Governance and Development in East

Asia Public Lecture

Asia-Europe University Phnom Penh, 27 February 2016

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Governance

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Participation

Predictability (legal framework,

effective regulation)

Transparency and Accountability

Responsiveness

Development Western development may not be a model for the developing world The developing world cannot start with the Western democratic model The West has first mover advantages

In Britain and France, democracy came in stages, product of centuries of development American democracy a transplant from Europe The West was not threatened by MNCs or predatory globalization The West was allowed time to develop

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Development A slow transitional process, interaction

between economic and industrial development For Britain

Constitutionalism came first, then industrial development, then transition to democracy, then further development

For France Democratic ideals exploded in the 1789 revolution,

constant battle between religion and secularism Philosophic and educational development in 19th Century Path to democracy after Napoleon 3rd, the third republic in

1871

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German and Japanese development

German [Prussia] Education came first Scientific education, the university of Berlin 1807 The modern university, academic freedom and

Wilhelm Humbolt 1834, secondary school system After unification in 1871, great development of

German industry and commerce

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Japan High level of literacy in the Tokugawa era, Terakoya

temple schools for commoners, Hanko, schools for the bushi

Japan could absorb Western influences 1890-1910 rapid development of primary school

education Secondary schools and universities modeled on the

German system

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What is required for development

Democracy does not come first, without the preconditions it will hamper and prevent development

Democracy without the preconditions will create an oligarchy that will preserve it own position, little responsibility

for the education or welfare of others it will cooperate with external economic interests, the

source of its prosperity In globalization it means open markets and external

control of the economy 7

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Social System Society-State

Relationship

Methods of selecting officers

Public services and

trust Discipline and Self-criticism

Social Order

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Global and Regional

Governance Institutions

National Governance

Development

(sustainability,

inclusiveness)

Developmental political authority and leadership

Bureaucratic capacityInstitutions

Rules and norms

Political leadershipEverything starts with leadership

Non corrupt, educated and economically literate leadership with a strong concept of the public good

To ensure stability, the management of conflict

To devise economic and industrial strategy To control traditional vested and populist

interests which survive on corruption and rent seeking activity

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Sources of leadershipCultural/moral

Confucian concepts of governance The benign authority Concern for duty, norms and practices Stress on education and promotion by examination The responsibility of authority and power

The Hindu-Buddhist concept of the state Literacy and education

Educational Education is critical, receptiveness to new ideas and the interests of others

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Political leadership Development demands foundational investment

which only can be ensured by the state Public security and order is an investment, control

of crime, corruption, and disorder The underpaid and uncontrolled police and military When the police become the criminals Public education is a major investment, when

education becomes privatized, only the oligarchy can benefit, the result is that the rich-poor gap is made wider

Education is not only a matter of literacy, but it provides the technical and managerial skills necessary for development

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Bureaucratic capacityEffective bureaucratic capacity where competence and merit are standardsEfficient economic bureaucracy is essential, economics, industry, customs, taxationAsian countries have a bureaucratic tradition, the impact of Confucianism The relationship between effective bureaucracy and development success The Prussian state and its bureaucracy, the foundation for subsequent German development

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Bureaucratic capacity Education is not a private sector responsibility, State

investment in secondary and higher education is required to improve the quality of the work force

Infra structure development, transport, roads and railways, telecoms and internet, electricity and water services, state banking and finance

Effective regulation R & D costs beyond the capacity of individual

companies, require state investment.

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Development by bureaucracy

When development is accelerated on the basis of effective leadership and bureaucratic capacity alone

The Chinese model of development

The Japanese model of development

Stability and predictability to promote growth and development, FDI-led growth can be assured

Can this model be sustained? Will they be compelled to change to resolve present problems

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Institutions Institutions are organizations or groups bound by a common idea, practice or belief Economic or governance institutions constrain arbitrary government and personal behaviour Institutions are essential for the regulation of economic activity, their existence is a result of government’s abnegation of control and willingness to allow autonomous regulation Governance institutions are operating functional economic and regulatory bodies

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InstitutionsGovernance institutions clash with traditional

family and tribal loyalties, they must be promoted by the political authority Central bank, some degree of professional autonomy, the

dangers of political influence and control Regulatory authorities over the banking and financial

system Audit and accounting bodies Financial and capital markets, capacity for self

regulation Professional associations, accounting and legal

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Rules and normsRespect for the public goods, a concept central to

the developed world When ministers are obligated only to tribe, kin

and family? When corruption is legitimized by traditional values?

A commitment to the public good entails, a willingness to oversee transparency of the

system, to enforce rules and norms and to exercise political will against

obstructive vested interests and corruptionRespect for public good as an accepted criterion

for leadership18

CorruptionCorruption as traditional behavior,

When leaders feel obliged to ensure opportunities for children

When traditional values allow one to take something of what is available

When traditional societies keep salaries of public officials low, the police and the judiciary

Growth and development can expand opportunities for corruption, which can provoke social and political upheavals

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Civil Society Civil society as voluntary associations

supported by communitarian norms Civil activity separate from the state and

independent of government Interest groups, political parties social

movements, professional bodies, NGOs, trade unions, employers groups, chambers of commerce

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Civil society Civil society checks state power, it is essential

for the efficient operation of a democracy It entails self management and responsibility

for the functioning of government Corruption control requires civil society,

particularly in the economic sphere The norms and institutions of government are

reinforced by civil society

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Political democracy Democracy is not enough Democratization without corresponding

development of governance institutions brings development failure, and corruption.

The result is weak government, extreme popularization of issues public security may deteriorate.

Government may be captured by factions, families and kinship groups, concept of public good is absent

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Premature democratization

Democracy as a political system implanted in society or culture that is not prepared for the responsibilitiesPopulist leaders struggle with family based elites which have economic power or control of regionsThe appeal to populism wins elections.Democracy can co-exist with low educational levels and great povertyFinancial irresponsibility, weak public servicesWhen corruption becomes a right, one of the perquisites of high office

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What is required? Democracy brings pluralism but requires supporting

institutions and norms for its effective functioning Democracy may take different forms according to the level

of development, education of a country. The key features are

Mechanism to ensure change of government and leadership

Accountability and representation Free and regular elections

Civil society will take time to develop, cannot be expected immediately

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Democracy promotionRather than promoting democracy politicallyFocus upon economic growth and development, which

may create the demand for institutions and normsInstitutions allow self regulation and internal response

and adjustmentInstitutions encourage responsibility for one’s actions,

their presence then fosters the norms of civil society

Institutional development may conflict with populist democracy, may be attacked as elitist

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Asian developmentAsia’s path of development may not bring liberal

democracy to all countriesVariant pluralist systems that will incorporate some

necessary institutions and rules of interactionThese variant models may survive and prosper, they

may be replicated in other parts of the developing world

Why Africa and the Arab world should look at AsiaDevelopment comes first, later transition to

democrat pluralism can be initiated.

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Region and regionalism

To get to know Southeast Asia Different cultures, religions and their

histories The role of regionalism in development

How regionalism promotes development? strengthening domestic development promoting a framework for security

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Southeast Asian Development Model?

7th largest world economy 4th largest world economy (2050) Who leads development?

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ASEAN