Improve Governance to Sustain Progress in Asia: Independent Evaluation at ADB
MANILA, PHILIPPINES, 29 September 2014—Weak
governance underlies Asia’s most pressing challenges of income inequality and
environmental degradation that threaten the continuation of the region’s strong
economic performance, finds a study by Independent Evaluation at the Asian
Development Bank (ADB).
The
just-released evaluation, ADB
Support for Enhancing Governance in its Public Sector Operations, says the
region’s rapid economic growth is not matched by improved governance—a
contradiction that can no longer continue as countries increasingly find that
the pace and the quality of growth depends on better governance.
Successive
ADB surveys taken in client countries rank corruption and poor governance as
Asia’s top threats to development progress, ahead of poor infrastructure and
environmental degradation. “The region’s governance performance is not in line
with its economic performance,” says the study.
Asia
leads the world in economic growth and poverty reduction, but ranks low among
the regions of the world in global measures of governance. Among Asia’s sub
regions, Southeast Asia fares particularly poorly in control of corruption and
South Asia ranks low in political stability. East Asia, the region’s driver of
economic growth, is weak on voice and accountability, which measures the extent
to which citizens can participate in policy making processes.
“For
most people, governance is identified with the quality of public services,
which has a weak record in many countries where paying bribes for processing
business applications or getting an electricity connection is common,” says
Vinod Thomas, Director General of Independent Evaluation at ADB. “With the
support of development institutions, country reforms—through interventions to
improve transparency, increase civic participation, and harness information
technology to improve public services—can make a difference.”
The
study encourages ADB to help improve results in the management of public
services and finances, noting Asia’s relatively poor performance in key
measures of governance. Support for governance reforms is a significant part of
ADB’s operations, with loans for public sector management accounting for 14%
($16.6 billion) of total lending from 1999 to 2013. Demand for ADB support in
this area has increased following recent economic crises.
“Improving
governance is a complex undertaking for the long-haul,” says the study’s
principal author Benjamin Graham. “Compared to other areas of development,
governance interventions are more difficult to design and deliver, and their
results harder to assess. But despite the tough terrain, successful governance
projects and programs can often have transformative country-wide impacts that
affect all sectors of an economy.”
Successful
governance reforms involving ADB include helping increase transparency in
procurement regulations in the Philippines, strengthening fiscal management in
Sri Lanka and reforming state-owned enterprises in Indonesia and the Pacific
islands. Evaluations show governance efforts often fail because of insufficient
capabilities and resources in governments to undertake reforms, unrealistic
programs, and weak commitment in the first place.
The
electronic delivery of public services—such as processing applications on line
and cash transfers to the poor—shows promise for improving government
efficiency and transparency, and reducing bribery by cutting out
intermediaries. ADB operations to improve public sector management are
increasingly using information and communication technology components.
Success
stories highlight the critical importance of political interest and commitment
in confronting long-standing problems and their essential link to technical and
financial support in effecting change. Encouragingly, the role that good
governance plays in promoting broader-based and sustainable growth is
increasingly recognized by governments in the region, among them, the People’s
Republic of China and the Philippines.
Says
Thomas: “Governments can no longer look to economic growth alone for delivering
lasting development. Asia faces urgent challenges in bringing about greater
inclusion and environmental care in its growth process. Better governance is a
common denominator in addressing them.”
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To download the
evaluation report, visit http://www.adb.org/documents/thematic-evaluation-study-adb-support-enhancing-governance-its-public-sector-operations.
About Independent
Evaluation at the Asian Development Bank
Asian Development
Bank’s Independent Evaluation, reporting to the Board of Directors through the
Development Effectiveness Committee, contributes to development effectiveness
by providing feedback on ADB’s policies, strategies, operations, and special
concerns in Asia and the Pacific.