Good Governance as a Tool of Sustainable Development


Good Governance as a Tool of Sustainable Development


1. Introduction 

In the period from the fifties to the eighties the dominant approach to development was based on orientation to increase the economic growth (Khan, 2007). After the World War II the main issue for developed countries was to maintain the economic growth while developing countries focused their attention on achieving the target of GDP growth which would, as it was assumed, automatically lead to a higher level of quality of life (Wang et al., 2008).  Some scholars point out the difference between growth and development and scholars are slowly beginning to embrace these differences. According to Banik and Yoonus (2012) the economic growth is a univariate concept measured purely on the basis of increasing in GDP per capita and much narrower concept compared to the development which is seen as a multivariate concept aimed at achieving quality of life. Stiglitz (1998) also perceives the importance of GDP growth but expresses the need to adopt a broader development focus. According to him GDP per capita is a means but not an end to improvement of living standard, health and education conditions and reduction of poverty. Leichtová et al. (2007) suggest that the growth in GDP per capita says little about real conditions in which people live. Soubbotina (2004) believes that the sustainable economic growth in developing countries is crucial for reducing poverty and increasing the standard of living, but also argues that economic growth is not enough. Nayyar (2006) indicates that the last half of the twentieth century has been characterized by enormous economic progress in the world based on a significant level of growth of global GDP. He also indicates that around 830 million people suffer from malnutrition, while 1.2 billion have no access to clean water, and even 2.7 billion people have no access to adequate sanitation facilities. Some scholars warn that despite the substantial economic growth and industrialization of many countries, the level of poverty continues to increase (Minujin et al., 2002; Plewes et al., 1996). According to Mitlin (1992), economic growth does not contribute to enrichment of the majority of population. In favor of this claim is the fact that 1% of the richest population has the same amount of income as the poorest 57% of the population (De La Barra, 2006). Ayub (2013) warns that too much inequality is destructive to economic growth, noting that the equality of income is an important precondition for sustainable development.  The institutionalization of the approach of sustainable development appears after the adoption of the report Our Common Future in 1987 by the World Commission on Environment and Development of the United Nations, known as the Brundtland Report. This report provided the most famous definition of sustainable development - “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (UNWCED, 1987).  According to Yamaguchi (2003), sustainable development represents the ideology of development strategies that need to solve previous destructive effects on development. Rees (2002) points to the growing criticism of expansionist theory that is closely related to the neoliberal paradigm where the economy is seen as an independent, self-regulating and self-sustaining system. Having in mind that the model of good governance is a child of neoliberal ideology, there is a growing concern about the possibility that this will ensure balanced approach to different and very heterogeneous values of sustainable development. In this regard, Mitlin (1992) warns that there is little agreement on how to achieve sustainable development goals.

2. Methodology

The basic layer of the analysis includes consideration of the effects on sustainable development of two different research models: the aggregate model of good governance and the disaggregate model of good governance.

3. Conclusion

Regardless of certain evidence that at first glance may indicate the connection between good governance and sustainable development, the existing literature also shows different points of view on the real effects of good governance. The reason for the critical analysis of the impact of good governance on sustainable development can be found in over-generalization of these ties without taking into consideration the specific characteristics of specific country or region. By accessing the "one size fits all" approach many significant problems have occurred in the implementation of the public sector reforms leading to the ineffectiveness of development aid and spending limited financial resources without achieving the objectives of sustainable development. In this sense, the multi-dimensional nature of the model of good governance and the heterogeneity of different goals of sustainable development are not recognized. Although our findings confirm the existence of the effects of good governance on selected indicators of sustainable development, the in-depth analysis of these relationships shows a more colored picture. The empirical study of the effects of good governance dimensions on the selected indicators of sustainable development, based on cross-sectional research from the perspective of different categories of countries, shows different statistical significance, intensity and direction of impact. The empirical findings ask for a significant review of the reform agenda of public governance. These findings are very challenging for the principles of post-Washington Consensus aimed at promoting model of good governance as a universal remedy for development in countries with different characteristics.



References :

Stojanovic, Ilja; Ateljevic, Jovo; Stevic, R Stevan. (2016). European Journal of Sustainable Development: Good Governance as a Tool of Sustainable Development. ECSDEV: Via dei Fiori, Vol. 5(4), p. 558-573