GOOD GOVERNANCE

: CONCEPTS AND
COMPONENTS

Nayana Renukumar, Centre for Good Governance

 Presentation Structure
 Genesis of Good Governance
□ From Public Administration to New Public Management
□ Towards Governance
□ Governance : Definition, key actors, stakeholders
□ Towards Good Governance
□ Defining Good Governance
 Components and Characteristics of Good Governance
□ Four dimensional framework :World Bank
□ Six dimensional framework :World Governance Indicators
□ 8 characteristics of Good Governance : United Nations
□ Strategies for Good Governance
□ Critique of Good Governance
 Good Governance in India
□ Good Governance strategies and initiatives of GoI
□ Good Governance initiates of Andhra Pradesh
□ Good Governance : Implication for civil servants
 Conclusion
 Introduction
Civil
Central Servants Medi
Public
Administration a
Government New Public
Managemen
t

State Private sector

Government
Good
Governance Governance
Legislatur
Civil
e
society
Judiciar International
y Agencies
GENESIS OF
GOOD
GOVERNANC
E
 From Public Administration to
NPM
 Public administration in developing
 Globalization, liberalization and
countries termed as overstaffed, weak, + intensive application of IT
corrupt and inefficient

 New Public Management (NPM)

□ Prescribed by Brettonwoods institutions :WB, IMF
□ Optimizing resources
□ Alternative service delivery mechanisms
 Performance measurement, Efficiency, Economy,Value for
Money
□ Minimalist state
Grants, aids and loans in return for market oriented reforms
 Critique of NPM
□ Does not distinguish between public and  Reality dawns
private spheres ………
□ Failure of structural adjustment programs
□ Focuses on market-led growth □ Mounting fiscal debt
□ Neglects social concerns and public welfare

From economic reforms to

governance…………
 Towards Governance

 World Bank publication ‘Sub-Saharan Africa - from

crisis to sustainable growth’, 1989
□ Worsened economic performance in the region despite Structural
Adjustment Programs (SAP’s)
□ Failure of public institutions cited as reason for weak performance
□ Term “governance” first used to describe the need for institutional reform
and a better and more efficient public sector in Sub-Saharan countries
□ Defined governance as “the exercise of political power to manage a
nation’s affairs”
“Africa requires not just less government but better government”

1989 study introduced Governance without explicitly referring to the connotation “good”
 Governance

Governance is a
method through which Governance is the
power is exercised in Governance is the
manner in which
the management of a process whereby
power is exercised in
country ’s political, societies or
the management of a
economic, and organizations make
country’s social and
social resources for important decisions,
economic resources
development. determine whom they
for development.
involve and how they
World Bank (1992) Asian Development render account.
Bank (1995)
Canada Institute of
Governance (2002)

Governance is the exercise of economic, political, and administrative authority to manage a

country ’s affairs at all levels. It comprises the mechanisms, processes, and institutions
through which citizens and groups articulate their interests, exercise their legal rights, meet
their obligations and mediate their differences. UNDP (1997)
 Governance: Operation of 3 Key Actors

Governance: Goes beyond the

Government Creating a favorable political,
State:
legal & economic
environment
State

Civil Market Market:

Civil Society: Society
Creating opportunities for
Mobilizing people
peoples’
participation
 Stakeholders in Governance

Executiv Legislatur
e e

Judiciar
y
Stakeholders
in
Governance Medi
a

Privat
Social e
Orgns Sector
.

Governance is too important to be left to the

government....
 Towards Good Governance

 Governance
□ Value neutral, ‘good’ governance to qualify governance
 WB Report ‘Governance and Development’ , 1992
□ Further developed the concept of Governance
□ Defines Good Governance
 Synonymous to sound development management
 Central to creating and sustaining an environment which fosters
strong and equitable development
 Essential component of sound economic policies
 Defining Good Governance

 World Bank: Good governance entails

□ sound public sector management (efficiency, effectiveness, and economy),
□ accountability,
□ exchange and free flow of information (transparency)
□ and a legal framework for development (justice, respect for
human rights and liberties).
 DFID Good Governance is defined focusing on
□ legitimacy (government should have the consent of the governed),
□ accountability (ensuring transparency, being answerable for actions and media
freedom),
□ competence (effective policy making, implementation and service delivery),
□ and respect for law and human rights.
 Summar
y
 Public administration  Goal of state –
□ Major constituent of state ‘Governance’
□ Traditional concept
□ Instrument to achieve state’s
goals and objectives
□ Recent prominence

 Influence on Administration - NPM 

□ Managerial orientation Globalization
□ + removal of trade barriers
□ Managerial reforms : Disinvestment,
□ +entry of MNCs
corporatization, outsourcing, shrinking
state role □ + intensive application of
IT
□ Larger collaboration between state,
market and civil society – PPPs
State

Civil Society Good

Market
Government Governance Governance
COMPONENTS OF GOOD GOVERNANCE
 Components of Good Governance : 4 Dimensional
Framework - World Bank
 Public sector management
□ Public expenditure management (public investments, budget planning, budget processes)
□ Civil service reform (to manage less but manage better)
□ Reform of public enterprises (privatisation, strengthening managment of PSEs,
improving competitive conditions)

