Josef Kefas Sheehama
The economic consequences of corruption are increased transactions costs and uncertainty, inefficient economic outcomes, undermined State’s legitimacy, hampered growth of competitiveness as well as affected performance, integrity and effectiveness of government institutions.
Namibia cannot afford poor service delivery and make bad choices. The backlog of Namibia has a huge gap between rich and poor. Only good governance can shrink this gap and create wealth. The institutional framework should be capable of making structural adjustments and effectively implementing stabilisation policies whenever required to do so.
In fact, effective economic governance primarily depends on the strength of its institutional framework, the flexibility, manoeuvrability and resilience to the changing political, economic and social environment as well as the ability and competence of the persons to take bold, practicable and rational decisions.
Where the institutional framework is fragile and the decision-makers are incompetent or indifferent, even the best economic policies will be worthless.
In Namibia, it remains one of the challenges to create an environment conducive to preventing and combatting unethical conduct on the part of those who hold public office.
These are the people who are expected to be the custodians of the values around which the nation could coalesce and hold an organic dialogue about the future.
This should be understood as a means of promoting good governance and safeguarding the welfare of the people and the peace of the nation.
Namibia cannot afford to slide deep into an abyss of corrupt practices.
Corruption is like cancer.
It destroys the moral fabric of society. A moral crisis is difficult to turn about because the principles of wrong and right, good and bad will have been violated.
Transparency and accountability are critical for the efficient functioning of a modern economy and for fostering social well-being.
Bribers become aware that an up-front bribe would be required to be paid before the economic activity is commenced and that such bribe would also be payable out of the returns on investment, thereby making them discouraged to invest.
When corruption becomes a lucrative activity and officials enrich themselves without fear of punishment or sanctions, the desire to get involved in productive activities gets discounted.
If talented, efficient and well-educated persons get lured by possibilities of enrichment through corruption, there will be less inclined towards productive activities with adverse consequences for the country’s growth rate.
Furthermore, corruption raises transaction costs and uncertainty in an economy.
Corruption leads to inefficient economic outcomes.
It affects and inhibits foreign direct investment, diverts talent to rent-seeking activities and diverts sectorial priorities.
Corruption also pushes industrial units into an underground economy, undermines the government’s ability to raise revenues and forces to raise tax rates higher on fewer and fewer taxpayers.
This situation reduces the capacity to provide essential commodities for the benefit of underprivileged sections of the population and subverts the rule of law.
Corruption has hampered the growth of competitiveness, frustrated efforts aimed at poverty eradication, lowered public spending and investment, and undermined the performance, integrity and effectiveness of government institutions.
Overcoming socio-economic development challenges in Namibia is possible. It will take a concerted effort from all sectors of society, governments, corporates and individuals to work together for a better society.
Moreover, high unemployment and low incomes are at the heart of many of the socio-economic development challenges.
Problems resulting from this include crime, hopelessness, a state of inequality, and the poverty cycle.
Good governance in a public area
is pivotal to contemporary national of economic development strategy, it contributes to long-term strategic policy objectives and involvement.
Consequently, good governance is an open and transparent process that carries out the involvement, integration and accountability of stakeholders and brings economic development strategies closer together.
Corruption weakens fiscal discipline, distorts the allocation of resources, harms operational efficiency and effectiveness and is antithetical to due process.
Corruption, which is neither being seen as beneficial, inevitable or respectable, is bad for economic efficiency and growth and hurts most of the disadvantaged and underprivileged sections of the population.
When corruption is associated with organized crime, legitimate business is discouraged, the allocation of resources is distorted and political legitimacy is compromised.
Corruption has a pervasive and troubling impact on the poor since it distorts public choices in favour of the wealthy and powerful, and reduces the State’s ability to provide a social safety net.
Namibia needs to frame appropriate governance policies and these policies should be efficaciously put into effect to improve the dimensions of governance.
Corruption has to be fought from all fronts. The role of government in the economy has to be reformed.
The issue of accountability and rule of law should be addressed with great responsibility.
There should be effective planning and execution of policies that help to alleviate poverty.
Policies regarding the redistribution of assets should be adopted by the government to decrease income disparities.
The widespread poverty is due to poor governance and income inequality in Namibia.
Namibia’s past steady economic growth has not been enough to deal with the country’s triple challenge of high poverty, inequality, and unemployment.
If we cannot stop these types of malpractices, the masses are bound to suffer and influence will always prosper at the masses’ expense.
In conclusion, Namibia needs an improved set of policies, including political, economic and institutional reforms to break the persistent poor growth performance.
The economic reforms should combine market liberalisation, enforcement of property rights, improved institutions as well as credibility and accountability of public servants and leaders.
To eliminate public resource mismanagement, ensure quality service delivery and effective administration, strengthen the rules of law as well as promote credibility accountability and transparency, capacity building is also a vital process.
Once Namibia successfully manages to get rid of the variables associated with poor governance and institutions, the country will be in a better position to strengthen and boost its growth performance.
Consequently, poverty will be reduced and wealth increased.