ABSTRACT
This chapter examines several hypotheses that can explain the slowdown and the volatile and inequitable growth, and through a process of elimination it will advance theoretical and empirical evidence to show that the most powerful explanatory hypothesis lies in the decay of institutions of governance. It proposes a selective and incremental approach towards restructuring some key public institutions that pertain to accountability, transparency, security, economic growth and equity. The chapter also proposes an incremental and selective reform of some of the key institutions that can help in moving towards the goal of restoring the efficacy, efficiency and effectiveness of democratic governance. Numerous studies have demonstrated the linkages between good governance and healthy economic growth. Rashida Haq and Uzma Zia have explored linkages between governance and pro-poor growth in Pakistan for the period 1996–2005. The analysis indicates that governance indicators have low scores and rank at the lowest possible percentile compared with other countries.
