Governance, economy, and foreign aid

Abstract

Much of the current donor discussion of governance takes place outside of a historical or theoretical context. This article locates the governance issue within recent political science, development management, and institutional economics literature. The review focuses on accountability, participation, transparency, and predictability or the rule of law, and includes a discussion of the impact of these variables upon economic performance. It concludes that donors can best assist good governance to develop by helping to foster conditions under which developing societies can push their governments to deliver the accountability, transparency and rule of law that sustainable development requires.