Globalization and Modal Shift in Governance for Development

Abstract

Globalization, or the unprecedented geographical expansion of human interaction, also implies its increased complexity. That, in turn, calls for sophistication in its governance system. Such need is particularly acute in the governance of developmental activities. The tenet of this governance is to conduct such activities so that they effectively contribute to the enhancement of people’s livelihood. However, globalization has provided people with more instruments and diverse opportunities to improve their livelihood. As such, even the national strategy for economic development must adapt to this change and it must provide the conducive institutional environment that encourages people’s initiative and innovation in making good use of such instruments and opportunities. Obviously, the centrifugal governance system, found in many Asian nations, is no longer effective, and it must be replaced with the centripetal governance system that allows the lower echelons of the governance system to take initiatives and make innovations. Recent efforts by the governments of Japan and Indonesia, both of which are known to have exclusively exercised centrifugal governance, to introduce “decentralization” measures in their governance systems, corroborate the impending need for such modal shift.