2004-2005 Archives
The Link between Good Governance and Development Success: The Growing International Consensus
U.S. Department of State, Deputy Assistant Secretary for African Affairs Donald Yamamoto
Presented at the Conference: “Measuring and improving Governance” Held by Transparency International-Cameroon
October 17, 2005
Mr. Minister,
Mr. President,
Honorable guests,
Ladies and Gentlemen,
Thank you for allowing me to speak with you today, it is a great honor to address you on a key priority in advancing development - the issue of good governance. Congratulations and our deep appreciation to Transparency International Cameroon for your important initiative in making this program a reality.
We are all too familiar with the challenges facing Africa. 38 of the 48 sub-Saharan African countries are considered poor and 27 of these countries are considered highly indebted and are among the 50 poorest countries in the world. A core element in supporting developing nations on the road to prosperity and for unleashing the energy, vitality and imagination of the people is through good governance. Good governance is a cornerstone of our approach in Africa, an integral part of any strategy in enhancing bilateral/multilateral relations. Good governance is not an amorphous theoretical concept, concrete steps are essential in helping a nation progress on the road to development. Tied to good governance and an indicator of the level of success by a nation in establishing and institutionalizing good governance measures is the assistance and the level of assistance from the U.S. and other nations and institutions. A primary example is Millennium Challenge account. Here, good governance is one element, but an important element in determining MCA eligibility. Let me quickly review the genius of our thinking on good governance and how it is integrated in our bilateral/multilateral approach.
Starting in 2002, at the UN Meeting on Financing for Development in Monterrey, Mexico, the United States undertook a new commitment to increase its foreign development assistance. This commitment to become more involved in the international aid community required, however, an equally strong commitment from the recipient countries. In developing its new approach, the United States considered the ineffectiveness of the last 50 years of development aid programs. The United States also took into account the growing agreement within academic, economic and development circles that better governed countries used aid more effectively. With these things in mind, the United States forged a new path by declaring it would focus the bulk of its aid money on countries which were engaged in a serious effort of reform, both politically and economically. The United States would, henceforth, look for countries that respect human rights, fight corruption, invest in education and health, and foster open markets. As a result of these statements, an international consensus emerged from the Monterrey Conference. Among other things it stated that: “…developing countries confirmed their commitment to sound policies, good governance and the rule of law…” The Monterrey Consensus represents a major shift away from seeing development aid as the main tool for country growth. The Consensus views trade as the engine for development and private international capital flows, especially foreign direct investment, as a vital complement to development efforts.
But the challenge facing many developing countries and the foreign investors willing to work in them is: how do you promote trade and encourage investment in a corrupt environment? The answer is that you cannot accept, cannot condone, cannot tolerate corruption. The Monterrey Consensus points out that local governments must address this scourge.
The leading enemy of corruption has been and remains good governance. Corruption has played a significant role in the collapse of many countries’ economies. The successful implementation of any aid, or trade, program requires an unchallenged commitment to promote good governance and to fight the evil that corruption represents. Corruption flourishes when governments are opaque in the way they manage their accounts and approach their citizens. When governments make a profound commitment to their people and to improving their citizens’ lot in life, then they have taken a major step forward. But this commitment cannot exist only in words and on paper, it must exist in facts and actions.
The new United States Millennium Challenge Account grew out of these ideas. Before aid from this program can be spent, the Millennium Challenge Corporation must determine which countries demonstrate a commitment to just and democratic governance, economic freedom and investment in their people. This commitment can be seen through numerical indicators such as expenditures on health and education, or the number of days it takes to start a business. Just as importantly, it can also be seen through more abstract indicators such as:
- The promotion of political pluralism, equality and rule of law;
- Respect for human and civil rights;
- Protection of private property rights;
- The encouragement of transparency and accountability of government;
- Commitment to combating corruption;
- Encouraging citizens and firms to participate in global trade and international capital markets;
- Promoting private sector growth and the sustainable management of natural resources;
- Strengthening economic market forces; and
- Respect for worker rights.