Improvement in efficiency of public institutions

 Accountbility
□ Constituted an innovation in the Bank’s sphere of action
□ Described as being “at the heart of governance”.
□ Described as “holding public officials responsible for their actions
□ Horizontal (internal) and vertical (external) accountability
Concept of exit (access to other service providers) and voice (participation)

For the first time, quality of a government w.r.t its ability to satisfy needs of citizens
apart from economic performance was put up for discussion
 Components of Good Governance : 4 Dimensional
Framework - World Bank

 Legal framework for development

□ Important contribution to equitable and just society and thus to prospects for
social development and poverty alleviation
□ Focus on judicial reform, legislative reforms, and the improvement of
legal education and training
Rule of law represents the legal dimension of good governance by a country
 Transparency and information
□ Economic efficiency
□ Prevention of corruption
□ Analysis, articulation and acceptance of governmental policy choices

 Corruption
□ Cross-cutting theme, across Transparency and information,Accountability, Rule of law
and PSM
□ Enhanced engagement of Good Governance with anti-corruption since 1997
“Improving governance is certainly about fighting corruption, although it is also about much
more than fighting corruption”.
 World Governance Indicators : 6 Dimensional
Framework : World Bank

 Voice & Accountability

 Political Stability and Lack of Violence
 Government Effectiveness
 Regulatory Quality
 Rule of Law
 Control of Corruption

(Kaufmann-Kraay-Mastruzzi Worldwide Governance Indicators

–
World Bank )
 Governance
Governance Issues Indicators
Components
 Extent of citizens participation in selection
The Process by which of governments
 Voice and
Governments are selected, Accountabilit  Civil liberties , political rights
monitored, and replaced y  Perceptions that the government in power
will be destabilised by possible
 Political
Stability
unconstitutional means
 Perceptions of quality of public
 Government service
provision, quality of bureaucracy,
The capacity of the competence of civil servants, independence
government to effectively of civil service from political pressures,
formulate and implement Effectivenes credibility of government’s commitment to
s policies.
policies
 The incidence of market unfriendly policies
 Regulator such as price controls
y Quality  Success of the society in developing an
The respect of citizen environment in which fair and predictable
and the states for  Rule of rules form the basis for economic and
Law social interactions
institutions that
 Perceptions of the incidence of crime,
economic and govern  Control of effectiveness and predictability of judiciary
social
interaction among them Corruption and enforceability of contracts.
 Perceptions of corruption
Eight Characteristics of Good Governance –
United Nations

Accountable

Consensus
Transparent
oriented

Participatory Responsive

Follows the Equitable

Rule of and
Law Inclusive
Effective
and
Efficient
 Characteristics of Good Governance

 Accountability
□ Key requirement of Good Governance
□ Applicable to government, civil society and private sector
□ Types : Political, legal, administrative and social accountability
□ Components : Answerability, sanction, redress, and
system improvement
 Transparency
□ Free flow of information
□ Accessibility of information to those affected by decisions taken
in governance process
 Responsiveness
□ Citizen orientation, citizen friendliness
□ Timely delivery of services
□ Redress of citizen grievances
 Characteristics of Good Governance

 Effectiveness and efficiency

□ Optimum use of resources
□ Competency and performance of civil servants
□ Result orientation
 Rule of law
□ Fair legal framework
□ Impartial enforcement machinery
□ Independent judiciary
 Participation
□ Cornerstone of Good Governance
□ Opportunities for citizens to participate in decision making,
implementation and monitoring of government activities
□ Freedom of expression and association, organized civil
society
 Characteristics of Good Governance

 Equity and inclusiveness

□ All groups, particularly the most vulnerable, have opportunities to
improve or maintain their well being
□ Equal opportunities for participation in decision making process
 Consensus Orientation
□ Mediation of different interests in society to reach a broad
consensus on
 What is in the best interest of the whole community
 How this can be achieved
 Strategies for Good Governance

 Reorienting priorities of the state through appropriate investment

in human needs, and provision of social safety nets for the poor
and marginalized
 Strengthening state institutions
 Introducing appropriate reforms in the functioning of Parliament
and increasing its effectiveness
 Enhancing civil service capacity through appropriate reform
measures that matches performance and accountability
 Forging new alliances with civil society
 Evolving a new framework for government-business co-
operation
 Critique of Good Governance
 Need contextual understanding
□ Good Governance – Neo liberal thrust + Globalization
 Tendency to depoliticize government
□ Reduce the art of governing to an apolitical and technical exercise
 Ambiguous definition of good governance
□ ‘Good’ in Good Governance is subjective and is subject to interpretations
□ Who defines what is good ?
 Over emphasis on governance indicators and quantification
□ "Not everything that can be counted counts, and not everything that counts can be
counted“ - Albert Einstein
 Good governance institutions do not guarantee automatic reduction of poverty and
sustainable development
 Tendency to do governance without government
□ PPPs, NGOs (non-state actors) – unaccountable, invisible
GOOD GOVERNANCE :
INDIA
 Good Governance Strategies - India

