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Governance Evolution and Impact on Economic Growth: A South Asian Perspective
Abstract
Governance matters (Kaufman, et al, 1999) for growth is now an accepted dictum. However, there are as many hypotheses as to what constitutes governance 'as there are researchers in the field' (Bressers, J.T.A. & Kuks, S.M.M., 2003). Apart from econometrics, political science provides important insights on factors that influence governance and facilitate growth. This chapter examines the political history and economy of South Asia to determine the features that shaped governance and affected economic growth. It finds that governance in South Asian context evolved through three phases. Using a comparative perspective of GDP growth rates and World Governance Indicators in South Asia and Brazil, it analyzes the relationship between political history and economy in each phase. The findings indicate that political ideologies, stability of regimes and policy continuity hugely influence the institutions of government and economic growth. The chapter also finds that people's participation in governance would enhance growth and distributive social justice.
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