How underpaying labour fuels informal coping, distorts incentives and erodes trust and what it will take to break the cycle
There is a quiet truth we often avoid in public discourse.
- We condemn corruption.
- We criticise indiscipline.
- We question ethics.
Yet, in many cases, we design systems that make ethical behaviour difficult to sustain. A system that underpays labour does not remain neutral. It adapts. It compensates. It bends. And so, we must ask, without comfort and without selective outrage: What is wrong with us?
When Systems Whisper And Behaviour Answers
Across many African economies, wages in critical sectors remain low relative to the cost of living.
- Public sector workers struggle to meet basic needs.
- Junior professionals juggle multiple roles.
- Frontline staff operate under financial pressure.
Globally, the International Labour Organisation estimates that nearly 60 per cent of workers worldwide are engaged in informal employment, with a significant concentration in developing regions, including Africa. In Sub-Saharan Africa, informal employment accounts for over 80 per cent of total employment in some economies. These are not just statistics. They are signals. Signals that systems are not aligned with reality.
NyansaKasa (Words of Wisdom):
“When the basket cannot carry the harvest, the farmer finds another way.”
Interpretation: When systems fail to meet needs, individuals improvise solutions.
The Economics Of Survival
Let us be candid. When wages are insufficient, survival becomes a strategy.
- A clerk may request “something small” to process a file faster.
- A driver may negotiate unofficial payments to avoid fines.
- A technician may prioritise jobs that offer informal incentives.
These behaviours are often labelled corruption. But they are also, in many cases, coping mechanisms within constrained systems. This does not justify them. But it explains them.
NyansaKasa (Words of Wisdom):
“Hunger negotiates where principles hesitate.”
Interpretation: Economic pressure can weaken ethical resistance.
The Global Parallel We Ignore
This is not uniquely African. In parts of Eastern Europe during economic transitions, underpaid public officials resorted to informal payments. In Latin America, studies have shown correlations between low public sector wages and increased petty corruption. In parts of Asia, reforms that improved wages and strengthened accountability reduced informal practices significantly. Singapore offers a notable contrast. By aligning public sector salaries with private sector benchmarks and enforcing strict anti corruption laws, it reduced incentives for informal income. Where systems align incentives, behaviour follows.
NyansaKasa (Words of Wisdom):
“Fair reward reduces hidden demands.”
Interpretation: Adequate compensation discourages informal extraction.
The Dangerous Normalisation
Over time, coping mechanisms become culture.
- “What do you have for me?” becomes routine.
- “Let’s settle it here” becomes acceptable.
Citizens begin to anticipate informal payments. Workers begin to expect them. What starts as survival evolves into systemic distortion.
NyansaKasa (Words of Wisdom):
“What is repeated quietly becomes accepted loudly.”
Interpretation: Normalised behaviour shapes culture.
The Cost We All Pay
The consequences are far reaching.
- Public trust erodes.
- Service delivery slows.
- Inefficiency increases.
- Inequality deepens.
- Businesses factor in unofficial costs.
- Investors hesitate.
- Citizens lose confidence.
The World Bank has repeatedly highlighted that corruption, including petty corruption, can reduce economic growth and undermine development outcomes. A system that encourages coping undermines itself.
NyansaKasa (Words of Wisdom):
“A leaking system cannot store trust.”
Interpretation: Weak systems struggle to sustain confidence.
The Moral Contradiction
- Here lies the uncomfortable truth.
- We demand integrity from workers. But do we provide conditions that support integrity?
- We expect discipline. But do we align compensation with expectations?
- We condemn outcomes. But do we examine inputs?
NyansaKasa (Words of Wisdom):
“Expectation without support creates contradiction.”
Interpretation: Systems must align demands with provision.
The African Context
Across Africa, rapid urbanisation, rising costs of living, and limited wage growth create pressure.
- Young professionals enter the workforce with expectations that reality cannot meet.
- Public servants operate within constrained salary structures.
