The Effectiveness of Foreign Aid on Corruption Eradication in Developing Countries’ Institutions.

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The Effectiveness of Foreign Aid on

Corruption Eradication in Developing

Countries’ Institutions.

A Qualitative Case Study Related to International Relations Studies with A Focus on

West African Country: Nigeria.

Biståndseffektivitet mot korruptions utrotning i utvecklingsländernas institutioner.

En kvalitativ case studie relaterad till internationella relationer forskning med fokus

på ett västafrikanskt land: Nigeria.

Olivia Banks Westerlund.

Faculty of Humanities and Social Sciences.

Political Science III: ​​Independent research and investigative work. Bachelor’s Dissertation 15 Points

Supervisor: Dr. Malin Stegmann McCallion Examiner: Mikael Granberg

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Abstract.

Foreign aid's effectiveness on eradicating corruption is a fragile yet complex topic to research in International Relations. Some scholars argue that economic aid should not be given without specific conditions, while some argue that aid should be given with strict or specific rules to recipient countries.

Par contra my research is aimed at examining one recipient country: Nigeria, as a case study which is considered amongst the most corrupt countries in the world yet are highly enriched in natural resources, such as being the major oil-producing country in Africa that boosts the country's GDP per capita through the export trade with foreign countries. And most foreign donor countries allocate economic aid to Nigeria because they are dependent on the country's trade on natural resources. In this research, I used two conceptualised variables of corruption; bribery and facilitate payment, which is considered the most common corruption trends in the Nigerian society, with the aim of analysing the United Nations Office on Drugs and Crime's (UNODC) twelve-month survey report conducted in December 2019 in Nigeria. Alongside with the London 2016 Anti-Corruption Summit report, the current agenda agreed by forty countries with over six hundred commitments, which Nigeria participated in—hence creating the national anti-corruption programmes that the current President of Nigeria, Muhammadu Buhari implemented as a commitment to the Summit.

Consequently using legitimacy and governance perspectives to analyse the efficacy of aid in Nigeria's institution, and evaluating the country's alliance of economic aid in combating corruption, whilst identifying the state's level of governance towards anti-corruption policies to eradicate corruption. The findings show that the level of corruption in Nigeria is still very much high within the public sectors and shows that three in four citizens encounter a form of corruption such as bribery, daily with a civilian who demands a bribe in exchange for their services. And facilitation payment is considered a common activity of Nigerian citizens to speed up legal procedures with the governmental institutions. Even though the Nigerian government claims that the national anti-corruption policies are effective, the survey still shows that there less amount of reported official persons in the conduct of corruption and also the policies doesn't show a trend that the official persons do abide by the policies because the rate of transparency within the institutions is very much low. Yet these official persons intend to be in denial of collecting bribes or participating in any form of corruption.

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Abbreviations

ACM Anti Corruption Movement

CPI Corruption Perception Index

DAC Development Assistance Committee

EU ​ European Union GDP​ Gross Domestic Product

​GNI​ Gross National Income

IMF ​ International Monetary Fund IO​ International Organization

ODA Official Development Assistance

OECD Organisation for Economic Co-operation and Development

PDP People’s Democratic Party

TI​ Transparency International

UNICEF ​United Nations International Children's Emergency Fund UNODC​ United Nations Office on Drugs and Crime

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Table of Contents:

ABSTRACT

ABBREVIATIONS TABLE OF CONTENTS

1. INTRODUCTION ………...……...1

​1.1 Aid and Corruption………..………..1

1.2 Problem Formulation…….………...………...5

​1.2.1 Research Aim and Questions…..………..………….….8

1.3 Nigeria: Constitutional Setup, Aid Accumulated and Corruption...….………….8

1.4 ​Disposition…...………...………....….11

2. THEORETICAL PERSPECTIVES...13

2.1 Theoretical Perspectives...……….……….…...13

3. METHODS and MATERIAL ...……….………...19

3.1 Research design and methodology….………...19

3.2 Case study….………...………....19

3.3 Case study as a method…....….………...20

3.4 Analytical framework…….………....…………....21

3.5 Operationalization………..21

​ 3.5.1 Conceptualisation of Corruption………...22

3.6 Material ………....………...23

3.7 Validity and Reliability………....…….……...24

3.8 Delimitations ………....………….……....25

4. EMPIRICAL and ANALYSIS DISCUSSION ………….………26

4.1 Bribery………….………....28

4.2 Facilitate Payment………...33

5. RESULT ​………..37

6. CONCLUSION​………....40

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1.

Introduction

Foreign aid is a very fragile yet complex issue to discuss in international relations (IR). With continuous critics rising from both scholars, expertise from both governmental agencies and developed countries' governments, and other political elites regarding the effectiveness behind the aim of aid and debating about which developing country deserves to be allocated assistance by bilateral or multilateral aid donors. However, when it comes to foreign aid, there are various forms/programmes of aid given to developing countries which have a specific purpose, such as humanitarian aid for the welfare of the recipient state. 1 Additionally, the general purpose of foreign aid is to eradicate poverty and improve growth, which involves combating corruption, that is, economic aid, which most developing countries suffer from.2

1.1 Economic Aid and Corruption.

I consider these earlier studies from these scholars: Charron, and Bearce and Tirone, whose different analysis, arguments and methodologies in their studies to be useful in my study. Because they raise insight towards identifying the efficacy of aid in eradicating corruption in developing countries, and I consider them very relevant to my research. However, I don’t agree with some of their viewpoints and methodologies, which I will be discussing in-depth.

Charron’s study was aimed at examining the progression of foreign aid’s efficacy in eradicating corruption to developing countries in general, and he applied both a quantitative and qualitative methodology of examining the trends and patterns of corruption in the 1990s in recipient countries while comparing it with the aid from multilateral donors given to recipient countries to combat corruption. Charron argues that economic aid is not the right option towards combating corruption in developing countries because this aid goes into the hands of corrupt leaders of the recipient country. I disagree on this because aid generally helps facilitate the state's socio-economic growth, and when that is achieved, democratic crises like corruption and poverty tend to reduce drastically. However, when a state is fragile in terms of democratic crises like corruption, economic aid should be given under stricter regulations with a signed contract to the recipient country seeking to obtain aid. Such as, firstly, demanding political legitimacy from the recipient country’s institutions before economically assisting them. And simply not implementing the Anti-Corruption Movement (ACM) policies for recipient countries to follow

1United Nations. ​Humanitarian aid​. 2020.

