The Economics of Governance: A Study of the Legal, Political and Economic Origins of Governance
Prof. Dr. Ahmed Gamal El-din Moussa
Professor of Economy & Public Finance – Former Education Minister & Former President of Mansoura University – Egypt
This research analyses the legal, political, and economic origins of governance through the best scientific contributions in the subject. Although the concept of governance is slippery and varies from one social science to another, it refers to the use of a set of mechanisms and rules aimed at enhancing the transparency of decisions, contracts, and transactions, thus improving the efficiency of the institutions, and supporting their control.
This research examines the importance of understanding the nature and forms of contractual arrangements and their link to the concept of governance. From the perspective of political science, the research reviews some scholars’ approaches to restricting the concept of governance by reducing the state to a minimum (the ‘minimal state’). However, there is agreement between scholars that the success of governance requires a high degree of institutional capacity, the promotion of decentralization policies, and experimentation with with new methods of governance that is more democratic, less bureaucratic, and closer to the concerns and aspirations of the citizens. Finally, the research reviews the results of several recent studies that have linked the issue of governance to economic development. This research sets out their findings and their implications on the evolution of developing countries.
The research concludes that governance is a new mechanism for finding a balance between freedom and responsibility. It meets a real need for contemporary societies and institutions, particularly in developing countries, provided that it is formulated in a manner that sees its efficient and effective application in reality.