Governance frameworks of the IMF, UNDP, ADB and UNESCO

IMF

• The IMF's 1997 guidance note focused on economic governance: transparency of government accounts, effective public resource management and a stable, transparent regulatory environment.
• Its 2018 framework for enhanced engagement on governance assesses six state functions: fiscal governance, financial sector oversight, central bank governance and operations, market regulation, rule of law, and anti-money laundering and countering the financing of terrorism (AML/CFT).
• In Pakistan, IMF programmes include governance conditions such as SBP autonomy, asset declarations, tax reforms and an IMF governance and corruption diagnostic assessment.

UNDP

• UNDP's 1997 policy document described good governance as participatory, transparent, accountable, effective, equitable and rule-based.
• It links governance with human development, measured through the Human Development Index (devised with Mahbub ul Haq).
• UNDP supports democratic governance, parliaments, elections, local governance and rule of law programmes, including in Pakistan.

Asian Development Bank

• ADB's 1995 policy 'Governance: Sound Development Management' identified four pillars: accountability, participation, predictability (a stable legal framework) and transparency.
• ADB incorporates governance and anti-corruption into its country partnership strategies and loans, including public financial management and energy sector reforms in Pakistan.

UNESCO

• UNESCO focuses on governance in education, science, culture and communication.
• Its Global Education Monitoring Report 2017/8 examined accountability in education.
• It promotes freedom of expression, access to information and media development as foundations of good governance.

Other indicators used for Pakistan

• Transparency International's Corruption Perceptions Index.
• World Justice Project Rule of Law Index.
• Fund for Peace's Fragile States Index.
• UNDP's Human Development Index.
• Freedom House and RSF press freedom indices.

FATF: a governance success

Pakistan was placed on the Financial Action Task Force's 'grey list' for increased monitoring in June 2018 over deficiencies in anti-money laundering and terrorist financing controls. After completing two action plans with 34 items, it was removed in October 2022, showing that focused, coordinated reform can work.

Conclusion

Different organizations emphasize different aspects of governance, but all agree that accountability, transparency, rule of law and effective institutions are essential for development.