2 Boone, Peter. (1995), Politics and the Effectiveness of Foreign Aid. CEPDP

​ (​272).

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because it will only fade away with time, and with the leaders in power who are corrupt. Because there is a tendency that these corrupt institutions will falsify their governance to gain international recognition. As Charron argues, the Anti-Corruption Movement (ACM) has been relatively effective based on his data that showed a reduction in trends and patterns of corruption, after bilateral donors implemented the Anti-Corruption Movement (ACM) policy. However, he states that the Pre-ACM time-period of aid had proven ineffective, although, after the year 1997 when all major international organizations (IO) had deals in place to fight corruption, the effectiveness was high. The practical implication found in Charron’s analysis was the highlight of “good governance” as an effective way to fight corruption. He argues that a crucial way of fighting corruption for any state is that the recipient country has to take it seriously by policy shifting, making a better policy agenda to relocate resources to where it is needed and lacks effective governance to help combat corruption effectively. 3 I consider it to be a negative strategic tool towards combating corruption because relocating resources in an institution that is known to be corrupt only worsens the state’s governance and creates a semi-stagnation in their socio-economic growth due to the misuse of resources and continually making them dependent on economic aid.

In conjunction to this, it proves a point in Bearce and Tirone’s discussion that countries who are often dependent on foreign aid, often misspend the aid given to them, and the control/regulation of the aid is often difficult to achieve due to the lack of good governance and transparency. Although Bearce and Tirone, based their qualitative in-depth case study on bilateral and multilateral aid, they argue that aid without the benefit to the donor country is mostly the more effective aid to aid with a specific target, as donor countries have a hard time controlling how the countries receiving the aid distribute it.4 And I disagree because donor countries and international organisations can not continually assist developing countries economically without demanding something in return. After all, most of this financial aid is derived from taxation of its citizens and taxations from member countries in various organisations. So, at least a demand for accountability and legitimacy through contracts from these recipient countries can benefit both partners in two ways; by reducing corruption, and a progression outcome report for donors to continually assist in developing these states. Bearce and Tirone also contradict their arguments that aid is better distributed to countries that will probably use the aid in a good way that benefits the goals of the foreign donors. Yet, there is a

3Charron, Nicholas.

​Exploring The Impact of Foreign Aid on Corruption: Has the Anti-Corruption Movement Been

Effective? ​2010. p.21-24

4Bearce H. David, & Tirone C. Daniel. ​Foreign Aid Effectiveness and the Strategic Goals of Donor Governments. ​ Vol. 72,

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contrast of them arguing that aid without accountability from the recipient country symbolises bribery, that is, corruption because this aid given to recipient countries is only given to their government to enrol in the economic reform of their country. However, such ‘bribe’ is considered facilitative in persuading a reform that lasts both in a long-term economically for the nation and in a short-term as a political objective that is politically (within their central exercise of power) by preventable distinguishing less powerful bureaucratic failure. 5Yet concluding that donors should be non-specific in their demands as they cannot control the effects of the aid, either way, instead, the goal of the aid should be to promote economic growth. 6And it can only be achievable through a financial initiative to the recipient government that is, developing countries, towards utilising the aid politically upon economic reform which can lead to economic growth.7

I disagree on this because utilising the aid politically in a fragile state only increases corruption and aid dependency. Whereby the corrupt political leaders during their administration can falsify the creation of reforms or programmes just to continually receive funds during their reign. And pass on the burden to the next electoral candidate, whose administration will find it difficult to handle and fix the issues of democratic crises during their four year rule. This only makes them continually dependent on foreign aid. Which Charron argues and I agree with him, that when aid dependence increases by recipient countries, they tend to be less accountable for their own actions towards the initial development they are seeking aid for. Which then increases rationalisation for domestic corruption through intensifying conflict regarding funds and also predominantly neutralise weak governance as well as inadequate economic policies. In other words, the more a developing country receives aid from Official Development Agencies (ODA) towards boosting their GDP, the more likely their corruption levels as well as democratic and bureaucratic performance worsens.8 But as Bearce and Tirone, argue that strategic benefits affiliated with foreign aid’s allocation are meagre and need to be better in terms of specific major agendas that can assist in utilising economic reforms into being small-scaled because through this developing countries can achieve a more stable and better economic growth. With that being stated, there should be some channels with various components based on development yet with specific agenda on reforms, so that it could be easily achieved gradually and be accounted for by the recipient countries, because the two major issues being faced in foreign aid is, it is affiliated with strategic aid. Secondly, it is affiliated with bureaucratic rationalisation,

5 Bearce H. David, & Tirone C. Daniel.

​Foreign Aid Effectiveness and the Strategic Goals of Donor Governments. ​ Vol. 72, P.839-841

6 ​ Ibid P. 841- 849 7 Ibid P. 839 8 ​

Charron, Nicholas. ​Exploring The Impact of Foreign Aid on Corruption: Has the Anti-Corruption Movement Been

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which hinders growth. Lastly, Bearce and Tirone conclude with an exemplification of aid after 1990 when strategic (post cold war benefits) of aid were small, and achieved higher effectiveness of aid, which is central to their main argument that, when foreign aid agendas are small-scaled into various channels there is a tendency that growth will turn out as the outcome. However it demands economic reform from these developing countries, who may also have to employ a political reform in order to achieve both development and economic growth, and donors should not use aid as a target in recruiting allies on polity threats they encounter.9

In conjunction to the discussion, I noticed some similarities in their results that there is still a huge gap in identifying the efficacy of aid, and the compliance on how and where aid should be given to recipient countries. I consider as no progress in finding an answer to the question of whether or not the aid that has been given is effective in battling corruption. However, I noticed that Charron, Bearce and Tirone, failed to examine the 2005 Paris Declaration on Aid Effectiveness 10 that was agreed by over a hundred countries, to analyse the possibilities of the agenda outcome. And also during the year 2011 a progression report on the Paris Declaration was issued by OECD11​, although their research was conducted in the year 2010. So, the time frame for collecting such information was impossible for them to gather because it was issued a year later, which is understandable. But it would have been interesting to see how their analysis based on the methodologies they applied, coupled with using another timeframe or using a specific developing country as a case study to get a more in-depth data on the utilisation of aid than a general analysis, to determine if the issue of corruption can be reduced by economic aid or not.

