'Effective state' key to economic development<\/p>\n
JAKARTA (JP): Effective state is the cornerstone of successful
\neconomies, and without it, economic and social development is
\nimpossible, the World Bank asserts.<\/p>\n
The World Development Report 1997: The State in a Changing
\nWorld issued in Washington today attributes the dazzling growth
\nof East Asia to effective state, one which harnesses the energy
\nof private business and individuals, and acts as their partners
\nand catalyst.<\/p>\n
The report, a copy of which was obtained here yesterday, says
\nthe global integration of economies and the spread of democracy
\nhave narrowed the scope for arbitrary and capricious behavior on
\nthe part of state.<\/p>\n
\"Markets and citizens have come to insist on transparency in
\nthe conduct of government and on other changes to strengthen the
\nability of the state to meet its assigned objectives,\" says the
\nreport which was prepared by the World Bank.<\/p>\n
The 265-page report examines what the state should do, how it
\nshould do it and how it can do it better in a rapidly changing
\nworld.<\/p>\n
The World Bank stresses that an effective state is vital for
\nthe provision of the goods and services -- and the rules and
\ninstitutions -- that allow markets to flourish and people to lead
\nhealthier, happier lives.<\/p>\n
\"What makes for an effective state differs enormously across
\ncountries at different stages of development,\" it says, adding
\nthat differences in size, ethnic make up, culture and political
\nsystems make every state unique.<\/p>\n
The report acknowledges there is no single recipe for building
\nan effective state but offers a two-part strategy to guide
\ncountries in this process.<\/p>\n
The first, it says, is getting governments to focus sharply on
\nthose core public tasks-- establishing a foundation of law,
\nmaintaining an effective macroeconomic framework, investing in
\nbasic social services and infrastructures, protecting the
\nenvironment.<\/p>\n
The second is reinvigorating state institutions by providing
\nincentives for public officials to perform better while keeping
\narbitrary action in check.<\/p>\n
The report cites three basic incentives to improve the state's
\ninstitutional capability: establish effective rules and
\nrestraints, foster competition and increase citizen's voice and
\npartnership with the private sector.<\/p>\n
\"Cutting back on discretionary authority on the part of the
\ngovernment is essential. Formal checks and balances can also help
\nreduce official corruption,\" the World Bank says.<\/p>\n
This, however, is not enough. Reforming the civil service,
\nrestraining political patronage, and improving civil service pay
\nhave also been shown to reduce corruption by giving officials
\nmore incentive to play by the rules, the report asserts.<\/p>\n
\"Government credibility-- the predictability of rules and
\npolicies and their consistent application--is important for
\nattracting private investment,\" the report points out.<\/p>\n
The report devotes one chapter specially to discussions on how
\nto minimize arbitrary state action and corruption.<\/p>\n
It calls for formal mechanisms of restraint that hold state
\nand its officials accountable for their actions. Two of principal
\nformal mechanisms of restraint are a strong, independent
\njudiciary and the separation of powers.<\/p>\n
Politicians, bureaucrats and judges control access to valuable
\nbenefits and can impose costs on private citizens and businesses,
\nthe report says.<\/p>\n
Countries which have so far achieved high economic growth
\ndespite serious corruption may find themselves paying a higher
\nprice in the future, the report warns.<\/p>\n
\"Corruption feeds on itself, creating a widening spiral of
\nillegal payoffs until ultimately development is undermined and
\nyears of progress are reversed,\" the World Bank cautions.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/effective-state-key-to-economic-development-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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