CAIRO: “Sustainable development can only take place under good governance, said former Mexican President Ernesto Zedillo, in a speech given to the press to launch the Commission for Growth and Development.
As a developing country which is currently undergoing a spurt in its economic growth, Zedillo chose Cairo as the point to launch the commission, telling press, “It was first suggested to be launched in New York, but I had no interest in advising America’s economy. I felt it was more appropriate for it to be launched in a developing country. When I suggested it be held in Cairo, I was met with unanimous applause.
The commission was prepared by a group of 21 independent economic experts in an attempt to evaluate the reasons behind why certain countries, 12 in total, managed to achieve sustained development growth in the years following the Second World War, and why others have failed.
In identifying common factors, experts hope the research will serve as a potential formula to help developing countries achieve sustainable economic growth in future years.
According to the study, which was completed in two years and chaired by Nobel Prize winner Michael Spence, all 12 countries which have achieved sustained economic growth, including Oman, Malta, Japan and Thailand among others, have relied on the market economy and the private sector.
Those countries that have adhered to the economic doctrine of import substitution and closed borders have not achieved sustained economic growth, which can be defined as a steady growth of 7 percent for a period of 25 years, the study claims.
However, Zedillo issued a strong caveat to press; “These common factors are not tantamount to a silver bullet or a unique formula that can treat any country. Every country is of course unique in geographical conditions and historic circumstance, and the report goes to great lengths to show this.
But, as panelists Investment Minster Mahmoud Mohieldin ans Zedillo emphasized, economic growth should not be seen as a goal in itself, but as a focus from which to achieve equal opportunities and alleviate poverty.
Egypt is tipped as being the next country to join countries who have sustained economic growth, however, Zedillo, who is also director of the Center for the Study of Globalization, did not refrain from emphasizing the role of good governance in promoting, but not controlling, economic growth.
“Responsible governments need responsible fiscal policy and well financed social policies to ensure that citizens are not left out of the journey of economic growth, Zedillo said.
“This means guaranteeing good health services, equality before the law and equal property rights. A strong government is not one that controls every aspect of economic policy, but one that can ensure equality and use policy instruments to promote equality.
He gave the example of Mexican policy that has helped to reduce the plight of the most severe poverty stricken section of society. Generous financial benefits are given to the poorest of Mexico’s citizenry, and a larger portion is allocated to girls.
“We found that women suffer from discrimination, and therefore are in need of greater support to give them equal opportunities to succeed, said Zedillo “However, as we did not have the financial sources to undertake such a venture, we had to transfer financial support from those who are relatively better off.
The full report can be read on its website www.commission.org.
