tailieunhanh - Good Governance and Aid Effectiveness: The World Bank and Conditionality

While debt instruments such as diaspora bonds can have a positive impact on a country’s development (as Israel has experienced, for example), the majority of policymakers and diaspora communities have limited awareness about this financial instrument. 412 Moreover, governments are often deterred by complex regulatory requirements for issuing diaspora bonds abroad. For example, if a country wishes to issue diaspora bonds in the US retail market, it must register its product with the US Securities and Exchange Commission (SEC), whose disclosure requirements are relatively rigorous. In addition, governments must pay a relatively high fee to issue a diaspora bond in certain. | Good Governance and Aid Effectiveness The World Bank and Conditionality CARLOS SANTISO Paul H Nitze School of Advanced International Studies Johns Hopkins University The Georgetown Public Policy Review Volume 7Number 1 Fall 2001 Abstract Prompted by concerns over the effectiveness of aid the World Bank has significantly stretched its policy frontiers by endorsing good governance as a core element of its development strategy. Governance which captures the manner in which power is exercised in the management of a country s economic and social resources for development is a multifaceted concept. Limited by its restrictive mandate and institutional ethos the Bank has adopted a restrictive approach confining itself to the economic dimensions of governance. Nevertheless this evolution represents an ambivalent enterprise with both promises and dilemmas as the inherent tension between the economic and political dimensions of governance appears the most contentious issue. While democracy tends to refer to the legitimacy of government good governance refers to the effectiveness of government. This article assesses the Bank s approach for promoting good governance in developing countries. It argues that that the quality of governance is ultimately attributable to its democratic content. Neither democracy nor good governance is sustainable without the other. Consequently democracy and good governance need to converge both conceptually and practically in the study and practice of public policymaking. Therefore for the Bank to substantially improve good governance in developing countries it will need to explicitly address issues of power politics and democracy. The article further argues that aid conditionality is not the most appropriate approach to strengthen good governance in developing countries. What is needed is a more radical approach in which donors cede control to the recipient country within the framework of agreed-upon objectives. About the Author Carlos .