Outline how Domestic economic governance and transparency may contribute to economic growth and development in developing countries
Economic governance and transparency are about being open and exposed to constructive criticism and rating on matters pertaining to sound economic management and performance. In perspective are the following issues:
- Allocation/distribution of national resources
- Strict adherence to established economic management fundamentals (involves chief executives and public accounting officers such as permanent secretaries living up to the full extent of ethical standards).
- Tax administration, use and distribution of tax revenue. On tax administration, control systems should be established to minimize tax evasion loopholes; equitable distribution of tax revenue with a view to providing public and merit goods and services for the sole purpose of improving the general welfare status of the people
- Integrity and relevance of key institutions of the central government e.g the Central Tender Board (CTB): Contracts should be allowed to attract competitive bidding and the mode of selection be well defined, with the results and reasons for selection of a particular bidder published (e.g. in the print media) for everybody to see; there should also be sufficient room for appeals for parties (in the bidding process) dissatisfied with the tendering procedure results.
- Due respect for merit tests – the mode of appointment to public offices or portfolios, for instance, should pass the merit test based on competence (itself based on the level of education, skill and professionalism). A permanent secretary in the Ministry of Roads & Public works, for example, should be a qualified engineer (Member of the Institution of Engineers); such human resource status ensures that road construction and maintenance meet the required specifications, which considerably increase the useful life of such roads and thereminimizing waste of pubic funds which occurs in terms of frequent high cost of reconstruction.