Measuring Economic Governance at the Subnational Level: Improving Local Economic Governance in Myanmar, Sri Lanka, Mongolia, Malaysia, Indonesia, Cambodia, Bangladesh, and Vietnam

Abstract

A dynamic and healthy private sector is widely regarded as the engine of long-term economic development. Countries compete to attract investment and those that succeed in creating business environments that support competitive entrepreneurs have reaped significant economic growth. Sound national policies are not sufficient to achieve balanced and equitable economic progress. Efforts to promote competition at the local level must complement national efforts, especially for micro, small, and medium enterprises (MSMEs), the major source of employment for most countries in Asia. MSMEs are often constrained by a wide spectrum of institutional obstacles. To address these constraints, The Asia Foundation has developed specialized tools and approaches to increase the engagement of citizens, businesses, civil society and other stakeholders in effective economic governance, including public-private dialogues (PPDs), regulatory impact assessments (RIAs), political economy approaches to economic reform, and the Foundation’s signature Economic Governance Index (EGI). These efforts are aimed at expanding public participation in governance and decision-making and broadening the benefits of economic and social development.