Module 1: GOVERNANCE AND SUSTAINABLE DEVELOPMENT

Learning Objectives

1. Describe the development of the definition of governance as well

as the current perspectives on the word governance
2. Identify the functional and critical role of the different key players
of governance
3. Describe each element or indicators of good governance
4. Determine how can these indicators be utilized in the measurement
of performance of the government or assess whether these
indicators are present in the government
5. Illustrate the inter-linkages between good governance and
sustainable development

I. THE CONCEPT OF GOVERNANCE

In most dictionaries “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. Authority is therefore the based on an acknowledged duty to obey rather than on any form
of coercion or manipulation. Weber distinguished between three kinds of authority, based on the
different grounds upon obedience can be established; traditional authority is rooted in history,
charismatic authority stems from personality and legal-authority is grounded in a set of
impersonal rules. To study government is to study the exercise of authority. (Heywood, 1997)
Government is closely related to politics.

To study politics is in essence to study government or more broadly, to study the exercise
of authority. Politics is the art of government, the exercise of control within the society through
the making and enforcement of collective decisions. (Heywood 1997) The realm of politics is
restricted to state actors who are consciously motivated by ideological beliefs, and who seek to
advance them through membership of a formal organization such as a political organization. This
is the sense in which politicians are described as “political” whereas civil servants are seen as
“non political”, the state as “public” and the civil society as “private”. The institutions of the state
(the apparatus of the government, the courts, the police, the army, the society-security system
and so forth) can be regarded as “public” in the sense that they are responsible for the collective
organization of the community life. Moreover, they are funded at the public’s expense, out of
taxation. In contrast, civil society consists of what Raymund Burke called the little platoons,
institutions such as the family and kinship groups, private businesses, trade unions, clubs,
community groups and so on that are private in the sense that they are set up and funded by
individual citizens. On the basis of this public/private life division, government is restricted to
the activities of the state itself and the responsibilities which are properly exercised by public
bodies. Although civil society can be distinguished from the state, it nevertheless contains a
range of institutions that are thought as “public” in a wider access.

One of its crucial implications is that it broadens our notion of the government
transferring the economy in particular from the private to the public realm. Now, the conception
of politics and government move beyond the narrow realm of government to what is thought as
“public life” or “public affairs.” 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. (Heywood,
1997)

A. Definition of 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 exercise of political, economic, and administrative authority to manage a

country’s resources for development. It involves the institutionalization of a system
through which citizens, institutions, organizations, and groups in a society articulate their
interests, exercise their rights, and mediate their differences in pursuit of the 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
citizens and groups articulate their interests, exercise their legal rights, meet their
obligations, and mediate their differences.” UNDP.

5. in governance, citizens are rightly concerned with a government’s responsiveness to their

needs and protection of their rights. In general, governance issues pertain to the ability of
government to develop an efficient, effective, and accountable public management
process that is open to citizen participation and that strengthens rather than weakens a
democratic system of government. “ The USAID, Office of Democracy & Governance
 6. “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 enforce sound policies in an efficient, effective, equitable and
inclusive manner. - 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).

11. 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.

12. the interactions 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, relationships and
accountability: who has influence, who decides, and how decision-makers are held
accountable. (IOG 2003)

13. “as the exercise of economic, political and administrative authority to manage the
nation’s affairs at all levels. It comprises of mechanisms, processes and institutions
through which citizens and 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 on Governance defines governance as the process whereby societies or

organizations make their important decisions, determine who has voice, who is engaged in the
process and how account is rendered. (IOG, 2006)

B. 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” (Hjern and Porter, 1981, pp. 212-213).

These implementation structures operate within a notion of governance about which a

surprising level of consensus has been reached. There is a pervasive, shared, global perception of
governance as a topic far broader than ‘government’; the governance approach is seen as a “new
process of governing, or a changed condition of ordered rule; or the new method by which
society is governed” (Stoker, 1998, p. 17). Similarly, in the scholarship that has followed the
‘Reinventing Government’ themes of public effectiveness; much has been written of New Public
Management practices by which governance theory is put into action (Mathiasen, 1996; Lynn,
1996, 1998; Terry, 1998; Kelly, 1998; Peters and Pierre, 1998).