These indicators are not goals in and by themselves; rather they measure policies that create the necessary conditions for a country to achieve broad-based sustainable economic growth. These indicators were selected based on their relationship to growth and poverty reduction. The common theme in all of them is governments’ commitment not just to helping their people, but also to being accountable to their people for doing so. Good governance’s importance to a nation’s development and escape from poverty is self evident in what it offers to a nation’s people. We witnessed in recent crises in Africa where lack of trust, lack of a transparency and lack of commitment to the welfare of the general public led to predictable yet certainly avoidable and unnecessary violence and a breakdown in the government. In other words: good governance and transparency are determinants of the health of a nation’s institutions, the commitment and support by the people for its government, and a consistent and predictable indicator of how crises are managed peacefully rather than through the deterioration to strong armed tactics. Our 2000 Presidential elections were messy and raised concern in the conduct of voting in key districts. But it also reinforced the institutions and process of good governance. The legal adjudication by the U.S. Supreme Court on the voting irregularities in Florida, while not universally supported, was accepted because it was done in a transparent manner and reinforced the already existing process of good governance. There was predictability, clear procedures, and a strong commitment by the public to abide by the results, despite controversy and even opposition. This is the benefit of good governance, it gives every people, every group, every ethnic and religious divide an equal voice, and full guarantee of rights and liberties that are the basis of good governance.
This focus on good governance is not meant to create an insurmountable barrier to receiving aid. Simple actions by governments such as reducing the time and the costs required to open a new business, encouraging the growth and development of free press through simple and efficient licensing procedures, or curbing aggressive behavior by security forces toward citizens, can improve countries’ performance on these indicators quickly and help them qualify for the new aid program. Countries like Mali and Madagascar were able to turn around their eligibilities in one year by taking strong actions. For many African countries the laws necessary to govern well and justly are already on the books. What is lacking is the political will of leaders to enforce them.
This is why discussions like yours today, focused on good governance, are so important. Cameroon has many of the tools necessary to achieve economic and development success. It has abundant natural resources and a well-educated population. It has a varied and lively media that freely criticizes the government. It has created several National Governance Plans to try to address national needs and has embraced the NEPAD guidelines. President Biya and Prime Minister Inoni’s commitment to combat corruption have generated important successes, including cleaning up the civil service rolls. The increased investigation and prosecution of abuses by security forces is sending a strong message on human rights. Signing up to EITI and engaging in a more transparent administration of the national budget and oil revenues are other significant steps forward. The MCA Board has noted Cameroon’s particular progress in the area of good governance and the fight against corruption, areas where many other nations fall short.
However, I think we can all agree that much remains to be done. The press continues to practice self-censorship because it feels its freedom of expression is not guaranteed. Private radio stations still operate without licenses and thus are vulnerable to retribution if they criticize the government. Civil service salaries remain too low, thereby encouraging corruption and the continuous harassment of citizens by security forces and others with regulatory power. And, both inside and outside the country, observers are still waiting for strong action to be taken against high-level corruption.
However, in discussing good governance, we cannot forget the critical role for the everyday citizen to play as well. Complacency on the part of citizens toward government actions, or their refusal to participate in government and civil society because it is “too hard”, also allows corruption to flourish. It is not just large acts of corruption taking place behind opaque laws and budget procedures that undermine good governance; it is also the small, daily acts of corruption in which everyone participates. Together, these attitudes and actions contribute over time to fostering a culture of corruption that even small children embrace and participate in. Governments, particularly those committed to “good governance,” are not just FOR the people…..they are BY the people. Citizens have a role in their country’s growth and development as well. Good governance is a two way street. The Government must provide its people with the freedoms they need to live and prosper. But, at the same time, the people must keep the government accountable to them and behave responsibly as individuals.
This view of good governance as key to effective development is one that has continued to gain support in the international arena. The recent G-8 Summit in Gleneagles, with its new commitment to Africa, reinforced the idea that countries which are well governed will benefit the most from new sources of aid. This philosophy is also the basis for the Millennium Development Goals of the United Nations. The idea that governments must work for their citizens, and must in turn be held accountable by them, is here to stay. The efforts to promote good governance practices is not a U.S. objective alone. We must coordinate and cooperate carefully with all nations to ensure there is consistency in approach, firmness in resolve, unity in action, and commitment to staying the course. As the developed world organizes to dedicate unprecedented resources to Africa, it should be clear what actions must be taken in order to qualify to receive them. Good governance – including a strong commitment to fighting corruption-- is at the top of the list. We in the United States Government look forward to continuing our work with the peoples and the Governments of African countries, including here in Cameroon, on this promising new approach to development. Together we believe we can attain the development goals so strongly embraced by the peoples and governments of Africa.
Thank you for your attention.