Media Type

Keynote Address

Publication Date

12-5-2017

Description

This paper attempts to examine several alternative hypotheses that can explain this slow down, volatile and inequitable growth of the last twenty five years and through a process of elimination advances theoretical and empirical evidence to show that the most powerful explanatory hypothesis lies in the decay of institutions of governance.. The same institutions , on the other hand, were strong and performed quite well during the first four decades despite a myriad of difficulties and external and internal shocks. The main argument of this paper is that the intermediation process through which good economic policies are translated into a rise in incomes and equitable distribution of benefits involves these institutions of governance. It is the quality, robustness and responsiveness of these institutions that can transmit social and economic policies. The main institutions of governance consist of judiciary needed to protect property rights, and enforce contracts; legislature that prescribes laws and the regulatory framework and the executive that makes policies and supplies public goods and services. If the access to the institutions of governance for common citizens is difficult, time consuming and costly, the benefits from growth get distributed unevenly as only those who enjoy preferential access to these institutions are the gainers. The experience of Pakistan and lessons from other developing countries suggest that it is the interaction between policies, institutions and leadership that promotes good governance. Sound economic policies do not get implemented because of poor institutions and weak leadership. Let us begin by examining the most popular hypotheses which are advanced in the academic literature as well as popular discourse for explaining the decline since 1990s.

Notes

Key note address delivered at the 12th Sustainable Development Conference organized by SDPI at Islamabad on December 5, 2017

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