In this complex, devolved mode of service delivery, the unit of analysis for some students
of policy implementation is the network of nonprofit organizations, private firms and
governments. As Milward and Provan note, in policy arenas such as health, mental health, and
welfare, "...joint production and having several degrees of separation between the source and the
user of government funds...combine to ensure that hierarchies and markets will not work and that
networks are the only alternative for collective action" (2000, p. 243).

The discussions below describe the relationship of governance and other Public
Administration theories, the New Public Management, in particular.

The (mostly European) literature on governance and the increasingly international

scholarship on New Public Management (NPM) describe two models of public service that
reflect a ‘reinvented’ form of government which is better managed, and which takes its
objectives not from democratic theory but from market economics (Stoker, 1998). While some
use the terms interchangeably (for example, Hood, 1991), most of the research makes
distinctions between the two. Essentially, governance is a political theory while NPM is an
organizational theory (Peters and Pierre, 1998). As Stoker describes it,

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 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. It is also about more than
achieving greater efficiency in the production of public services (1998, p. 17-18). Peters and
Pierre agree, saying that governance is about process, while NPM is about outcomes (1998, p.
232).

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. Berman owes debts to Van Meter and Van Horn (1975, 1976) and Goggin, et
al (1990), among others. See Kaboolian (1998) for a description of reform movements in the
public sector that collectively comprise “New Public Management” (NPM). I adopt her definition
of NPM as a series of innovations that – considered collectively – embody public choice
approaches, transaction-cost relationships, and preferences for efficiency over equity. notes, the
outputs of governance are not different from those of government; it is instead a matter of a
difference in processes (1998, p. 17).

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 (Bekke, et al, 1995; Peters and Pierre,
1998; Stoker, 1998; Rhodes, 1996, 1997). Stoker (1998, p. 18) draws five propositions to frame
our understanding of the critical questions that governance theory should help us answer. He
acknowledges that each proposition implies a dilemma or critical issue.

1. Governance refers to institutions and actors from within and beyond government.
(But there is a divorce between the complex reality of decision-making associated with
governance and the normative codes used to explain and justify government). The
question, as it relates to policy implementation, is one of legitimacy. The extent to which
those with decision-making power are seen to be legitimate (in the normative sense) will
directly impact their ability to mobilize resources and promote cooperation and build and
sustain partnerships. Thus, the normative dilemma has pragmatic overtones. Beetham
suggests that for power to be legitimate it must conform to established rules; these rules
must be justified by adherence to shared beliefs; and the power must be exercised with
the express consent of subordinates (1991, p. 19).

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.
Public agencies have not merely endorsed or encouraged this partnership, but in some
cases have institutionalized these arrangements. This suggests a shift in responsibility
beyond the more traditional notions of contracting out and privatization. At the same
time, all of these activities contribute to uncertainties on the part of policy makers and the
public about who is in charge and who can be held accountable for performance
outcomes. Implementation theory must attend to the nature and impact of responsibility
and accountability.

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.) For
implementation scholarship to contribute to a greater understanding of governance
relationships, arrangements for minimizing (and impacts of) game-playing, subversion,
creaming and opportunism must be explored.

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). The “hollow state” that networks have triggered
(Milward, 1996; Milward and Provan, 2000) raises questions about how government can
manage public programs when they consist largely of entities outside the public domain.
Network theory and governance issues overlap, and they are both directly linked to
questions of implementation.

5. Governance recognizes the capacity to get things done which does not rest on the
power of government to command or use its authority. (But even so, government
failures may occur.) It is in this proposition that we find a natural progression from the
more encompassing theory of governance to the more prescriptive notions of New Public
Management. Stoker notes that within governance there is a concerted emphasis on new
tools and techniques to steer and guide. The language is taken directly from reinventing
themes. The dilemma of governance in this context is that there is a broader concern with
the very real potential for leadership failure, differences among key partners in time
horizons and goal priorities, and social conflicts, all of which can result in governance
failure. Stoker draws on Goodin as he suggests that design challenges of public
institutions can be addressed in part by “revisability, robustness, sensitivity to
motivational complexity, public defendability, and variability to encourage
experimentation” (Stoker, 1998, p. 26, quoting from Goodin, 1996, p. 39-43).

