Pages: 7

Economies must go through the primary goal of attaining growth of their incomes and after persistent trends in the good magnitudes of the growth rates they achieve the stage of development by means of many economic, social, political, and environmental factors. One such factor is the good governance practice which works as a catalyst for economic development through good institutional support. The endogenous growth theory in line with the approach of Robert Barro confirms this claim. On the other hand, countries with good spheres of development do also practice good governance. The former situation is usually observed in the countries from the Global South blocks and the latter one is for the Global North blocks. The present book has compiled studies on the roles of good governance in economic development in the countries from Global North and South blocks which have used theoretical and empirical methodologies for different time phases. The general observation is that good governance practices help in economic development in the said blocks in terms of several socioeconomic and environmental factors.

Pages: 80

No chapter abstract available.

Pages: 15

The study attempts to analyse the scenario of good governance across the selected high-income group of countries in the world along with the focus on the relationship between good governance and human development during the period 2010–2020. For this purpose, a composite index of good governance was constructed applying Sharma’s (2008) index of financial inclusion. The good governance index was linearly determined by Worldwide Governance Indicators as suggested by the World Bank. A simple and multiple regression model with a pooled Ordinary Least Squares method is adopted to explain the impact of good governance on the human development index. The study finds that good governance has a significant positive influence on human development in the countries. It also reveals that government effectiveness, political stability, regulatory quality, and rule of law notably influence human development.

Pages: 22

There is growing consensus among the life expectancy differences between men and women in the world’s most developed economies. Of late, there have been worrying trends of falling and stagnancy in life expectancies in both sexes in developed economies. The worldwide economic downswing is certainly an area of concern. But these features do seek for government’s intervention in the form of more investment in healthcare services which cannot function alone smoothly. Its efficacy does depend on several other aspects of which efficiency of the governments and control of corruption are two important aspects. One cannot ignore the fact that out-of-pocket expenses incurred by the people of a nation hold the largest share of health expenses. This decision is very much influential upon life expectancy differences and governments’ decisions. This study considers all these important aspects in a single framework by means of panel data analysis for 20 developed economies, across the continents, over the period of 2000–2020 and by application of a theoretical model. Our application of the simultaneous equation model finds that in the majority of the economies, there is existence of a two-way association between governments’ spending on health and life expectancy differences. They both seem to influence each other, apart from the fact that out-of-pocket expenses and governments’ efficiency also do have a two-way influential connection with these variables, with a few exceptions. Our theoretical findings go hand in hand with our empirical findings.

Pages: 23

In a capitalist society, a more likely consequence of market forces is income and different other types of social inequalities. The government is expected to influence the market mechanism through its various schemes and policies to stabilise the social balance against inequality. Nowadays, along with government expenditure or the size of the government, good governance is also considered an important component of government intervention. Elements of bad governance like corruption, self-interest, and political bias are likely to fuel the market forces in increasing social and economic inequalities. In this study, we investigate the empirical relationship between different indicators of governance with income and gender inequalities in the selected market economies. As measures of good governance, we use the World Bank’s estimates of Control of Corruption, Government Effectiveness, and Voice and Accountability. The study fails to establish a strong significant relationship between good governance and different kinds of inequalities across countries. However, government intervention through its expenditure is found to have a significant negative impact on such inequalities.

Pages: 18

Why do some cities grow while others stagnate? And, what is the role of governance in urban growth? Urban planners and researchers struggle to understand the role of governance in promoting economic development. Most mayors and Chambers of Commerce follow the same game plan; they consult the same “best practices” to recruit businesses and talent. Yet, some cities thrive while others do not. This chapter endeavors to add context to the role of good governance in urban development in two cities in the United States: Nashville, TN and Louisville, KY. First, the concept of good governance is explored. How is it defined? Can it be measured? How does it manifest itself in communities? And, does it always lead to “growth”? In the U.S. context, urban growth is synonymous with growth and expansion. However, negative externalities such as traffic, crime, higher taxes, and neighborhood loss often accompany growth and success. The scholarly literature has not fully addressed the obsession with urban growth and the ability of local leaders to plan it. The data presented in this study cannot definitively answer the question of whether “good government” or “luck” drives urban development. Both cities and regions have “good government” in the classic sense. But Nashville leaders have been much more entrepreneurial than Louisville leaders.

Pages: 142

No chapter abstract available.

Pages: 21

Since the 1980s, new public governance has significantly influenced the inclusive growth of East Asian economies. Addressing the difficulties of inclusive growth in East Asian countries, the idea of new public governance has evolved in recent years. This new approach to public governance involves cutting-edge tactics including the use of technological advances, public-private partnerships (PPPs) and participation by stakeholders which have proved crucial in assisting East Asia’s transition to a more dynamic and competitive economy. The chapter explores the impact of new public governance on inclusive growth in East Asian economies, focusing on how these strategies are still being effectively implemented to promote economic prosperity and inclusivity. The Worldwide Governance Indicators (WGI) are used as a measure of effective governance. The finding proves that all three nations of China, Japan and Korea have displayed remarkable progress on these indicators from 2005 to 2021. The impact of new public governance on inclusive growth is measured by using regression to measure the impact of WGI on the Human Development Index of East Asia. The regression results affirm the claim that effective governance has a favourable effect on human development and inclusive society. To further explore the impact of new public governance on inclusive growth in East Asian economies and the strategies, this chapter provides case studies of the implementation of PPPs in Japan, the use of open data in South Korea and the experimental mix of localization, decentralized and networked-based policymaking in China.

