ABSTRACT
This chapter traces a number of developments in Pakistan that brought poor governance and corruption to the center of the political stage in 1996-1997. It defines "governance" and "corruption" and provides some impressions of how they influence economic development. The chapter utilizes examples from Pakistan's history to illustrate how poor governance and rampant corruption can inflict an enormous amount of damage on the economy and the society. It identifies the reasons for the corruption that has afflicted the Pakistani political and economic systems in the last several decades and for the people's vehement reaction to these developments in the fall and spring of 1996-1997. The chapter provides an assessment of efforts being made by the government currently in power to deal with the twin problems of corruption and poor governance. Transparency International's 1996 report received a great deal of attention in Pakistan and provided the subject of corruption the salience it had not acquired before.
