2006 Volume 15 Issue 1 Pages 131-144
This paper first examines the history of the development theories after the end of the World War II and finds that there happened two big paradigm shifts; the first one took place in the late 60's and the second one began in the late 80's, stemming from the strong criticism of the Neoclassical approach, and even today it still continues. Surprisingly enough, most of the new theories appeared in the second shift have common characteristics; good governance is the center of attention as an crucial factor of development.
Secondly this paper, after having analyzed the reason and background why good governance emerged as an important element in the development theory, concludes that development should be regarded as a dynamic and complex process where three major different dimensions are interrelated: economic, social and political (good governance). So these three dimensions should be focused on correctly in development, otherwise, development could not be dealt with properly. This paper also touches upon some serious and difficult problems to be faced when good governance policy are carried out in practice, because of the fact that good governance is related to the very politics of each developing country.
Lastly, this paper proposes a new idea in development assessment, based on the above mentioned new concept of development, through constructing the CDAI (Comprehensive Development Assessment Index), showing the way how the CDAI is obtained; multiplying the HDI (Human Development Index by UNDP) and the FI (Freedom Index by Freedom House). With the CDAI, it is possible to grasp a whole picture of a country in figures in terms of development.
This study also proves that CDAI is a strong means not only in measuring correctly the overall development achievement but also in offering common grounds for both donors and recipient countries.