M PRA
Munich Personal RePEc Archive
Good governance for sustainable
development
Iyad Dhaoui
January 2019
Online at https://mpra.ub.uni-muenchen.de/92544/
MPRA Paper No. 92544, posted 6 March 2019 11:07 UTC
Good governance for sustainable development
[email protected]
Abstract
Since many decades there has been a growing concern about reducing poverty, reduce inequality,
protect environment, promote well-being, etc. These changes have shifted focus from the model
of economic growth to the new model of sustainable development. Despite this new direction,
the issue of how to achieve sustainable development goals still remains. One of the most
recognized tools to cope with the development agenda is the good governance.
The aim of this paper is to give an overview on the issues of the sustainable development and to
outline the link between good governance dimensions and selected indicators of development.
Also, the paper investigates the requirement for good governance.
Keywords: Good governance; sustainable development
1. Introduction
Between 1950s and 1980s, the approach of development was oriented to achieve high levels of
economic growth (Wang et al, 2008). Since the end of 1980, the strategy has been oriented to
economic growth. In 2000, the United Nations launched the millennium development agenda
which contains eight goals. In 2015, this agenda was replaced by the sustainable development
agenda (SDGs) or what which is known as the 2030 SDGs Agenda. Many tools, strategies and
recommendation have been advocated to achieve those objectives.
Many studies have shown that the challenges facing countries in terms of sustainable
development such as high unemployment rate, widespread of poverty and inequality are
explained, in part, by inefficient institutions prone to corruption (Demmers et al., 2004). In this
regard, the new paradigm of development strategy based on good governance emphasizes the
joint participation of role of the state, non-state actors, civil society and private sector, in the
economy and in the process of public governance (Stojanović et al., 2016).
2. Sustainable development
The concept of sustainable development become a topic of discussion at international level after
the publication of the report “Our Common Future” in 1987 by the Word Commission on
Environment and Development of the United Nations. This report is widely known as the
Brundtland report where we find the most famous definition of sustainable development:
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“development that meets the needs of the present without compromising the ability of future
generations to meet their own needs” (UNWECED, 1987).
The principles of sustainable development include:
o Stable and long term economic growth
o Proportionate and balanced economic and social development
o Active employment policies
o Reduction of regional differences
o Growth of personal income and consumption
o Preservation of the environment for future generations and efficient usage and allocation
of natural resources.
3. The shift towards good governance
There are two main raisons that led to the emergence of good governance. First, and by the end
of Cold War, poor countries faced challenges to make transition to the market economy and
therefore they concentrated their efforts to modernize institutions and decision making process
(Hout, 2007). Second, by the end of 1980s and the increase of economic problems such as the
raising level of external debt, many developing countries launched what we call structural
adjustment program. These programs gave mitigates results and there was a doubt towards the
Washington Consensus and the legitimacy of the international financial institutions. The world
has moved to an increasingly waves of globalization and the unregulated market (Craig and
Porter, 2006). All these changes make end to the neo-liberalism approach.
The attention nowadays is about good governance which refers widely to institutional issues,
social justice and inclusiveness (Gore, 2000; Öniş and Şenses, 2003). In that regard, there are no
perfect governing structures and institutions. But, they can be continuously improved.
Good governance refers to “a set of qualitative characteristics relating to processes of rulemaking
and their institutional foundations. It encapsulates values such as enhanced participation,
transparency, accountability, and public access to information. It also helps to combat corruption
and secure both basic human rights and the rule o f law” (UNU-IAS, 2015).
The SDG Agenda clearly has a great commitment to good governance and its vital role. Goal 16
indicates “effective governance institutions and systems that are responsive to public needs
deliver essential services and promote inclusive growth”. Institutions are the basics for good
governance. In addition, good governance includes relations between state and people.
