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25 Governance: An Int'l J. Pol'y, Admin, & Institutions 1 (2012)

handle is hein.journals/gvnanlj25 and id is 1 raw text is: 




                      Commentary


           Does Governance Matter?

                       CHARLES KENNY*

The institutional theory of development appears to have swept  all
before it. Those traditionalists who argue for the centrality of invest-
ment  for growth are told that institutions determine its quality and
extent. Unreconstructed supporters of the primacy  of policies are
schooled that governance lies behind good policy selection and strong
implementation. All that is left to discuss is what causes strong insti-
tutions, to which the answer appears to be a whole load of history.
Indeed, the whole question of the wealth and poverty of nations some-
times appears reduced to an argument between  those who favor soil
type and  those more concerned with  disease burden at the time of
European  imperial expansion a century and a half ago or more.
And  if history really matters, the predominant literature suggests that's
because institutions are slow to change. A recent paper by Michael
Woolcock, Lant Pritchett, and Matt Andrews suggests that at current
rates of progress, it would take Zimbabwe  184 years to reach the
institutional quality of Singapore as measured on the Kaufmann, Kraay,
and Mastruzzi governance effectiveness index-given where it is today
and assuming  it started at zero at independence. It is hard not to get a
little depressed about the prospects for poor countries as a result.
There is a derogative term used by British historians to describe nar-
ratives that present the past of rich countries as an inevitable progres-
sion toward enlightenment and  wealth-it is called Whig History. It
might be fair to say that institutional economics has been hit with a
dose of the Whiggisms. For a start, it is clear from patterns of economic
growth  that there must be far more to income change than (glacial)
institutional change-countries  can  get richer without   reverse-
engineering their history to include a Magna Carta. Second, it appears
that some institutions can actually change reasonably fast. Third, coun-
tries weakly and strongly governed alike have seen dramatic progress
in health, education, reduced violence, and improved   respect for
human  rights.

Center for Global Development and New America Foundation
Governance: An International Journal of Policy, Administration, and Institutions, Vol. 25, No. 1,
January 2012 (pp. 1-3).
© 2011 Wiley Periodicals, Inc.
doi:10.1111/j.1468-0491.2011.01560.x