This is why I intend to use another approach, of having an in-depth case study on one specific country; Nigeria. Although Nigeria did not participate in the 2005 Paris Declaration Summit, so I intend to evaluate and analyse Nigeria’s national agenda on anti-corruption based on their cooperation with the Anti-Corruption Summit: London 2016 that involved forty-three countries, and over six hundred commitments were agreed to be accomplished by the year 2019. Through this, I intend to analyse the progress report and the trends of Nigeria’s corruption, to see if foreign aid did reduce corruption and boost growth, or if it did help in fueling corruption due to little or no accountability from the recipient country.

9 Charron, Nicholas. P.848-849

10 OECD. Paris Declaration on Aid Effectiveness. 2005

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1.2 Problem Formulation

For decades Africa as a continent with its developing countries has continually struggled in adapting to better governance within their various institutions, due to the high level of corruption that has paved somewhat of normality acceptance in these countries. This has led to the major setback of most African countries' development compared to the Western World.

According to the Transparency International (TI); ​the global coalition against corruption (a government-funded agency which aims in the uprooting of corruption through promoting transparency, integrity and accountability within every countries' institutions), classified corruption as the abuse of power solely for the self establishment and gain amongst political elites that furtherly passes down to civilians are also seeking power gain in the society.12

Transparency International (TI) went on furtherly in explaining the consequences of corruption’s influence in a state, which tends to alleviate trust amongst people, erodes the country’s democracy whilst interfering or rather obstructing the country’s economic development in terms of their GDP per capita, which then aggravates the country’s state of poverty, environmental crisis and social division.13 Through corruption we some politicians misuse the public money allocated for state development budgets, thus giving budgeted contracts to family members or friends knowingly that they would profit off it. Thus, national organizations bribe other government officials in exchange for lucrative deals, and public servants requesting money to repay the favour of their service rendered to civilians.14

One could say that the loadsamoney in politics is linked to the tendency of higher rates of corruption in a state with untransparent governance. However, major international donors both supranational and intergovernmental organizations namely; the European Union, International Monetary Fund, and United Nations, as well as economically prosperous countries like the United States through their Foreign Assistance Agency,15 and China constantly has and is still continuously a donor to developing countries to combat corruption, poverty and boost the educational system through CIDCA (China International Development Cooperation Agency).16

Nevertheless, some of these countries are still suffering from developing and evolving into a globalized state, even though they regularly receive aid. It leads to criticism of foreign aid’s effectiveness in developing countries as controversial, specifically in Africa. Suppose this aid is truly effective in eradicating socio-economic issues, e.g. corruption and poverty. How efficient

12 Transparency International. ​What is Corruption.​ 2020 13 Ibid

14 Annual Reviews. Corruption in Developing Countries 15 U.S. Foreign Assistance. 2020.

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are these financial funds in putting a stop to corruption in these developing countries? It leads to my research problem in identifying the effectiveness of foreign aid on eradicating corruption in government institutions in a specific developing country, Nigeria in West Africa. If this foreign aid has played a significant role in tackling corruption within the government sector, countries like Nigeria are continually financially funded by organizations. Such as the European Union that stands as a major donor of humanitarian aid to vulnerable citizens deprived of the basic human necessities, through which they have provided approximately €285 million since the year 2014 and currently this year; 2020 a fund was allocated to them with the sum of €44.5 million to help improve the lack of sufficient amenities in the country.17

Nevertheless, Nigeria as a nation full of natural resources, from oil and gas production to agriculture that they profit from in terms of export trade and are ranked as 21 of 219 countries on export trade per capita (2018) and number 50 of 222 on product exports (2018) illustrated by the Observatory of Economic Complexity (OEC) 18​. Coupled with the tons of foreign aid being allocated to Nigeria (the recipient country), they are still struggling with socio-economic growth. According to the World Bank, regardless of them being ranked in the world’s annual Gross Domestic Product (GDP) per capita growth as number 26. 19 When they ought to be higher in terms of the funds allocated to them for further development of the country and have the highest GDP per capita in Africa. 20 Yet they show a disproportionate amount of unemployment rate approximately 23.13 per cent (21 million unemployed people), and 25 per cent of unemployment among individuals holding a bachelor's degree as of the year 2018 21 and a minimum wage of $77 (US dollars) of an employed bachelor degree holder.22

It leads me to my problematization of foreign aid effectiveness with an exemplification of a case study on Nigeria’s alliance of foreign aid, regarding the transparency of governance in the institutions in using the funds allocated to them from foreign donors. Coupled with their commitment to foreign agendas on corruption, like the Anti-Corruption Summit London 2016. On how effective they have been in eradicating corruption to boost the country’s socio-economic growth. As Ekengren and Hinnfors, a problem formulation is a new survey or an investigation of a new knowledge/experience generated from a known knowledge or our expectations on previous knowledge. 23 In other words, it is the problematization of a conception we observe that we consider needs a complement to the known knowledge, which in contrast

17European Union Commission (2020). Nigeria. 18OECD (2020) Nigeria Export. Import Trade. 19World Bank (2019). Gross Domestic Product 2019. 20Statista (2020).

​African countries with the highest Gross Domestic Product (GDP) in 2019

21Statista (2020). Key Indicators. 22WageIndicator (2020). Wageindicator. 23 Ekengren, Ann-Marie. & Hinnfors, Jonas.