Pages: 20

More than 75 years after its creation as a new territorial state, Pakistan finds itself in one of the gravest financial crises. Reports produced regularly by international financial institutions like the World Bank and IMF, international organizations like the UN, leading international civil society bodies like Reporters Without Borders and Amnesty International, and leading research institutes on its state of affairs paint grim pictures. The forecasts for the future are equally alarming. This chapter aims to discuss the causes of the collapse and discuss how a number of opportunities to develop and prosper were squandered away. Arguing that unless a series of radical reformatory steps are taken on an urgent basis and until the country builds peace within and with all its immediate neighbors including Afghanistan, India, and Iran, not only its economy will continue to skate on very thin ice, but the existential risk being faced by the fragile federation of Pakistan will continue to increase. It holds the view that the economic challenges cannot be met through economic measures and solutions only, and builds up the argument that the issue is political. This chapter concludes by saying that Pakistan can achieve the goal not by borrowing billions of dollars from different sources or by renting its geography but by leaping out of its frozen imagination and bringing about daring, innovative, and long-term changes in its frosty political, economic, and social policies for development.

Pages: 18

In India, crime rate against women has been rising over the years in several forms like domestic violence, sexual harassment, teasing, kidnapping, trafficking etc., although the country has a set of sound constitutional norms and the largest democracy in the world. The literature shows the possible factors behind the crime against women are weak governance, income inequality, gender disparity, slack judicial process etc. The present study seeks to examine whether the governance indicators and income inequality are associated to the rising numbers of cases of crimes against women in India using statistical tools like correlation and regression and concentration measurements. Results show that the total crime against women has risen over the years along with the incidence of crime. Assault on women to outrage their modesty and cruelty by the husbands hold the largest share out of the five types of crime in the country. The correlation and regression results show usual negative signs in case of rule of law and income inequality in many types of crime which means poor rule of law is responsible for high crime rates and a rise in income inequality is responsible for rising crime rates.

Pages: 15

This research investigates how socioeconomic governance influences economic growth in Nigeria. Socioeconomic governance policies involve various measures and interventions governments, institutions, and organizations use to manage and regulate economic activities and social well-being. The study assessed socioeconomic governance through the lens of fiscal policy, employing indicators such as investment in education, research, development, and health to measure the effectiveness of socioeconomic governance using the ARDL Bound Testing method to estimate data between 1985 and 2021. The research aligns with the perspective that socioeconomic policies play a constructive role in fostering economic growth in Nigeria. It underscores the importance of socioeconomic policies that enhance educational investment for the country’s sustained economic development. Furthermore, the study highlights the positive correlation between research and development (R&D) investment and economic growth. Nevertheless, a noteworthy finding indicates that long-term economic growth in Nigeria may be adversely affected by excessive investment in health. This implies that overemphasizing health spending could divert resources from crucial sectors like education, infrastructure, and R&D, impeding overall economic growth. It’s important to note that this study’s short-run parameter lacks statistical significance.

Pages: 20

The chapter critically examines the extent to which Nepal’s political leadership has fulfilled its public pledges to promote good governance and economic diplomacy since 2006, marking a historic transition toward a federal and secular republic. Despite the articulated goal of transitioning from a least-developed economy to a lower-income economy by 2026, Nepal has experienced a substantial disparity between rhetoric and reality concerning governance and economic performance. This analysis identifies key factors contributing to this disparity, including corruption, deficient service delivery, low institutional credibility, and excessive politicization. Furthermore, the chapter delves into an assessment of the challenges and opportunities Nepal encounters in completing its political transition and implementing its new federal structure. This transformation necessitates significant adjustments to the legal, administrative, and fiscal systems. The research concludes with a comprehensive discussion of the geopolitical implications for Nepal, emphasizing its strategic location in the Himalayas and the broader international context.

Pages: 14

Bangladesh has been drawing attention from the international communities for its all-round development over the past more than a decade. Appreciations for steady growth and development were received from the World Bank, IMF, and many economists all over the world. There have been lots of development activities visible across the country within this period. Along with economic growth, social sectors of the country have also witnessed substantial progress which results in an increase of per capita income as well as social advancement of the people. Despite these tangible developments both in rural and urban areas, the government has been criticized for its failure to ensure good governance in most of the sectors, jeopardizing development efforts in many cases to benefit the common people. Considering this context, the current study explores socioeconomic development activities that have already been undertaken in the last decade or so. It explains the relationships between good governance and development, showing how a lack of good governance affects development initiatives. The study also focuses on the necessity of good governance for development to improve the lives of the people. It is a review study based on secondary data collected from existing literature available in the fields of good governance and development in Bangladesh. The study finds that development activities cannot benefit the people in full if good governance is not ensured. Thus, good governance in development sectors seems to be the need of the hour.

