DOES GOVERNANCE CONTRIBUTE TO PRO-POOR GROWTH? EVIDENCE FROM PAKISTAN
Economic growth is the spine of prosperity, and one of the essential agents which spur economic growth is ‘good governance.’ The study has introduced various types of governance indicators, namely; political governance, economic governance, and institutional governance, and then find out that how good governance of these areas is related to pro-poor growth. The empirical analysis of different countries in the study reveals that good governance is an agent of faster economic growth in the long run. On the other hand, lack of quality governance obstructs growth and investment and aggravates poverty and inequality. Poor governance hinders every effort for the improvement of infrastructure, investment, and educational standards. In the case of Pakistan, many problems of social and economic deprivation of people have directly related to the low economic growth. Furthermore, the study has also elaborated that good governance has a positive influence on economic performance. Good governance means that institutions work to fulfill the needs of society while ming the best use of resources. However, in developing countries like Pakistan, public institutions are overwhelmingly ruled by authoritarian and corrupt leaders, which make these institutions a root cause of countless economic, political, and social problems.