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needs to conduct new research to fill the gaps in the old knowledge. Thus, Sandberg and Alvesson state that the most common step in formulating a problem formulation is that we researchers should identify the problem by defining the subject. We can determine the purpose of researching the subject, which is done by specifying objects to be studied and choosing an emphatic, descriptive or normative research question that shapes our research.24

With this, it led me to problematising my knowledge on foreign aid and its effectiveness in-depth and then to define the subject problematics it entails which is eradicating corruption with the motive of trying to use the problem formulating process of research questions like gap-spotting that uncovers hidden areas that have either been neglected or not prioritised to research on. As Sandberg and Alvesson stated, in defining my problem identification of the effectiveness of foreign aid in developing countries, specifically Nigeria, as an exemplification of a country who still encounters backsets in its development plans whilst in combat of reducing corruption within its government. 25 Solely with the anticipation of being dependent on foreign aid (which they currently are), however, still encounter considerable problems in combating corruption. I counter to be a scientific problem that can be studied in political science because as we know political science as a discipline is the study of the theories of how societal functions work with politics being at the centre as the main driving force. However, it is essential to keep in mind that the critical point in formulating a research question is that it opens up research problems that tend to solve long-standing controversial problems such as the effectiveness of foreign aid in Nigeria if it does help in facilitating the tools in corruption reduction and help promote socio-economic growth of this country. Having a research question that is relevant and in the framework of political science discipline. Notwithstanding, we researchers can provide an integration of different functional approaches such as influential and explanatory theories that lead to an opening of information that can solve the problem. 26 Additionally, I as the researcher need to apply innovative research questions to then generate significant interpretations based on the theory that I have chosen, such as; governance, and legitimacy theory. But also to study the case, that is, the theories study the power dynamics and effectiveness of foreign aid in Nigeria’s institution whilst in combat of corruption, by using the UNODC report and the Anti-Corruption Summit London 2016 agenda to analyse and evaluate the issues. In other words, the theories chosen create evidence with empirical evidence from previous researches while contributing to the literature regarding combating corruption and theorising foreign aid.

24Sandberg & Alvesson. ​Ways of constructing research questions: gap-spotting or problematization? ​2011. P.24

25 Ibid. P.32-33 26 Sandberg & Alvesson.

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1.2.1 Research aim and Question.

The aim of this research is to analyse the effectiveness of foreign aid on corruption eradication in developing countries’ institutions.​Specifically, in Nigeria (the case study), by identifying the efficacy of foreign aid in this country’s governance. Through which I would be able to identify the strengths and weaknesses of foreign aid if it is reliable in eradicating corruption in developing countries. In the context of the thesis aim, I have draughted this question that best represents the case study and the course of my work on this research.

- What is the current trend of corruption in Nigeria in relation to bribery and facilitation payment?

With this question, I aim to see if aid is given to Nigeria by looking at it with good governance and legitimacy perspectives, reducing corruption, or rather making it stagnant or seeing an increase in corruption when analysing my data from the UNODC report and the Anti-Corruption Summit, London 2016.

1.3 Background: Nigeria: Constitutional Setup, Aid accumulated and Corruption Nigeria as a case study is a federal state that is considered one of the major recipients of foreign aid that is still battling with corruption. The country being a former federal military government state and now a federal republic state that represents thirty-six states within its federal capital territory with each state having its governors and executive local governments under a central constitutional power of government. Which is the National Assembly consisting of legislators, House of Representatives known as Senators and Ministers, through which laws and policies are proposed before the judiciary to approve. Additionally, Nigeria has a president who is considered as the head of state and government and commander in chief of the military. 27The country has a population of over 206 million citizens and national residents making it the country with the highest population in Africa. 28

Nigeria During Pre-Colonial Rule

Nigeria is a new concept of being a country that is now known to be ‘Nigeria’ today. The country was founded out of a wide variety of tribes and ethnic groups with a wide variety of languages. There were over two hundred and fifty tribes with their territories, and over three

27 Constitution Of Nigeria: Preamble:

Constitution of the Federal Republic of Nigeria 1999. 28 Statista:

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hundred spoken languages. However the three major tribes known with their powerful dominance are the Igbo (the easterners), the Yoruba (the southerners) and the Hausa-Fulani (the northerners).29 The Igbos were considered powerful due to the powerful dominance of trade by bata in slave trading with British traders during the British Imperial rule, and the southerners were also known for their slave trade to the Portuguese and the Hausa-Fulani were not in the picture of slave trade and the selling of slaves as the Igbo were, rather they resisted the British but was eventually brought down by Frederick Lugard in 1903. This was when the City of Kano was captured along with the sultan's capital Sokoto the following month. This was also when the search for an identity began, that eventually led to the formation of Nigeria. Nigeria then became a British colony and remained so until the year 1960, when Nigeria gained her independence from the British colonial rule.30

Nigeria, as a country with a united administrative rule, came about as a result of a series of forced measures by the colonial rule. Whereby the British colonial masters moved into the land of the Igbo shortly after a European meeting in Berlin in 1884. During this meeting, the interior of Africa got divided up into different colonial possessions that the countries of Europe would claim. In 1914, both the south and the north of Nigeria were united under the British rule, with the aim of making the administration of the colony simpler.31

Nigeria After Independence In The Year 1960.

Nigeria won her independence 1st of October 1960 where the first prime minister was elected, and a new constitution came about. The first years of the State were calm and without much conflict, but as the first two years passed, regional stress rose that found its cause in ethnic competitiveness, economic imbalance as well as educational inequality. Attempts to reduce the regional stress and the ongoing ethnic conflict were made, for example, 1963 when the western region of Nigeria was divided, and the midwest region was created. This resulted in the country being segmented by three groups with their respective region. The Yoruba in the west, the Igbo in the east and the north being the Hausa-Fulani. This conflict was exemplified with attempts from all sides to secure their own interests, blame inequalities on opposing ethnic groups and attempts to secure power for their own respective tribes. In 1965 there were attempts to overthrow the government; this led to the death of the current prime minister as well as two

29 Britannica. ​The Arrival of The British.​ 2020 30

Ibid

31 American Historical Association.

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regional premiers. There was widespread fraud in the election the same year. It is one of the reasons for the effort to topple the regime.

