Weak Institutional Framework Research Articles

The Effectiveness of the International Environmental Law: The Issues of State Sovereignty, National Interests, and Differing Levels of Commitments

This study aims to explore the main challenges facing international environmental law and affecting its effectiveness. Although many international texts and agreements have been adopted to address environmental degradation and promote sustainable resource development, most of these agreements remain ineffective in achieving the objectives of these agreements. The critical study reveals that these legal frameworks face many challenges that affect the effectiveness of these texts, for example, there are issues such as national sovereignty, the lack of unified implementation at the state level, insufficient funding, and weak institutional frameworks. This study aims to provide a comprehensive analytical view of the factors that affect the effectiveness of these texts and frameworks. The issues of national sovereignty, insufficient funding, weak institutional frameworks, different levels of commitment, lack of political will, and global cooperation will be mainly discussed here. By focusing on the most important challenges facing international environmental law, this research aims to contribute to developing international environmental law to make it more effective.

Shadows of fear: Extortion and protection racketeering amidst organized crime in South Africa

This paper investigates organized crime networks that engage in extortion and protection racketeering in South Africa. Due to socio-economic hardships and weak institutional frameworks, criminals have employed fear and violence as a means to gain control over local communities and businesses illegally. The study employed a literature analysis of scholarly materials such as peer-reviewed journals, books, and reports by law enforcement agencies and nongovernmental organizations among others to gather knowledge on extortion and protection racketeering in organized crime in South Africa. The study examines the operational strategies and impacts of organised crime networks on extortion and protection racketeering on local economies as well as public safety. The findings review that there is an all-pervasive culture of fear which underlies blackmailing as well as racketeering activities thereby increasing the vulnerability of communities while undermining social cohesion. The paper concludes by recommending policies meant to improve law enforcement capability and community resilience against this threat on communities.

Managing stakeholders for implementing innovations: The case of a flood protection project in Kenya

Innovative projects, such as those for flood protection in developing countries, are urgent, stakeholder intense, and need to be carried out even in contexts where sufficient governance frameworks are not in place. This research seeks to understand how innovative projects can be implemented in weak institutional contexts by focusing on managing stakeholders in the single in-depth case study of the implementation of the SLAMDAM innovative project in the Isiolo County in Kenya. Following the analysis of 12 semi-structured interviews with 27 different stakeholders and 7 observations of stakeholder interactions, we answer the following questions: 1) what are the challenges during implementation of the innovation projects in weak-institutional contexts? 2) how are these challenges addressed through strategies? 3) how can we theorize the relationship between challenges and strategies in weak institutional contexts? The challenges include community resistance, information fragmentation, disjoined efforts, and governance inefficiency. Theoretically, we highlight how ad-hoc workarounds are operationalized in weak-institutional contexts and how they can lead to lasting changes by building governance frameworks in the long term. Practically, this research offer valuable guidance for practitioners involved in innovative projects, particularly in developing countries with weak institutional frameworks.

Public Health Financing and Population Health: What Role Do Institutions Play?

ABSTRACTThis study investigates the multifaceted interactions among public health financing, institutions, and population health. It also sought to determine whether the efficacy of government health interventions to reduce child mortality and improve life expectancy in Africa's most populous country had been hampered by its institutional framework. The research analyzed the links among institutional, socioeconomic, and health variables using the autoregressive distributed lag estimator across a 37‐year period (1984–2020). The findings show that short‐term public health spending in Nigeria has a significant negative effect on health outcomes, whereas long‐term spending has a significant positive effect. Although public health financing significantly impacted long‐run life expectancy, its short‐run impact is statistically insignificant. Moreover, public health financing is positively linked with lower infant mortality in the long run but directly associated with higher rates in the short run. It further discovered that weak institutional framework is responsible for low life expectancy and high infant mortality. Institutions exert an unconditional significant negative impact on short‐ and long‐term health outcomes. Findings also show that both the short‐ and long‐term net effects of government health financing and institutions on the health outcomes are negative and statistically significant. So, institutions and public health financing are substitutes, with institutions unable to adequately improve their role in the public finance–health outcomes relations. Furthermore, the thresholds at which short‐ and long‐term institutional settings will modulate direct links between public finance and health outcomes are 5.01 and 2.62, respectively. Hence, the empirical findings validate the defective nature of the Nigerian institutional settings. Policy prescriptions for improving health outcomes are recommended based on the findings.

