functioning Economies + governance

Functioning economies and good governance go hand in hand, as one cannot exist without the other. Good governance provides the necessary framework for an economy to function as intended, by ensuring that laws, regulations, and policies are fairly and effectively enforced and that economic actors such as businesses and individuals have the necessary incentives and freedoms required for economic growth. Furthermore, good governance ensures that economic benefits are distributed fairly, creating a healthy and sustainable economic environment. On the other hand, a functioning economy creates an environment that is conducive to good governance. A functioning economy generates sufficient tax revenues for the government to use for public services, infrastructure, and other activities that promote sustainable economic growth and stability. Additionally, when the private sector is vibrant, it can bolster the government’s capacity to deliver public services, while also providing jobs and incomes to citizens, as well as other critical resources to strengthen the rule of law.