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4. The model of governance
Actually, there is growing acceptance that the “one size-fits all” models of governance, which is
advocated by international financial institutions, do not work. Indeed, diverging pathways
towards more inclusive political and economic institutions appear (UNDP, 2014). Some
problems had occurred especially in terms of implementation of public sector reforms that have
generated the ineffectiveness of development aid and expenditure limited resources without
realizing the objectives of sustainable development.
The consequences of the international financial crisis, the consequences of climate change, the
impacts of state-intra conflict, crime and terrorism have increased the attention to develop the
model of governance by taking into account new dimensions since the word is increasingly
interconnected. Nowadays, it is widely recognized that a single model of governance cannot and
should not be imposed. The main reason is that governance varies across contexts and cultures,
and has evolved in response to a number of socio-cultural and economic factors.
5. The effect of good governance on development
Regarding the effect of good governance on economic growth and development, there have been
many studies that talked about this nexus. Results differ according to the regions or country and
according to the used econometric tools. Some studies found a non-conclusive link. Others
found a negative relationship. However, the majority of studies have shown a positive and a
direct effect to achieve development targets such as reducing poverty, increasing employment,
more equitable redistribution of income, etc. (Shylendra and Bhirdikar, 2005 ; Kioe Sheng, 2010).
Actually there are widely accepted arguments that governance should play a stronger role in the
post-2015 development agenda starting from the premises that good governance enables the
achievement of a range of important development objectives.
Nowadays, the ongoing discussion recognizes that current development challenges are more
complex. Indeed, and according to the SDGs Agenda, sustainable development should concern
economic, social and environmental dimensions. Also, this development should be equitable.
Further, this approach should address political and technical aspect of development solutions
(UNDP, 2014).
Good governance is widely acknowledged as a foundation for sustainable development, including
sustained and inclusive economic growth, social development, environmental protection and the
eradication of poverty and hunger.
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To ascertain whether governance is good, three dimensions have to be assessed: mechanisms that
promote it, the process used, and the outcomes achieved.
Figure 1: Underpinning of good governance
Mecanisms Processes Outcomes
o Mechanisms of good governance include: transparent and democratic institutions,
efficient and effective public services.
o Governance processes refer to: the quality of participation necessary to ensure that
political, social and economic priorities are based on a broad consensus in society and
that the voices of the excluded, poorest and most vulnerable are heard in decision-
making.
o Outcomes of good governance could be: peaceful, stable and resilient societies, where
services are delivered and reflect the needs of communities, including the voices of the
most vulnerable and marginalized.
Figure 2: E-governance and sustainable development
E-governance Sustainable development
Social
Political system
sustainability
Administartive Economic Environmental
Civil society
system sustainability sustainability
It is worth noticing that accountability through those dimensions is crucial. Accountability can
run vertically from government to people; or horizontally between parts of the state (such as
executive and judiciary). Therefore, a sustainable development framework will require that public
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officials account for actions taken in the public’s name and with public resources. Some concrete
action may support the mechanisms and processes of governance such as gender responsive
planning, budgeting processes, transparency in the election campaigns, etc.
Integrating e-governance with sustainable development could include:
o Protecting basic rights of citizens and creation of valued services for higher living
standards of people
o For genuine development in society, sustainability is crucial
o Pursuit of sustainability depends on the government integrating many services and
providing one-step, critical service to citizens
o Efficiency is necessary to make things as simple as possible yet beneficial as possible as
well
o Transparency and accountability are important characteristics of decision making for
sustainability
Figure 3: E-governance for various sustainable development dimensions
Social sustainability: access to information, gender inequality, illiteracy, etc.
Environmental sustainability: climate change, disater mangement,etc.
Economic sustainability: energy consumptions, logistics, transportation, etc.
Economic sustainability
Environmental
Social sustainability sustainbility *Use of energy efficient
*Accessibility for tech technology
*use of environmentally
choices friendly (Green) ICT *smart work inititives to
*E-gov services support equipment for alleviate
public health efforts government opeartions traffic/pollution, etc.
