The Governance of Economic Institutions: Towards a New Culture of Development

Abstract

This article analyzes the concept of governance, which emerged in the early 1990s under the impetus of international organizations. Initially conceived as a methodology to address the shortcomings of public administrations and promote development in the Global South, governance has rapidly gained importance worldwide. It proposes a model of societal management based on the interrelationship and collaboration between the state, the private sector, and civil society, in response to the challenges posed by globalization, economic competition, and citizens' aspirations for sustainable development. "Good governance" is thus defined by a set of normative principles such as transparency, accountability, citizen participation, and the rule of law, requiring a profound reform of state institutions. However, the article highlights the controversial nature of this concept. Its emergence coincides with major phenomena such as the crisis of the welfare state, waves of privatization, and democratic transitions, sparking a lively debate on redefining the role of the state. The aim of this analysis is to examine the two main approaches that structure the study of governance. The first considers it as a technical and managerial tool essential for institutional reform and resource rationalization to achieve development. The second, more critical, sees it as an ideological concept, instrumentalized by international financial institutions to impose neoliberal conditionalities on developing countries in exchange for financial aid.