African Journal of Public Affairs. Exploring the relationship between good governance and development in Sub-Saharan Africa. Lessons from South America. What is the relationship between governance and development? What does governance really refer to? How can the concept be best put into analytical usage?. publics ou privés. Relationship between good governance and economic growth: A contribution to the institutional debate about state failure in.
What is the relationship between governance and economic growth?
The fundamental obstacles to promoting inclusive economic growth are primarily political in nature and not due to a lack of technical expertise or knowledge about what needs to be done. Dependence on primary commodities provides scope for elites to enrich themselves without needing to implement reforms that improve the long-term productive capacity of the economy.
Patronage politics distorts the economy and diverts public investment away from more productive sectors. Inertia is politically safer than reform. Politically-connected economic elites have increasingly established monopolies e. This involved going into the nitty gritty of particular sectors and constraints to find openings that build on things as they are, rather than how donors might like them to be.
What is the relationship between governance and economic growth? | World Economic Forum
Donors sometimes imply that growth will automatically follow if poor countries develop a set package of institutions such as secure property rights, rule of law, anti-corruption measures, free media, democratic elections etc. As Dani Rodrik argues: Few, if any countries have grown rapidly because of across-the-board institutional reforms… Rapid growth is feasible in institutional environments that look quite distorted, and policy remedies can look quite unorthodox by the standards of the conventional rulebook… The bottom line is that successful growth promoting reforms are pragmatic and opportunistic.
Donors need to reflect this in how we work.
The programme brings together diverse players as and when they share incentives and appetite for reform — whether among government, the private sector or civil society. For example, the programme took a calculated approach to who it could work with in the Nigerian Government, avoiding the notorious state oil corporation and finding pockets of reformers elsewhere. More work is needed to secure the poverty reduction benefits. But getting this far is progress and could help attract further investment.
How often do governance staff in-country talk to local firms, entrepreneurs or investors that have walked away?Good Governance and Sustainable Development
We also need a better understanding of how to spur economic development in severely fragile states — not least to avoid worsening conflict dynamics.
Governance work remains important in its own right. It is also critical to recognize that there are multiple and complex relationships between governance and development.
Good governance is positively associated with improved investment and growth rates, government effectiveness, efficient bureaucracy and rule of law which are associated with better economic performance, adult literacy. But it negatively associated with infant mortality and corruption which hinders development. There are also many indicators of good governance that serve the development like: We find also that most economists would agree that governance is one of the critical factors determining the growth prospects of countries.
However, there is considerable controversy about good governance priorities and the types of governance capabilities that are critical. These disagreements are related to fundamental disagreements on the role of markets versus other social, political and technological characteristics that need to be fulfilled for sustainable growth to take off.
The contemporary good governance agenda is based largely on governance capabilities that are required to create the conditions for markets to be efficient. In the end, we conclude that good governance came as an alternative to the existing situation, especially in developing countries with the aim of engaging the non-official actors which are represented by the civil society and the private sector.
In other words, the reduction of state intervention in the economic sector with the adoption of the capitalist economy in the most of developing countries.