Governance :Concepts & Contents

Keshav Raj Pande

Ass. Prof.
DEFINITIONS OF GOVERNANCE
 The exercise of political power to manage a nation’s affairs.(World Bank,
1989, p. 60)
 Governance is the process whereby societies or organizations make
important decisions, determine whom they involve and how they render
account.(Canadian Institute on Governance (www.iog.ca))
 Public governance is how an organization works with its partners,
stakeholders and networks to influence the outcomes of public policies.
(Governance International, UK (www.govint.org))
 The pattern or structure that emerges in a socio-political system as a
‘common’ result or outcome of the interacting intervention efforts of all
involved actors. This pattern cannot be reduced to [the outcome produced
by] one actor or groups of actors in particular. (Kooiman, 1993, p. 258)
Meaning
 Governance concerns mostly with the
rules of the game of political rule, and it
is a conscious management of regime
structures with a view to enhancing the
legitimacy of the public realm (Goran
Hyden, 1992).
Cont’d
 State and public administration are
regarded as the basic actors and arenas
of governance.
 Conception of Governance
There are three conceptions of governance are:
 Governance is simply a surrogate word for public

administration and policy implementation.

 Governance equates to the managerialist or NPM movement.

 Governance is a body of theory that comprehends lateral

relations, inter-institutional relations, the decline of

sovereignty, the diminishing importance of jurisdictional
borders, and a general institutional fragmentation (Gerry
Stoker, 1998).
 Conceptions…
1. Governance is a conceptual approach that frames a
comparative analysis of macro-politics.
2. Governance concerns big questions of a ‘constitutional’
nature that establish the rules of political conduct,
3. Governance involves creative intervention of political actors
to change structures,
4. Governance emphasizes interaction between state and
social actors, and among social actors themselves, and
5. Governance refers to a particular type of relationships
among political actors; that is, those which are socially
sanctioned rather than arbitrary (Goran Hyden, 1992).
Proposition of Governance
 Five propositions are:
 Governance refers to a set of institutions and actors that are
drawn from but also beyond government;
 Governance identifies blurring of boundaries and
responsibilities for tackling social and economic issues;
 Governance identifies the power dependence involve in the
relationship between institutions involve in collective actions;
 Governance is about autonomous self-governing network of
actors;
 Governance recognizes the capacity to get things done which
does not rest to the power of government to command or
use its authority. It sees government as able to use new
tools and techniques to steer and guide.
 Major features of four models
of governance
Parameters Market Participative Flexible Deregulated
Government Government Government Government

Principal Monopoly Hierarchy Permanence Internal regulation

diagnosis

Structure Decentralization Flatter organizations Virtual organizations No particular

recommendations

Management Pay for TQM teams Managing Greater managerial

performance; other temporary freedom
private techniques personnel

Policy-making Internal markets; Consultation; Experimentation Entrepreneurial

market incentives negotiation government

Public interest Low cost Involvement; Low cost; Creativity; activism

consultation coordination
Shifts in the use of the
governance concept
1990s 2000s 2010s
Agenda setters Academics Donors Citizen Activities
Main approach Analytical Programmatic Empowering
Position adopted Detached Managerial Engaged
Principal aim Generating Reforming Checking power
knowledge use

Goran Hyden, 2011

 Public Sector Governance
Core functions of Public business Public service
the state functions functions
(Public Administration) (Public Companies)
(Service Providers)

Rule of law, economy, Profitability Value for money

efficiency, effectiveness, Good service
transparency

Public management Public corporate Service management

governance
 Public Governance
Typically, public governance issues are likely to involve the following key
stakeholders (amongst others):
 citizens (as individuals);
 community organizations that are loosely organized;
 non-profit organizations (including charities and major Non-Governmental
Organizations), who are often quite tightly organized;
 business;
 media;
 public agencies (e.g. different levels of government/Parliament, including
international levels);
 elected politicians;
 trade unions. (Bovaird and Löffler, 2003: 219)
A Comparison of Hierarchical Governing with Democratic Governance

Hierarchical Governance Democratic Governance

Centralization: national government controls Decentralization: devolution of programs and
programs and funds authority to local governments

Uniformity and hierarchical autocracy Fragmentation and autonomy in decision making

Implementing agency goals Implementing shared goals

Vertical relationships Horizontal relationships

Control and command Networking and collaboration

Pluralistic and interest group politics Negotiating through dialogue and discourse

