Here - SAARC Human Resource Development Centre

SAARC Human Resource Development CentreGovernance Indicators: SAARCInd Pak Ban SL Bhu Mal Nep AfgGE 55 20 16 49 70 45 18 3VA 60 21 35 30 28 40 29 10PS 17 2 10 16 73 40 7 3RQ 45 30 23 44 15 40 24 3RL 55 20 27 53 60 52 18 1CC 48 26 27 47 75 27 27 25Why Governance is poor• Principle Agent Problem• Aid Dependence• Initial conditions– Extractive Institutions– Feudal Structure– Inequality– Roving and Stationary BanditsPoor Governance: Causes• Unnatural Birth• Incomplete State formation• History of External Control• Declining cost of military superiority• Unearned incomeState Income Is Earned: BetterGovernance, Why?• Organizational effort to earn income• Political Effort• Information on public• Increase in income, increase in taxes_ Govtand citizens have common interests• Scope for representative government– People would like to see how their money is used.Further Readings• Bottom Billions by Paul Collier• Freakonomics by Stephen Levitt• Hazrat A’li’s Letter or Epistle to Malik AshtarThank You64