Reforming Public-Private Partnerships in Railway Services: Learning from the Jakarta Monorail Project Debacle

Public-Private Partnerships (PPPs) offer a promising strategy for accelerating railway infrastructure development, yet they entail significant risks if not executed correctly. Indonesia has adopted PPPs since the 1990s, but their impact on railway services remains underexplored. This paper suggests improvements to Indonesia’s railway PPP mechanism to improve effectiveness, efficiency, and service deliverability. It argues that the effectiveness of railway PPPs is hindered by the public sector’s limited capacity and weak regulatory and institutional frameworks. The research employs a case study of the Jakarta Monorail project, terminated in 2015 after 11 years of problematic development. The research methods include literature reviews and a comparative analysis of the case with two prominent railway PPPs in other developing countries: the Bangkok Transit System in Thailand and the Delhi Mass Rapid Transit System Phase I in India. The findings lead to two key recommendations for the government: reorganizing the roles and coordination processes of key PPP agencies and establishing a continuous capacity-building scheme for PPP stakeholders. These recommendations may create a more supportive environment for PPPs, thereby increasing the likelihood of successful railway PPP implementation in Indonesia.

The Level of Corruption in Democratic Republic of Nepal: An In-depth Analysis of Root Causes, Governance Impact, and Potential Solutions

This article critically examines the issue of corruption in Nepal's modern democracy, which poses a significant challenge to the foundational principles of transparency, accountability, and fair representation. Through an exploration of the root causes, impact on governance, and potential solutions, the study sheds light on the complexities of corruption within Nepal's political and administrative systems. The analysis identifies historical factors, including the lingering effects of past autocratic regimes and political instability, as contributors to the conducive environment for corruption. Furthermore, weak institutional frameworks, characterized by insufficient checks and balances, inadequate enforcement mechanisms, and political patronage networks, are identified as systemic issues fostering corrupt practices. The impact of corruption on governance is manifested in the erosion of public trust, economic consequences leading to resource misallocation, and impaired service delivery in essential sectors. These consequences collectively contribute to disillusionment among citizens, hindering the democratic process and perpetuating social inequalities. This study utilizes qualitative methods to analyze corruption in Nepal's democracy, identifying root causes and impacts while proposing solutions like strengthening institutions and fostering transparency. Secondary research study was performed to abstract potential solutions, emphasizing the need for strengthening democratic institutions, promoting transparency and accountability through robust measures and enforcement of anti-corruption laws, and fostering citizen engagement. Additionally, international cooperation is highlighted as a valuable avenue for sharing best practices and gaining insights from successful anti-corruption efforts in other nations. In conclusion, the study advocates for a comprehensive, multi-faceted approach to address corruption in Nepal's democracy. By addressing root causes and fostering a culture of accountability, the nation can strive towards building a more resilient democratic system that effectively serves the interests of its people. The article underscores the importance of sustained efforts and a collective commitment to combating corruption for Nepal to realize a future where democracy thrives and fulfills its promises.

Impact of regulatory, normative and cognitive institutional pressures on rural agribusiness entrepreneurial opportunities and performance: empirical evidence from Ghana

Abstract Entrepreneurs in the agribusiness sector in Ghana encounter numerous challenges due to the weak institutional framework in the country. This often leads to business failure and poor performance of agribusiness ventures. In this paper, we aim to highlight the significance of institutional support for agribusiness entrepreneurs and its crucial role in creating more opportunities for farm entrepreneurs and ensuring the success of farm ventures. The study analyzes empirical data collected from 246 maize farm entrepreneurs in Ghana using the Structural Equation Modelling technique (PLS-SEM). The findings show that regulatory and cognitive institutions have a more positive significant influence on the opportunity recognition and exploitation strategies of maize farm entrepreneurs. Both opportunity recognition and exploitation partially mediate the effects of regulatory, normative and cognitive institutional pressures and farm business performance. The study suggests that maize farm entrepreneurs appear to benefit from regulatory and cognitive institutions. The findings, therefore, have strong policy relevance. The results of this study contribute significantly to food policy aimed at boosting maize supply chain business and food security.

