Basic concepts on Good Governance

Introduction of Good Governance

The technical term “government” and “governance” are interchangeably used,

both denoting the exercise of authority in an organization, institution or state.
Government is the name given to the entity exercising that authority. Authority
can most simply define as legitimate power. Whereas power is the ability to
influence the behavior of others, authority is the right to do so. Since, the
government doesn’t only decide for all and the civil society and the private
sectors play vital role in the community, thus, the conception of the word
“governance”. Governance is a broader term than government. In its widest
sense, it refers to the various ways in which social life is coordinated.
Government can therefore be seen as one of the institutions in governance; it
is possible to have governance without government.

Learning Objectives

 Determine the terms of the basic concepts and theories related to good
governance
 Determine the key actors of Governance
 Describe the characteristics of Good Governance

Governance is:

1. The traditions and institutions by which authority in a country is exercised”-

Kaufman et al.

2. The way” ... power is exercised through a country’s economic, political and
social institutions”- the World Bank’s PRSP Handbook.

3.” the sound exercised of political, economic and administrative authority to

manage country’s
resources for development. It involves the institutionalization of a system
through which citizens, institutions, organizations and group in a society
articulate their interest, exercise their rights, and mediate their differences in
pursuit of collective good”. Country Governance Assessment (2005)

4.The exercise of economic, political and administrative authority to manage a

country’s affairs
at all levels. It comprises mechanisms, processes and institutions through
which and group articulate their interest, exercised their legal rights, meet
their obligations and mediate their
differences.” UNDP.

5. In governance, citizens are rightly concerned with a government

responsiveness to their needs and protection of their rights. In general,
governance issues pertain to the ability of the government to develop an
efficient, effective, and accountable public management process that is open
to citizen participation and strengthens rather than weaken s a democratic
system of the government” the USAID, Office of Democracy and Governance.

6. refers to how any organization, including a nation, is run. It includes all the
processes, systems and controls that are used to safeguard and grow assets
(UNDP, 997)

7.The systems, processes, and procedures put in place to steer the direction,
management and
accountability of an organization. Birmingham city council. When applied to
organizations that operate commercially, governance is often termed
“corporate governance”

7. “Promoting fairness, transparency and accountability” – World Bank

8. “a system by which business organizations are directed and controlled”.

OECD.

9. “the manner in which power is exercised in the management of a country’s

social and economic resources for development.

It is referred to as the quality of the institutions to make. Implement and sound

policies in an efficient, effective, equitable and inclusive man The Asian
Development Bank (ADB)

10. In broad terms, governance is about the institutional environment in which

citizens interact among themselves and with government agencies/officials
(ADB, 2005)

12.The process of decision making and the process by which decisions are
implemented (or not implemented). Governance can be used in several
contexts such as corporate governance,
international governance, national governance and local governance.

13.the interaction among structures, processes and traditions that determine

how power and responsibilities are exercised, how decisions are taken and
how citizens or other stakeholders have their say. Fundamentally, it is about
power, relationship and accountability: who has influence, who decides, and
how decision makers are held accountable. (IOG 2003)

14.”as the exercise of economic, political and administrative authority to

manage the nation’s affairs at all levels. It comprises of mechanism,
processes and institutions through which citizens are groups articulate their
interests, exercise their legal rights and obligations and mediate their
differences. Governance is not the sole domain of government but transcends
government to encompass the business sector and the civil society.
(NEDA ,2006)
The Institute of Governance define governance as the process whereby
societies or organizations make their important decisions, determine who has
voice, who is engage in the process, and how account is rendered.
(IOG,2006). The institute also provides a framework to further establish the
concept of governance.

Governance According to UNDP

The challenge for all societies is to create a system of governance that

promotes supports and sustains human development. – especially for the
poorest and most marginal. But the search of clearly articulate concept of
governance has just begun.

Good governance is, among other things, participatory, trans parent and
accountable. It also effective and equitable. And it promotes the rule of law.
Good governance ensure that political, social and economic priorities are
based on broad consensus in society and that the voices of the poorest
and the most vulnerable are heard in decision making over the allocation of
development of resources.

Governance has three parts: Economic, political, and administrative.

Economic governance includes decision making process that affect a
country’s economic activities and its relationships with other economies. It
clearly has major implications for equity, poverty and quality of life. Political
governance is the process of decision making to formulate policies.
Administrative governance is the system of policy implementation.
Encompassing all three, good governance defines the processes and
structures that guide political and socio-economic relationships.

Governance encompassing the state, but it transcends the state by including

the private sector
and civil society organizations. What constitute the society is widely debated.
The state is defined to
include political and private sector institutions.