- Informal economies expand to fill the gap.
This is not merely an ethical issue. It is a structural one.
NyansaKasa (Words of Wisdom):
“A stretched fabric tears where pressure is greatest.”
Interpretation: Weak points fail under strain.
Why We Must Look Beyond Blame
Blame is easy. Solutions are harder. It is tempting to isolate individuals and assign responsibility. But focusing only on individuals ignores the system. Behaviour reflects design.
NyansaKasa (Words of Wisdom):
“Fix the system and behaviour will follow.”
Interpretation: Structural reform influences conduct.
What Must Change
Addressing this challenge requires a multi-layered approach.
1. Align wages with cost of living
Compensation must reflect economic realities. While perfect parity may not be possible, significant gaps must be addressed.
2. Strengthen accountability systems
Digitalisation of processes can reduce discretion and limit opportunities for informal transactions.
3. Improve working conditions
Beyond wages, job security, benefits, and career progression influence behaviour.
4. Promote ethical leadership
Leadership sets the tone. Integrity at the top influences conduct across institutions.
5. Educate and empower citizens
Citizens must understand their rights and resist participating in informal practices.
NyansaKasa (Words of Wisdom):
“Change requires both structure and spirit.”
Interpretation: Reform must address systems and mindset.
The Role Of Policy And Governance
Policy makers must recognise that wage structures are not isolated decisions.
- They influence behaviour.
- They shape incentives.
- They affect outcomes.
Budget constraints are real. But the cost of ignoring the issue may be higher. Underpayment is not always savings. Sometimes it is a deferred cost.
NyansaKasa (Words of Wisdom):
“What is saved wrongly is spent repeatedly.”
Interpretation: Short term savings can lead to long term loss.
A Cultural Shift Is Required
Beyond policy, culture must evolve.
- Integrity must be valued.
- Fairness must be expected.
- Accountability must be normalised.
- Workers must resist informal practices.
- Citizens must refuse to participate.
- Institutions must enforce standards.
NyansaKasa (Words of Wisdom):
“Culture is built by what we tolerate.”
Interpretation: Behaviour persists when unchallenged.
Conclusion: The Question We Must Face
We often ask why corruption persists. Why systems fail. Why trust erodes. But perhaps the deeper question is this: What is wrong with us?
- Why do we design systems that strain those who operate within them?
- Why do we expect integrity without enabling it?
- Why do we condemn behaviour that our systems quietly encourage?
NyansaKasa (Words of Wisdom):
“A system that ignores reality creates its own problems.”
Interpretation: Alignment between policy and reality is essential.
Africa’s future will depend not only on growth, but on governance.
- Not only on policy, but on design.
- Not only on expectation, but on alignment.
Because when systems are fair, behaviour improves.
- When incentives are aligned, outcomes strengthen.
- And when we address root causes rather than symptoms, we move closer to sustainable progress.
Until then, we will continue to confront the same question;
What is wrong with us? while quietly sustaining the answer.
About Ing. Professor Douglas Boateng
Ing. Professor Douglas Boateng is a pioneering international industrial, manufacturing, and production systems engineer, governance strategist, and Pan-African thought leader whose work continues to shape boardroom thinking, supply chain transformation, and industrialisation across both the continent and globally. As Africa’s first appointed Professor Extraordinaire in Supply Chain Management, he has consistently championed the integration of procurement, value chain, industrialisation strategy, and governance into national and continental development agendas, aligning practice with purpose and long-term impact. An International Chartered Director and Chartered Engineer, he has received numerous lifetime achievement awards and authored several authoritative books. He is also the scribe of the globally acclaimed and widely followed daily NyansaKasa (Words of Wisdom), which continues to inspire reflection, accountability, and purposeful living among audiences worldwide. His work is driven by a simple yet powerful belief: Africa’s transformation will not come from rhetoric but from deliberate action, strong institutions, and leaders willing to build for future generations.
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.