In Defence of the Indefensible: Exploring Justification Narratives of Corporate Elites Accused of Corruption

AbstractDrawing on the pragmatic turn in contemporary social theory, we explore how corporate elites accused of corruption in the context of weak institutions engage in their justification works. Empirically, we focus on three high-profile corruption scandals that shook Ghana between 2010 and 2020 and inspired widespread public condemnation. Publicly accessible archival documents, such as court reporting, newspaper stories, press conferences, and the digital footprints of corporate elites implicated in the scandals provide data for our inquiry. Focussing on the juxtaposition of ‘sayings’ and ‘doings’, the findings show justification as performative, and rooted in contextual pragmatism that acknowledges the plurality of logics situated between self-interest and folk-logic. Within this framework, the domestic and civic orders of worth emerge as most prominent, with the justification processes manifesting through victimising, scapegoating, and crusading. Building on these insights, we develop a framework that highlights how the use of justifications serves as a critique of the inadequacies within climates of weak institutional frameworks consequently fostering an atmosphere conducive to framing unethical conducts as morally acceptable.

Sustainable Development of Fisheries and Aquaculture in North Africa: Current Status and Future Prospects

This paper delves into the fisheries and aquaculture sectors of five North African countries—Morocco, Algeria, Tunisia, Libya, and Egypt—highlighting their critical roles in economic stability and food security amid increasing regional demands for animal protein. Despite the rich marine ecosystems and substantial contributions to national economies and employment, most of these regions face several challenges in fisheries management due to limited knowledge, weak institutional frameworks, and insufficient international cooperation. The paper emphasizes the necessity of transitioning towards sustainable aquaculture practices to preserve natural fish stocks and augment food production capacities. Although legal and sustainable capture fisheries remain vital, the focal point of this review is the potential for aquaculture to meet the growing population's needs without exacerbating the pressures on marine ecosystems. The paper evaluates the current state of fisheries management, identifies challenges in scaling aquaculture, and discusses innovative practices that could lead to more sustainable and productive outcomes. The study calls for improved management strategies, enhanced research and training, and more significant investment in aquaculture to ensure sustainable development of the fisheries sector, ultimately contributing to food security, economic growth, and conservation of marine biodiversity.

Technology Transfer from China to Kenya for Transport Infrastructure: The Case of International Trunk Roads

Literature on technology transfer to Africa is dominated by studies on agribusiness, military technology, information and communication technology, energy, climate change, health, and manufacturing, while it is scanty on others like transport infrastructure. In this article, we reviewed literature and carried out key informant interviews to collect data on technology transfer for Chinese-built roads in Kenya. Our objective was to examine the extent of technology transfer from Chinese multinational corporations to Kenyan institutions and organizations. We established that there was little technology transfer mostly because of Kenya’s internal obstacles such as inadequate absorptive capacity, weak competition culture, and weak legal and institutional frameworks on technology transfer. Multinational corporations transferred technology primarily to fulfil their commercial objectives and to meet the domestic labour training requirements. The technology transferred was not sufficient to simulate innovation and technology development in Kenya. We recommend reviewing Kenya’s legal and institutional frameworks on international technology transfer in order to improve the participation in and enforcement of technology transfer by government institutions.

Does integrated transport topology act as a stimulus for inclusive growth and regional development in Bosnia and Herzegovina?

