Politics and good governance Essay Example | Topics and Well Written Essays - 3000 words

Politics and good governance - Essay Example a great deal heat has been gene set upd on the the publication of the best foreign reciprocation rate politicsn for growing countries. I do not intend to add to it. I, however, do intend to draw attention to the study oppugn of this paper Is deputize rate regime the most important thing to focus on in developing countries Furthermore, is t here(predicate) really any exchange rate regime that is fail-proof Is there any that enjoys the upstanding support of the leading economists If there is, are there not sufficient illustrations of countries who failed using a regime others succeeded in If such cases do abound, are there not factors that made an otherwise workable regime unworkable in their situation We shall project at the factors we think might affect any exchange rate regime adversely. And it is our intention that these suggestions will trigger off further study on the subject matter and uncover several other factors. This is to say that the factors discussed here are not exhaustive. There is mode for further exploration of the subject and, indeed, that is the intent of this paper. We intend to stimulate interest that will fuel protracted research.We shall begin with those factors we believe have militated and still do militate against the successful writ of execution of exchange rate policies in developing countries. ... quality of governance in developing countries focusing specifically on political stability, the often defective and totally dissatisfactory electoral process, quality of opposition and separation of powers among other things. Finally, we shall look at the effects of social instability, lack of quality infrastructure, the absence of independency of controlling institutions and the stability and potence of the banking sector. Thereafter, we shall look at what we consider a make better process. It will be wise to state here that the process does not refer to any exchange rate regime. I t refers to what we consider to be a better approach to the issue of foreign exchange rate regimes. We believe that the process does not start with the implementation of any exchange rate policy, but the creation of an enabling environment and organisation of relevant institutions. The establishment of these relevant institutions does not refer to just setting up structures but truly entrenching these structures and their deserved independence in the consciousness of the population.The effect of the quality of the countrys PolityThe polity of any nation plays a major role in the policy thrust of the government. The level of accountability demanded by them and their level of involvement by means of their representatives go a long way in affecting the policies of that nation. The level of illiteracy in developing countries is certainly not as mellowed as that of developed nations. In fact, there is a high level of illiteracy in the lower developing countries. Furthermore, even for those who are considered educated, the level of background cognition necessary for proper evealuation of economic policies is very low or totally inexistent. Now, how does this affect the countrys foreign exchange