 Conference of Chief Secretaries and Chief Ministers – 1996, 1997

□ Deliberation on improving governance
□ Action plan for accountable and citizen friendly government
□ Formulation of initiatives
 Good Governance initiatives
□ Decentralization and People’s Participation
□ Citizen’s Charters
□ Sevottam
□ Results Framework Document
□ State of Civil Services Survey
□ Model Code of Governance – State of Governance Report
□ Redress of Citizen’s Grievances
□ E-Governance
□ Social Accountability - Right to Information, Social Audits, Community Score
Cards
 Model Code of Governance

 Model Code of Governance

□ Developed by GoI in collaboration with State Governments,
□ Governance issues identified in model code to guide state governments
 in participative and citizen-centric development
 in benchmarking their performance on Governance
□ Provides the basis for assessing governance in Indian context

Governance Components

Financial
Accountabilit Improvin Technology and Managemen Public
y and g Service System Incentivizin Anti
t and Rule of
g Corruption
Transparency Delivery Improvement Budget Servic Law
e Reforms
Sanctity
morale
 State of Governance Report

 Assessment (through scoring), of Indian States on pre-

determined dimensions of governance
 Output --- methodology for measuring and preparing a
Report on the State of Governance for States/sub national
units, by taking in account the indicators with
specific reference to poverty reduction
 Methodology tested in three states, to be rolled out in other
States and UTs
 SoGR framework expected to enable temporal comparison
of Governance indicators for a given State
 • Service Standards
• Decentralization and Self-Government
Service Delivery
• Regulation and user-feedback
• Macro-Governance aspects
Development program for • Inclusive policy making
weaker sections and
backward Areas • Gender Sensitivity

• Use of ICT for citizen interface

Technology and system
Improvement
• Redesign of Delivery system for
gains
efficiency
Financial Management and • Financial
Budget sanctity Management
• Budgetary Process
• Regulatory burden
Investment Climate
• Quality of industrial infrastructure

Public service morale and • Quality of civil service

anticorruption • Anti-corruption

Accountability and • Transparency and citizen-access

Transparency
 Social
Accountability
 An approach towards building accountability that relies on civic engagement,
i.e., in which it is ordinary citizens and/or civil society organizations who
participate directly or indirectly in exacting accountability

Community Scorecards - AP, People’s planning,

Maharashtra Kerala
Policy/Budget
Citizen Report Cards, Formulation
Bangalore

Performance Civic Policy/Budget

Monitoring Engagement Analysis

Policy/Budget
Expenditure Budget Analysis/
Social Audits, Tracking Review, Gujarat,
Rajasthan People’s Bangalore
Estimate, AP
 Grievance Redress

 Grievance redress mechanisms (GRMs) are institutions, instruments,

methods, and processes by which a resolution to a grievance is sought and
provided
 Integral to good governance – indicates responsiveness to citizens
 Grievance redress mechanisms
□ DAR&PG – nodal department for redress of grievances
□ Centralized grievance redress management system (CGRMS)
□ Ombudsman
 For local government grievances in Kerala
 For NREGS grievances
 Central and State Information Commissions for RTI
□ Departmental grievance redress systems
□ Online grievance systems at state, department, municipality and district levels
 E Governance
 Transformation of government to provide efficient, convenient & transparent
services to the citizens & businesses through information &
communication technologies

Easy to access
single
access point Increased
Higher penetration efficiency
due to connectivity
due to
delivery of public due to automation
services to citizens connectivity

Reduction in cost
Increased
of delivery of
accountabilit services
y

Higher
Increased Reduced
availability of
transparency Corruption
informatio
information
public domain
n
 Good Governance initiatives – Andhra Pradesh

 Andhra Pradesh – pioneers in adoption of good governance

principles
 Four pronged strategy for Good Governance

Structural Citizen Centric Systemic Improving

Mechanisms Reform Initiatives Improvements Service Delivery

• Governance, • Citizens’ Charters • Public • E-Governance

Public • Redressal of Management
Finance IT
& Initiatives
Management Public Grievances • Human Resource • Process Re-
& • Civil Society Management
Administrative engineering
Reforms Empowerment • Procurement and
Wing Initiatives other Reforms • Online grievance
• Right to redress
• Strategy and
Performance Information
Innovation Units Act
• Centre for Good • Anti-corruption
Governance
 Good Governance –Implication for Indian civil
servants

Need to
Administrativ update
Accountabilit e Reforms Public existing
Technological Attitudina
y and – - skills
Advancements l
Transparency Additional Partnership
Private and
responsibilities changes acquire
new
skills
 Conclusion

Good Governance may be a rhetoric, but good

government, responsive administration and a
just legal system are eternal requirements

External drive to policy change to be replaced

by local commitment and ownership of reform

Ingenuous ideas for improving governance,

ownership of initiative and commitment to
reform extremely important
THANK
YOU