The transport system is a crucial component of economic development in any country. Bosnia and Herzegovina, being a country with a diverse topography, faces unique challenges and opportunities in its transport system. This paper examines the potential challenges and opportunities of the transport system in Bosnia and Herzegovina and its role in economic development. Using a qualitative research approach, we conduct an in‐depth analysis of existing literature and collect primary data through semi‐structured interviews with key stakeholders in the transport industry in Bosnia and Herzegovina. Our findings indicate that the transport system in Bosnia and Herzegovina faces significant challenges, including inadequate infrastructure, lack of modernization, limited investment, and weak institutional framework. However, there are opportunities for the development of the transport system including its strategic location as a transit hub, potential for infrastructure improvements, and its unique natural resources that can be leveraged for tourism and sustainable development. The development of the transport system can also lead to increased trade and investment, job creation, and improved social welfare. To fully realize the potential of the transport system in Bosnia and Herzegovina, policymakers and stakeholders need to work together to address the challenges and leverage the opportunities. This paper provides policy recommendations for improving the transport system, including investment in infrastructure, modernization of the transport sector, institutional strengthening, and the promotion of sustainable development. The findings of this study have significant implications for the economic development of Bosnia and Herzegovina, and countries with similar challenges and opportunities in the transport sector.

Perilous Evolutionary Paths of Industrial Policy in a Developmental Context: Evidence from the Chinese Medical Industry

AbstractIndustrial policy, as one of the most potent weapons employed by governments, is recommended to adhere to the principles of high relatedness and high economic complexity, which can minimize risks and maximize returns. However, this approach may not be optimal in developing countries with poor industrial bases, limited innovative capabilities and weak institutional frameworks. Based on relatedness and economic complexity, this study illustrates the evolution paths of industrial policy in China and identifies underlying influencing factors deciding the patterns of policymaking. Different from developed countries, it takes several steps for developing countries to reach the final target, the smart specialization approach, instead of one‐step jumping. Moreover, industrial policy is not always the panacea, and the effects of industrial policy vary depending on local contexts. In sum, this study extends research towards the complex co‐evolution process of policy and industries in developing countries and provides more insights for policymaking.

The Relationship between Institutional Framework and International Trade: An Application of the Gravity Model

This study empirical investigated the relationship between institutional framework and Nigerian Trade spanning from 1998 to 2023 through the application of gravity model. The study considered rule of law (RoL), government effectiveness (GE), control of corruption (CoC), regulatory quality (RQ) and political and operational stability (POS) as tenets of institutional framework. The gravity regression model was used to determine the direction and magnitude of the independent variables on the dependent variable. The matrix correlation was used to check for multicollinearity among the independent variables, while the descriptive statistics was used to test for the normality of the variables. The results revealed that Nigeria has weak institutional framework. Also, the result revealed that POS, RoL and CoC had significant impact on Nigerian trade while RQ and GE had insignificant impact on Nigerian trade. The researcher recommended that Nigeria government should improve on its current institutional framework statue in-order to improve its trade.

Does sustainable banking facilitate reducing the SDG-10 in weak rule of law setting?

Facilitating economic opportunities is a critical function of the financial sector, and this contributes significantly towards the attainment of Sustainable Development Goals 10 (SDG-10), which aims to reduce income inequality. This research examines the role of sustainable banking practices in reducing income inequality and achieving SDG-10 under weak rule of law settings. We employed a panel cluster regression model to examine the data collected from 890 banks across 49 nations over a nine-year period (2014–2022). Specifically, we opted to cluster the observations based on industry and year to produce unbiased standard error. The findings reveal that sustainable banking practices are more effective in reducing income inequality, especially in settings with weak rule of law. They also contribute to combating money laundering, which is a significant barrier to achieving SDG-10. The study highlights the importance of transparent and responsible financial transactions in promoting investment opportunities that contribute to sustainable development. Moreover, we find that sustainable banking can accelerate the impact of Fintech in reducing income inequality in weak rule of law settings. The use of Fintech in the financial industry can improve transparency, accountability, and fairness, which are essential for progress towards achieving SDG-10. These findings have significant implications for the expansion of sustainable banking practices in regions with weak institutional frameworks.

