‘Good Governance’ and Eradication of Corruption
Former UN Secretary-General Kofi Annan mentioned about the indivisibility of good governance and sustainable development (cited in BMZ, n.d.). I think this means that good governance together with eradication of corruption is closely tied with economic performance. It is hard to object that economic advancement can hardly exist if the country suffers from bureaucracy and bribery. Moreover, if there is no legislative base and policies adopted by the government are not sufficient to support economic processes in the country, this country is deemed to experience poor economic growth. Scholars argue whether achieving good governance and eradication of any kind of corruption lead to achieving economic advancement and whether the latter can be possible with bribes and no proper laws. My point is that economic development, good governance and eradication of corruption are so interrelated that one of them makes possible the others. Thus I agree that absence of corruption and good governance are preconditions for continuing economic advancement.
The latest reports proved that good governance can add to local economic growth. According to Crowe (2014), clarity has the most important and pronounced effect on growth together with strong governance. I believe that transparency is exactly that aspect that relates both governance and corruption which undermines opportunity for effective dialogue between the government and the public (Patton, 2014). Instead, people must be entitled to know about the processes of governance as well as have equal rights and access to participate in economic activity. I think that transparency includes risk mitigation, choice facilitation, control over expenditures, and promotion of democracy. Moreover, good governance in terms of transparency shall include publication of data, participation in decision-making and collaboration between different branches of power. Clarity around central government funding is a pillar of good governance as well. Obviously, economic development plans should be made “more accessible and transparent” (Crowe, 2014). Otherwise, if there is no dialogue between those who make policies and those who make real economy, there is no opportunity for growth and development.
Good Governance and Developing Countries
Khan (2007, p. 2) pointed at the fact that the divergence in performance across developing countries can be explained by such critical factor as governance. Now we found that those countries which could not boast about having good governance, but demonstrated unprecedented success in economic development, now encounter some hardship related to governance and the ability to reach concensus (Derviş, 2014). That is why dictatorships or authoritative regimes cannot provide the country with sustainable economic development that lasts long. Despite the fact that China is used as a counterexample to the relation between good governance and economic performance, now it raises the question of importance of multi-party governance for economic growth. I would mention corruption is another enemy that precludes development and growth in countries with huge potential but poor governance. Kim, the World Bank Group President, called corruption as number one public enemy for the developing countries (cited in Cameron, 2013). Thus both good governance and eradication of corruption are necessary for achieving continuing economic advancement.
There were created some institutions that are devoted to ensure and facilitate economic development. One of such institutions is the IMF which concentrates its attention on those aspects of good governance that are related to financial and macroeconomic surveillance (Camdessus, 1997). I think that this is the evidence that effective multilateral governance is not only a precondition for economic advancement, but its necessary component. I consider it ti be integral part of the normal course of development of all countries around the globe and must be ensured by the world community. The IMF itself defines good governance as a key to economic success while corruption is believed to undermine “the public’s trust in its government” (IMF, 2015). It is considered to represent a real threat to market integrity, economic development and competition. The World Bank Group is another group of institutions whose purpose is to ensure financial assistance for those countries that need it under condition of structural reforms implementation. It is worth mentioning that it also constitutes an organization that seeks for global development and growth. The World Bank also serves as global database with all main economic and political indicators. Its official webpage contains all reports and indices that are important for proper economic analysis. Santiso (2001, p.4) notes, that if the Bank wants to improve good governance, it will need to influence power, politics and democracy in member States.
Economic advancement in any country indeed depends on good governance and eradication of corruption. However, they both are rather preconditions for its continuity than the possibility of achievement. Many countries around the globe proved that in order to achieve economic growth the governance may not be good enough and corruption may exist. Meanwhile, according to Shapiro (2013), in order to achieve economic advancement and to make this advancement sustainable and sound the governance should be improved and corruption eradicated.
Camdessus M (1997) Good Governance: the IMF’s Role. International Monetary Fund. Available at: <http://www.imf.org/external/pubs/ft/exrp/govern/govindex.htm>
Cameron G (2013) World Bank President Calls Corruption “Public Enemy No. 1” Reuters. Available at: <http://www.reuters.com/article/2013/12/19/us-worldbank-corruption-idUSBRE9BI11P20131219>
Crowe J (2014) Good Governance Is the Key to Local Economic Growth. Guardian. Available at: <http://www.theguardian.com/public-leaders-network/2014/jun/10/good-governance-local-economic-growth>
Derviş K (2014) Good Governance and Economic Performance. Brookings. Available at: <http://www.brookings.edu/research/opinions/2014/03/13-good-governance-dervis>
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Patton M (2014) Investors Beware: the 21 Most Corrupt Nations. Forbes. Available at: <http://www.forbes.com/sites/mikepatton/2014/01/22/investors-beware-the-21-most-corrupt-nations/>
Santiso C (2001) Good Governance and Aid Effectiveness: The World Bank and Conditionality. The Georgetown Public Policy Review, 7 (1): 1-22. Available at: <http://www.sti.ch/fileadmin/user_upload/Pdfs/swap/swap108.pdf>
Shapiro G (2013) Six Ways to Create Economic Growth. Forbes. Available at <http://www.forbes.com/sites/garyshapiro/2013/01/23/six-ways-to-create-economic-growth/>
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