## Governance for Inclusive Growth

_IMF Working Papers, April 23, 2021_

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**Canonical URL:** [Governance for Inclusive Growth](https://www.imf.org/en/publications/wp/issues/2021/04/23/governance-for-inclusive-growth-50295)

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- [Markdown version](/en/publications/wp/issues/2021/04/23/governance-for-inclusive-growth-50295/index.md)
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## Bibliographic details
- Authors: Maksym Ivanyna, Andrea Salerno
- Published: April 23, 2021
- Series: IMF Working Papers

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### Summary
- The government’s ability to deliver inclusive growth crucially depends on the quality of governance.
- This paper reviews the linkages between governance and inclusive growth, and key policies to improve governance.
- The policies include:
  - (1) structural reform, automation, improving rules and procedures (including for fiscal and monetary policies) to limit the discretion and hence the space for policy errors;
  - (2) human resource policies, capacity building, effective anti-corruption frameworks to incentivize public officials to make decisions in the best public interest; and
  - (3) transparency, accountability, and inclusive political institutions to inform and monitor policymaking.

### Key Findings and Themes
- Governance quality is a central determinant of a government's ability to achieve inclusive growth.
- Limiting discretion through clearer rules and procedures (including fiscal and monetary) reduces the space for policy errors.
- Strengthening human resource policies and capacity building, together with effective anti-corruption frameworks, aligns public officials' incentives with the public interest.
- Enhancing transparency, accountability, and inclusiveness of political institutions supports informed policymaking and monitoring.

### Policy Recommendations
- Advance structural reform and automation to standardize processes and reduce discretionary decision-making.
- Improve rules and procedures for fiscal and monetary policies to constrain policy errors.
- Implement human resource policies and capacity development programs for public officials.
- Establish and enforce effective anti-corruption frameworks to incentivize decision-making in the public interest.
- Strengthen transparency, accountability, and inclusive political institutions to inform and monitor policymaking.

### Subject Areas and Keywords
- Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Civil society, Corruption, Crime, Economic growth, Economic sectors, Inclusive growth, Revenue administration, Tax evasion
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), central bank, Civil society, Corruption, Global, government discretion, government regulation, Inclusive growth, policy advice, poor governance, Tax evasion

*IMF Working Papers — "Governance for Inclusive Growth", ByMaksym Ivanyna, Andrea Salerno, April 23, 2021.*

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## Content in this bundle

- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2021/04/23/governance-for-inclusive-growth-50295_