According to a World Bank report, the extent of corruption in Africa is decreasing. I’m not sure exactly how you measure corruption — Transparency International creates an annual Corruption Perceptions Index based on surveys and expert opinions – but if the report is accurate, it’s good news for the people of Africa.
Aid organisations often talk about poverty traps. People are trapped in poverty because of systemic forces which are beyond their control. No matter how hard they work, they are unable to escape from poverty. Corruption is one of the major systemic causes of poverty traps. A few years ago a survey in Nairobi revealed that small businesses were paying around 30% of total turnover in bribes. Even in the wealthiest nations, very few enterprises have profit margins over 30%, and accordingly it is almost impossible to run a profitable business in a corrupt country.
Corruption is an issue which cannot be solved by increasing aid. The more aid money provided to a corrupt country, the more corruption there is, and the more local market forces get distorted, thereby damaging the incentive for people to work diligently and productively.