Maravi

Dambisa bemoans Africa’s high ranking on TIZ corruption index

COMMENT - There is a direct link between corruption and deregulation.

Dambisa bemoans Africa’s high ranking on TIZ corruption index
By Chiwoyu Sinyangwe in Sharm El Sheikh, Egypt
Wed 14 Apr. 2010, 03:00 CAT

DAMBISA Moyo has said it is a tragedy that most African countries rank among the worst performing countries in the world on the Transparency International's Corruption Perception Index (CPI) but still want to attract quality investments.

Moyo said many countries had even failed to jump the first hurdle as far as making the continent attractive to quality foreign direct investment was concerned owing to bottlenecks such as corruption and huge bureaucratic institutions.

The Zambian international economist and New York Times best-selling author of Dead Aid: Why Aid is Not Working and How There is a Better Way For Africa said even African countries that seemed to be making progress were doing it at a very slow pace.

“Either actual corruption or perceived corruption clearly drives economic investments,” Moyo said. “However, if you go and look at the transparency international CPI, it is a tragedy to see that we continue to see that most African countries rank among the worst performing countries in the world. And the thing that is quite striking is that there is not so much movement even over the long period of time.

“There are some countries that are actually improving but on the whole, we still have a situation where there are a lot of countries where the actual or even perceived corruption continue to pose a serious problem and naturally, no one wants to invest in a place where there is rampant corruption."

Moyo called on African countries to expedite the acquisition of credit rating to improve their competitiveness and attractiveness.

“…the first thing investors ask is 'what is the credit rating of the country or of the company that is looking to issuing debt?' My estimate is that there are only 19 countries on the African continent that have credit rating,” she said.

“So, many countries are failing to jump even the first hurdle which is when an investor says what is the credit rating. Most of them do not have a credit rating… It seems to me that this is a very simple question that can be done in a very quick and meaningful way and it helps as potential investors and for ambassadors of Africa to say look at the progress that these countries are making.”

Moyo also said it was equally disappointing that most African countries ranked the lowest in the World Bank's doing business survey.

She said it did not make sense that most Africans countries were among the lowest-ranked and the hardest places.

“If we are so desperate to do business and spur investments into this continent, why should it be that these are the most difficult places to do business in?” wondered Moyo.

Labels: CORRUPTION, DAMBISA MOYO, NEOLIBERALISM

posted by MrK @ 6:07 AM