December 15, 2016

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Challenges for good governance

Nowadays, academics, scholars and researchers are unanimous in the notion that good governance plays a paramount role in the transformation of predatory state to developmental state. This being so, the concern for good governance is attracting the attention of those who make policies, who lead the states and people at large. The policies of economic liberalisation introduced in 1991 has set the tone of urgency but the path towards good governance is not free from obstructions particularly in the case of developing countries.
According to literature on identification of the developmental state, there are few challenges that every society, especially the developing economies, are faced with in accomplishment of good governance: they are weak institutions, lack of participation and democratisation, lack of social capital and corruption etc.
In the developing countries, institutions concerning fined property rights, formal contacts and guarantees and enforcement rules are weak— either too weak or too predatory in their demands. This being so, to achieve good governance becomes difficult. Attributes of goods and services have to be clearly measured for proper exchange to take place and property rights enforced. All these activities have costs, which can be reduced only when these institutions are effective.
In fact, good governance is significantly related to issues of participation and democratisation. For the people dependent on local resources, democracy means participation in managing them. But in the face of the emergence of worldwide markets, the efficacy of local community tends to be destroyed and they seem to be powerless in facing new challenges. These local communities need to be strengthened to at least manage local resources and local affairs.
Other than weak institutions and absence of participation and democratisation, lack of social capital poses a major challenge to approaching good governance. Social capital is viewed as emerging from the collection of norms, belief, attitudes and practices that govern relationship between individuals and groups in a society. It is the social capital that fosters trust in societies, and the societies that are marked by trust are industrialized and economically developed.
Last but not the least, another significant challenge is corruption. The case of state failure is based upon how monopoly rents are created through imposition of regulation and control over the economy. Corruption and favoritism surround bureaucratic allocations of investment licenses, import licences and the award of government contracts. Such a state is classified as a predatory state and the problem that is posed is how to create conditions that such a state moves on to become a development state in which resources are invested for the good of the society as whole.


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