As Peters and Pierre note, “governance is about maintaining public-sector resources under
some degree of political control and developing strategies to sustain government’s capacity to
act” in the face of management tools that replace highly centralized, hierarchical structures with
decentralized management environments where decisions on resource allocation and service
delivery are made closer to the point of delivery (1998, p. 232)

C. The Key Actors in Governance

The management of public affairs is not an exclusive domain of government and the
concept of governance goes beyond the realm of the state or public sector. It also involves the
Civil Society which comprises of schools/academe, nongovernment organizations (NGO),
People’s Organization, Voluntary Organizations, and the Private or the Business Sectors. The
involvement of these sectors is based on their common interest and similar aspirations committed
to the same public concerns. As Louise Frechette, Deputy Secretary General of the UN said,
“Governance is not something the state does to society, but the way society itself, and the
individuals who compose it, regulate all the different aspects of their collective life.

State/Public
Sector

Civil Business
Society Sector

Source: UNDP (1997)

1. The State

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.

1.1.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.

1.2.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.

As an enabler, the local government likewise provides the environment for the
development of full potentials of its citizens guided by the “overarching goals of respecting,
protecting and fulfilling basic human rights for all and of empowering everyone to shape their
own destiny under a regime in which the realization of basic rights is guaranteed” (J. Natividad,
RightsBased Philippine Governance Review, DAP, 2005: 21)

ADB also outlined the role of the STATE and the key milestone in governance as shown below.

Roles of the States and Key Milestones in Governance

Table 1
Sound Development Key Milestones
Management Roles of the State

1. Creating a conducive • Enact and enforce laws that promote

economic environment economic competition
• Decentralize economic decision making and
stabilize inflation
• Reduce public deficit and free market to set
prices for privately produced goods and
services
2. Protecting the Vulnerable • Ensure the survival of pension systems
• Create or maintain reasonable unemployment
 benefits
• Establish and maintain a system of private
health and social insurance
• Maintain social assistance programs for the
disabled and disadvantaged
3. Improving government • Attract qualified, competent, honest and
efficiency and responsiveness realistically paid individuals into public
service
• Establish a civil service system that relies on
merit-based recruitment and promotion,
incentive-based compensation, and
rewardoriented career paths that are clearly
defined
• Attract and retain a corps of professionals
who are responsible for formulating and
implementing economic policies and support
them with good training, appropriate degree
of independence and professional reward
structures.
• Protect professional civil servants from
political interference in carrying out their
responsibilities
• Establish a civil service system that is flexible
enough to facilitate communication between
the public and private sectors
4. Empowering people and • Establish a conducive institutional
democratizing the political environment comprising properly functioning
system parliaments, legal and judicial systems, and
electoral processes.
5. Decentralizing the • Respond quickly to local needs and conditions
administrative system
• Redistribute authority, responsibility and
finances for public services among different
government levels
• Strengthen sub-national units of governments

• Respect traditional structures of authority as

well as traditional mechanisms for resolving
conflicts and managing common property in
society
6. Reducing gaps between rich • Reduce social disparities
and poor
 7. Encouraging cultural diversity • Maintain cultural identity and roots while
and social integration promoting social cohesion
• Ensure political systems are accessible to all
and that legal systems afford equal
opportunities
8. Protecting the environment • Integrate economic and environmental
accounting
• Promote interregional equity
Table 1
Source: *Asian Development Bank (2005) Country Governance Assessment

2. The Private or Business Sector - Corporate Governance

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. It 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. Efficiency and economy are expected outputs or products of
corporate governance. The state provides a level playing field for those able to compete, and
turns its attention to the provisions of safety nets for those unable to do so.

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.

3. The Civil Society

The Civil Society consists of the complex of citizens and groups outside 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.

Within the broad view of governance, Third Sector (civil society) organizations play a
key role as they engage in programs and deliver services in areas where government is absent or
where the private sector is not interested in. They facilitate political and social integration by
mobilizing and empowering people to participate in economic, social, and political activities.
Within the Third Sector itself, governance generally refers to the exercise of governing functions
by responsible persons. In this sense, the term has an inward looking perspective, an internal
relevance for Third Sector organizations.

Whether in the broad or the internal point of view, Third Sector organizations are called
upon to respond to the challenge of good governance. In order to do so, the Sector needs to
clarify the meanings, issues, and role expectations associated with the concept of governance.

In local governance, a critical role that the civil society plays is that it provides the forum
for the airing of grievances, complaints, concerns, issues and problems among the populace.
Specifically, it provides voice to the “inarticulate and the unarticulated”. It also performs some
political role in the community by serving as an instrument of checks and balances on the power
of the state or local government and the business sector behavior. It is seen as a claim holder of
basic human rights. And most of all, it can serve as an alternative delivery mechanism for the
frontline services.

