Development Strategies : Integrating Governance and Growth

A frontier challenge for development strategy is to move beyond prescribing optimal economic policies, and instead -- taking a broad view of the interactions between economic, political and social constraints and dynamics -- to identify entry point...

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Bibliographic Details
Main Authors:	Levy, Brian, Fukuyama, Francis
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ABUSES ACCOUNTABILITY ACCOUNTING ADJUDICATION ADMINISTRATIVE CAPACITY AMBITION ASSETS AUTHORITARIAN RULE AUTHORITY AUTOCRACY BEST PRACTICE BUILDING STATE CAPACITY BUREAUCRACY BY ELECTION CHECKS AND BALANCES CITIZEN CITIZEN PARTICIPATION CITIZENS CITIZENSHIP CIVIC ENGAGEMENT CIVIL SOCIETY CIVIL WAR COLLAPSE COMMUNISM COMMUNIST CONFIDENCE CONSENSUS CONSTITUENCY CONSTITUTIONAL CHANGE CONSTITUTIONAL REFORM CORRUPT CORRUPT BUREAUCRACY CORRUPTION CORRUPTION CHARGES DECENTRALIZATION DECISION-MAKERS DECISION-MAKING DEMOCRACIES DEMOCRACY DEMOCRATIC INSTITUTIONS DEMOCRATIC TRANSITIONS DEMOCRATIZATION DICTATORSHIP DISCRETION DIVISION OF LABOR DYSFUNCTIONAL GOVERNANCE ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICIES ECONOMIC REFORMS ECONOMICS ELECTION ELECTORAL DEMOCRACY FINANCIAL CRISIS FORMAL INSTITUTIONS FRAUD FREE MEDIA FREE PRESS GANGS GDP GOVERNANCE CHALLENGES GOVERNANCE DIMENSIONS GOVERNANCE INDICATORS GOVERNANCE REFORM GOVERNANCE REFORMS GOVERNMENT ACCOUNTABILITY GOVERNORS HUMAN RIGHTS ILLIBERAL DEMOCRACY INCOME INCOME DISTRIBUTION INCREMENTALISM INCUMBENT INDEPENDENT MEDIA INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL CHANGE INSTITUTIONAL CONSTRAINTS INSTITUTIONAL REFORM INSTITUTIONAL REFORMS INTERNATIONAL POLITICAL ECONOMY INVESTIGATION INVESTMENT CLIMATE JUDICIARY JUSTICE LABOR UNIONS LAWS LEVELS OF GOVERNMENT LIBERALISM MAJORITY RULE MARKET ECONOMIES MARKET ECONOMY MILITARY REGIMES MINISTRY OF FINANCE MONARCHY MONOPOLY MULTIPARTY ELECTIONS NATIONAL DEVELOPMENT NATIONS PARTICIPATORY APPROACHES PATRONAGE PER CAPITA INCOME POLICE POLITICAL CHANGE POLITICAL DEMOCRACY POLITICAL ECONOMY POLITICAL ELITES POLITICAL ENVIRONMENT POLITICAL INSTITUTIONS POLITICAL LEADERS POLITICAL LEADERSHIP POLITICAL LEGITIMACY POLITICAL MOBILIZATION POLITICAL PARTICIPATION POLITICAL PARTIES POLITICAL POWER POLITICAL PROCESS POLITICAL REFORMS POLITICAL SCIENCE POLITICAL SENSITIVITY POLITICAL SYSTEM POLITICIANS POLITICS OF GROWTH POPULAR PARTICIPATION POPULAR SOVEREIGNTY POPULISM POWER POLITICS PRESIDENCY PROPERTY RIGHTS PUBLIC BUREAUCRACY PUBLIC EMPLOYMENT PUBLIC INFORMATION PUBLIC INTEREST PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC OFFICIALS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SECTOR GOVERNANCE PUBLIC SECTOR PERFORMANCE PUBLIC SERVICES PUBLIC SPENDING REPUBLIC REVOLUTION REVOLUTIONS RULE OF LAW RULING PARTY SOCIAL CAPITAL SOCIAL CHANGE SOCIAL CONSTRAINTS SOCIAL DEVELOPMENT SOCIAL GROUPS SOCIAL LEARNING SOCIAL POLICIES SOCIAL RELATIONSHIPS SOVEREIGNTY SPECIALIZATION STATE AUTHORITY STATE FAILURE STATE FUNCTIONS STATE INSTITUTIONS STATE INTERVENTION TRADE POLICY TRANSPARENCY VIOLENCE VOLUNTARY ASSOCIATIONS VOTING WEALTH OF NATIONS
Online Access:	http://documents.worldbank.org/curated/en/2010/01/11709174/development-strategies-integrating-governance-growth http://hdl.handle.net/10986/19915

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Summary:	A frontier challenge for development strategy is to move beyond prescribing optimal economic policies, and instead -- taking a broad view of the interactions between economic, political and social constraints and dynamics -- to identify entry points capable of breaking a low-growth logjam, and initiating a virtuous spiral of cumulative change. The paper lays out four distinctive sequences via which the different dimensions might interact and evolve over time, and provides country-specific illustrations of each. Each sequence is defined by the principal focus of its initial step: 1) State capacity building provides a platform for accelerated growth via improved public sector performance and enhanced credibility for investors; strengthened political institutions and civil society come onto the agenda only over the longer term; 2) Transformational governance has as its entry point the reshaping of a country's political institutions. Accelerated growth could follow, insofar as institutional changes enhance accountability, and reduce the potential for arbitrary discretionary action -- and thereby shift expectations in a positive direction; 3) For 'just enough governance', the initial focus is on growth itself, with the aim of addressing specific capacity and institutional constraints as and when they become binding -- not seeking to anticipate and address in advance all possible institutional constraints; 4) Bottom-up development engages civil society as an entry point for seeking stronger state capacity, lower corruption, better public services, improvements in political institutions more broadly -- and a subsequent unlocking of constraints on growth. The sequences should not be viewed as a technocratic toolkit from which a putative reformer is free to choose. Recognizing that choice is constrained by history, the paper concludes by suggesting an approach for exploring what might the scope for identifying practical ways forward in specific country settings.

Development Strategies : Integrating Governance and Growth

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