If Politics Is the Problem, How Can External Actors Be Part of the Solution?

Despite a large body of research and evidence on the policies and institutions needed to generate growth and reduce poverty, many governments fail to adopt these policies or establish the institutions. Research advances since the 1990s have explain...

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Main Authors: Devarajan, Shantayanan, Khemani, Stuti
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2016
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2016/07/26596689/politics-problem-can-external-actors-part-solution
http://hdl.handle.net/10986/24842
id okr-10986-24842
recordtype oai_dc
spelling okr-10986-248422021-04-23T14:04:27Z If Politics Is the Problem, How Can External Actors Be Part of the Solution? Devarajan, Shantayanan Khemani, Stuti government failure political institutions development aid development Despite a large body of research and evidence on the policies and institutions needed to generate growth and reduce poverty, many governments fail to adopt these policies or establish the institutions. Research advances since the 1990s have explained this syndrome, which this paper generically calls "government failure," in terms of the incentives facing politicians, and the underlying political institutions that lead to those incentives. Meanwhile, development assistance, which is intended to generate growth and reduce poverty, has hardly changed since the 1950s, when it was thought that the problem was one of market failure. Most assistance is still delivered to governments, in the form of finance and knowledge that are bundled together as a "project." Drawing on recent research on the politics of government failure, the paper shows how traditional development assistance can contribute to the persistence of government failures. It proposes a new model of development assistance that can help societies transition to better institutions. Specifically, the paper suggests that knowledge be provided to citizens to build their capacity to select and sanction leaders who have the political will and legitimacy to deliver the public goods needed for development. As for the financial transfer, which for various reasons has to be delivered to governments, the paper proposes that this be provided in a lump sum manner (that is, not linked to individual projects), conditional on the government following broadly favorable policies and making information available to citizens. 2016-08-09T19:49:11Z 2016-08-09T19:49:11Z 2016-07 Working Paper http://documents.worldbank.org/curated/en/2016/07/26596689/politics-problem-can-external-actors-part-solution http://hdl.handle.net/10986/24842 English en_US Policy Research Working Paper;No. 7761 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic government failure
political institutions
development aid
development
spellingShingle government failure
political institutions
development aid
development
Devarajan, Shantayanan
Khemani, Stuti
If Politics Is the Problem, How Can External Actors Be Part of the Solution?
relation Policy Research Working Paper;No. 7761
description Despite a large body of research and evidence on the policies and institutions needed to generate growth and reduce poverty, many governments fail to adopt these policies or establish the institutions. Research advances since the 1990s have explained this syndrome, which this paper generically calls "government failure," in terms of the incentives facing politicians, and the underlying political institutions that lead to those incentives. Meanwhile, development assistance, which is intended to generate growth and reduce poverty, has hardly changed since the 1950s, when it was thought that the problem was one of market failure. Most assistance is still delivered to governments, in the form of finance and knowledge that are bundled together as a "project." Drawing on recent research on the politics of government failure, the paper shows how traditional development assistance can contribute to the persistence of government failures. It proposes a new model of development assistance that can help societies transition to better institutions. Specifically, the paper suggests that knowledge be provided to citizens to build their capacity to select and sanction leaders who have the political will and legitimacy to deliver the public goods needed for development. As for the financial transfer, which for various reasons has to be delivered to governments, the paper proposes that this be provided in a lump sum manner (that is, not linked to individual projects), conditional on the government following broadly favorable policies and making information available to citizens.
format Working Paper
author Devarajan, Shantayanan
Khemani, Stuti
author_facet Devarajan, Shantayanan
Khemani, Stuti
author_sort Devarajan, Shantayanan
title If Politics Is the Problem, How Can External Actors Be Part of the Solution?
title_short If Politics Is the Problem, How Can External Actors Be Part of the Solution?
title_full If Politics Is the Problem, How Can External Actors Be Part of the Solution?
title_fullStr If Politics Is the Problem, How Can External Actors Be Part of the Solution?
title_full_unstemmed If Politics Is the Problem, How Can External Actors Be Part of the Solution?
title_sort if politics is the problem, how can external actors be part of the solution?
publisher World Bank, Washington, DC
publishDate 2016
url http://documents.worldbank.org/curated/en/2016/07/26596689/politics-problem-can-external-actors-part-solution
http://hdl.handle.net/10986/24842
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