MDC Unit 1
MDC Unit 1
Page 1 of 5
Unit-I: Introduction to Good Governance
The concept of governance, which assumed significance since 1989 with the advocacy by the
World Bank, is considered by some as not a new term. Pierre and Peters (2000) consider that
th
the term was first used in France in the 14 century where it meant ‘a seat of government’.
The World Bank is said to have reinvented it, in a different context, as a new approach to
development. Globalisation has resulted in generation of global pressures exerted by
institutions such as the World Bank and International Monetary Fund (IMF), in the form of
economic reforms programmes to be adhered to, especially by the developing countries. The
aid given to these countries is accompanied by certain market-oriented reforms.
The problems, faced especially by developing countries in the process of governance were
highlighted. These include:
Improper implementation of laws
Delays in implementation of policies, programmes and projects
Lack of clarity about the rules, regulations to be adhered to by the private
entrepreneurs
Absence of effective accounting system; and
Failure to involve beneficiaries and others affected in the design and implementation
of projects leading to the substantial erosion of sustainability.
The World Bank outlined the need for Good Governance, which is necessary for economic,
human, and institutional development. This was to be achieved through key governance
activities and processes. Its conceptualisation of Good Governance included:
Political accountability
Freedom of association and participation by different groups in the process of
governance
An established legal framework based on rule of law and independence of judiciary to
protect human rights, secure social justice, and guard against exploitation
Page 2 of 5
Bureaucratic accountability with emphasis on openness and transparency in
administration
Freedom of information and expression needed for formulation of public policies,
decision-making, monitoring and evaluation of government performance
A sound administrative system leading to efficiency and effectiveness; and
Co-operation between the government and civil society organisations.
Page 3 of 5
The current changes in government under the impact of reinvention are often considered to be
the market-oriented neo-liberal approach, and initiatives towards furthering this are visible in
both developed as well as developing countries. The role of the government, which was
earlier direct in nature, is now assuming a facilitating and indirect role. Good Governance, as
a strategy in the context of managerial reforms, assigns a steering and regulating role to the
government vis-à-vis the private sector and a productive partnership between the government
and societal organisations.
In India, efforts have been initiated since independence to improve the governmental
functioning. Several measures were taken in this direction as the then administrative system
suited the British government’s needs of revenue; and law and order administration. The
post-independence scenario was more in favour of Welfare State in order to ensure
responsiveness to the needs of People. The adoption of the Constitution, Fundamental Rights,
Directive Principles of State policy, planning as the means of achieving social and economic
development made the reorientation of the administrative machinery imperative. The
governance structure, and systems had to undergo a major revamping from revenue collection
and maintenance of law and order towards socio-economic development, social welfare and
citizens’ satisfaction. Pursuing of Good Governance is a multi-pronged strategy, which
includes:
CONCLUSION:
The concept and practice of governance, with several interpretations including Good
Governance has gained prominence over the past decade. While, in a narrow sense, it focuses
on improving public administration structures, processes, institutional development, broadly
speaking, it places emphasis on qualitative improvements in the administration. Hence,
principles such as accountability, transparency, participation, and empowerment are
emphasised to make governance good or effective, to enable the development move towards
new and productive directions. Good Governance, as we have observed, is bringing about
creative intervention, and participation by not just a sole actor, but by various key players to
enhance the legitimacy of public realm. Good Governance emphasises the involvement of
institutions, actors from and beyond government, encouraging flexibility in public service
provisions and cost-effective policy outcomes.
Page 4 of 5
Globalisation has positive as well as negative repercussions. It is for the country concerned,
to adopt locally specific governance strategies to exploit the benefits of globalisation and
work towards sustainable development. The market forces continue to play a key role but the
State cannot be wished away. What is needed, in the present scenario, is a coordination of
efforts amongst the State, market and civil society organisations with an aim on long-term
stability.
Page 5 of 5