Public Service Delivery and Empowerment
Edited by Anil B. Deolalikar, Shikha Jha and Pilipinas F. Quising
Chapter 4: Governance and development outcomes in Asia
The relationship between governance and economic development is one of the most important areas of research in international development. Surprisingly, given the need to better understand it, much of the empirical literature has focused on the narrower question of whether good governance leads to higher levels of income (Evans and Rauch 1999; Kaufmann et al. 2009). Yet there is scant literature on the relationship between governance and broader development outcomes, such as poverty and inequality, human development, years of schooling, gender inequality, infant and maternal mortality, and access to adequate sanitation (the main exceptions are Rajkumar and Swaroop 2008 and Hallerod et al. 2013). With a focus on developing Asia, this chapter examines this relationship. Development institutions are increasingly realizing that good governance is not only a worthy goal in itself, but also a way to affect a variety of other outcomes, particularly economic growth and development (Gisselquist 2012). In poorly governed countries, high levels of corruption lead to the evasion of taxes that could have been used to finance productive government investment and service delivery to the poor (Rajkumar and Swaroop 2008).
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