|
|
|
|
|
|
|
|
| >> Foreign Aid in the National Interest >> Chapter 1 |
|
Jump to Chapter 1 Sections: For the past several decades the conventional and, until recently, the predominant perspective on development in the international donor community has been that countries are poor because they lack resources,infrastructure, education, and opportunity. By this logic, if rich countries and international institutions could only transfer enough resources and technology, improve human capacity enough, and support health and education enough, development would occur. To be sure, greater public resources, better physical infrastructure, and stronger public health and education are essential for development. But they are not enough, and they are not the most crucial factor. No amount of resources transferred or infrastructure built can compensate for or survive bad governance. Predatory, corrupt, wasteful, abusive, tyrannical, incompetent governance is the bane of development. Where governance is endemically bad, rulers do not use public resources effectively to generate public goods and thus improve the productivity and well-being of their society. Instead, they appropriate these goods for themselves, their families, their parties, and their cronies. Unless we improve governance, we cannot foster development. Democracy as reflected in free, fair, and competitive elections is not strictly necessary for good governance. And it is quite possible to have bad governance under the formal structures of democracy. But when competitive elections are truly free and fair, they do provide an instrument for removing bad, corrupt, or merely ineffectual leaders. They thus provide an incentive for political leaders to govern more effectively in the public interest. Democracy also gives citizens nonelectoral means associations, movements, the media to monitor the conduct of public officials and participate in policymaking. And leaders in a democracy have more incentives (and more institutional means and obligations) to explain and justify their decisions and to consult a broad range of constituencies before making decisions. Such participation and debate give the public a stronger sense of policy ownership. As a result policies are more sustainable, and government is more legitimate. These are some of the reasons that promoting democracy and good governance is so profoundly in the national interest of the United States. Democracy and good governance are mutually reinforcing: when they develop together, resources are used to advance the public good. Public institutions perform their designated roles. Social consensus supports and stabilizes the system of government. Disputes are settled peacefully. And investment flows in, attracted by the low transaction costs associated with government transparency and legitimacy and the rule of law. In these circumstances economies grow, human welfare improves, trade expands, political stability and capacity deepen, and countries become more responsible and resourceful members of the international community. There can also be great benefits for the environment. Where the institutions of governance are strong, access to land, water, and forests is controlled, and private property rights are enforced. The management of natural assets also is much more effective. page 2 |
 |
|||
|
