Bad Governance


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Bad Governance

  1. 1. 1 Bad Governance By: Claire Droumbakis, Angela Sclafani, Shannon Bergstrom, Agne Radaviciute, Claire Tedesco, Rachel LiGreci, Meghan Adinolfi & Kate Connors
  2. 2. 2 According to Collier… Ceiling to growth rate = 10% (no matter the govt.) Terrible govt. CAN destroy economy  Zimbabwe experienced econ collapse due to inflation created by President Mugabe “Good governance and policy can help a country to realize opportunities, but can’t generate them where there are none”  What This Means…say you have two equally bad governments  Bangladesh = lack resources  export labor-intensive manufacturing and services  Chad = resource-rich  landlocked  In which country does a “bad government” have a worse effect?
  3. 3. 3 CHAD! Why? Because it is LANDLOCKED, meaning that it cannot export easily…the government would have to be ACTIVE to help aid the economy, which in the case of “bad” government, it is not. Bangladesh is able to have a sufficient economy despite their bad government because they can export easily; the government doesn’t have to do much to foster trade.
  4. 4. 4 Believe it or not… Bad governance and policy don’t need to be a trap— countries can LEARN from their MISTAKES:  China  India
  5. 5. 5 So why does bad governance still persist? Not everyone looses from it  Leaders of poorest countries are some of super rich (want to keep citizens poor & uninformed) Shortage of people with requisite knowledge for reform Lack of popular enthusiasm for reform because it has been given a bad name (“conditionality”)
  6. 6. 6 Case Study: Country Policy and Institutional Assessment (by World Bank) Measures the pace of reform and who “wins” There is a certain “cut-off” and those below it are considered “failing states”  Fail citizens (stagnating population)  Failing to growdangerous living  Have to be below the cut-off for at least 4 years to be considered “failing”
  7. 7. 7 Do failing states turn around on their own accord? 7 •Turnarounds are rare because reformers are often suppressed or persecuted for their actions. •Two conditions for a turnaround: 1.) Large improvement 2.) Sustainability (for more than 5 years.)
  8. 8. 8 Preconditions: with failing states, a country was more likely to achieve sustained turnaround when… Larger population Greater proportion of population has secondary education  can work out reform strategies Recently emerged from civil war – relatively easy to get change 8
  9. 9. 9 Achieve sustained turnaround when… (continued) NOT NECESSARY to a have democracy or political rights Probability of sustained turnaround = 1.6%  most countries remain as failing states  Mathematical expectation- (average length of time it takes to get out of a failing state) = 59 years 9
  10. 10. 9 Incipient Turnarounds: the beginning Progresses a sustained turnaround if:  Larger population  Greater proportion of population is with an education Less likely to progress to sustained turnaround if…  Leader in office for long time  Favorable shift in trade  Recently emerged from civil war  Post conflict situation reforms will fail because it’s harder to sustain any continuous course of change  Post conflict situations = failing states, but change is relatively easy  *Post conflict situations act as major opportunities 9
  11. 11. 10 The Costs of Neglect: Why it matters for G8 Policy Cost of failing state is built up year by year Growth rate of failing state and states around it is sharply reduced $100 billion (lower bound estimate of what sustained turnaround is worth for a failing state over its entire history of failure) 10
  12. 12. 11 Top Ten Corrupt Countries 11 10.) Equatorial Guinea 9.) Uzbekistan 8.) Bangladesh 7.) Chad 6.) Democratic Republic of Congo 5.) Sudan 4.) Guinea 3.) Iraq 2.) Myanmar 1.) Haiti
  13. 13. 11 Pakistan 11 Pakistan is currently suffering from the affects of bad governance; one of the major reasons is the aftermath of the furious floods in the area. One of the biggest reasons for the country’s consistent governance disasters is the absence of strong institutions that can prevent or at least limit the circumstances and consequences of corruption. The government did not use the aid, given by other countries and organizations, to the areas suffering from natural disasters. The government disaster mismanagement is leading the country into even larger issues. 300million dollars in aid was given and has been diverted to other projects, for example the Pakistani Prime Minister gave a large amount of the money to his home city, Multan. This has become such a huge issue that the government will need to find a way to rework all its development and non-development budgetary expenditure, and must think of Pakistan as a whole if they ever want to recover.
  14. 14. 11 Kenya 11 The area of Kenya is suffering the effects of bad governance and has been engulfed in violence and disorder as a result of disputed electoral results declaration. Hundreds of people have been killed, millions worth of properties destroyed and thousands of people displaced from home. They are blaming this on 5 failures: Manipulation of electoral process to remain in power Electoral Commission bowing to pressures of leader and failure to uphold independence Failure of police and other security to keep law and order Failure of courts of law to protect independence and offer resolution of disputes Failure of rich donor countries and United Nations to take practical measures to reign in dictatorships.
  15. 15. 11 Nigeria 11 Government corruption in Nigeria has led to the deprivation of human rights in the country. According to the Human Rights Watch, state officials in Rivers, Nigeria have stolen money from the people which has taken away from the health and education of the Nigerians. Corruption in this country began when the country began making large sums of money from the sale of oil which led to large amounts of greed among government officials. Some of the main causes of corruption in Nigeria include weak government institutions, acceptance of corruption in by the people, lack of transparency in public service, and poverty. Corruption in Nigeria is very hard to crack because of the greed and selfishness within the government, the secrecy of the government, and the corrupt bribery tactics within the government.