Institutional and Governance Weaknesses and African Transformation
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This paper examines the role of institutions and governance in the economic transformation of African economies. The basic proposition is that institutions and governance matter in economic growth and transformation, but poor crafting of institutions and bad governance have truncated the economic development and thus the transformation of African economies. The paper asserts that recent growth in African economies has been principally based on the exploitation and export of minerals and natural resources. The volatile nature of these commodities markets warrants a value added through economic transformation. However, poor crafting of weak institutions coupled with bad governance have hindered the transformation of African economies. To overcome this the paper recommends self-transformation in the African mindset, together with the transformation of the educational system, a return to the periodic planning system and an incentive system to solve the principal-agency problem in the delivery of public goods and services.
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