Governance in Southeast Asia: Issues and Options
AbstractThis paper attempts to analyze governance systems in Southeast Asia and proposes some policy suggestions that can improve governance practices in the region. It also discusses the links between governance and official development assistance and the role of the Japan Bank for International Cooperation. To put the discussion on governance systems in a proper context, the paper discusses the governance and growth nexus in Southeast Asia; describes the operating governance systems in Southeast Asia; analyzes economic governance, more specifically in the areas of economic management and growth, revenue generation, social spending, access to services, cost of doing business, and corporate governance; and examines political governance, focusing on the rule of law and judicial independence, conflict management, and voice participation. Regardless of level of development, Southeast Asian countries need to establish and strengthen their transparency and accountability structures, both in the public and private sectors, in order to continue the momentum for broad-based growth. It is also necessary to strengthen the fiscal autonomy of their sub-national units, and provide more room for participation by civil society groups. More responsive and simplified regulatory structures are needed, and so are strong law enforcement mechanisms. The rise of ethnic tensions argues for better peace-building institutions to narrow the gap between groups. In all these, the ultimate challenge lies in seeking allies and building constituencies for reform. To make ODA better managed and more effective, donors must work in partnership (that is, have a common basket) rather than in competition. Donors can also enhance the value of aid by increasingly providing ideas and not just goods, untying aid and allowing recipient countries to take “ownership” and greater flexibility in the use of aid. For Japanese development assistance, in particular, Japanese aid agencies must adopt a strategic approach to assisting poverty reduction in the poorer countries of Southeast Asia, while extending their concessional window to middle-income countries. Japan can do well in providing “ideas aid” based on the Japanese experience. Japanese ODA can have higher leverage if an increasing part of the aid is used for institution building and reforms in governance.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2002-07.
Date of creation:
Date of revision:
governance; development program; corruption;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Djankov, Simeon & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2001.
"The Regulation of Entry,"
Working Paper Series
rwp01-015, Harvard University, John F. Kennedy School of Government.
- Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andre Shleifer, 2000. "The Regulation of Entry," Harvard Institute of Economic Research Working Papers 1904, Harvard - Institute of Economic Research.
- Djankov, Simeon & La Porta, Rafael & López-de-Silanes, Florencio & Shleifer, Andrei, 2001. "The Regulation of Entry," CEPR Discussion Papers 2953, C.E.P.R. Discussion Papers.
- Djankov, Simeon & La Porta, Rafael & Shleifer, Andrei & Lopez de Silanes, Florencio, 2001. "The regulation of entry," Policy Research Working Paper Series 2661, The World Bank.
- Simeon Djankov & Rafael La Porta & Florencio LopezdeSilanes & Andrei Shleifer, 2000. "The Regulation of Entry," NBER Working Papers 7892, National Bureau of Economic Research, Inc.
- Fallon, Peter & Hon, Vivian & Qureshi, Zia & Ratha, Dilip, 2001. "Middle-income countries - development challenges and growing global role," Policy Research Working Paper Series 2657, The World Bank.
- Schiavo-Campo, Salvatore & de Tommaso, Giulio & Mukherjee, Amitabha, 1997. "Government employment and pay : a global and regional perspective," Policy Research Working Paper Series 1771, The World Bank.
- Claessens, Constantijn A. & Djankov, Simeon & Lang, Larry H. P., 1999. "Who controls East Asian corporations ?," Policy Research Working Paper Series 2054, The World Bank.
- Fisman, Raymond & Gatti, Roberta, 2002.
"Decentralization and corruption: evidence across countries,"
Journal of Public Economics,
Elsevier, vol. 83(3), pages 325-345, March.
- Fisman, Raymond & Gatti, Roberta, 2000. "Decentralization and corruption - evidence across countries," Policy Research Working Paper Series 2290, The World Bank.
- Filmer, Deon & Lindauer, David L., 2001.
"Does Indonesia have a"low-pay"civil service?,"
Policy Research Working Paper Series
2621, The World Bank.
- Pham van Thuyet, 1995. "The emerging legal framework for private sector development in Viet Nam's transitional economy," Policy Research Working Paper Series 1486, The World Bank.
- International Monetary Fund, 1997. "Corruption and the Rate of Temptation - Do Low Wages in the Civil Service Cause Corruption?," IMF Working Papers 97/73, International Monetary Fund.
- Humplick, Frannie & Moini-Araghi, Azadeh, 1996. "Decentralized structures for providing roads : a cross-country comparison," Policy Research Working Paper Series 1658, The World Bank.
- Grigorian, David A. & Martinez, Albert, 2000. "Industrial growth and the quality of institutions : what do (transition) economies have to gain from the Rule of Law?," Policy Research Working Paper Series 2475, The World Bank.
- Shang-Jin Wei, 1999. "Corruption in economic development - beneficial grease, minor annoyance, or major obstacle?," Policy Research Working Paper Series 2048, The World Bank.
- Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank.
- Campos, Ed & Pradhan, Sanjay, 1996. "Budgetary institutions and expenditure outcomes : binding governments to fiscal performance," Policy Research Working Paper Series 1646, The World Bank.
- Kawai, Masahiro & Takagi, Shinji, 2001.
"Japan's official development assistance : recent issues and future directions,"
Policy Research Working Paper Series
2722, The World Bank.
- Masahiro Kawai & Shinji Takagi, 2004. "Japan's official development assistance: recent issues and future directions," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(2), pages 255-280.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aniceto Orbeta).
If references are entirely missing, you can add them using this form.