One cannot imagine a strong SADC that suffers from weak governance and poor institutions.
Namibia should use its leadership to build a SADC that enjoys good governance, but before we run ahead, some building blocks have to be put in place. There is empirical evidence that good governance matters favourably and tangibly for an economy’s development and, moreover, contributes to economic growth.
Good governance is exhibited when authority is employed to implement sound policies and effectively deliver public services. The institutions that govern economic and social interactions should be respected by the State.
Daniel Kaufmann, to make governance measurable, has deconstructed it into voice, political stability and the lack of violence, crime and terrorism, as well as government effectiveness, lack of regulatory burden, rule of law, and control of corruption.
As far as Kaufmann’s criteria are concerned, it is necessary that there be political stability, but not stability obtained through coercion and at the cost of freedom. He places considerable importance on the presence of free media and the ability to express dissent.
While he believes in government effectiveness, he does not argue that government must be interventionist to be effective. In fact, he is opposed to the presence of restrictive regulations, burdensome rules that hinder the private sector and individual enterprise. Surely, in this scheme, the successful operation of government-linked companies is not an indication of a government’s effectiveness.
Furthermore, the rule of law should prevail. It is obvious that the law should stand above individuals, no matter how powerful or well-connected they may be. Good governance is the bedrock of any economy. An economy that lacks good governance cannot provide a platform for business.
Taking a step forward, if SADC is to be a unified entity and intends to attract investment, then it has to devote more attention to the question of governance and sound institutions. Without touching on the sovereignty of nations, it is possible to promote a culture of good governance within SADC.
Desiderius S.L Amutenya
MBA student