Some civil society organizations engage primarily in the critique of existing policy and
the advocacy of what to them are more appropriate policies for the good of the nation. In
authoritarian regimes which close avenues of citizen access to policy formulation, some groups
may be forced to go underground and work for the ouster of the regime itself. But even in the
most democratic states, there will be no lack of critics that press for regime change and drastic
policy reversals. NGOs may also go beyond opposition and debate into competing with
government’s own delivery system, demonstrating that the alternative mechanisms they advocate
are capable of being implemented on the ground.

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)

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.

As mentioned earlier, government is one of the key 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. 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. ( http://www.unescap.org/huset/gg/governance.htm)

D. Relationships between Governance and Human Development as performed by each

Domain of Governance

Each domain of governance - the state, the private sector and civil society – has a unique
role in promoting sustainable human development.

The State

In countries where electoral processes exist, the state is composed of an elected

government and an executive branch. The state's functions are manifold - among them, being the
focus of the social contract that defines citizenship, being the authority that is mandated to
control and exert force, having responsibility for public services and creating an enabling
environment for sustainable human development. The latter means establishing and maintaining
stable, effective and fair legal-regulatory frameworks for public and private activity. It means
ensuring stability and equity in the marketplace. It means mediating interests for the public good.
And it means providing effective and accountable public services. In all four roles, the state faces
a challenge - ensuring that good governance addresses the concerns and needs of the poorest by
increasing the opportunities for people to seek, achieve and sustain the kind of life they aspire to.

The state, of course, can do much in such areas as upholding the rights of the vulnerable,
protecting the environment, maintaining stable macroeconomic conditions, maintaining standards
of public health and safety for all at an affordable cost, mobilizing resources to provide essential
public services and infrastructure and maintaining order, security and social harmony.

State institutions can also empower the people they are meant to serve - providing equal
opportunities and ensuring social, economic and political inclusion and access to resources. But
people can be empowered only if their legislatures, electoral processes and legal and judicial
systems work properly. Parliaments of freely and fairly elected members representing different
parties are crucial to popular participation and government accountability. Effective legal and
judicial systems protect the rule of law and the rights of all. Open elections mean public
confidence and trust - and so political legitimacy. States should also decentralize political and
economic systems to be more responsive to citizens' demands and to changing economic
conditions.

In developed and developing countries alike, the state is being compelled to redefine its
role in social and economic activity - to reduce it, reorient it, and reconfigure it. The pressures for
change stem from three sources:

• The private sector wants a more conducive market environment and a better balance
between state and market.
• Citizens want increased accountability and responsiveness from government, as well as
greater decentralization.
• Global pressures from supranational and worldwide social and economic trends are
challenging the identity and nature of the state.

The Private Sector

The state is a big force for development - but it is not the only one. Sustainable human
development depends in part on creating jobs that provide enough income to improve living
standards. Most states now recognize that the private sector is the primary source of opportunities
for productive employment. Economic globalization is fundamentally changing the ways in
which industries and enterprises operate. In many developing countries, private enterprise must
be encouraged and supported to be more transparent and competitive in the international
marketplace.

Equitable growth, gender balance, environmental preservation, expansion of the private

sector and responsible and effective participation in international commerce cannot be achieved
by the market alone, however. States can foster private sector development that is sustainable by:
 • Creating a stable macroeconomic environment.
• Maintaining competitive markets.
• Ensuring that the poor (especially women) have easy access to credit.
• Nurturing enterprises that generate the most jobs and opportunities.
• Attracting investment and helping to transfer knowledge and technologies, particularly to
the poor.
• Enforcing the rule of law.
• Providing incentives for human resource development.
• Protecting the environment and natural resources.

Civil society

Civil society also has to protect the rights of all citizens. As the state and the private
sector are being reshaped and their relationships redefined, civil society is changing in important
ways. Unresponsive government and unrelenting economic and social pressure have undermined
some traditional civil society organizations and strengthened others - and in many cases forced
people to organize in new ways. Civil society is thus more than just society. It is the part of
society that connects individual with the public realm and the state - it is the political face of
society.