There was a military administration set up, but Anti-Igbo riots in the north opposed and resisted the attempts to abolish the regions, and no unitary government could be created. This led to an even worse political situation, and there were even clashes inside the army between officers seeking to establish power and favour their own respective ethnic group. The leaders of the coup also were to favour the Igbo tribe, which led to a counter-coup. That once again worsened the situation and resulted in clashes on the intercommunal level in the north. Later in 1966, this escalated into Ethnic massacres, and as of the beginning of 1967, there were negotiations in Ghana, with the purpose of trying to save the country. The negotiations failed in large due to different interpretations of the accords. Nigeria was divided even further after this where four regions got split into 12 states. In May 1967, the three states of the east, united under the republic of Biafra, and the federal government of the nation saw this as an act of rebellion. It led to a civil war and led to a lot of deaths, both military and civilian. During this short life of Biafra, the country began to be recognised by other African states as well as securing aid from international organisations. However, Biafra would collapse, much due to famine as well as military intervention in 1969. 32 In the same year 1969 as the Biafran war began to collapse and the federal military began to gain power in some eastern states (Biafra states), the Biafran people got shortage in ammunitions and the leader of the breakout state Biafra, Odumegwu Ojukwu went into exile by seeking asylum in Côte d’Ivoire. This led other Biafran delegates into officially accepting defeat and agreed to the relinquishment of power to the federal state.33

Consequently, Nigeria became a full nation under the military rule with a governor general until the year 1999 (the 1999 constitution), after a general election was conducted and the people voted for the first democratic political party; People’s Democratic Party’s (PDP) candidate who was a former Military General; former President Olusegun Obansajo, who ruled for two terms (eight years rule). Hence Nigeria has continually been ruled under the 1999 constitution of having a democratic leader/ president as the Head of State, government and the Commander of the Military.34

Aid Accumulated:

Nigeria is listed as number ten on global recipient country of Official Development Assistance (ODA) gross bilateral aid, and the key donors between the year 2017-2018 consists of ten

32 Britannica. Independent Nigeria. 2020 33

Ibid

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bilateral and multilateral organisations: International Development Assistance Agency, United States of America, the United Kingdom, EU Institutions, Germany, Global Fund, Global Alliance for Vaccine, France, African Development Fund and UNICEF.35 However, some Members of the OECD has ranked Nigeria amongst their top five recipient countries, such as the United Kingdom, and United States of America 36 This aid being allocated to Nigeria is aimed to develop several public sectors such as the education, healthcare, social and economic development to alleviate the country from poverty and democracy crisis like corruption. Yet there seems to be no evidence on the efficacy of foreign aid in eradicating corruption and promoting further growth in Nigeria, because the level of corruption in Nigeria is continually on the rise and considered permanent amongst its people because it has more or less become acceptable as a norm amongst citizens of the nation, which raises critiques on the efficacy of aid.37 Corruption Perception Index (CPI) report issued in the year 2019 by Transparency International (TI), indicates that Nigeria is ranked number 146/180 most corrupt country with a score of 26/100 whereby 100/100 indicates that a country is completely free from corruption. 38 Corruption is identified in every single sector of the country, from political and institutional corruption, whereby civil servants like the police openly demand bribes from citizens before they render any service, including the economic sector extortion of budgeted finances is considered normal.39 The common tactics of corruption in Nigeria are bribery, extortion, contracted-fraud, facilitate payments, favouritism, deliberate waste, legal corruption, and subsidy abuse.40This subsidy abuse falls under the category of budgeted agendas that oftentimes is being financed by foreign aid. Does this mean that what scholars like Bearce and Tirone who argue that foreign aid to developing countries does not help in eradicating corruption rather fuels corruption, have a point? As to how recipient governments can not fully account for the results from budgeted agendas that are being funded/financed by foreign aid, yet growth seems to be stagnant in their nation.

1.4 Disposition

This dissertation is structured and depicted into six chapters, with each section and its subheadings relieving a specific detail with the aim of easily depicting the framework of my case study. Starting with specifically:

35

OECD. (2020). DAC Aid at a glance

36 OECD: Aid at a glance charts: Nigeria. 2017-2018 report. Updated March 2020. 37

Quartz Africa. 2017. Nigeria’s first ever corruption survey is as bad as most people imagined 38

Transparency International: Nigeria.

39Carnegie Endowment for International Peace: A NEW TAXONOMY FOR CORRUPTION IN NIGERIA. 40

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Second chapter​: In this chapter, I depict and discuss the ​Theoretical Perspectives, I discuss the theory relevant to this case study; legitimacy and good governance.

Third chapter​: This chapter consists of various subheadings that consist of the research design and depicts the methodological approach applied in this framework. I specified specific procedures as well as the techniques being used in selecting my data, identifying my data, and the process and also analyse my data. Furthermore, in this chapter, I also illustrate the conceptualisation of corruption being used as a systematic tool of operationalisation.

Fourth chapter​: In this chapter, I present and discuss my empirical data by depicting the measured data and agenda reports issued out by the selected governmental agencies database.

Fifth chapter: ​In this chapter, ​Results: I answer my research question and discuss the agenda efficacy’s progress in the Nigerian institutions, and analyse furtherly with the theoretical perspectives to demonstrate the effectiveness.

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2. Theoretical Perspectives

In this chapter, I discuss the theory of governance and legitimacy having a significant role in the democratization process, in order to acquire transparency within institutions which is a contrast to a corrupt institution that hinders the development of a state. Consequently, discussing some international relations ideological perspectives to explain the stance of legitimacy. The sub-heading ​2.1 ​Theoretical Perspectives​, depicts the explanation of the phenomena of good governance and legitimacy, followed with discussion from scholars.

2.1 Theoretical Perspectives Governance theory:

Theoretical framework on governance reflects on the interest of the social science community shifting patterns and styles of governing. According to Stoker, governance signifies a change in the meaning of government, referring to new processes of a states government. Governance encompasses creating better conditions for ordered rule and collective action so that it can be classified as the capacity to provide a framework to understand governance and its process of change.41 Stoker characterises governance into five propositions discussions which can be used when examining a state or institutions performance. He states that:

- Governance refers to a set of institutions and actors that are drawn from but also beyond government.

- Governance identifies the blurring of boundaries and responsibilities for tackling social and economic issues.

- Governance identifies the power dependence involved in the relationships between

institutions involved in collective action.

- Governance is about autonomous self-governing networks of actors.

- Governance recognizes the capacity to get things done which does not rest on the power of government to command or suits authority. It sees government as able to use new tools and techniques to steer and guide.42

Stoker argues that legitimacy should be a criterion for institutions because through good governance it can be attained. Which brings forth a framework of legitimation in the institution. Additionally, through good governance, difficulties in separating policies as well as operational issues can be avoided including the avoidance of bureaucratic governance instead a governmental accountability can be solely achieved whereby all official persons are to be held

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accountable for their use of power. His argument emphasises political legitimacy being present in institutional performance because a deficit of legitimacy undermines the state’s growth and utilising resources and power legitimately.43

Another scholar, Graham argues that good governance can not be defined as solely direct definition rather there are principles to which an institution has to follow and can be used to examine how a state governs.44​ These five principles are:

- Legitimacy and Voice​: there has to be inclusivity of voices amongst sexes towards

governance and consensus orientation in governance processing that shows that the interest of its people is being prioritised.

