Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2019.1676282
Governance spending fixation as a tool for reform to improve institutions
Eimantas Blažys
Sažetak
There is a consensus in the scientific community that most often
the main obstacle to development is the absence of good institutions,
however, it is also widely recognised, that this idea is of little
use without explanations on how they can be improved and made
to self-sustain ‘good equilibrium’. Purpose of this article is to propose
such an explanation together with a tool for reform that could
potentially address this issue. For this purpose, literature review is
conducted to explore links of institutions to economic growth in
search for opportunity to have a positive effect to the system
through means of reform. Such an opportunity is found exploring
governance-corruption-economic growth connection, to exploit
which, a simple method is proposed that involves only basic math.
A matching exercise between governance spending variables and
governance evaluation variables reveals both a best way to judge
governance spending and a potential value for orientation that
could be used for limiting misallocation of resources in countries
with governance overspending. At first glance a modest find may
have significant practical implications, as this value could be used
as a tool for reform, application of which could be expected to
have an effect in two complementary ways: pragmatic – inefficient
use of resources could be limited by diverting them to other government
sectors; and incentives based, which when looked at
through a lens of literature on ‘New institutional Economics’ looks
especially promising, as in essence it could potentially enable application
of principle of free market in state governance for most of
poorly governed post-socialist European countries.
Ključne riječi
Governance; institutions; corruption; incentives; reform
Hrčak ID:
254428
URI
Datum izdavanja:
9.2.2021.
Posjeta: 649 *