Formal authority and policing power Joint partnership and shared responsibility

Agency as the center of coordination Multiple temporary arrangements regarding coordination

Enforcing laws and regulations Local initiatives

Information control and secrecy Information sharing and transparency

Limited participation and consultation Open participation and public deliberation

Democratic Governance
 Democratic governance requires at least the presence, in a
political system, of popular sovereignty, substantial electoral
equality among its citizens, consultation between government and
citizens over proposed major courses of action, and majority rule.
Increasingly, equality of opportunity is also regarded as a
prerequisite for a political system to be truly democratic.
 In a more specific, operational sense, democracy may be said to
require the following: (1) freedom of expression, (2) citizen
participation in decision making, (3) a free press and uncensored
mass media to hold government accountable for its decisions, (4)
an independent judiciary, and (5) regular, free elections to
encourage participation and political accountability. The meaning
and scope of these values, however, have varied over time.
(Milakovich, and Gordon, 2009:63)
 Good Governance
DEFINITIONS OF ‘GOOD GOVERNANCE’
 Good governance has eight major characteristics. It is participatory, consensus
oriented, accountable, transparent, responsive, effective and efficient, equitable and
inclusive and follows the rule of law. It assures that corruption is minimized, the
views of minorities are taken into account and that the voices of the most vulnerable
in society are heard in decision-making. It is also responsive to the present and
future needs of society. (United Nations Economic and Social Commission for Asia
and the Pacific
(www.unescap.org/pdd/prs/ProjectActivities/Ongoing/gg/governance.asp))
 Five principles underpin good governance and the changes proposed in the EU White
Paper:
‘openness, participation, accountability, effectiveness and coherence’. (White Paper
on European Governance (http://europa.eu.int/comm/governance/index_en.htm))
 Good governance has to be defined as context-specific. Given that it is impossible
fully to implement all desirable governance principles at the same time stakeholders
need to agree on strategic governance priorities. (Governance International, UK
(www.govint.org))
 The need to improve governance and public administration and to enhance the
State’s capacity to carry out new functions and roles is now widely recognized.
 The United Nations Millennium Declaration calls for respect for human rights and the
promotion of democracy and good governance (including efficient and effective
public administration).
 Good governance is a necessary condition for the achievement of each of the
Millennium Development Goals (MDGs) – eradicating extreme poverty and hunger;
achieving universal primary education; promoting gender equality; reducing child
mortality; improving maternal health; combating HIV/AIDS and other diseases;
ensuring environmental sustainability; and promoting global partnership for
development.
 Governments in developing countries and their international development partners
have significantly increased their financial support to strengthen governance and
enhance the efficiency and effectiveness of public administration. (Rondinelli,
2007:4)
Meaning of Good governance
Good governance is a process,
where rules and well-functioning
institutions are applied to manage
nation's affairs in a manner that
safeguards democracy, human rights,
good order and human security, and
economy and efficiency are followed
in management of country’s
resources (World Bank, 1990).
 Elements of Good Governance
 Participation
 Rule of law
 Transparency
 Responsiveness
 Equity
 Effectiveness and efficiency
 Accountability
 Predictability
 Aims of Good Governance
Good governance aims at the following:
 Enhancing the effectiveness and efficiency of administration

 Improving the quality of life of citizens

 Establishing the legitimacy and credibility of institutions

 Securing the freedom of information and expression

 Ensuring accountability

 Using IT-based services to improve citizen-government

interface
 Improving or enhancing the productivity of employees

 Promoting organizational pluralism-state, market and civil

society organizations for governance

 Characteristics of Good Governance
 The World Bank states six main characteristics of good
governance as following:
1. Voice and accountability that include civil liberties and
political stability
2. Government effectiveness, which comprises the quality of
policymaking and public service delivery

3. The quality of the regulatory framework

4. The rule of law which includes protection of property rights
5. Independents of judiciary
6. Curbs on corruption
 Elements of Good Governance
A Consensus Accountable
Oriented