- Direction: This demands a proper strategic plan from the rulers and it has to be grounded on good governance with the aim of achieving growth.

- Performance: It demands responsiveness from the institutions regarding their governing patterns. As well as, effectiveness and efficiency to be considered as a ‘must’ in utilisation of their resources.

- Accountability: The rulers are to be held accountable to its people while being transparent in everything they do, that is, giving information on processes and utilisation of their work.

- Fairness: This demands equity regardless of sexes and rule of law must involve the implementation of laws on impartiality, and human rights.45

This demonstrates that a state or institution needs to acquire good governance in order to achieve socio-economic growth, however as we can see good governance as certain principles to follow, and one of them I consider vital to this research is legitimacy, which both scholars really emphasised on. Through political legitimacy we can be able to examine the aid’s efficacy in Nigeria’s corruption eradication.

Defining Legitimacy Theory.

Legitimacy theory has no direct definition, which makes it hard to define or measure in political science, however it is considered an arguably vital issue in political philosophy history. 46White, denotes legitimacy theory as a complex and multifaceted theory because its measurement is difficult thus the sources and implications tend to vary across countries. Hence, White states that

43 Stoker, Gerry. Governance as theory: five propositions. P.18 44 Graham. Principles for good governance in 21st century. 2003. P2 45 Ibid. P.3

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the high rise in globalization of politics is evidential that cross-national measurement and comparison of legitimacy as a concept becomes achievable and effective to use.47

White, defines Political legitimacy theory as:

Political legitimacy can be defined as the degree to which a state is

viewed and treated by citizens as rightfully holding and exercising

political power.48

Another scholar Rodney, defines legitimacy as:

The belief in the rightness of a state. So, commands are obeyed not

simply out of fear or self-interest but because subjects believe that

they ought to obey​.​49

Additionally, to uncover a state’s political legitimacy is to identify their performance which OECD defines as:

Output or performance legitimacy: defined in relation to

performance, effectiveness and quality of services and goods that

the state delivers50

In conjunction to this, legitimacy theoretically describes how a state is viewed when the state is legitimate and demonstrates a transparent system of governance with a relationship of trust with its citizens who deliberately shift away from the state's political power due to their trust and approval of the system of governance that is considered as legitimate and ethical on a normative level. In other words, legitimacy associates with evaluations of principles or ethicalness and impartiality of political authorities in a state. Furthermore, legitimacy is built in a dynamic process that links state and society, it is therefore also vulnerable because corruption is built in the same constellation. And corruption works directly against legitimacy.51

This means that when measuring a state’s legitimacy or the degree of corruption in a state, we are after the examination of conceptual variables’ frequency in their governance. This implies that when performance (normative) legitimacy is high in a state’s governance which can be identified in the result/outcome based on their agenda for development, it indicates that legitimacy is high and corruption is low. Consequently, when performance legitimacy is low, it

47 Lynn T White. Legitimacy: Ambiguities Of Political Success Or Failure In East And Southeast Asia. Princeton University. P.31. 2005 48 Ibid. P.31

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indicates that corruption is high, and legitimacy is low, which can be detected empirically by corruption variables in a descriptive statistic that can be analysed.52

White, states that legitimacy can be evaluated through various political objects, degrees, and aspects that are seen as variant forms. Such as objects; constitutions, politicians, judges, laws and agenda processes and its outcome in terms of development, however the essence of measuring and evaluating legitimacy is political development. 53 Whereby through political development changes can be identified in the basic structure of their governance and socio-economic growth tends to expand and not wither.

Measuring Corruption by Legitimacy Performance:

In order to measure corruption, it has to be measured and evaluated in the same process as legitimacy is being measured.

By evaluating legitimacy according to White, a state has to be divided into two parts, namely as; state ‘institutions’ which involve agencies, organisations, departments, customs, laws and processes in the state. And are referred to as ‘referent objects of legitimacy’ when evaluating them. As a reason to easily identify the degree of the state's legitimacy through examining the stance of democracy in the state when conducting or analysing an already conducted survey that asks the citizens of the state about democracy. 54 The second is; the state-embedded polity examines the cases that involve political parties, government and leaders if they are empirically measurably interchangeable from the state’s governmentality.55

In relation to this, my assumption is that corruption here is considered to be examined within the referent object, with its variables which are; facilitate payment and bribery in the empirical, to determine the effectiveness of foreign aid in Nigeria.

Discussing Legitimacy Theory:

The theory of ​Legitimacy by Pardo and Prato​56 who discusses Max Weber’s theory of legitimacy; that having power and authority needs legitimacy, that is, having rightful lawfulness of governing either through laws or policies. However legitimacy is critical yet not confined to bureaucracy, government and the law.57 They furtherly argue their study on how citizenship and

52 Lynn T. White P.20 53 Lynn T. White P.32 54 Lynn T. White. P.33 55 Ibid. P.33

56 Italo Pardo & Giuliana B. Prato. Legitimacy: Ethnographies and Theoretical Insights. Palgrave Macmillian: Kent, UK.

2019.

