Poverty reduction is a function of economic growth, income distribution and distribution changes. Governance can impact both growth and income distribution. The dominant market-enhancing governance paradigm seeks to enhance the efficiency of markets through ‘good governance’ reforms,...

Liberal economists have developed a framework of good governance as market-enhancing governance, focusing on governance capabilities that reduce transaction costs and enable markets to work more efficiently. In contrast, heterodox economists have stressed the role of growth-enhancing governance,...

The weak enforcement of a rule of law is closely related to the prevalence of corruption. Corruption involves different types of rule-violations by bureaucrats, politicians and businesses where power is misused for private benefit. Not surprisingly, corruption is correlated with the weak...