JBS Vol 12. Num 2. 2010 - Reflections on Governance and Development

In recent years, development analysts and policymakers have stressed the overriding importance of governance as a determinant of efficient and equitable growth. This article elaborates on the concept of governance, its various components, their indicators and measurements, as well as the ways in which it affects development. In its widest definition, governance includes the rule of law, accountability, property rights, contract enforcement, and control of corruption. It also includes regulations and procedures affecting private investment climate and business operations. Its assessment may be based on perception-based qualitative indicators and/or experience-based quantitative indicators to evaluate the state of governance in a country, as well as across countries and over time. This article also discusses the ways in which the priority of reforms in governance can be determined by policymakers in a pragmatic manner. The analysis of the agents and drivers of improvement in governance is another important area of ongoing research. Such agents include a political leadership with vision, civil society, think tanks, media, local governments, and external agents such as donors or international/regional organizations. Most frequently, as historical experience indicates, improvements in governance occur over a period of time and in a sequential manner. Reforms, however, often appear to be a matter of serendipity or the result of a  combination of accidental circumstances.