CORRUPTION AS A CHALLENGE TO GOOD GOVERNANCE: A COMPREHENSIVE LITERATURE REVIEW

Corruption remains one of the greatest obstacles to sustainable development in most developing countries, with Somalia being among the worst cases. It has long impeded political stability and economic growth in fragile states, and in Somalia it is deeply entrenched at all levels—from small-scale daily transactions to large-scale abuses of authority. Weak institutions, protracted conflict, and clan-based systems of reward have allowed corruption to flourish despite the introduction of formal laws and institutional frameworks. These measures, including anti-bribery and procurement laws or institutional audits, have largely failed due to poor enforcement and the dominance of informal networks.  This paper situates the corruption and governance debate within Somalia’s context and emphasizes that traditional approaches are insufficient where state capacity is weak. Instead, gradual reforms aimed at directly improving citizen welfare are more realistic. Such reforms include transparent service delivery, merit-based recruitment, and greater participation in decision-making. The role of informal governance systems—clan elders and community leaders—also emerges as crucial, as they can serve as allies in enhancing accountability and legitimacy. The findings suggest that Somalia requires a hybrid approach that combines formal institutional reforms with informal oversight. Empowering citizens, ensuring open access to budgetary and procurement data, and introducing e-governance systems can reduce opportunities for corruption. Ultimately, meaningful change in Somalia depends on adopting governance strategies tailored to local political and social realities while aligning with international standards of transparency and accountability. Corruption remains one of the greatest obstacles to sustainable development in most developing countries, with Somalia being among the worst cases. It has long impeded political stability and economic growth in fragile states, and in Somalia it is deeply entrenched at all levels—from small-scale daily transactions to large-scale abuses of authority. Weak institutions, protracted conflict, and clan-based systems of reward have allowed corruption to flourish despite the introduction of formal laws and institutional frameworks. These measures, including anti-bribery and procurement laws or institutional audits, have largely failed due to poor enforcement and the dominance of informal networks.  This paper situates the corruption and governance debate within Somalia’s context and emphasizes that traditional approaches are insufficient where state capacity is weak. Instead, gradual reforms aimed at directly improving citizen welfare are more realistic. Such reforms include transparent service delivery, merit-based recruitment, and greater participation in decision-making. The role of informal governance systems—clan elders and community leaders—also emerges as crucial, as they can serve as allies in enhancing accountability and legitimacy. The findings suggest that Somalia requires a hybrid approach that combines formal institutional reforms with informal oversight. Empowering citizens, ensuring open access to budgetary and procurement data, and introducing e-governance systems can reduce opportunities for corruption. Ultimately, meaningful change in Somalia depends on adopting governance strategies tailored to local political and social realities while aligning with international standards of transparency and accountability.