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the management of power are construed, defined and made to operate at both grassroots level, and at level governance through which their analyses showed that ethnographical logical perception of processes of legitimation and delegitimation whereby individuals tend to merge social ethics and personal preference into professional practices that contradicts oneself with the official legitimacy of the law and policy that is supposed to be abided.58

Thus, Pardo and Prato argue that in order for legitimacy to be fully effective, it demands good governance, that is, governance needs to be attained before legitimacy can function, and when there is bad governance it leads to failure in legitimacy. So, authority (good governance) here needs trust and when leaders lose that, legitimacy becomes unattainable because authoritarianism of leaders hinders good governance due to obnoxious ways of power domination, which then leads to the crisis of democracy such as corruption. Because legitimacy is a criterion in democracy for a state’s polity function, however when a state lacks such, their democracy is being jeopardised, and can be only resolved by a democractic reform which they denote as democratic contract with new policies being implemented.59

Pardo and Prato, furthermore emphasised on two sources of legitimacy derived from an illustrated approach of legitimacy, conducted by the Organisation for Economic Co-operation and Development (OECD), that categorised the sources of legitimacy. These are: input or process legitimacy; which is tied to agreed rules or procedures, while as output or performance legitimacy is outlined in relation to the effectiveness and quality of public goods and services, with rightful leaders in order to gain recognition in external sovereignty and legitimacy. 60 In conjunction to this, their argument on legitimacy is, by attaining the key task of governance which is to constitute and cultivate the relationship with the state’s citizens, their needs, values and anticipation, which fosters the effectiveness of political responsibility, trust and authority in their pattern of governing.61

In other words, legitimacy is the behavioural stance of governing a state legitimately. As OECD classifies the lack of legitimacy as the primary donor to a state’s fragility due to its incompetence of transparent authority. 62Furthermore, most developing countries fall under the category of lack of ‘input legitimacy’, this approach demands the rightful process use of power, and also, those governing should be held accountable for institutions, that is political legitimacy is the morality of political power.63

58 Italo Pardo & Giuliana B. Prato. P.20 59 Italo Pardo & Giuliana B. Prato. P.77 60 Ibid P.2

61 Ibid P.15

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For a state to achieve political legitimacy, Pardo and Prato, argue that democracy has to be fully applied; this implies that transparency in the government is a ''must'' and should not be jeopardised. Transparency gives the government concrete accountability, whereby they can attest to or provide information regarding agendas, actions and processes. Through these outlined public management, it would be challenging to experience a democratic crisis like corruption. However, without transparency, weak governance can be detected, and bureaucratic governance can be seen as a driving force by corrupt leaders, making it hard to eradicate corruption within the institutions. Thus, when there is legitimacy, good governance is portrayed with government patterns being transparent as possible to gain its citizens' trust and, most essentially, for the state's socio-economic growth. So legitimacy is required in order to avoid unaccountable acts of official persons such as corruption.

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3. Methods.

I characterize and discuss the research design and depict the methodological approach applied in this dissertation's framework in this section. Furthermore, this chapter aims to specify the specific procedures as well as the techniques being used to select my data, identify my data, the process, and analyze my data regarding my research.

3.1 Research design and Methodology

Based on my research question, which is to identify the trends of corruption in Nigeria (the case study), by highlighting the impact of foreign aid in Nigeria’s governance. The methodological approach considered most useful in this research consists of a qualitative and quantitative case study, while using theory-testing to analyze the data. Because my chosen theories take the stance of concrete hypotheses to test the data and are useful to analyze central units in analyzing specific data like official agenda documents and reports that involve statistical data.64 That is foreign aid agenda outcome, Nigeria’s policy agenda document on socio-economic growth and development, the grade of Nigeria’s transparency index within its institutions, their GDP, corruption perception index and governance. Considering that we are yet to identify the effect and impact of foreign aid, and to conclude cause and effect, comparisons are required, and at least two units of analysis are required in a case study. 65 These areas mentioned above will be carefully examined and measured through the qualitative and quantitative case study method of analysis. Through these areas of analysis, I can answer my question while theoretically analyzing these units.

3.2 Case Study

A case study according to Halperin, and Heath, is a study that comprises an in-depth study on a single case, that is thoroughly being investigated by researchers, through which they can contribute to the literature, and set as a base for comparative studies because they tend to analyse disputes that have somewhat of validity relevance while implementing concepts for further contexts.66 However, for a researcher to conduct a case study, his/her case study must be exciting and meaningful so that the case studies then remarks to the reader who is familiar with the social science literature.67 To my study, I intend to highlight the sources of corruption in a single developing country and use of foreign aid as a tool to eradicate corruption in Nigeria.68

64Esaiasson et. al. Metod i praktiken:

​Metodpraktikan : konsten att studera samhälle, individ och marknad.​ 2017. P. 41 65

Essaisson et. al. p. 109 66

Halperin and Heath. p.214 67Esaiasson. et al. P.108 68

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3.3 Case Study as a Method

As mentioned in the previous subheading that a case study consists of a more in-depth study on a single case, however the methodology of a case study involves both the systematic methods of collecting the data and analysing the data. According to Halperin and Heath, a case study as a method can require both qualitative and quantitative methods or singly with either just a qualitative or a quantitative method. But it all depends on the researcher’s framework and how s/he chooses the source of data, that is, either as a primary or a secondary data source. 69 A primary data source means that the data being used is collected, recorded and analysed by the researcher.70 Whileas, a secondary data source is par contra, which implies that the collected data is derived from other people such as governmental agencies or foreign organisations’ data on government statistics (quantitative), or policy documents (qualitative). Thus, the data are being analysed (or re-analysed) by the researcher. The dissimilarity in these two methods of data collection is ‘who’ collected the data.71

In relation to the framework of studying Nigeria as a case study, my selected data is predominantly a secondary data source, due to the delimitation of conducting a primary data source such as interviews and conducting a survey because I have no access to Nigeria. 72This implies that the collected data is derived from government agencies and international organisations’ data, such as the UNODC report and the London Anti-Corruption Summit 2016 agenda document. These documents have both a quantitative (the UNODC report) and a qualitative data (the London Anti-Corruption Summit 2016 agenda document), which indicates that my empirical data depicted involves both statistical and textual data.

Consequently, when analysing the given data, I will systematically be analysing the official documents apropos of my research’s aim; to measure the efficacy of foreign aid towards eradicating corruption, through analysing the chosen conceptual variables of corruption critically. This involves using content analysis as the method to analyse these official documents that encompass agendas, statistical data regarding the progress of the agendas, and data on the current state of corruption in Nigeria. Content analysis is suitable because it comprises systematised analysis of statistical and textual data, commonly used amongst scholars who major in International Relations and Politics. 73Halperin and Heath, classify content analysis as an ‘unobtrusive method’ because its assets reduce behavioural biases, that is, when using this

69Halperin and Heath.