Participatory
Transparent

Good Governance
The rule of law
Responsive

Effective and
Efficient Equitable &
Inclusive
 The following extract from a 1994 World Bank document reveals
its grand plans for governance:
‘Good governance is epitomised by predictable, open and
enlightened policy making (that is a transparent process); a
bureaucracy imbued with a professional ethos; an executive arm
of government accountable for its actions; a strong civil society
participating in public affairs; and all behaving under rule of law’
(1994:vii).
Whereas governance is a positivistic concept, analysing ‘what is’, good
governance is obviously a normative concept, analysing ‘what ought to be’.
Even though particular international organisations like the United Nations
and the OECD have excelled in providing rather abstract definitions of the
characteristics of ‘good governance’, we believe that this concept is
highlycontext-dependent. This means that instead of using a simple
operational blueprint or definition, the meaning of ‘good governance’ must
be negotiated and agreed upon by the various stakeholders in a
geographical area or in a policy network.
‘Good governance’ raises issues such as:
 stakeholder engagement

 transparency

 the equalities agenda (gender, ethnic groups,

age, religion, etc.)

 ethical and honest behaviour

 accountability

 sustainability. (Bovaird and Löffler, 2003:10)

 Bovaird,Tony and Löffler, Elke (2009) Public management and
governance, London: Routledge
 Milakovich, Michael E. and Gordon, George J. (2009) Public
Administration in America, TENTH EDITION Boston, MA:
Wadsworth Cengage Learning
 Rondinelli, Dennis A. (Ed.) (2007) Public Administration and Democratic
Governance: Governments Serving Citizens, New York: A United Nation
Publication.
 Rondinelli, Dennis A. (2007) "GOVERNMENTS SERVING PEOPLE: THE
CHANGING ROLES OF PUBLIC ADMINISTRATION IN DEMOCRATIC
GOVERNANCE" in Dennis A. Rondinelli (Ed.) (2007).
 Good governance refers to the question of how a society can
organize itself to ensure equality of opportunity and equity
(social and economic justice) for all citizens.
 Good governance is a value in itself, but it is also the most
critical means for achieving the Millennium Development Goals
– the eradication of extreme poverty and hunger, the
achievement of universal primary education, the promotion of
gender equality, the reduction of child mortality, the
improvement of maternal health, the fight against HIV/AIDS
and other diseases, and the promotion of environmental
sustainability and a global partnership for development.
 As the United Nations Development Programme
(UNDP) has defined good governance, its
characteristics include widespread participation by all
citizens, decision making by rule of law, transparency
in the actions of governance institutions,
responsiveness to the needs and desires of citizens,
equity in the treatment of citizens, effectiveness and
efficiency in the use of public resources, public
accountability, and the exercise of strategic vision in
planning for development. These characteristics are
 Underlying the United Nations’ conception of
good governance is the need for governments
to reinvent themselves in order to conform to
the basic characteristics of good governance
and to enhance their capacity to work
effectively with other governance institutions
in the private sector and civil society
organizations.
 UNDP Characteristics of
Good Governance
 Participation - All men and women should have a voice in decision-making, either
directly or through legitimate intermediate institutions that represent their interests.
Such broad participation is built on freedom of association and speech, as well as
capacities to participate constructively.

 Rule of law - Legal frameworks should be fair and enforced impartially, particularly
the laws on human rights.

 Transparency - Transparency is built on the free flow of information.

 Processes- Institutions and information are directly accessible to those concerned

with them, and enough information is provided to understand and monitor them.
 Responsiveness - Institutions and processes try to serve all stakeholders.

 Consensus orientation - Good governance mediates differing interests to reach a

broad consensus on what is in the best interests of the group and, where possible,
on policies and procedures.

 Equity - All men and women have opportunities to improve or maintain their well-
being.

 Effectiveness and efficiency - Processes and institutions produce results that meet
needs while making the best use of resources.
 Accountability – Decision-makers in government, the private sector and
civil society organizations are accountable to the public, as well as to
institutional stakeholders. This accountability differs depending on the
organization and whether the decision is internal or external to an
organization.

 Strategic vision - Leaders and the public have a broad and long-term
perspective on good governance and human development, along with
sense of what is needed for such development. There is also an
understanding of the historical, cultural and social complexities in which
that perspective is grounded.
 In General
 key components of good governance: rule of law, principles of
reliability and predictability (legal certainty, administration
through law, Rechtsstaat, État de droit);
 accountability,
 openness and transparency;
 efficiency and effectiveness;
 technical and managerial competence;
 organizational capacity; and
 citizens’ participation. (Lynn, 2006:128)