Higher growth and governance go hand in hand: ADB

3 October 2013 09:38 am Views - 3213

Governance reforms cannot be delayed if Asian nations are to promote higher growth, investment and poverty reduction, according to an update to the Asian Development Bank’s (ADB) flagship Asian Development Outlook report released yesterday.

“The accumulated global evidence makes it clear: Governance matters for development. Governance reform cannot be delayed. Good governance is needed to sustain development and ensure that the benefits of growth are widely shared.

In general, government effectiveness, the rule of law, regulatory quality and controlling corruption are found to be more closely and positively related to development performance than are voice or political stability,” the report noted.

Consequently, it was asserted that governments must narrow their focus to actionable areas with regards to reform in order to create an entry-point towards wider reform, adding that citizens often judge the quality of governance through their experience with public services.

“Despite significant improvements, essential services in many countries in developing Asia lag in quantity and quality. Shortfalls in public services undermine development outcomes and can, for example, leave primary and secondary students with reading, math and science skills below par,” the ADB observed.

Citing data gathered from Sri Lanka and India, the report noted social inequality persists with regards to access to education, with poor students achieving weaker math and English results than the rich.

“Impressive statistics for regions as a whole mask distributional disparities within them.

The benefits of public services accrue disproportionately to those who are not poor, while the amounts governments spend on the services the poor need most are limited,” the report asserted.

The report further asserted that engagement of local governments and the private sector could lead to a positive expansion of public services, particularly through the devolution of power to local authorities.

“Experience shows that devolving powers to local authorities, who are able to take on more responsibility, improves public service performance,” the report noted.