Our Analysis

State Effectiveness Roundup

October 2024

2024 has been dubbed the year of the election, with over four billion people casting their votes in the biggest election year in history.


In Australia we’ve been watching our neighbours in Tuvalu, Indonesia and Solomon Islands head to the polls, and we’ll be watching with bated breath for the outcome of the US presidential election next month.

On the one hand, there’s reason to be concerned about the state of democracy globally - we’ve seen democratic backsliding, erosion of values and closing of civic space. However, we’ve also seen increased resilience in democratic institutions and continued participation in democratic processes.

At the Lab, we’ve been turning our eye to the region, and the role Australia plays in supporting effective and accountable states through its International Development Policy. According to the policy, this looks like transparent, accessible, and responsive governance along with strengthened public institutions and support for positive technological change.

We examine why democracy and state effectiveness matters, what it means and how Australia could more effectively deliver effective governance and democracy support in the region.

Some of the questions we asked, and discussions we had, included:

         Using the aid program for geostrategic competition: good, bad or indifferent?

         Should democracy have a greater role in Australian foreign policy?

         What’s the case for doubling down on governance efforts in the development program?

Whether you're looking for quick takes, key quotes or a deep dive starting point, this Roundup is an easy-to-digest summary of expert insights from Lab contributors. It’s your guide to state effectiveness.

Jump in for more.

Ruby Saulwick
Ruby Saulwick
Project Assistant
Heather Murphy
Heather Murphy
Head of Analysis and Engagement

On why democracy matters

As Senator the Hon. Penny Wong stressed in April last year, “we deploy our own statecraft toward shaping a region that is open, stable and prosperous. A predictable region, operating by agreed rules, standards and laws.” While there’s debate as to whether Australian foreign policy should prioritise supporting democracy, experts stress the knock on benefits of effective states and good governance in the region - and highlight why Australia could do more to share its values.

Bridi Rice, in the United States Studies Centre Debate Papers Series: ‘Should democracy have a greater role in Australian foreign policy?’ writes:

“Be clear about why democracy has a place in Australian foreign policy. Effective states look after themselves and the region. They are critical to Australia’s economy, its national security and the stability of the region as a whole. Australian efforts to support effective states are more about providing services to people, supporting healthy, actively engaged populations and enabling countries to act with autonomy and respect for sovereignty — less about a clash of systems or narrowly defined competition with China.”

Experts in the Development Intelligence Lab’s Situation room on ‘Australian Support For Democracy’ say:

"There remains significant need and ample opportunity for diplomacy and long-term development efforts to find space for civil society, create local demand for better governance and support service delivery in the Indo-Pacific.”

Graham Teskey, in the Development Intelligence Lab’s Intel: ‘What’s the case for doubling down on governance efforts in the development program?’ writes:

“What is this thing called governance? Simple. It’s the skeleton of the state – its hard-core bones. Without effective governance, the body politic would crumble, public services wouldn’t be delivered, the private sector won’t invest, and lives and property would be at risk of attack. Dear reader – kindly note we’re talking about effective governance, not good governance (often code for liberal democracy). We measure effective governance by its outcomes, not by what the systems look like, or how leaders acquire their power.”

Other experts have echoed these sentiments. Their work is available below.

State Effectiveness Roundup

On what state effectiveness really means

In its International Development Policy, the Australian Government emphasises its support for ‘effective and accountable states,’ stressing the importance of fostering effective governance and civic engagement for shaping a stable and prosperous region. Key to this has been a call for Australia to focus on empowering local partners, enhancing accountability, and promoting resilience against external interference through robust civil societies.

Dr Mike Green on The Development Intelligence Lab’s podcast The Readout: ‘The main game for Australian development is development, not building influence’ says:

“If you have a development policy that focuses on women's empowerment, good governance, civil society strengthening, accountability, ultimately, you help these societies become much more resilient against foreign interference. Which in the long run is strategically a much more significant strategic effect and you build constituencies and communities that in the long run are going to be favourable to Australia, even if the leader in power in the short run is not.”