Pages: 16

This study conducts a state-level analysis examining the influence of governance and per capita income (PCI) on the performance of the Integrated Child Development Services (ICDS) and the subsequent nutritional outcomes for children in India. To assess the quality and coverage of ICDS services across states, we introduce a novel ICDS Performance Index. Additionally, we employ combined diagram plots to illustrate the relationship between malnutrition, ICDS performance, and PCI. Our analysis, rooted in secondary data from various sources including the National Family Health Survey, reveals a marked variability in ICDS effectiveness across Indian states. Notably, states characterized by robust governance and economic growth demonstrate superior ICDS coverage, utilization, and service quality, coupled with reduced child malnutrition rates. Conversely, states like Bihar, Gujarat, Jharkhand, Maharashtra, and Assam exhibit higher proportions of malnourished children and governance challenges. In light of these findings, we advocate for enhanced ICDS programme implementation and governance improvements. The study further emphasizes the need to tailor interventions at disaggregate level, prioritizing low-performing states. Furthermore, we recommend government initiatives aimed at elevating the social and educational standing of women and girls.

Pages: 16

In today’s globalized world, governance is basically dependent on technology. Rural development in India is centring on the hegemonic influence of technological devices in administrative decisions. Information and Communication Technology (ICT) is now a powerful tool to contribute to the processes of democratizing governance cutting across the boundaries along caste, class, religion, or region blocs. Good governance in the light of rural development is now more effective by the implementation of ICT. People’s institutions in Indian states are great beneficiaries since the ICT’s application not only has administration become transparent, but it also has become accessible to the people at the grassroots who, so far, remained peripheral in the policy making. The main objective of good governance is fulfilled by the participation of people in different levels of administration. This chapter thus seeks to analyse whether ICT plays a vital role in rural development in terms of transformative as well as people-friendly which becomes a new area of enquiry by highlighting how technology can also be a leveller by building a space for engagement for common well-being. It finds that rural governance is becoming public, and people’s institutions for rural development at different levels are working efficiently and very effectively after the good use of ICT. The micro-level analysis shows that a few states introduced new strategy to strengthen people’s institutions working in grassroots levels due mostly to political interventions.

Pages: 54

No chapter abstract available.

Pages: 14

Renewable energy projects are very important for the sustainable development of countries. But the biggest problem with these projects is the high costs. The provision of appropriate financing opportunities helps to ensure the cost-effectiveness of the projects. In order for the credit process provided by banks to renewable energy projects to be effective, the risks in this process must be minimized. There are some risks in the financing process of clean energies too. The study is aimed to make a priority analysis with respect to the risks faced in the renewable energy financing process. By considering these risks stated in the literature, a criteria list regarding this issue is created using the analytical hierarchy process technique. It is determined that market risk plays the most critical role in renewable energy financing. Additionally, technology risk is the second most important risk in this framework. The price risk of the materials used in renewable energy projects is important. A significant portion of these substances may be imported from abroad. In this context, the prices of these products are strongly influenced by the values of exchange rates. As a result of a possible depreciation of the country’s local currency, these imported products will become more expensive. In this context, in order for the financing of these projects to be effective, issues such as exchange rate risk should be taken into consideration first. The study thus recommends effective governance practices for renewable energy financing to attain sustainable development.

Pages: 17

Beyond determining the effect of value-added tax (VAT) on economic development, this chapter highlights the moderating role of governance on the VAT and economic development relationship. The study was based on 30 selected high-tax, medium-tax and low-tax countries. The two-step generalized method of moments (GMM) estimation strategy was adopted based on data covering 1999–2022. The finding indicates that VAT has a negative and significant effect on economic development. This implies that VAT retards economic development. The results depict further that government expenditure, population growth, trade openness, education and inflation have positive effects on economic development. The result of the moderating role of governance on the VAT and economic development relationship indicates that although the governance indicators, bureaucratic quality, corruption control, government stability and political stability have the potency to mitigate the negative effect of VAT on economic development, corruption control exhibiting the greatest moderation effect. The study concludes that the accentuating role of VAT in the economic development of the selected high-tax, medium-tax and low-tax countries could be further enhanced by good governance, especially corruption control. We therefore recommend improvement in country’s governance, especially control corruption to enhance the accentuating role of VAT in the economic development process.

Pages: 21

The study utilizes a meta-regression analysis to specify the representative empirical effect of education on political instability based on 493 estimation results from 46 primary studies. However, diversity in reported estimates of effect sizes complicates to test the competing hypotheses. The results suggest the existence of a reliable negative significant impact of education on political instability; pacifying effect of education on political instability. The negative significant effect of education on political instability supports the first hypothesis of pacifying education, which asserts that education transforms individuals into better adults preferring peace rather than violence and improves social cohesion by increasing social responsibility, government investment in education directly reduces the grievances and conflict in a society by generating higher investment in human capital for a broader segment of the population. There is no publication bias regarding the overall findings of the primary studies but there exists a publication selection bias regarding the moderating variables; education/political instability indicators used, unit/time period analyzed, and estimation technique employed.