MODULE 3

THE CHARACTERISTICS
OF GOOD
GOVERNANCE
Learning Objectives
At the end of this module, the students should be able to:

Identify and enumerate the eight characteristics of good governance

according to UNDP.
Describe each element or indicator of good governance.
Determine how these indicators can be utilized in the measurement of
performance of the government or assess whether these indicators are
present in the government.
Illustrate the inter-linkages among the different elements of
governance; and
Present some examples of best practices in good governance.
Introduction
Governance can be good or bad, much like government. Bad
governance is characterized by corruption, arbitrary decision-making,
shortsightedness, and disregard for public concerns, while good
governance emphasizes accountability, ethics, transparency,
predictability, rule-based actions, responsiveness, and a long-term
focus on public interest. The primary goal of good governance is to
enable organizations to fulfill their mission effectively. It is
participatory, transparent, accountable, effective, and equitable,
ensuring that political, social, and economic priorities reflect a broad
societal consensus.
What is a good governance?
In the private sector, good governance focuses on corporate social
responsibility, sustainable development, and addressing social,
economic, and environmental impacts. In the public and non-profit
sectors, good governance goes beyond achieving results to include
fairness, value-driven processes, and inclusivity. Global
organizations like the UNDP, OECD, and Asian Development Bank
emphasize governance principles tailored to cultural norms, yet
they uphold universal values, such as promoting human
development, particularly for marginalized groups.
The Eight Characteristics of Good
Governance By UNDP
Good governance is defined by eight key characteristics: it is
participatory, consensus-oriented, accountable, transparent,
responsive, effective, efficient, equitable, inclusive, and
follows the rule of law. These qualities ensure minimized
corruption, consideration of minority perspectives, and
inclusion of vulnerable voices in decision-making.
Additionally, good governance is forward-looking, addressing
both present and future societal need
The Eight Characteristics of Good
Governance By UNDP

These characteristics are interconnected and mutually reinforcing.

Transparency fosters broader participation and more effective
decisions, while participation enhances legitimacy and
implementation. Responsive institutions must adhere to
transparency and the rule of law to achieve equity. Although no
society embodies all these ideals, each can strive to balance
governance priorities through consensus-building and adaptation to
its socio-cultural and economic context.
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.
Rule of law

Legal frameworks should be fair and enforced impartially,

particularly the laws on human rights.

02 03
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 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.

02 03
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

Institutions and processes try to serve all stakeholders.

02
Good governance requires that institutions and03
processes try to serve all stakeholders within a
reasonable timeframe.
Concensus-Oriented

Governance involves balancing diverse

viewpoints and interests to form decisions that
reflect the collective will of society.
Example:

A city council organizes

community meetings to hear
opinions on urban development
projects. They incorporate ideas
from residents, businesses, and
environmental groups to create a
plan benefiting everyone.
Equity and Inclusiveness

Everyone in society, especially the most

vulnerable, must have equal opportunities to
improve their quality of life.
Example:

A government launches a free

education program for
underprivileged children,
ensuring access to schooling
for all, regardless of
socioeconomic status.
Effectiveness and Efficiency

Processes and institutions must produce results

that meet society's needs while using resources
wisely and sustainably.
Example:

A local government adopts a

solar-powered water purification
system, ensuring clean water
access while reducing energy
costs and environmental impact.
Accountability

Decision-makers must be answerable to the

public and stakeholders for their actions and
policies.
 Example:

A mayor holds quarterly town hall

meetings to discuss progress on
city projects and address
community concerns, ensuring
transparency and responsiveness.
 Strategic Vision

Strategic vision emphasizes the importance of

leadership and public collaboration in adopting a
long-term perspective on governance and human
development. It requires an understanding of
historical, cultural, and social complexities.
Similarly, the World Bank identifies four governance
dimensions—Public Sector Management,
Accountability, Legal Framework for Development,
and Transparency & Information—as essential for
promoting sustainable growth and poverty reduction.
Example:

A national government develops a 25-

year plan focusing on renewable energy
and infrastructure. This plan is
grounded in the country’s historical
reliance on coal and its cultural
preference for local resource
management. With World Bank support,
the plan incorporates:
Public Sector Management: Training government
staff to manage renewable energy projects.

Accountability: Regular audits of project funding.

Legal Framework: Enacting laws for renewable

energy incentives.

