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Institutions, Institutional Reform and Economic Development: The Visible Hand of Corruption in Nigeria

Institutions, Institutional Reform and Economic Development: The Visible Hand of Corruption in Nigeria

 

Abstract: The announcement for this conference raised a number of analytical and policy questions about the dynamics of institutions in Nigerian development. Three of these are of particular interest in this paper: What are the links between institutions and inefficient development outcomes in Nigeria? What is the nature of institutional failure and crisis in Nigeria, and why does it persist? What are the conditions for improvement in the institutional landscape?
This paper argues that corruption provides a large part of the answers. Specifically, it is suggested that corruption has become the main driver of institutional evolution in Nigeria. As such, managing corruption has to be at the core of institutional reform. Accordingly, an attempt is made to show how corruption has shaped institutional evolution in Nigeria and then to consider some of the implications of that for institutional reform.

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