UNDP’s primary interest lies in how effectively the state serves the needs of
its people. The private sector covers private enterprises (manufacturing,
trade, banking, cooperative and so on) and the informal sector in the
marketplace. Some say that the private sector is part of civil society. But the
private sector separates to the extent that private sector players influence
social, economic and political policies in ways that create a more conducive
environment for the marketplace and enterprise. Civil society lying between
the individual and the state, comprises individual and groups (organized and
unorganized) interacting socially politically and economically regulated by
formal and informal rules and laws.
1. Social Forces of Governance

Business-generate jobs, opportunities and income. In market democracy, is

the business sector
that is the engine of growth and development. Much of the community activity,
whether local, regional, or national is the function of private sector. It is
through the business sector that the national capital created and harnessed.

Civil Society-facilitates political and social transformation. Civil society

complements the functions
of the government in areas that is relatively inadequate in a weak. It is through
civil society that the
people can present a relatively organized reform agenda upon which
government and business can
respond systematically.

Citizen- consumers demand quality excellent products and services. They are
respondent off
surveys that influence policy directions and legislation. They express public
expectation.

2. Theories of Governance

If Max Weber and Woodrow Wilson were to suddenly appear on the

landscape of modern public administration, normative theories in hand, it is
likely they would be unable to recognize the field of
governance. The comprehensive, functionally uniform, hierarchical
organizations governed by strong
leaders who are democratically responsible and staffed by neutrally
competent civil servants who deliver services to citizens – to the extent they
ever existed – are long gone. They have been replaced
by an ‘organizational society’ in which many important services are provided
through multi organizational programs. These programs are essentially
“interconnected clusters of firms, governments, and associations which come
together within the framework of these programs”

Governance refers to the development of governing styles in which

boundaries between and within public and private sectors have become
blurred. The essence of governance is its focus on mechanisms that do not
rest on recourse to 16 the authority and sanctions of
government....Governance for (some) is about the potential for contracting,
franchising and new
forms of regulation. In short, it is about what (some) refer to as the new public
management. However, governance ...is more than a new set of managerial
tools.

Governance is ultimately concerned with creating the conditions for ordered

rule and collective action (Stoker, 1998; Peters and Pierre, 1998; Milward and
Provan, 2000). As should be expected, all efforts to synthesize the literature
draw from theories found in the separate traditions.

Governance refers to the development of governing styles in which

boundaries between and within public and private sectors have become
blurred. The essence of governance, and its most troublesome aspect,
according to its critics, is a focus on mechanisms that do not rest on recourse
to the authority and sanctions of government.

1. Governance refers to institutions and actors from within and beyond

government.

2. Governance identifies the blurring of boundaries and responsibilities for

tackling social and economic issues. This shift in responsibility goes beyond
the public-private dimension to include notions of communitarianism and
social capital. (However, blurring of responsibilities can lead to blame
avoidance or scapegoating). An interesting research area that has grown in
scope and importance following the implementation of welfare reform is the
study of faith-based organizations’ role and impact in service delivery.

3. Governance identifies the power dependence involved in the relationships

between institutions involved in collective action. Organizations are dependent
upon each other for the achievement of collective action, and thus must
exchange resources and negotiate shared understandings of ultimate
program goals. The implementation literature is replete with studies of
coordination barriers and impacts (for example, Jennings and Ewalt, 1998).
(Nonetheless, power dependence exacerbates the problem of unintended
consequences for government because of the likelihood of principal-agent
problems.)

4.Governance is about autonomous self-governing networks of actors. (The

emergence of self-governing networks raises difficulties over accountability).
Governance networks, in Stoker’s
terms, “involve not just influencing government policy but taking over the
business of government”
(1998, p. 23).
3.Key actors of Good Governance

State/Public

Business

Civil Society

Governance refers to the manner of steering or governing, or of directing and

controlling a
group of people or a state. It also refers to the structure & processes that are
designed to ensure
accountability, transparency, responsiveness, rule of law, stability, equality
and inclusiveness,
empowerment, and broad-based participation.

According to UNDP, governance refers as the exercise of authority or power

in order to manage
a country’s economic, political and administrative affairs. It is a complex
process whereby some sectors of the society wield power and enact &
promulgate public policies which directly affect human and institutional
interactions and economic and social development. It involves the
collaboration of the 3 major actors of society, namely: the state, the private
sector and the civil society.

