CORRUPTION AND OBSTACLES FOR CONDUCTING BUSINESS IN FORMER FRENCH WEST AFRICA

Main Article Content

Frank H. Wadsworth
Jerry E. Wheat
Brenda K. Swartz

Keywords

Business, Corruption, BEEPS, Africa, French West Africa

Abstract

This study examines the extent of corruption and obstacles to conducting business in some former French West Africa countries.


Methodology: This study uses business owner’s and mangers perceptions about the use of gifts or informal payments and obstacles to conducting business in five African countries.  Data comes from the World Bank Institute and the European Bank for Reconstruction and Development’s Business Environment and Economic Performance study.  Data from Benin, Burkina Faso, Niger, Senegal, and Togo were examined.  Univariate general linear analysis was used to discover statistical differences between factors by country.


Main Findings: Results show Senegalese managers and owners perceived the lowest obstacles to conducting business among the five countries.  Togo business managers and owners are slightly less positive about obstacles they face in their businesses.  Businesses in the five countries on average pay about eight percent of their annual sales as gifts/informal payments.


Limitations: The study uses data that is about ten years old.  The political and economic environment may have changed in these countries since data collection.


Social Implications: The significant level of obstacles business faces in these countries may significantly reduce foreign direct investment in these countries.  Electricity is an obstacle in most of these countries reducing the ability if not the interest in conducting business.


Originality/Novelty of the Study: The French strategy in this region for three hundred years was to rule through the military not the development of economic systems.  The results of this strategy may still be apparent in the number and degree of obstacles facing business only 50 years after independence.

Downloads

Download data is not yet available.
Abstract 53 | PDF Downloads 34

References

1. Business Environment and Enterprise Performance Survey. (2008). Conducted by the European Bank for Reconstruction and Development and the World Bank, retrieved from http://www.ebrd.com/pages/research/analysis/surveys/beeps.shtml.
2. Business Environment and Enterprise Performance Survey. (2009). Conducted by the European Bank for Reconstruction and Development and the World Bank, retrieved from http://www.ebrd.com/pages/research/analysis/surveys/beeps.shtml.
3. Hellman, Joel and David Kaufman. (2001). Confronting the Challenge of State Capture in Transition Economies, Finance and Development, Vol. 38, No. 3, retrieved fromhttp://www.imf.org/external/pubs/ft/fandd/2001/09/hellman.htm.
4. Libman, Alexander. (2006). Government-Business Relations and Catching Up Reforms in the CIS, The European Journal of Comparative Economics, Vol. 3, No. 2, 263-288.
5. Nichols, Philip M. (2000). Dealing with an Eruption of Corruption, Financial Times, May 30, 2000, 15.
6. Organization for Economic Cooperation and Development. Retrieved from (http://www.oecd.org/).
7. Transparency Internationa. (2006). Global Corruption Report, 2006, retrieved from www.transparency.org.
8. Transparency International. (2015). People and Corruption, African Survey 2015, ISBN: 978-3-943497-93-9
9. University of Pennsylvania, West African Studies, French in West Africa, retrieved from https://www.africa.upenn.edu/K-12/French_16178.html).
10. U.S. Securities and Exchange Commission, Foreign Corruption Practices Act, retrieved from https://www.sec.gov/spotlight/foreign-corrupt-practices-act.shtml.
11. World Bank. (2009). “Anticorruption Overview,” retrieved from www.worldbank.org.