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Governance and Anti-Corruption Reforms in Developing Countries: Policies,
Evidence and Ways Forward
Mushtaq Husain Khan
International institutions and in particular the World Bank and the IMF are rightly giving
a great deal of attention to issues of governance and institutions in developing countries,
and they are particularly concerned with corruption. There is strong evidence that
governance and institutions matter in accelerating development and in reducing poverty
in developing countries. However, the evidence strongly suggests that there is no
common set of institutions that all successful developing countries have shared. More
worrying is the observation that governance and institutions in the most successful
developing countries have often been starkly at variance with the good governance model
that international agencies are committed to. Even the most successful developing
countries have suffered from significant corruption and other governance failures during
the early stages of their development. However, they did have significant governance
capacities that allowed states to ensure that the conditions for rapid growth and sustained
political legitimacy of the state were maintained. A sustained pressure to reduce
corruption and improve governance is both necessary and desirable but these ends cannot
be achieved unless attention is also given to the governance capacities required for
accelerating and sustaining growth. The very desirable goals of good governance may be
neither necessary nor sufficient for accelerating and sustaining development.
Nevertheless, some types of anti-corruption and governance reforms are likely to be part
of
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