Державне регулювання процесу ініціювання інноваційних проектів за умов обмеженого фінансування

Державне регулювання процесу ініціювання інноваційних проектів за умов обмеженого фінансування

Ecosystem Service Reason to Save Wetlands: A Case of Geray Wetland, North Western Ethiopia

Efforts to conserve wetland ecosystems depend on the recognition of ecosystem services they provide. Hence, the study was conducted to analyze the ecosystem services of the Geray wetland and the driving force of its degradation. Structured questionnaires, personal interviews, focused group discussions, and field observations were used in data collection. Questionnaires were administered to 114 respondents obtained through random sampling of households. Data were analyzed using descriptive statistics and regression. Descriptive statistics like mean, percentage and frequency distribution were used to analyze quantitative data. The binary logistic regression model was applied to evaluate the impact of household-related independent variables on the dependent variable. Results showed that Geray wetland provides provisioning services (fish, fresh water, fodder and grazing services, firewood, crop, and fruit), regulating services (temperature regulation, water purification, sediment retention and erosion control), cultural services (recreation, tourism, and aesthetic) and supporting services (nursery, habitat, and accumulation of organic matter). Farm expansion, sedimentation, overgrazing, uncontrolled irrigation practices and deforestation of wetland vegetation, which are rooted in rapid population growth, open access to wetland resources, lack of awareness, lack of clear boundaries and weak institutional framework, were the main causes of the wetland degradation. Predictor variables like household size have a negative, and landholding size and age have positive significant impacts on the Geray wetland ecosystem. A high number of respondents were also aware of the measures (planting trees, trace building as a controlling method of erosion and conservation education to the community) to be taken to overcome the problems that face the Geray wetland. Thus, participatory sustainable wetland management is recommended to obtain more benefits from the wetland and minimize its destruction

Does institutional quality matter in the financial Development-Economic complexity Nexus? Empirical insights from Africa

PurposeThis study examines the moderating role of institutional quality and its threshold in the African financial development-economic complexity nexus. This objective follows the argument that institutional quality influences the financial system's efficiency in allocating resources to innovative initiatives and activities that increase productivity knowledge and technical capabilities in an economy's production system to produce complex products and exports. Design/methodology/approachTo achieve these objectives, this study adopts novel and robust approaches such as the system generalized method of moments (GMM), the Driscoll-Kraay nonparametric covariance matrix estimator (DK), the method of moments quantile regression, and a dynamic panel threshold to analyze the annual dataset of 29 African countries covering 1995–2020. FindingsThis study establishes robust and persistent evidence of interdependence, intertwining, and heterogeneity among African countries. Both mean-based (GMM and DK) and quantile regressions consistently demonstrate that financial development and institutional quality separately enhance Africa's economic complexity across quantiles. In contrast, institutional quality drains financial development's contribution to economic complexity when the coefficients are significant. The moment-quantile regression reveals that institutional quality complements financial development to support economic complexity from the 10th to 30th quantiles, but the coefficients are insignificant. The threshold estimation confirms nonlinearity and the institutional quality threshold estimate is 5.73 on the ordinal scale of 10. On average, only six African countries exceed the threshold, while others operate below the benchmark. Research limitations/implicationsBased on the findings, African financial systems operate within weak institutional frameworks. These phenomena allow rent-seeking, opportunism, corruption, and sharp practices, which divert financial resources from innovative activities and investments in research and development, human capital development, technology, high-tech infrastructure, and entrepreneurial innovation. As a result, Africa's institutional quality impairs the financial sector's ability to spur economic complexity upgrades. African economies need better institutional architectures to maximize financial development's benefits of upgrading economic complexity. The policy implications and recommendations of this study are more relevant to African settings and situations. Thus, other scholars are encouraged to conduct similar research for other continents to enrich the study’s outcomes. Originality/valueThe following are the highlights of this study's novelties: 1.) To the best of the authors' knowledge, this is the first study to examine the moderating role of institutional quality in the financial development-economic complexity nexus in Africa using estimators that account for cross-sectional dependence, distributional effects, and heterogeneous effects (the Driscoll-Kraay nonparametric covariance matrix estimator (DK) and the method of moment quantile regression). 2.) Unlike earlier research, this study establishes a threshold of institutional quality in the financial development-economic complexity nexus. We propose that the institutional structures that govern Africa's financial systems be examined and trimmed. This move helps to phase out the inherent inadequaciesthat drain financial development's contributions to economic complexity.

