Hope Versus Corruption in Africa
The Denver Post
March 19, 2000

Abidjan, Ivory Coast. What immediately strikes you about Africa is the intense color. The reds, golds and grays of the Sahara as you fly over it. The brilliant greens of the foliage and the banks of purple, red, orange and white bougainvillea. The vivid colors of women's dresses. What also strikes you is the history of exploitation and lost opportunity.

Ivory Coast used to be one of the most politically stable and economically viable West African countries. Once a French colony, it gained independence in 1960 and prospered during the early years of President Felix Houphouet-Boigny's 33-year leadership. Although primarily agricultural, it has also benefited from petroleum reserves.

An exceptionally close relationship with France has allowed Ivory Coast to attract significant direct investment from French citizens and industries. Over 50,000 French expatriates live in the country, isolated from its impoverished people by their well-guarded mansions. Even in the now-crumbled French colonial capital of Grand Bassam, there is one old villa still in good condition, inhabited by an elderly Frenchman who refuses to give up the colonial past.

The infrastructure is exceptional for a developing country, with good roads and telecommunications services, a modern port and regular air service to Europe and other parts of Africa. The economic opportunities have brought thousands of West Africans seeking work.

Over the last 20 years, however, low commodity prices and booming population increases have stunted economic growth. After President Houphouet-Boigny's death in 1993, the government became increasingly corrupt until, late last year, a military coup toppled the democratically elected government. According to the new military junta, one of its principal goals is eliminating corruption.

But, they have a Herculean task ahead. Corruption crushes opportunity, destroys initiative and mocks the rule of law. It is endemic in developing countries. As long as it is the modus operandi, the poor will continue to be hopeless and investments will evaporate. Ivory Coast is a good example of what happens.

When governments cannot pay their employees living wages, those employees will make money by using their power. In Mexico City, policemen buy their "beat" from their bosses and pay for it by getting "protection money" from businesses in their area. Along the roads in Ivory Coast, soldiers set up permanent roadblocks. Drivers, particularly truckers, pay for safe passage through the blockade. This, of course, greatly increases the costs of doing business and dampens the enthusiasm of would-be investors.

Even individuals get in on the act. The taxi driver who took me to Grand Bassam had much to say. He supports 7 people, all of whom live in a one-room apartment. In Africa, where there is no social safety net of any kind, family members with jobs take care of those without. Driving a taxi is a good job. But, my driver's boss pays him a tiny fraction of what I paid to hire the taxi. If the boss sees my driver get a tip, he demands a percentage. The boss will save his money to buy another car and hire another driver. The drivers will never earn enough money to get ahead, no matter how many hours they work.

Just to get a job usually requires a bribe. With high unemployment, low wages and corruption that skims off part of every dollar a worker earns, poverty remains endemic and brutal. It breeds rampant crime, for people with nothing to eat have nothing to lose.

The new Ivoirian government is trying to change this, but it is a staggering task. They are cracking down on crime, using harsh, instant justice. But, they haven't stopped the roadblocks on the highways. They are promising democratic elections by late summer, which should bring renewed investment from the International Monetary Fund and World Bank. But, the key is ensuring that these investments are used for economic growth, not individual gain.

Countries like Ivory Coast can progress if the rule of law supplants the tradition of exploitation and graft. Governments must create an environment where honesty and hard work thrive. Only then will my taxi driver and the millions like him be able to hope for a better life.

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