Economic Governance and Development in Vietnam and Mozambique

project summary

This research programme is an inquiry into: (i) why two developing countries, Vietnam and Mozambique, have achieved exceptionally high and consistent annual rates of economic progress for more than 15 years, (ii) whether the benefits of growth were transmitted to society at large, (iii) how key institutions and markets evolved and interacted, and (iv) what can be learned from comparing these two country experiences? Throughout, we also: (a) address the role and effectiveness of economic governance and foreign aid, (b) ask how governance affected the behaviour of economic agents and vice-versa, and (c) try to clarify what it would take to sustain development in the years to come. The central thesis is that well-functioning economic governance systems are crucial for sustaining growth, economic transformation and development. Other motivations include that: (i) Success is highly context specific. General policy guidelines are useful but not sufficient, and (ii) there is under-investment in economic governance systems. A more continuous flow of high quality information and analysis would permit the constructive debate and timely policy analysis required for effective local adaptation. An enhanced information flow would also improve transparency. The core output will include one edited book, 25 working/discussion papers, five articles in internationally refereed journals and at least four policy briefs. Results will be presented in no less than four international development conferences, and the research team will hold a series of four DERG seminars and eight research workshops in Vietnam and Mozambique each. Other communication activities will include three policy seminars to the benefit of the Danish, Vietnamese and Mozambican research and policy making communities. A special programme website will form part of the DERG web-site, and three project workshops will be held early, mid-way and towards the end of the project to plan, present and discuss activities and results.