*e-gov in remote areas *Set up alert messaging *technology-enabled
services to populations information and services
*e-gov inititiaves should provided to business
help to narrow digital (severe wheather
patterns, etc.) and people to
divide encourage interaction
*Smart metring service and growth
for water management
6. Indicators and requirement of good governance
Enhancing governance requires some actions in different areas, not all of which can addressed at
once, and not all can be the subject of a global consensus:
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o Effective, responsive and accountable state institutions
o Openness and transparency - public access to information
o Addressing corruption and curbing illicit financial flows
o Justices and the Rule of Law
o Participation in decision-making
o Curbing violence and combating transnational organized crime
For the implementation of good governance principles, a special attention is towards institutions.
In this regard, institutions must help citizens achieve sustainability by, especially, providing equal
opportunities and ensuring social, economic and political access to resources. Institutions,
especially public ones, could contribute heavily to the maintenance of human rights,
environmental protection, stable macroeconomic conditions, enhance health conditions, manage
and mobilize resource for essential public services, etc. (Juknevciene and Krateivaite, 2012).
Further, it is crucial to identify problems, develop frameworks and create opportunities, and
create the open-government ideas and formatting an appropriate public policy (West et al., 2009).
Therefore, formal institutions are emphasized in the implementation process of sustainable
development concept.
The institutional dimension has become one of the most famous research objects in the context
of sustainable development and in the context of good governance as a tool to achieve
sustainability. Juknevciene and Krateivaite (2012) conducted an analysis of institutional
development based on some indicators showing the manifestation of the institutional dimension
grounded by the idea of the good governance in the implementation of the sustainable
development concept. Graph below gives an overview of those indicators classified into
quantitative and qualitative indicators:
Figure 4: Classification of institutional indicators
Institutional indicators
Qualitative indicators Quantitative indicators
o Protection of property rights o Government expenditures
o Economic freedom o Tax rate
o Bureaucracy o Investment
o Regulatory system o Interest rate
o Corruption
o Civil and political freedom
o Business freedom
o Rule of Law 6
The term governance is often characterized by seven major characteristics which assure that
corruption is minimized, the view of communities are taken into account, the voices of the most
vulnerable in society are heard. As for the indicators of good governance, graph below stated
clearly the most important indicators:
Figure 5: Good governance indicators
Participation
Rules of Law Effectiveness &
efficiency
good
governance
indicators
Transparency Equity &
inclusiveness
Accountability Responsiveness
7. Addressing priorities for SDGs Agenda
A range of governance areas is required to achieve SDGs. These areas can be:
o Planning for long term: with reference to the definition of sustainable development as a
framework to achieve development for actual and next generation, a need appears to
create and develop institutions that promote inter-generational equity.
o Integrating the different dimensions of sustainable development policy: this means
creation of synergies and coherence.
o Collaboration: the complex and multi-sector challenges of sustainable development
character of sustainable development require collaboration. In this sense, hierarchical and
government-driven approaches to development appear unsuitable for such framework.
o Innovation: the development of Information and Communication Technologies (ICTs)
has engendered a new form of engagement between citizens, state and the private sectors
and new form of monitoring and evaluation.
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Figure 6: Priorities for SDGs
Create political support
for sustainable
develoment
Utilize insitutional
Engage the Public in
arrangements and
identifying and
international
developing
cooperation for
solutions that help
sustainable
them themost
development
Conclusion
Good governance has long been a topic of discussion in the international arena, and especially in
the field of sustainable development. Indeed, good governance is pivotal to the development
process. There are now widely accepted arguments that governance should play a stronger role in
SDGs agenda. Indeed, in order to seek for the economic, social and environment need’s
sustainability, it is necessary to establish good governance by first identifying the mechanisms,
process and outcomes. Institutional dimension is crucial for good governance and contributes to
it by forming a suitable environment for the performance of the sustainable development
mechanisms, enabling government to be more effectively, efficiently and responsibly involved in
development plans.
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