Does Economic Policy Uncertainty Explain Exchange Rate Movements in the Economic Community of West African States (ECOWAS): A Panel ARDL Approach

Research proposes that economic policy uncertainty (EPU) leads to exchange rate fluctuations. Given that African countries experience higher levels of uncertainty in developed/emerging markets, we examine the extent to which domestic and foreign EPU affect exchange rates for a panel of 12 ECOWAS countries covering the period 1996–2018. In order to account for non-stationarity, cross-sectional dependence, and heterogeneity, the paper employs the dynamic heterogeneous panel approach. The ECOWAS has a dual currency arrangement ranging from a common currency union (CFA) to floating exchange rates (Non-CFA). To account for this, this study splits the sample data into CFA and Non-CFA areas. In addition, this study considers the role of the global financial crisis in the exchange rate-EPU nexus. Our results show that domestic EPU has a positive effect on exchange rates in the long run for Non-CFA areas. Different from the existing literature, our results suggest that domestic EPU does not explain exchange rate fluctuations in the short run. For all countries, foreign EPU leads to appreciation in the long run and depreciation in the short run. Interestingly, foreign EPU has a more dominant effect on exchange rate fluctuations in the selected countries than domestic EPU. This may reflect the weak institutional framework in these countries, which allows external fluctuations to have a greater impact. Moreover, this could be attributed to the increase in foreign capital flows during the sample period. Thus, these countries must develop effective policies to effectively absorb these external shocks. Results are robust to different proxies of EPU.

African Continental Free Trade Area Agreement (Afcfta) And The Challenges Of Regional Integration In Africa

The African Continental Free Trade Area Agreement (AfCFTA) represents a significant milestone in Africa's pursuit of regional integration and economic development. Envisioned as a pan-African initiative, the AfCFTA aims to establish a single market for goods and services, promote intra-African trade, and foster economic growth across the continent. This paper examines the challenges of regional integration in Africa and explores the potential benefits of the AfCFTA Agreement in addressing these challenges. This study uses qualitative research methods, with secondary data from scholarly publications, journal articles, reports from international organisations and literature studies that were thematically analysed. The results of the study shows that the challenges of integration in Africa are mostly driven by disparities in economic development and industrial capacities among African nations, persistent trade barriers, non-tariff obstacles, weak institutional frameworks, the paradox of sovereignty, and inadequate infrastructure. The study also reveals that the adoption of the AfCFTA Agreement in 2019, has brought more African nations involved in addressing these challenges of economic integration, and fostering deep cooperation within the continent. This paper concludes that the AfCFTA Agreement has the potential to be a transformative force in advancing regional integration and economic prosperity in Africa. However, a pragmatic approach is continually needed to address these challenges of integration. This paper thus recommends fostering inclusive growth and economic diversification through targeted policies that can address economic disparities among African nations. Also, emphasising the inclusion of marginalised sectors, such as small and medium-sized enterprises (SMEs) and informal traders, which is essential for maximising the AfCFTA's potential benefits and fostering sustainable economic growth. 
 
 Keywords: AfCFTA, Africa, Economic Integration, Regional Integration, Trade barriers.

The current legal regime of the Indonesian outer small islands

ABSTRACT This paper analyzes the legal regime of the outermost small islands in the Indonesian archipelago by examining the legal framework and border management, defense and security issues, and challenges of overlapping authority between government agencies. The results indicate that Indonesia still faces challenges with the implementation of the legal framework. These challenges include undetermined maritime borders with neighbouring countries, threats to maritime security, overlapping law enforcement, weak border management and institutional framework problems in the utilisation of these islands. The solutions proposed by this research include the government reaching an agreement with neighbouring countries due to the threats faced. Then, there is a need for an increased number of patrol fleets and improved capability of Navy personnel in strengthening law enforcement and maritime control. Furthermore, an amendment to the laws and regulations should provide clearer provisions to the Navy and the Coast Guard to improve coordination in law enforcement. Finally, the effectiveness of the National Border Management Agency should be strengthened by equipping it with trained personnel capable of effectively cooperating with border institutions from neighbouring countries. Furthermore, this research suggests that integrated national marine policies and governance should be established to coordinate institutional work in managing these islands effectively.