ABSTRACT
This chapter explores how the political economy constraints might be overcome and what contribution the donors might make, if any, to promoting a solution. It sets out a conceptual framework that aims to help explain how states put in place the institutions that create enabling environment to allow accelerated social and economic development. The chapter examines how Bangladesh fits into this framework. It discusses who might be the drivers of governance reform, what constraints they face and how these might be overcome. Better governance is seen as emerging through a protracted process of negotiation among competing factions within the elite and the need for rulers to respond to the growing expectations of a better educated and informed citizenry. The patronage system, which Wood has aptly described as 'imprisoning' Bangladesh society, challenges reformers keen to promote a 'good governance' agenda. A governance assessment commissioned by a donor in 2008 marks a watershed in that donor's thinking about governance reform in Bangladesh.
