Governance, economy, and foreign aid

Much of the current donor discussion of governance takes place outside a historical or theoretical context. The governance issue is addressed within recent political science, development management, and institutional economics literature. Focus is given to accountability, participation, transparency, and predictability or the rule of law, and a discussion of the impact of these variables upon economic performance is included. It concludes that donors can best assist good governance to develop by helping to foster conditions under which developing societies can push their governments to deliver the accountability, transparency, and rule of law that sustainable development requires.