Effects of a Poor Institution on the Economy

2570 WordsJun 23, 201811 Pages
Introduction Poor institution cannot build a strong economy for a country, as we can see the evidence in most of the developing countries, corruption and institution failure lead to economic downturn (Fig #1) . Corruption affects economic growth, the level of GDP per capita, investment activity, international trade and price stability negatively (Dreher & Herzfeld,2005). Nevertheless, in case of Cote d’Ivoire the institution failure has led the country to onset of civil war which has affected the country’s economic growth in the past decade and half. Civil war is not directly related to economic growth but corruption is as Dreher and Herzfeld explains, also civil war affects the factors of capital which are relevant to economic growth of…show more content…
Southerners were not happy that the northerners were standing against them because Southerners considered northerners as foreigners, not the citizen of the country. In south there are rich Christians while on the north part of the country are the poor immigrants. Country studies of civil war invariably trace the onset of rebellion to some historical roots; therefore, historical conditions should be expected to matter for the risk of conflict (Collier et al. 2000). According to Doly and Sambanis’s definition civil war is an armed conflict that meets these criterias; the war has caused more than 1,000 battle deaths the war represented a challenge to the sovereignty of an internationally recognized state, the war occurred within the recognized boundry of the satte, the war involved the states as one of the principal combatants, the rebels were able to mount an organized military opposition to the state and to inflict significant casualties on the state (Fortna, 2008). The civil war not only divided the country into two, the rebel-held North and the government-controlled South but also caused more than 3,000 deaths (World Bank, 2010). The war internally displaced more than 700,000 people and as many as 500,000 children were out of school between 2002 and 2004 (UNICEF, 2004). According to the Ministry of Education in Côte d‟Ivoire (2004), education in the North was affected more severely than education in the
Open Document