Transparency: Publishing data on project

outcomes and energy production online.
 Four Basic Elements of
Good Governance according
to ADB
Four Basic Elements of Good Governance according to
ADB

ADB likewise regards governance as synonymous with

sound development management. It relates to
governance to the effectiveness with which
development assistance is used, the impact of
development programs and projects and the
absorptive capacity of borrowing countries.
To address governance issues, the Asian
Development bank has built upon the approach
of the World Bank and has identified four basic
elements of good governance:
1. Accountability

Accountability is imperative to make public officials answerable for

government behavior and responsive to the entity from which they
derive their authority.

Accountability also means establishing criteria to measure the

performance of public officials, as well as oversight mechanisms to
ensure that standards are met.
The litmus test is whether private actors in the economy have
procedurally simple and swift recourse for redress of unfair actions
or incompetence of the executive authority.

Example: A mayor who regularly updates the community

about how tax money is being spent, and answers questions
from citizens during public meetings.
2. Participation
The principle of participation derives from an acceptance that
people at the heart of development.

Participation is often related to accountability but not necessarily

so.

At the grassroots level, participation implies that government

structures are flexible enough to offer beneficiaries and others
affected, the opportunity to improve the design and
implementation of public programs and projects
 Participation in economic life by agents other than the state
would cover not only the role of the private sector but also the
activities of NGOs.

Example: Citizens voting in elections or attending town hall

meetings to share their ideas about how to improve their
neighborhood.
3. Predictability

Predictability refers to the existence of laws, regulations

and policies to regulate society, and their fair and
consistent application.

The importance of predictability cannot be overstated

since, without it, the orderly existence of citizens and
institutions would be impossible.
Example: A government consistently issues drivers'
licenses to citizens who meet the same set of criteria,
such as passing a driving test and providing necessary
documents. The process for applying remains the
same every year.
4. Transparency

Transparency refers to the availability of information to the

general public and clarity about government rules, regulations
and decisions.

Transparency in government decision making and public

policy implementation reduces uncertainty and can help
inhibit corruption among public official.
Example: A local government posting its budget on the
city’s website, where residents can see how much
money is allocated for different services like
healthcare, education, and infrastructure.
 Basic Elements of Good Governance Key Dimensions Specific Areas of Action

1. Accountability means making public Establishing criteria to measure

Public Sector Management Public
officials answerable for government performance of public Institutionalizing
Enterprise Management Public Financial
behavior and responsive to the entity from officials mechanisms to ensure that
management Civil Service Reform
which they derive authority standards are met

Participation of beneficiaries and affected groups

Interface between government and the private
2. Participation refers to enhancing
sector
people's access to and influence on Undertaking development for and by the people
Decentralization of public and service delivery
public policy processes functions (empowerment of Local Governments)
Cooperation with Non- Government Organizations

3. Predictability refers to the existence of Establishing and sustaining appropriate legal Law and development Legal Frameworks for
laws, regulations and policies to regulate and institutional arrangements
Private Sector Development
society and the fair and consistent application Observing and upholding the rule of law
of these Maintaining consistency of public policies

4. Transparency refers to the availability of

Ensuring access to accurate and timely
Information to the general public and clear
information about the economy and Disclosure of Information
government rules, regulations, and
decisions government policies
 The Institute on Governance has
identified five principles of
governance, using as basis the UNDPs
indicators of good governance.
Legitimacy and Voice

All men and women should have a voice in

decision-making, either directly or through
legitimate representatives. Broad participation is
supported by freedom of association, speech, and
constructive engagement.
Example:

Town hall meetings where

community members discuss
local development projects and
vote on priorities.
 Direction

Leaders and the public must have a long-term

perspective on governance and human
development, grounded in historical, cultural, and
social understanding.
 Example:

Singapore's strategic urban

planning for sustainable
economic growth and
infrastructure development.
Performance

Institutions must meet the needs of

stakeholders efficiently while ensuring
optimal use of resources.
Example:

A government hotline for public

services where citizens can report
issues and receive timely
assistance.
 Accountability

Leaders and institutions are accountable to the

public and stakeholders, with transparency
enabling understanding and monitoring.
Example:

Annual public reporting of

government budgets and
expenditures.
 Fairness

Opportunities for all to maintain or improve well-

being, and fair enforcement of legal frameworks,
especially regarding human rights.
Example:

Legal aid programs providing

access to justice for
underprivileged communities.
Group Members:

Buenviaje, Micaila Jarme, Kojie Perez, Leanne Samantha

THANK YOU!