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 Budgeting and Governance in Iran |
May 2009
Bayazid Mardoukhi
Department of Economic Research/ Planning and Budget Studies Research Group
Economic
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Abstract
“Governance” was introduced by international financial organizations such as the World Bank and the International Monetary Fund (IMF) as well as specialized organizations of the United Nations such as the United Nations Development Program (UNDP) in 1980s subsequent to the failure of many plans which were internationally funded. In 1980s and during negotiations between the World Bank and some African governments presenting investment plans to the Bank, experts explicitly told them that their plans were technically and economically feasible, but they were not qualified to receive loans due to political corruption, bureaucracy, rules and regulations incompatible with development, and problems which resulted from lack of good “governance.”
Demographic changes, citizens’ expectations and their awareness about their economic, social and civil rights, one the one hand, combined with growing corruption and inefficiency of many governments and corporations , on the other hand, called for more attention to governance. This question as to why some countries are unable to achieve the desired development though they enjoy all necessary means of economic growth, led to a search for another factor, which was identified as absence of good “governance.”
“Governance” determines how economic, social, and political authority and order should be enforced to help development. Previous experiences have proven that despite financial resources and technical feasibility, programs, budgeting, and plans have failed to achieve their goals mostly due to the absence of “governance” in respective countries.
This paper focuses on governance to help development efforts in the country, most of which hinges on budgeting system, government’s budget policies, and executive mechanisms.
To read complete text of this policy paper on the Persian website click here.
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