Participation, markets and democracy

Abstract

An emerging theme in development thinking and practice is the role of popular participation, and in particular of nongovernmental organizations (NGOs), in both the promotion of democracy (seen as essential for better governance) and the maintenance of a market economy. This paper examines the theme in its historical and intellectual context. It also attempts to provide guidelines on how an official multilateral agency, such as the World Bank, should deal with NGOs. First, the paper examines the assumption that participation and democracy will further the aims of good governance and thus promote development. However, there is a difference between forms of government and the characteristics of good government. The paper demonstrates that: (a) there is no empirical relationship between the form of government and successful development; and (b) a market economy which is needed to promote opulence is not dependent on democracy for its maintenance. Therefore, the World Bank can continue to concentrate on policy rather than the question of the ideal form of government. Second, the paper examines the claim that the design and implementation of World Bank projects and policy based lending will be improved through the active association of NGOs. The author concludes that mass participation, particularly through pressure groups, may harm rather than aid the attainment of both the ends of opulence and liberty.

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