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Pervasive corruption

Large scale corruption by powerful people has long been recognised as a key factor preventing economic development in many African countries. But small-scale corruption may be worse and is particularly harmful to the poor, according to the World Bank’s Africa Development Indicators 2010 report released this week.

The report highlights many different types of petty corruption, including a high proportion of employees who fail to turn up for work, drugs being pilfered from healthcare clinics, and substances which do not have the claimed nutrients being sold as fertilisers. These types of “quiet corruption” are just as difficult to prevent as major corruption and they have a more immediate harmful effect on the poor.

Strong leadership is thought to be essential in combatting quiet corruption. Rwanda has been effective in eliminating corruption from the transport sector, and this has had a very significant effect on the prices of transported goods, with prices falling more than 30% in nominal terms and almost 75% in real terms.