Civil society organizations channel people's participation in economic and social

activities and organize them into more powerful groups to influence public policies and gain
access to public resources, especially for the poor. They can provide checks and balances on
government power and monitor social abuses. They also offer opportunities for people to develop
their capacities and improve their standards of living - by monitoring the environment, assisting
the disadvantaged, developing human resources, helping communication among business people.

More fundamentally, civic networks ease the dilemmas of collective action by

institutionalizing social interaction, reducing opportunism, fostering trust and making political
and economic transactions easier. Well-developed civic networks also amplify flows of
information - the basis for reliable political, economic and social collaboration and public
participation of civil society members. These relationships and social norms make up a nation's
social capital.

Civil society organizations do not always pursue the qualities of good governance. Nor
are they always the most effective development agents. That is why states, while recognizing and
protecting the democratic rights of civil society organizations, must also ensure that the rules of
law and values that reflect societal norms are adhered to. Democratic institutions, particularly
local ones, can be important in ensuring that all in society have a voice, as well as ensuring that
there are transparent and fair ways to reach consensus.

Like private enterprises, civil society organizations need adequate capacities to fulfill
their potential. They also need an enabling environment, including a legislative and regulatory
framework that guarantees the right of association, incentives to facilitate support and ways for
civil society organizations to be involved in public policy-making and implementation.

Strengthening the enabling environment for sustainable human development thus,

depends not only on a state that governs well and a private sector that provides jobs that generate
income. It also depends on civil society organizations that make political and social interaction
easier and that mobilize society to participate in economic, social and political activities. UNDP
(1997)

Apart from three key players of governance above, the Institute on Governance considers
a fourth player, the Media, which provides for a flow of information between the major players,
and between the players and society at large. However, media, even if not controlled by the state,
is part of the private sector and therefore not a dispassionate player. The relative size and strength
of each of the players varies depending on the history, culture and politics of the country. There
are no firm boundaries between these players (and in fact they often overlap) because the borders
of these sectors are permeable (e.g. state-owned organizations may have a foot in both
government and the private sector; government-funded NGOs also straddle two camps). Edgar
et. al (2006)

E. The Characteristics of Good Governance

1. What is good governance?

Like government, governance can be good or bad. Bad government and bad governance
have similar characteristics: Corruption, Whimsical and Expedient Decision-Making,
Shortsightedness, disregard for the concern of the many and decisions. In the same vein, the
criteria for good governance and would be the same as good governance. They include
accountability and ethics in decision-making and implementation, transparency and
predictability, rule-bound decision-making and action, responsiveness, a long term view of the
public interest. The public should therefore have a right to expect laws, a fair judicial system,
politically accountable lawmaking and an effective and reform-minded bureaucracy.

One goal of good governance is to enable an organization to do its work and fulfill its
mission. Good governance results in organizational effectiveness.

A lot of attention has been focused on good governance practices in the private sector in
Canada, the United States, the United Kingdom, and elsewhere. In the corporate world of
business, the “bottom line” provides a helpful focus point, but even here there can be difficult
questions of judgment as to what constitutes good governance. Current debate about corporate
governance is just starting to look at questions about the broader purposes of private
corporations. The private sectors are expected to provide corporate social responsibility which
seeks to include sustainable development and the need to address the social, economic and
environmental impact of various operations.
 In the public and non-profit sectors, the question of what constitutes good governance is
often more complex. In public purpose organizations, good governance is about more than
getting the job done. Especially in non-profits, government agencies and the like, where values
typically play an important role in determining both organizational purpose and style of
operation, process is as important as product. Good governance becomes more than only a means
to organizational effectiveness and becomes an end in itself.

Good governance is about both achieving desired results and achieving them in the
right way. Since the "right way" is largely shaped by the cultural norms and values of the
organization, there can be no universal template for good governance. Each organization must
tailor its own definition of good governance to suit its needs and values.

There is plenty of room for different traditions and values to be accommodated in the
definition of good governance. At the same time, all is not relative. There are some universal
norms and values that apply across cultural boundaries.

A number of multilateral organizations and institutions (e.g. the United Nations

Development Programme (UNDP), the Organization for Economic Cooperation & Development
(OECD), the Asian Development Bank) have reflected on the elements of good governance and
on their relation to development. As the ethos and experience of these institutions vary, so, too do
their perception of what constitutes good governance.

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
for a clearly articulated concept of governance has just begun.

Good governance is, among other things, participatory, transparent and accountable. It is
also effective and equitable. And it promotes the rule of law. Good governance ensures 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 resources.

