ABSTRACT
Economists have realized that neither international aid and concessional loans, nor policy advice are enough to ensure that the development strategies many developing countries carry out will achieve the desired goals. It is now widely recognized that a necessary condition for such development efforts to be productive is good governance, which implies, among other things, a low degree of corruption. In fact, the ineffectiveness of development policies does not always result from an misidentification of the right policies. Rather, it may be due to actions of policymakers who bend economic policies for their own benefits.
