A recent study emphasizes the critical importance of gender diversity in top-level management, shedding light on corruption’s nuanced impact on capacity utilization. The research, comparing Africa to Asia, reveals significant differences in capacity utilization, with China exhibiting 80-90% compared to Africa’s 60% or less.
Surprisingly, the study suggests that corruption, within informal competition, can elevate capacity utilization. However, it emphasizes that bribery does not alleviate transportation challenges, underlining the complex nature of corruption’s effects.
The paper advocates for robust institutional strengthening to curb corruption, stressing the necessity for comprehensive economic, judicial, and governance reforms. Mr. Ali Zafar, a Senior Economist at UNDP, commended the study for its “out-of-the-box” thinking, addressing empirical puzzles and exploring previously overlooked parameters such as capacity utilization finances, corruption, gender dimensions, and the network effect.
