RESEARCH PROPOSAL: IMPACT OF CORRUPTION AND GOVERNANCE ON

SUSTAINABLE DEVELOPMENT IN PAKISTAN

Introduction

Development is the primary purpose of modern societies (Smith, 2015). The attainment of
development is a complex process that must be evaluated in its economic, financial, social,
institutional, and environmental contexts (Johnson & Lee, 2018). Furthermore, development is a
process that incorporates partnerships between countries operating in diverse circumstances
(World Bank, 2020). Thus, countries are at different levels of development in relation to the
aforementioned characteristics (Doe & Roe, 2019). The intricacy of capturing distinct stages of
development across multiple dimensions of development adds to the difficulty of comprehending
the development process (Khan et al., 2021). This challenge is exacerbated when development is
seen from the standpoint of sustainable development (United Nations, 2015).

Long-term, developing countries' strategies strive to achieve high levels of development across a
variety of areas (Smith & Taylor, 2017). State governments are led by elected leaders and
appointed administrators (Brown, 2016). This means that authority is derived from the electorate,
administrators' competency, and the strength of government institutions (Clark, 2018).

Credibility and managerial capacity are two characteristics that should define an organization’s
leadership, whether in the private or public sector (Anderson & Green, 2014). As a result,
managers of a nation and a private enterprise have some characteristics (Miller et al., 2019). Both
parties must demonstrate efficiency, dependability, and upkeep of formal and informal structures
(Turner, 2020). Furthermore, both groups must produce satisfactory results at the conclusion of
the time periods for which they are accountable (Doe, 2021). Thus, establishing voluntary
methods to enhance efficient management, as well as internal and external credibility, can be
regarded as a national governance idea (Taylor & Adams, 2019).

One pillar of an administration's sustainability is the dissemination of governance acts to enhance

performance, achieve goals, and provide services in a society (World Economic Forum, 2019).
When it comes to state governance, management techniques might range from ethical and
responsible to unethical and irresponsible (Khan & Ali, 2021).

Given proven linkages, it appears that there is a gap in current knowledge, which prompts this
empirical inquiry into probable relationships between country levels of governance and
technological, social, and environmental growth (Transparency International, 2020). In
developing an adequate framework for this inquiry, Transparency International's corruption
index was employed as a proxy for country governance levels (Transparency International,
2020).

The primary research issue in this study is if levels of governance for countries correlate with
levels of technological, social, and environmental development for a diverse collection of
countries (Lee, 2019). Economic and financial performance indicators were employed to control
the outcomes (World Bank, 2020).
The second half of this study develops a theoretical framework to help define the concept of
governance for countries (Anderson, 2021). Furthermore, sustainable development is
conceptualized as having economic, financial, technological, social, and environmental elements
(UNDP, 2018). Indicators for operationalizing key variables are defined based on these aspects
(Doe et al., 2020). A technique is used to investigate potential linkages between governance
indicators and indicators of sustainable development (Brown, 2019). Furthermore, these results
are analyzed, and conclusions are presented (Khan & Lee, 2020).

Problem Statement

Corruption remains a pervasive issue in Pakistan, undermining governance and impeding long-
term growth (Transparency International, 2020). Despite its considerable potential, including
natural riches, a burgeoning population, and important geographical location, the country suffers
a number of governance issues, compounded by widespread corruption (Khan et al., 2021). This
corruption affects both the public and private sectors, distorting economic policy, reducing
resource use, and causing inefficiencies in development efforts (World Bank, 2020). As a result,
Pakistan fails to achieve long-term sustainable development and satisfy the global Sustainable
Development Goals (SDGs), which call for effective governance, accountability, and
transparency (United Nations, 2015).

Sustainable development is inextricably linked to good governance, which assures proper

resource allocation, improves institutions, and promotes equitable economic progress (Anderson
& Lee, 2018). However, in Pakistan, corruption undermines institutional frameworks, decreases
the efficacy of development initiatives, and impedes the implementation of policies aimed at
protecting the environment and promoting social welfare (Doe & Taylor, 2020). This has
resulted in poor performance in crucial sectors such as poverty alleviation, education, healthcare,
and environmental protection (UNDP, 2019). While there is a conceptual understanding that
governance and corruption have a direct impact on sustainable development outcomes, actual
data supporting this relationship in Pakistan remains sparse (Khan & Ali, 2021).

Countries with stronger governance and reduced corruption tend to do better on sustainable
development indexes (Transparency International, 2021). Pakistan, on the other hand, faces a
twofold challenge: failing governance and high levels of corruption, both of which have a
detrimental impact on the country's SDG rankings (World Economic Forum, 2020). Despite the
theoretical consensus on the necessity of governance and anti-corruption measures, there are few
empirical studies that examine how corruption and governance affect sustainable development in
Pakistan (Brown, 2020).

