Governance key to economic development

  • 2014•09•02     The Korea Herald

    Excerpt from The Korea Herald.

    Finn Tarp, director of the United Nations University’s World Institute for Development Economics Research, said that governance has emerged over the last 25 years as a “major concern for both donors and aid recipient countries.”

    He defined governance as “the exercise and organization of political power to manage a community’s affairs,” emphasizing its critical influence on development. With public sector management and transparency and accountability being overarching elements, key political components include democracy and representation, rule of law, and human rights, while public financial management and an economic regulatory framework serve as core economic values.

    “Clarifying our conceptualization matters because it leads to different assessments of the quality of governance, which can affect the distribution of aid,” Tarp said during his keynote speech.