Peni Tawake on the Development Intelligence Lab’s Intel: ‘Australia has doubled down on support to Pacific media – but what could this look like in practice?’ writes:

“Pacific media partners need to know that Australia is serious about strengthening its engagement by building greater equity and ownership in design processes, resource management and shared decision making, including women in particular. It is these local partners who best know their contexts and how to navigate systems and structures to effect systemic change. The resulting media environment that models what it reports on (for example, gender equity, governance, and human rights) can only build the confidence of Pacific Islanders in an independent, impartial and ethical media that understands their contexts and provides credible, fact-based analysis.”

Linda Kelly and Nila Wardani in the Development Intelligence Lab’s Intel: ‘Why MAMPU and Nepal Subnational Governance are widely lauded as two of the best projects Australia supports’ write:

“In our view, the greatest value of MAMPU was that it brought together a very diverse range of women’s organisations and supported connections between those organisations. In line with the  evidence about how to advance change for women, it strengthened the women’s movement in Indonesia… Perhaps most significantly, MAMPU was managed by aid officials who understood the value that civil society organisations bring to social change; and who understood that social change for women is a political process.”

Other experts have contributed to this discussion. Their work is available below.

On how Australia could more effectively support democracy in the region

Experts advocate for a nuanced approach to state effectiveness and democracy support that goes beyond rhetoric, emphasising the need for fostering a culture of genuine partnership, respect for differences and locally-led reform. Experts underscore the significance of investing in governance, promoting inclusive principles, and prioritising meaningful relationships with regional partners, reflecting a multifaceted strategy essential for effective development cooperation and in turn, Australia’s broader geostrategic interests.

Dr Lisa Denney on the Development Intelligence Lab’s Intel: ‘What’s the case for doubling down on governance efforts in the development program?’ writes:

“The how is also important alongside the why. A development program that imposes 1990s ‘good governance’ dogma is unlikely to work. A development program can play a role, however, in promoting principles and values that shape who development benefits and how societies themselves debate and contest those principles and values. Without a strong investment in governance – as a standalone issue and a cross-cutting one – aid programs risk treating development as a pile of bricks with no mortar. That house won’t hold.”

Joanne Choe on the Development Intelligence Lab’s Intel: ‘New Government, fresh chance: what would it take for DFAT to be a world class development agency?’ writes:

“Second, culture. Fostering a culture where development expertise is valued by the organisation [DFAT] – expertise that understands socio-political and economic context, what drives meaningful change and how we come behind and support genuine, locally-led reform working closely with a range of partners. Development is not seen as distinct from the political context in which implementation takes place – but understands that effective development is underpinned and mutually reinforced by strong political analysis, influencing legitimacy and astute diplomacy. In such a culture, the ability to form and maintain meaningful relationships with our partners across the region – in government, civil society and private sector – should be the most revered skill as it is the basis of effective development cooperation.”

Roland Rajah in the Development Intelligence Lab’s Intel: “Is the East Asian growth and development superhighway closing? So what?” writes:

“The real challenge is pushing forward on the array of difficult next generation policy and institutional reforms required to keep moving up the developmental ladder. The long list includes deepening economic liberalisation (particularly in investment and services), improving governance, strengthening legal and regulatory institutions, mobilising greater tax revenues, delivering better public services (especially in health, education, and infrastructure), and putting in place stronger social safety nets – all while increasingly decarbonising development.”

Other experts make a similar case. Their work is available below.

State Effectiveness RoundupState Effectiveness Roundup

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The Lab's Roundup on state effectiveness is an easy-to-digest summary. Whether you're looking for quick takes, key quotes or a deep dive starting point, the Roundup offers a curated collection of expert insights from Lab contributors.

More topics to come...

State Effectiveness Roundup

State Effectiveness Roundup