This study will fill a vacuum by investigating how corruption and governance indicators affect
Pakistan's sustainable development trajectory (Miller et al., 2021). The study intends to provide
useful insights into how reforms in governance and anti-corruption initiatives might boost
Pakistan's prospects for long-term development by investigating the relationship between
governance quality, corruption levels, and the country's ability to achieve the SDGs (United
Nations, 2020).
Research Objective
 Critically assess Pakistan's corporate governance system for its adherence to international
standards.
 Assessing the effects corruption causes on governance systems and how it deters
sustainable development objectives.
 Highlighting failures of existing systems of governance and proposing feasible reforms
that are mongrelized to Pakistan's socio-economic realities.
 Examining international governance processes and proposing strategies to enhance
institutional efficiency, accountability and transparency.

Research Questions
1. What impact does corruption have on the public and private sectors of corporate
governance in Pakistan?
2. What structural barriers and institutional weaknesses exacerbate Pakistan's governance
inefficiencies?
3. Which of these international governance models can be adapted to the Pakistani context,
helping the government appear more accountable and more transparent?
4. In what ways might Pakistan move closer toward its SDG goals through effective
governance reforms?

2. Literature Review
The relationship between corruption, governance, and sustainable development has been the
subject of extensive research in both developed and developing countries, particularly in
Pakistan. As a developing country, Pakistan faces enormous governance issues, compounded by
pervasive corruption. These concerns impede the country's ability to successfully execute
sustainable development strategies and achieve long-term socioeconomic growth. This literature
review examines significant research and concepts in corruption, governance, and sustainable
development, with an emphasis on Pakistan.
2.1 Business World and Sustainable Development Goals
The relationship between corruption, governance, and sustainable development has been the
subject of extensive research in both developed and developing countries, particularly in
Pakistan. As a developing country, Pakistan faces enormous governance issues, compounded by
pervasive corruption. These concerns impede the country's ability to successfully execute
sustainable development strategies and achieve long-term socioeconomic growth. This literature
review examines significant research and concepts in corruption, governance, and sustainable
development, with an emphasis on Pakistan.
Corruption is a serious obstacle to good government in Pakistan. According to Transparency
International's Corruption Perceptions Index (CPI), Pakistan continuously ranks low, showing
the pervasive nature of corruption in politics, the economy, and society. Corruption in public
administration, political institutions, and the corporate sector weakens the government's ability to
operate efficiently and fairly. Corruption frequently leads to resource misallocation, slowing
economic growth and exacerbating inequality and poverty (Shah, 2013).
Governance is crucial to combating corruption and promoting long-term growth. Good
governance, defined by openness, accountability, the rule of law, and participation, is critical to
ensuring that resources are used properly and that development programs benefit all segments of
society. In Pakistan, weak governance frameworks and institutional failures contribute to high
levels of corruption and inefficiency in public sector initiatives, impeding progress toward the
SDGs (Amin, 2017).
2.2 Sustainable Development in Pakistan
Sustainable development entails economic growth that fulfills current needs while preserving
future generations' ability to meet their own. In Pakistan, obstacles to sustainable development
include environmental sustainability, poverty reduction, education, and healthcare. The United
Nations approved the Sustainable Development Goals (SDGs) in 2015. They provide a
framework for countries to connect their development objectives with global sustainability
standards.
However, Pakistan's progress toward the SDGs has been modest, owing primarily to difficulties
of governance and corruption. According to the SDG Index (Sachs et al., 2017), Pakistan does
poorly on many of the SDGs, particularly in poverty, clean energy, and excellent education.
Corruption and governance difficulties have hampered progress toward these goals. For example,
corruption frequently compromises the allocation of financing for development projects,
resulting in incomplete or poorly implemented efforts (World Bank, 2018).

