The Political Economy of Development in Weak States: An Institutional Analysis of the Nigerian State

Abstract

This study examines the role of the state in financial development and economic growth by critically reviewing institutional characteristics that depict the state as a weak state according to existing literature. In order to examine the characters which signpost the Nigerian state as a weak state, a historical case review was conducted into key socio-political characters of the Nigerian state following which primary data was generated by questionnaire and group interview as a means of validating the findings from the historical review. Three major characters represented by ethnicity in which prebendalism was strongly inherent, social unrest culminating in a three year long civil war and persistence of autocratic military governance and civilian democracies tutored by military dictators were revealed as inherent characters of the state. This insider analysis provides a country specific platform for development interventions.

The study therefore contributes to aspects of development literature that argue for country specific institutional analysis for poverty reduction and sustained economic growth interventions by multilateral organizations such as the World Bank and IMF.

Keywords: Weak State, Ethnicity, Prebendalism, Military Governance, Civil War, Financial Development and Economic Growth

JEL Classification: E11, H11