The World Bank’s published stance presupposes what is ‘good’ and what is
‘not good’ governance.49 In working to remove ‘politics’ from the debate (its
charter supposedly precludes directly addressing political issues), the Bank’s
position on governance is preoccupied with public sector management, the
reduction of transaction costs and contract enforcement. These issues are
certainly linked to sustainable human development but are not framed as central
to a conception of and strategy for governance that as a priority seeks to
maximise local participation in addressing the most pressing needs in a given
community. In contrast, the UNDP’s and the UN system’s evolving human
development approach to governance exhibits relatively greater support for
empowerment—that is, providing the tools of democracy and freedom that are
integral to the political and civic dimensions of governance. The Bank may not
be adverse to these issues but treats them as second order concerns, or ‘tag on’s’,
that are not valuable in and of themselves but rather desirable insofar as they
contribute to ef ciency and growth. Under the new political economy of the
1970s and 1980s, political rationality among policy makers was emphasised as
a variation on the neoclassical theme of economic rationality. This theme greatly
in uenced the crafting of the international nancial institutions’ (IFIs) governance
priorities of the 1980s and 1990s aimed at increasing economic ef ciency
and growth.
The World Bank’s published stance presupposes what is ‘good’ and what is‘not good’ governance.49 In working to remove ‘politics’ from the debate (itscharter supposedly precludes directly addressing political issues), the Bank’sposition on governance is preoccupied with public sector management, thereduction of transaction costs and contract enforcement. These issues arecertainly linked to sustainable human development but are not framed as centralto a conception of and strategy for governance that as a priority seeks tomaximise local participation in addressing the most pressing needs in a givencommunity. In contrast, the UNDP’s and the UN system’s evolving humandevelopment approach to governance exhibits relatively greater support forempowerment—that is, providing the tools of democracy and freedom that areintegral to the political and civic dimensions of governance. The Bank may notbe adverse to these issues but treats them as second order concerns, or ‘tag on’s’,that are not valuable in and of themselves but rather desirable insofar as theycontribute to ef ciency and growth. Under the new political economy of the1970s and 1980s, political rationality among policy makers was emphasised asa variation on the neoclassical theme of economic rationality. This theme greatlyin uenced the crafting of the international nancial institutions’ (IFIs) governancepriorities of the 1980s and 1990s aimed at increasing economic ef ciencyand growth.
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