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From Here to Denmark: The Importance of Institutions for Good Governance

Online ISBN:
9780191996986
Print ISBN:
9780198893103
Publisher:
Oxford University Press
Book

From Here to Denmark: The Importance of Institutions for Good Governance

Rajat M. Nag,
Rajat M. Nag
Distinguished Fellow, Emerging Markets Forum
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Harinder S. Kohli
Harinder S. Kohli
Founding Director and Chief Exectuvie, Emerging Markets Forum
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Published online:
19 October 2023
Published in print:
30 August 2023
Online ISBN:
9780191996986
Print ISBN:
9780198893103
Publisher:
Oxford University Press

Abstract

‘Here’ is a hypothetical place where governance is poor, and justice often denied. The situation in ‘Denmark’, another hypothetical place, is the opposite. The journey from Here to Denmark is a quest seeking good governance for all. That in turn needs robust, inclusive institutions which are both the formal and informal rules governing a society. Formal rules are essentially aspirational and by now, most countries have put formal institutions in place though many still do not perform effectively. Informal rules evolve from shared beliefs, social norms, mental models, and local cultural context. Such informal rules greatly influence how well institutions function in a society and take time to change and evolve. In addition to efforts at trying to make the formal institutions work better, the key challenges for any society are to build greater public trust, change peoples’ behaviors and influence informal institutions so crucial for better governance. Enhanced human capital through improved education and health will also be crucial to empower citizens and enable them to participate more effectively in the affairs of their society. There is no easy road map for this journey. Each society will have to find its own way to Denmark. But, history indicates that the arc of the journey does bend towards Denmark. The book has outlined ten global megatrends which give hope that many countries will indeed be able to reach Denmark, sooner rather than later, where, to quote Tagore, ‘the mind is without fear and the head is held high’.

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