Towards a Market Economy: Structures of Governance

16 Pages Posted: 15 Feb 2006

See all articles by Pierre Dhonte

Pierre Dhonte

International Monetary Fund (IMF)

I. Kapur

International Monetary Fund (IMF)

Date Written: December 1996

Abstract

This paper proposes an operational interpretation of the concept of economic governance. It argues that the capacity of governments to credibly ensure a secure economic environment provides an important benchmark against which governance can be evaluated. Such an environmentwhich is essential for sustained growth in a market economycan be established through a rules-based system which ensures freedom of entry into the market, access to information, and sanctity of contracts. Since creating a secure economic environment involves profound, far-reaching social change, it has historically been a complex and lengthy process in most societies. However, basing policy prescriptions on this benchmark helps avoid possible conflicts between different social and moral values.

JEL Classification: D78, E61, H11

Suggested Citation

Dhonte, Pierre and Kapur, I., Towards a Market Economy: Structures of Governance (December 1996). IMF Working Paper No. 97/11, Available at SSRN: https://ssrn.com/abstract=882229

Pierre Dhonte (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

I. Kapur

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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