Aid, Governance and Public Finance Fraud: Evidence from Zimbabwe

Abstract

The
purpose
of
this
case
study
article
is
to explore
the
process
of
public
finance
 fraud
resulting
 in an
unjust
enrichment
of
 local
ruling
elites
 in Zimbabwe,
a resourcerich
yet
paradoxically
fragile
state
characterised
by
decades
of
rule
by
Robert
Mugabe.
 The
article
examines
the
phenomenon
of
political
corruption
occurring
in Zimbabwe
and
 translating into the mismanagement and misuse of public revenues from natural resources for
the
sake
of
private
gain
and
power
consolidation.
Furthermore,
the
article
looks
at
the
 link
between
corruption
and
illicit
financial
flows
by
examining
complex
organisational
 networks
and
mechanisms
created
for
the
sake
of
diverting
public
assets
with
the
help
of
 front
companies.
Finally,
since
political
corruption
is
inherently
connected
to the
quality
 of
governance,
the
author
explores
the
impact
of
governance
on
human
development
as
 well as the effectiveness of foreign aid channelled to Zimbabwe. The article was written on the
basis
of
an
analysis
of
secondary
sources
including
a review
of
relevant
literature
and
 existing
evidence.
The
findings
of
this
research
coincide
with
a general
academic
standpoint
supporting
the
narrative
that
both
natural
resources
and
aid
have
negative
consequences for governance, the rule of law, and, consequently, human development, especially in countries
governed
by
unscrupulous
leaders.