Expected Role of the State

The government is almost always the main actor in governance. The

government is called
the public sector. Which it is the biggest sector in governance, it is not the
only actor. It is main role is
to provide an enabling environment for the other actors of governance to
participate and response to
the mandate of the common good.
  Enable and facilitate participation from civil society and private sector
  Provide the legal, regulatory framework; political order
  Provide resources (e.g. technical expertise, infrastructure, etc.)
  Create an enabling setting – government sometimes can be a disabler

The state is the principal actor of government to facilitate participation and

provide an
enabling environment to other elements of the society. It is a strong entity that
recognizes the
significance and autonomy of the other sectors without overwhelming them.

1.The state as enabler provides for the legal and regulatory framework and
political order within which firms and organizations can plan and act. It
encourages citizens to act by liberating them
from the fear of military reprisals when they criticize policies or serve
marginalized groups. It can assure private firms that policies are fair and not
subject to caprice or whim or the private interest of political officials.

2. The state as resource provider facilitates by providing resources to assist

markets and
communities. Such resources include information, technical expertise,
research and development
programs, physical infrastructure as well as grants-in-aid or incentive
schemes. As part of the state, the local government performs a crucial role in
the efforts of the national government in implementing its programs and
projects. The Local government is the real actor in
effecting governance and development.

The Local Government

The Local Government is an avenue where the civil society groups at the
community level can
participate meaningfully in the decision- making processes. By virtue of the
powers and authority
provided in the Local Government Code of 1991, local government formulates
and defines the legal
and regulatory framework. This serves as the basis for the involvement and
participation of the various organizations and groups in the governance of the
community.

The Local Government also maintains a political order and provides the
necessary resources
such as technical expertise and infrastructure to the various groups, most
especially to those who are
places at disadvantaged position.

Roles of the States in Governance

1. Creating a conducive economic environment.

2. Protecting the Vulnerable
3. Improving government efficiency and responsiveness
4. Empowering people and democratizing the political System
5. Decentralizing the administrative system
6. Reducing gaps between rich and poor
7. Encouraging cultural diversity and social integration
8. Protecting Environment

The Private Sector

Expected Role of Private or Business

  Generate jobs and incomes

  Serve as engine of growth
  Spur economic development
  Provide complementary, supplementary and alternative delivery
systems

In governance parlance, the private/business sector serves as the engine of

the society. It is
an important collaborator in the economic development of the community.

It generates jobs and incomes for the people in the community. Because of its
resources such
as financial and technical expertise, it can assist the local government in
coming up with an economic
plan for the community and help in the implementation of the plan. lt can also
provide the needed
resources for the government to enable it to pursue big and wide scale
projects that are beyond the
local government's financial capability.

In the field of information technology, the private sector can help the local
government in the
development of technologies that would help proper the growth and
development of the economy of
the community. In this connection, the private sector can assist the local
government promote the
transfer of technology such as the application of spatial planning and decision
support systems for
effective local governance.

The Civil Society

The participation of market and civil society in governance adds new role to
the state and that
is of building partnerships and linkages to the two sectors. Moreover, their
engagement of the state
shifts the social picture from elite control to active citizenship.
Expected Role of Civil Society

  Facilitate political and social interaction

  Mobilize various groups in society to participate
  Provide voice to the inarticulate and the unarticulated
  Check and balance government power and private sector behavior
  Provide alternative delivery system

The Civil Society consists of the complex and groups outside the government
working in the public arena. It is often called as CSOs- civil society
organizations and also sometimes referred to as the Third Sector.

The civil society comprises the academe or schools, NGO's e.g. Association
of Schools of Public
Administration in the Philippines, Inc. (ASPAP, Inc) housed at the National
College of Public Administration and

Governance which is religiously collaborating with Government and NGOs

(GOP-UNDP Programme, Galing- Pook Foundation, Social Watch
Philippines, TAN, TI etc.) in promoting governance and development.). Other
civil society groups include POs and the voluntary groups.

This sector plays an important role in the facilitation and interaction among the
key players of local
governance. It mobilizes the various groups or organizations in the community
to participate in planning and decision-making process.

Other civil society organizations may extend the government's delivery system
by mobilizing people to prove themselves eligible to receive government
social services or providing their own services in areas unreached by the
public bureaucracy. The government may complement NGOs in turn by
providing the needed scaling up and referral system for their relatively smaller
programs.

In relations to this, there are other possible directions to strategic directions

for active civil society
participation in good governance. In general terms, this means supporting
efforts to promote partnerships between government and civil society. These
maybe in designing, implementing, monitoring, and evaluating programs and
projects. This can also mean identifying areas where civil society can either
complement or supplement the efforts of the Government to deliver services,
or even serve as alternative mechanisms altogether ADB (2005).