Introduction

This study is, to the authors knowledge, the fi rst empirical cross-country analysis of the relationship between corruption and human development (HD) in Africa. In most African countries, the current state of HD is critically poor. Despite two decades of democratization and substantial economic growth or stability, corruption has become endemic and tends to adversely affect HD conditions and needs.

Methodology

Using a pooled cross-section across time and a sample of 40 African countries over many years (2003–2007), and based on an OLS analysis, this study attempts an empirical examination of the association between corruption and HD in Africa. It holds constant economic growth, government socioeconomic or welfare expenditures, and political system, while controlling for some major internal and external economic variables.

Findings

As found, corruption adversely affects human development in Africa. Overall, based on the main study model (Model 1), a unit increase in the corruption level (CPI) on a scale of 1 to 10 will cause a 0.48 percent decrease in the state of HD (HDI).

The relationship between corruption and HD is however non-linear: using Model 3, which incorporates a square term of corruption, it was found that at and below 4.577 RCPI (i.e., 5.42 normal CPI), corruption is likely to positively affect HD, whereas at and above 4.577 RCPI, corruption tends to adversely affect HD with an increasing return.

Additionally, using Model 2, which incorporates an interaction term of corruption and political system, it was found that democratization has deceived scientists' theoretical projections and people's political expectations of the 1990s. Democracy has not improved HD in Africa. Both non- and partly democratic (i.e., authoritarian) and democratic political systems adversely affect HD. The adverse impact of corruption on HD is even worse in the latter systems.

After checking for the main effect (Model 2), it appears that as corruption increases by one unit, HD decreases by 9.48 percent in African countries with authoritarian systems. In contrast, the same one unit increase in corruption will have an additional 5.23 percent decrease in the HD of African countries with a democratic system.

Implications

This study brings new insights about public policies' ineffectiveness and failures to satisfy increasing HD needs in Africa. It sheds light on the relationship between economic growth, democracy, corruption, and HD. It suggests some policy reforms that could improve the state of HD in Africa.

Overall, it is an important contribution to the theoretical and empirical body of administrative theory and knowledge.