The causal relationship between good governance and economic growth in Arab countries

BELAILIA Rabie, BOUFAS Cherif, DJOUADI Issam

Abstract

If governance refers to the manner in which governments manage resources fairly, honestly, transparently and responsibly, the goal is to reduce the gap between individual per capita income and to reduce the impact of corruption through governance initiatives. However, it remains a multidimensional concept as most international institutions have their own definitions.

Too often, decision makers do not pay enough attention to good governance when deciding what economic policies to follow or where to invest. This has been reflected in the faltering economic growth in the Arab countries, especially in spite of the volume of public investments. The weakness of economic growth is due to the nature of the institutional framework for directing investment, where many projects do not undergo any feasibility studies of cost and return, Medium and long term.