Ill-gotten Money and the Economy
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Namibia gained independence from South Africa in 1990 following a long liberation war by the South-West Africa People’s Organization (SWAPO). Former SWAPO leader Sam Nujoma governed the country from 1990 to 2004. The current president is Hifikepunye Pohamba. While the overall level of corruption in Malawi is similar to its surrounding countries, and Namibia is one of the least corrupt countries in Sub-Saharan Africa, corruption is nevertheless an issue of concern in both countries. Trade in Malawi is conducted by business people from surrounding African countries, Malawians of Asian descent and increasingly from West Africa (mainly Nigeria). Namibia hosts an international business community with strong historical ties with Angola, Europe, and South Africa. Both countries host a rapidly growing Chinese business community. These foreign business relations in combination with the easy accessibility of both countries over land (long and porous borders, limited capacity for effective control of cross-border movements of citizens and goods), also make both countries vulnerable to illicit businesses, which move in and out along the same routes. In the next two chapters we will turn to a detailed discussion of crime and economic development issues in Malawi and Namibia. We will explore crimes that are the main source of ill-go en money in the two countries, how ill-go en money flows through the respective economies, and how this affects economic development and poverty reduction.
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