Policy Matters - Good governance key for a strong Asean

ONE cannot imagine a strong Asean that suffers from weak governance and poor institutions. Malaysia should use its leadership to build an Asean that enjoys good governance.
But before we run ahead, some building blocks have to be put in place.
Good governance contributes to economic growth. There is empirical evidence that good governance matters favourably and tangibly for an economy's development.
Daniel Kaufmann defines governance as the exercise of authority for the common good. This is a broad enough definition that can find life and be implemented through formal and informal institutions.
Kaufmann does elaborate on what is meant by good governance. By his definition, there is good governance if governments are democratically elected through fair and transparent processes. The replacement of governments should also take place with due adherence to constitutional processes, in an orderly manner, and without any use of violence.
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.
Kaufmann, to make governance measurable, has decomposed it into voice; political stability and the lack of violence, crime and terrorism; 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 a stability that is 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 take an interventionist government 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.
Further, 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 Asean is to be a unified entity and intends to attract investment, then it has to devote more attention to the question of governance and to sound institutions.
The principle of good governance has been recognised by Asean. The Asean Charter does declare its commitment to good institutions.
Article 1.7 of the Charter articulates that Asean should pursue democracy, good governance and the rule of law.
Article 2(h) of the Asean Charter states that Asean should seek to adhere "to the rule of law, good governance, the principles of democracy and constitutional government".
Malaysia as chair of Asean, has a brilliant opportunity to cajole member states into placing greater commitment towards achieving stronger institutions and good governance.
If in the remaining months of its leadership, Malaysia can convince member states of the importance of good governance, then Malaysia would have left its stamp on the history of Asean.
Many of Kaufmann's indicators are issues for individual states to implement. Others can cut across states. For instance, an Asean Competition Commission can be introduced. So, too, an Asean Human Rights Council.
Without touching on the sovereignty of nations, it is possible to promote a culture of good governance within Asean.
Prime Minister Datuk Seri Najib Abdul Razak elected to push for a people-centred Asean as the theme for Malaysia's leadership this year.
He should voice the need for good institutions. Nothing could be more people-centric than good governance and solid institutions.
Dr Shankaran Nambiar is a senior research fellow at the Malaysian Institute of Economic Research. The views expressed in this article are his own. Comments: letters@thesundaily.com