THE EIGHT CHARACTERISTICS OF GOOD GOVERNANCE BY UNDP

Good governance is participatory, consensus oriented, accountable, transparent, responsive,

effective and efficient, equitable and inclusive and follows the rule of law. It assures that
corruption is minimized, the views of minorities are taken into account and that the voices of the
most vulnerable in society are heard in decision-making. It is also responsive to the present and
future needs of society. Much has been written about the characteristics of efficient government,
successful businesses and effective civil society organizations, but the characteristics of good
governance defined in societal terms remain elusive.
 Interrelated, these core characteristics are mutually reinforcing and cannot stand alone.
For example, accessible information means more transparency, broader participation and more
effective decision-making. Broad participation contributes both to the exchange of information
needed for effective decision-making and for the legitimacy of those decisions. Legitimacy, in
turn, means effective implementation and encourages further participation. And responsive
institutions must be transparent and function according to the rule of law if they are to be
equitable.

These core characteristics represent the ideal - and no society has them all. Even so,
UNDP believes that societies should aim, through broad-based consensus-building, to define
which of the core features are most important to them, what the best balance is between the state
and the market, how each socio-cultural and economic setting can move from here to there.

UNDP is faced increasingly with post-crisis situations and disintegrating societies. For
them, the issue is not developing good governance - it is building the basic institutions of
governance. The first step is towards reconciliation - building society's ability to carry on a
dialogue on the meaning of governance and the needs of all citizens

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

accountable, transparent, responsive, effective and efficient, equitable and inclusive and follows
the rule of law. It assures that corruption is minimized, the views of minorities are taken into
account and that the voices of the most vulnerable in society are heard in decision-making. It is
also responsive to the present and future needs of society.

Good governance principles SOUCE: UNDP (1997)

 1. Participation

Participation by both men and women is a key cornerstone of good governance All men
and women should have a voice in decision-making, either directly or through legitimate
intermediate institutions that represent their interests. Such broad participation is built on
freedom of association and speech, as well as capacities to participate constructively.
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.

2. Rule of law

Legal frameworks should be fair and enforced impartially, particularly the laws on human
rights. 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.

3. Transparency

Transparency is built on the free flow of information. Processes, institutions and

information are directly accessible to those concerned with them, and enough information is
provided to understand and monitor them. 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.

4. Responsiveness

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

5. Consensus oriented

Good governance mediates differing interests to reach a broad consensus on what is in the
best interests of the group and, where possible, on policies and procedures. 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.

6. Equity and inclusiveness

All men and women have opportunities to improve or maintain their well-being. 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.

7. Effectiveness and efficiency

Processes and institutions produce results that meet needs while making the best use of
resources. 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.

8. Accountability

Decision-makers in government, the private sector and civil society organizations are
accountable to the public, as well as to institutional stakeholders. This accountability differs
depending on the organization and whether the decision is internal or external to an organization.
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.

II. Good Governance for Sustainable Development

A. 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:
“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:

✓ Stable and long term economic growth

✓ Proportionate and balanced economic and social development
✓ Active employment policies
✓ Reduction of regional differences
✓ Growth of personal income and consumption
✓ Preservation of the environment for future generations and efficient usage and allocation
of natural resources.

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).

B. Aspects of the Good Governance in the Context of Sustainable Development

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.

The interface of good governance and sustainable development in terms of economic,

social, environmental, and institutional dimensions is depicted graphically below.
 In order for good governance to work toward sustainability, it must rely on
environmental, social and economic policies, on democracies and responsive institutions,
considering the needs of citizens, on rules of law, anti-corruption measures, the gender equality
and investment-intensive environment. So, it is the good governance which enables clear and
effective management of human, natural, economic and financial resource management under the
condition of the equitable ad sustainable development.

References

Dhaoui, Iyad. (2019). Good Governance for Sustainable Development. MPRA Paper No. 92544.
https://mpra.ub.uni-muenchen.de/92544/

Junevicience, Vita, and Kareivaite, Roberta. (2012) Good Governance as the Instrument for the
Implementation of the Sustainable Development’s Conception. Socialiniai tyrimai/Social
Research. http://su.lt/bylos/mokslo_leidiniai/soc_tyrimai/2012_28/jukneviciene_kareivaite.pdf

__________Module 1: The Concept & Theories of Governance

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