Governance Agenda for Sub-Saharan Africa Issues and Challenges

TLDR: The World Bank has repeatedly argued that poor economic performance in most developing countries, particularly in Sub-Saharan Africa (SSA), is attributed to poor governance as discussed by the authors, and International financial institutions (IFIs) have since then focused on improving the effectiveness of public sector institutions and the performance of public policies.

Abstract: Poor governance is increasingly being cited as one of the most important factors contributing to poor economic performance in most developing countries. The World Bank has repeatedly argued that poor economic performance in most developing countries, particularly in Sub-Saharan Africa (SSA), is attributed to poor governance. The issue of governance was first raised in 1988 in the World Bank report evaluating ten years of structural adjustment lending experience. The report noted that “severe institutional and managerial weaknesses in the public and private sector have proved unexpectedly serious as constraints to better performance” (World Bank, 1988: 3). The issue of “good governance” was further amplified by the 1989 World Bank report on SSA when the crisis in the region was termed as a “crisis of governance” (World Bank, 1989). International financial institutions (IFIs) have since then focused on improving the effectiveness of public sector institutions and the performance of public policies. As observed by Naim (1999), the rediscovery of institution has become the key focus of IFIs in as far as reforms are concerned. Naim explains that “no speech or policy paper could be written about market reform without including a fashionable reference to the need to strengthen institutions” (Naim, 1999:12).