WHAT IS GOOD GOVERNANCE?

Recently the terms "governance" and "good governance" are being increasingly used in
development literature. Bad governance is being increasingly regarded as one of the root causes
of all evil within our societies. Major donors and international financial institutions are
increasingly basing their aid and loans on the condition that reforms that ensure "good
governance" are undertaken.

This article tries to explain, as simply as possible, what "governance" and "good governance"
means.

GOVERNANCE

The concept of "governance" is not new. It is as old as human civilization. Simply put
"governance" means: 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.

Since governance is the process of decision-making and the process by which decisions are
implemented, an analysis of governance focuses on the formal and informal actors involved in
decision-making and implementing the decisions made and the formal and informal structures
that have been set in place to arrive at and implement the decision.

Government is one of the actors in governance. Other actors involved in governance vary
depending on the level of government that is under discussion. In rural areas, for example, other
actors may include influential land lords, associations of peasant farmers, cooperatives, NGOs,
research institutes, religious leaders, finance institutions political parties, the military etc. The
situation in urban areas is much more complex. Figure 1 provides the interconnections between
actors involved in urban governance. At the national level, in addition to the above actors, media,
lobbyists, international donors, multi-national corporations, etc. may play a role in decision-
making or in influencing the decision-making process.

All actors other than government and the military are grouped together as part of the "civil
society." In some countries in addition to the civil society, organized crime syndicates also
influence decision-making, particularly in urban areas and at the national level.

Similarly formal government structures are one means by which decisions are arrived at and
implemented. At the national level, informal decision-making structures, such as "kitchen
cabinets" or informal advisors may exist. In urban areas, organized crime syndicates such as the
"land Mafia" may influence decision-making. In some rural areas locally powerful families may
make or influence decision-making. Such, informal decision-making is often the result of corrupt
practices or leads to corrupt practices.
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Figure 1: Urban actors

GOOD GOVERNANCE

Good governance has 8 major characteristics. It is participatory, consensus oriented, accountable,

Participation

Participation by both men and women is a key cornerstone of good governance. Participation
could be either direct or through legitimate intermediate institutions or representatives. It is
important to point out that representative democracy does not necessarily mean that the concerns
of the most vulnerable in society would be taken into consideration in decision making.
Participation needs to be informed and organized. This means freedom of association and
expression on the one hand and an organized civil society on the other hand.

Rule of law

Good governance requires fair legal frameworks that are enforced impartially. It also requires
full protection of human rights, particularly those of minorities. Impartial enforcement of laws
requires an independent judiciary and an impartial and incorruptible police force.

Transparency

Transparency means that decisions taken and their enforcement are done in a manner that
follows rules and regulations. It also means that information is freely available and directly
accessible to those who will be affected by such decisions and their enforcement. It also means
that enough information is provided and that it is provided in easily understandable forms and
media.

Responsiveness

Good governance requires that institutions and processes try to serve all stakeholders within a
reasonable timeframe.

Consensus oriented
There are several actors and as many view points in a given society. Good governance requires
mediation of the different interests in society to reach a broad consensus in society on what is in
the best interest of the whole community and how this can be achieved. It also requires a broad
and long-term perspective on what is needed for sustainable human development and how to
achieve the goals of such development. This can only result from an understanding of the
historical, cultural and social contexts of a given society or community.

Equity and inclusiveness

A society’s well being depends on ensuring that all its members feel that they have a stake in it
and do not feel excluded from the mainstream of society. This requires all groups, but
particularly the most vulnerable, have opportunities to improve or maintain their well being.

Effectiveness and efficiency

Good governance means that processes and institutions produce results that meet the needs of
society while making the best use of resources at their disposal. The concept of efficiency in the
context of good governance also covers the sustainable use of natural resources and the
protection of the environment.

Accountability

Accountability is a key requirement of good governance. Not only governmental institutions but
also the private sector and civil society organizations must be accountable to the public and to
their institutional stakeholders. Who is accountable to whom varies depending on whether
decisions or actions taken are internal or external to an organization or institution. In general an
organization or an institution is accountable to those who will be affected by its decisions or
actions. Accountability cannot be enforced without transparency and the rule of law.

CONCLUSION

From the above discussion it should be clear that good governance is an ideal which is difficult
to achieve in its totality. Very few countries and societies have come close to achieving good
governance in its totality. However, to ensure sustainable human development, actions must be
taken to work towards this ideal with the aim of making it a reality.