The Frugality-Failure Paradox: Innovation, Resource Constraints, and the Governance of Construction in Developing Economies

Abstract

Developing economies face a dual challenge in the construction sector: the persistent failure of buildings resulting in catastrophic collapses, and the simultaneous emergence of frugal innovations that demonstrate remarkable ingenuity under resource constraints. This article examines these apparently contradictory phenomena, arguing that both building failure and frugal innovation arise from the same underlying conditions—resource scarcity, weak institutional frameworks, and the adaptive responses of actors operating within constrained environments. Drawing on evidence from Nigeria's building industry and case studies of frugal innovations from across the developing world, the analysis develops an integrated framework for understanding how resource constraints shape both the failures and the successes of construction in developing economies. The article identifies corruption, inadequate regulation, unqualified practitioners, and poor maintenance culture as primary causes of building failure, while documenting how frugal innovations in housing, infrastructure, and related sectors demonstrate alternative pathways to meeting construction needs. The central argument is that addressing building failure requires not only technical solutions but also institutional reforms that create enabling environments for frugal innovation while strengthening accountability mechanisms. The article proposes a governance framework that integrates regulatory enforcement, professional standards, and support for grassroots innovation, concluding that sustainable construction in developing economies depends on aligning these often-competing imperatives.