Empirical research to date has found a positive and significant relationship between good governance and economic performance.1 This finding has in part been behind the turn within the donor community to link aid allocation and governance. As defined by CIDA, “ Good Governance is the exercise of power by various levels of government that is effective, honest, equitable, transparent and equitable.” — CIDA, 1999
The independent Commonwealth countries in the Caribbean have identified the need for strengthened governance and accountability as issues of major concern and as impediments to their continued social and economic development. A climate where strong governance mechanisms are encouraged, and functioning, is required to ensure that the Caribbean Countries which are the subject of this Democracy Assessment 2 do not backslide from the significant democratic gains which all internationally recognised governance indices state have been achieved by the majority of these countries. This climate is especially important in dealing with emerging threats in regional countries that emanate from globalization, with specific reference to the emergence and expansion of trans-border organized crime and the spectre of international terrorism.
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