​Political Research Methods and Practical Skills​. 2nd. Edn., Oxford University Press, 2015. P.244

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method, we can quickly get our data without conducting an interview instead we strategically analyse official documents that can involve a transcript of decision making on specific agendas, policies and surveys.74 In conjunction to my case study, I am analysing official documents from both bilateral and multilateral aid donors that consist of agendas, policies as well as surveys conducted on corruption’s index in Nigeria, so the efficacy of content analysis is essential for me to use as a method of analysing my data.

3.4 Analytical Framework

To achieve the analysation of official documents with the aim of my dissertation, that is, to uncover the effectiveness of foreign aid. It is then vital that I systematically highlight the core data needed to be analysed and avoid a general analysation of the documents, this means that when I am analysing corruption, foreign aid, I will also be defining conceptions and the theoretical in order to understand the model of illustration of the data easily.

3.5 Operationalisation

Esaiasson et al., characterise operationalisation as a process by which the theoretical definition is categorised into one or more operational indicators and is essential to use in conducting surveys or analysing an already conducted survey variables to know the concept validity. Because it is a systematic methodology of operational indicators that measures the correlation between the theoretical perspective and the actuality of the phenomena, the indicators depict the problematisation to measure the stance in the degree, trends or patterns of the conceptualisations.75 In conjunction with this, I would be able to depict how corruption can be measured to identify the degree of foreign aid efficacy in eradicating corruption in Nigeria. I will be characterising the theoretical indicators by explaining and discussing corruption: "indicators". Hence, a case study done by a content analysis is another form of textual analysis that examines both textual documents and statistical reports to discover incentives for corruption.76 Consequently, this means that I am examining texts regarding bribes or illegitimacy coupled with the statistical reports to search how these texts and statistical data are linked to corruption within Nigeria's institution and serves as a hindrance to foreign aid's effectiveness. My indicator is the control of corruption, and government effectiveness in Nigeria and the sub-category indicators are the various forms of corruption such as bribery, extortion,

74 Halperin and Heath.

​Political Research Methods and Practical Skills​. 2nd. Edn., Oxford University Press, 2015. P.345-346

75 Esaiasson. Metod i praktiken:

​Metodpraktikan : konsten att studera samhälle, individ och marknad.​ 2017. P.56

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fraud, embezzlement etcetera. As they depict the concept validity in my data, that consist of theoretical concepts and therefore, I must translate them into operational indicators and its meanings, in order to avoid validity problems.77

As Esaiasson et al. demonstrated this problem as a 'rule of thumb'; the validity problem increases with the distance between the theoretical definition and the operational indicator. Consequently, the problem is less severe in the case of relatively uncomplicated and straightforward theoretical concepts that are close to what is to be measured at the operational level and it can either be a controversial concept such as "corruption" or "power." 78 Suppose this concept is detected by examining my empirical. In that case, it then concretises my analysis through the validity discussion, which tends to prove that the allocation of foreign aid to eradicate corruption is not sufficient because it tends to fuel corruption in developing countries due to lack of legitimacy in these recipient countries. That is, the validity discussion raises a balancing issue that every empirically working researcher must relate to.79 With this, I conceptualise corruption in the sub-heading below:

3.5.1 Conceptualisation of Corruption

There is not a clear definition of corruption but can be identified based on the context an academic tends to define corruption. However, Transparency International (TI), classified corruption as the abuse of power solely for the self establishment and gain amongst political elites that furtherly passes down to civilians who are also seeking power gain in the society. Through this, it weakens the state’s democracy that then hinders socio-economic growth and creates a massive gap between the social-class or rather a living standard of its people, that is, inequality leading to a massive rise in poverty. 80 There are various forms of corruption, depending on the context scholars identify it with, these are:

1. Bribery: Involves the persuasion of companies to companies or private individuals in

giving a civil servant money to render service to him/her in need of the service.

2. Embezzlement: Is the act of stealing money that is budgeted for certain agendas for the

state such as funds, which is considered to be performed by corrupt official persons.

3.​Facilitate payment: Is another form of corruption whereby money is given to the speed of certain legal procedures within institutions.

4. ​Fraud: An act of deliberately misleading an individual into something s/he has no idea about. 77 Esaiasson. P.59

78 Ibid P.60 79 Ibid P.60-61

80 Transparency International.

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5. ​Collusion: A corrupt act of two parties planned to allure people into believing them. 6. ​Nepotism/​Favouritism: An act of deliberately appointing positions to unfit officials to do certain tasks.

7. ​Extortion: An act of forcing up an individual to do something and at refusal can insert physical harm.81

Due to the limited time framework that I have, and the lack of concrete data on institutional embezzlement, fraud and extortion from Nigerian institutions because the state government fails to report on these issues. I then intend to examine specifically on; bribery and facilitate payment that is considered the most common trends of corruption in Nigerian society, in my empirical data derived from the UNODC survey report conducted in 2019—coupled with the London Anti-Corruption Summit agenda report from the year 2016 alongside Nigeria’s national anti-corruption agenda that was implemented the same year as a result of their commitment to the 2016 Summit. To then analyse the extent to which these agendas have been effective whilst evaluating Nigeria’s corruption, I consider this conceptualised issue as one of the major problems Nigerian institutions face when it comes to corruption. Also, evaluating the efficacy of the economic aid aimed at combating corruption in Nigeria has done so far.

In other words, I will examine the trends in the conceptualisation of corruption in Nigeria, which is my research question. It means that I will be specifically looking into the two types mentioned above of corruption, by looking at it with good governance and legitimacy perspectives, to determine if aid helped to reduce corruption or vice versa when analysing my empirical.

3.6 Material

It is crucial for me in my data collection to critically select the relevant materials needed for my research and be critical about where my data is being derived from to avoid unreliable sources and misleading information. The validity and reliability in the context of my research have to be high in terms of its authenticity. This is why I predominantly have my data collection derived from different governmental organization’s databases, including archives; articles, analyzed statistical data, articles and documented publications regarding foreign aid and Nigeria and its usage of international aid. Namely: The ​UNODC survey report on Corruption Trends and

Pattern., ​and The ​Anti-Corruption Summit ​London 2016​report. As well as statistical analyses

from the OECD and USAID on Nigeria’s utilisation of economic aid. I consider these selected materials significant because they have an important role towards my observations in answering

81 Department for International Development: UK Aid.

​Why corruption matters: understanding causes, effects and how to address them.

Figur

Updating...

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