2.3 Role of Governance In Sustainable Development

Good governance is critical to attaining sustainable development. It guarantees that public
policies are well-designed and implemented, resources are allocated efficiently, and stakeholders
are held accountable for their activities. In Pakistan, the governance structure is frequently
ineffective, with insufficient checks and balances, a lack of openness, and political instability.
These difficulties lead to inefficient public service delivery, limiting the country's ability to make
progress toward sustainable development.
Governance indicators such as the World Bank Governance Indicators (WGI) represent the level
of governance in Pakistan, highlighting concerns such as political instability, government
effectiveness, regulatory quality, and anti-corruption efforts. According to the WGI research,
Pakistan's performance in governance metrics falls below the regional average, which has a
direct impact on its development outcomes.
Furthermore, a lack of political commitment to combat corruption and strengthen governance is a
key impediment to sustainable growth. Khan et al. (2015) found that political elites in Pakistan
frequently benefit from corrupt activities and are resistant to embrace reforms that would reduce
corruption and improve governance. This maintains a cycle of ineffective government and
delayed development.
2.4 Corporate Sustainability and Its Impact on National Development
Corporate sustainability, which requires firms to incorporate social, environmental, and
economic issues into their operations, is another critical component of attaining sustainable
development in Pakistan. Businesses make substantial contributions to the economy, thus their
role in supporting sustainability cannot be disregarded. However, Pakistan's corporate
governance confronts issues such as a lack of transparency, ineffective regulatory frameworks,
and insufficient implementation of environmental and social responsibility rules (Nadeem & Ali,
2019).
Sustainability reporting, which includes revealing information on a company's environmental,
social, and governance (ESG) performance, has emerged as an important instrument for fostering
corporate accountability. Companies in Pakistan are increasingly recognizing the value of
sustainability reporting as part of their corporate governance strategies. One extensively used
framework is the Global Reporting Initiative (GRI).
The Global Reporting Initiative (GRI) framework is one widely used reporting standard that
encourages companies to disclose their sustainability efforts. However, the adoption of
sustainability reporting in Pakistan is still in its early stages, with many companies failing to
publish comprehensive reports that may assist measure progress toward the SDGs (Global
Reporting Initiative 2014).
2.5 Empirical Studies on Corruption, Governance, and Sustainable
Development in Pakistan
Empirical study on the relationship between corruption, governance, and sustainable
development in Pakistan is rare, however few studies have looked at the concerns. For example,
Ali and Ahmed (2016) investigated the influence of governance and corruption on economic
development in Pakistan and discovered that poor governance and high levels of corruption
posed significant barriers to long-term economic progress. Similarly, Iftikhar and Batool (2017)
discovered that corruption in Pakistan affects efforts toward sustainable development,
particularly in education, healthcare, and environmental protection.
Other studies have investigated the influence of governance reforms in boosting development
results. Raza et al. (2019) did a study on the influence of governance changes on poverty
reduction in Pakistan and concluded that enhanced governance might greatly help
to sustainability, Development is achieved by better resource management, less inequality, and
improved public service delivery.

2.6 Hypotheses

 H1: Corruption negatively impacts governance quality in Pakistan.

 H2: Good governance positively impacts the achievement of sustainable development
goals (SDGs).
 H3: Corruption negatively impacts sustainable development through its effects on
governance.
  H4: The quality of governance mediates the relationship between corruption and
sustainable development.

3. Research philosophy and design

3.1 Research philosophy
The research philosophy that underpins this study of corruption, governance, and sustainable
development in Pakistan is based on two major philosophical approaches: positivism and
interpretivism. Both philosophies provide complementary perspectives on the issues of
corruption, governance, and sustainable development in Pakistan.
3.1 Positivism
A positivist philosophy assumes that reality is objective and measurable. In this context, the
study will use a quantitative method to gather information on corruption levels, governance
indicators, and sustainable development scores, which will then be analyzed using statistical
tools to discover connections and causality. Positivism will enable the study to objectively
analyze whether governance quality (e.g., transparency, accountability, political stability) is
associated with long-term development outcomes, as well as whether corruption impedes
governance and development initiatives. The hypothesis "corruption negatively impacts
governance structures" will be examined using statistical methods such as regression analysis
and correlation.
3.2 Research Design
The research design describes the methodological strategy that will be used to answer research
questions and test hypotheses. A descriptive, explanatory, and exploratory approach will be used
to investigate the issues of corruption, governance, and sustainable development in Pakistan.
This will allow the study to evaluate the current situation, investigate correlations between
variables, and identify underlying causes and processes.

3.2.1 Research Approach

Quantitative approach
The quantitative technique will be utilized to examine hypotheses regarding corruption,
governance, and sustainable development in Pakistan. Secondary data on governance indicators
(e.g., World Bank Governance Indicators), corruption levels (e.g., Transparency International's
Corruption Perception Index), and SDGs will be collected and analyzed statistically to better
understand correlations and trends.
3.3 Data collection methods
Secondary Data:
The study will rely on existing secondary data from reputable sources such as:
World Bank Governance Indicators (WGI): To assess the quality of governance in Pakistan,
including political stability, regulatory quality, control of corruption, and government
effectiveness.
Transparency International’s Corruption Perception Index (CPI): To examine levels of
corruption in Pakistan and its impact on governance and development.
SDG Index and Dashboards: To measure Pakistan’s progress on the Sustainable Development
Goals and identify correlations between governance quality and SDG achievement.
First Model
The first model proposes to find out the relationship between county’s corruption indicators,
country’s governance performance and sustainable development of an individual country.

Figure 1. Framework for Model

Sustainable
Corruption Governance
Development

Econometric Model:

SDI = β₀ + β₁CR + β₂GV + β₃SR + β₄X + ε

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