foreign secretary, feels that a vital element for success in Afghanistan is a crackdown on Afghan government corruption. No doubt. Corruption exists everywhere the economic incentives to be corrupt are greater than the legal disincentives, the probability of getting caught. Even in law obsessed America, 44 people were recently arrested in New Jersey for corruption. It is not a question of culture. It is simply a matter of degree and opportunity.

 

Corruption does have one dreadful effect everywhere. It prevents sustainable economic growth. Without sustainable economic growth, the temptation to all sorts of extremism may seem like the only option. Economically inefficient legal systems are frequently the cause. Overregulated economies create rent seeking connected bureaucrats. Reform of these systems can bring change, but as Afghanistan and Iraq have shown, the process is very difficult in a war zone.

 

It is far better for western countries to provide funds for reform before the violence becomes entrenched. Nigeria is particular case in point. The north of the country has lost 250,000 jobs as a result of the collapse of the textile industry. It is now not only an incubator of poverty it is an incubator of extremism as the attacks yesterday near the northern city of Kano proved. Western nations are spending billions in Afghanistan whose strategic value is debatable. No such debate exists for Nigeria. At a fraction of the cost, western nations have a chance to prevent a local problem from becoming an international nightmare. If the western nations really want to help global security the best place to spend aid money to help limit corruption and spur development is in Nigeria. The best time is now. Immediately.  

 

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