GOOD GOVERNANCE: DEFINITION AND CHARACTERISTICS

18 November 2021

Governance is a concept that has been around for years and is commonly used by many people. There is
almost no consensus on the official definition of governance because its use often depends on the
intended purpose, the people involved, and the socio-political environment of the term.

According to the United Nations (UN), governance refers to the activities of all political and
administrative authorities to govern their country. Meanwhile, as stated by the International Monetary
Fund (IMF), governance is a concept in which a country is managed, including economic, policy, and
legal aspects.

Thus, in general, governance has the meaning: the decision-making process and the process of
determining which policies will be implemented and not implemented.

Defining good governance

In the 1990s, the World Bank became the first international institution to adopt the concept of good
governance into lending arrangements for developing countries and introduce the idea to the general
public. In its 1992 report entitled “Governance and Development”, the notion of good governance was
written as the way in which power is used to regulate the economic and social resources of a country for
development.

Now, the term good governance has often been used by national and international organisations. Good
governance aims to minimise corruption, take into account the opinions of minorities, listen to the
voices of the oppressed people in the decision-making process, and respond actively to the needs of the
community now and in the future.
Eight principles of good governance

1. Participation

Participation in the concept of good governance here is an opportunity for everyone to voice their
opinions through institutions or representations. In addition, everyone, without exception, has the right
to freedom of association and expression.

2. Rule of law

To implement good governance, the legal framework in the country must be enforced impartially,
especially concerning human rights law.

3. Transparency

Transparency means that every policy taken and implemented by the government must be carried out
under existing regulations. In addition, there must be a guarantee that any information related to the
policy can be accessed by everyone, especially those who are directly affected by the policy.

4. Responsiveness

Good governance needs institutions and processes to attempt to serve all stakeholders within a
reasonable time.

5. Consensus oriented

This fifth principle is related to the decision-making process. When the decision-making process cannot
accommodate everyone’s wishes, then at a minimum, the decision must be a decision that can be
accepted by everyone and does not harm anyone.

6. Equity and inclusiveness

Good governance ensures justice for the community. Everyone has the same opportunity to maintain
and improve their welfare.
7. Effectiveness and efficiency

Every decision-making process and its institutions must be able to produce decisions that meet every
community need. Community resources must also be utilised optimally by the government.

8. Accountability

All institutions involved in good governance have full responsibility to the public for the sake of
improving the quality of society.

Now that we are all presented with an overall understanding of good governance and its principles, let’s
talk about how it’s harnessed at the local level and how the role of local governments is especially
crucial for a city’s development.

The United Cities Local Governments (UCLG) has emphasised in the Global Agenda of Local Regional
Governments that effective local governance can be a key pathway to solving the various challenges in
development at the global level. The biggest example is, of course, towards the achievement of the 2030
Agenda or what we know as the Sustainable Development Goals, as well as addressing crucial issues
such as climate change. Therefore, being the closest to its communities, local and regional governments
have the advantage of putting people at the centre of every decision-making process.

Local and regional governments demonstrate on a daily basis the potential that action based on
proximity has to contribute to solving major global challenges. This is UCLG ASPAC believes that the
development and improvement of people’s living conditions should be undertaken primarily at the local
level. We strive to achieve decentralisation as a way to democratise public governance at all levels.

United Cities and Local Governments Asia Pacific is the voice of Local and Regional Governments in the
region. We aim to ensure that our values are shared among our members. This strength is the driver of
our aim to secure a more permanent seat at the global table, to ensure the local perspectives and points
of view of local and regional governments play a part in the global decision-making processes and in the
implementation on the ground of the global agendas.
Collaboration

It can be concluded that good governance is an ideal concept to achieve its goals. Yet, of course,
implementing good governance is not as easy as it appears on paper. There are only a few countries that
have proven successful in implementing this concept in their governance. Swift and responsible action
from various parties will undoubtedly be very helpful in implementing good governance. Meanwhile, at
the local level, UCLG ASPAC believes that vertical integration of national policies with local level
implementation is key to enable greater impact in building a sustainable and resilient city. Again, this is
important as we are aware of the challenges that cities and local governments face in terms of technical,
institutional, and financial capacity, which can be tackled when they are given a good enabling
environment.

Referance

Citing from the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the
concept of good governance has eight principles.

Introduction

In general, good governance is perceived as a normative principle of administrative law, which obliges
the State to perform its functions in a manner that promotes the values of efficiency, no corruptibility,
and responsiveness to civil society. It is therefore a principle that is largely associated with statecraft.
While the government is not obliged to substantively deliver any public goods, it must ensure that the
processes for the identification and delivery of such goods are concrete in terms of i) being responsive to
public demands; ii) being transparent in the allocation of resources and; iii) being equitable in the
distribution of goods. The principle of good governance has also been espoused in the context of the
internal operations of private sector organizations. In this way, corporate decision-making strategies
integrate the principle of good governance and ensure that shareholder interests (i.e. public limited
companies) and employees are taken into account.

The legal meaning of the principle of good governance

The concept of good governance as developed by the World Bank is essentially a touchstone upon which
the prevailing administrative structure of a given country can be measured. Consequently, it provides
ample evidence of the robustness of the structural suitability of donors as efficient vehicles of
multilateral aid investment to developing countries. Good governance is therefore chiefly envisaged as a
set of procedural tools to guarantee the efficacious improvement of the donor identified subject.
Politically, however, the principle of good governance has not been very well received. For instance,
governments may be reluctant to be held accountable to donor agencies, and they may sometimes
display widespread hostility against such agencies (or other bodies) that is construed to be interfering in
their (sovereign) domestic affairs. The real or imagined fears have stemmed mainly from the fact that
the term “good governance” has largely been identified with “liberalism” and “laissez-faire” policies
common in most developed countries. Further, the usage of the term “good” derives primarily from
subjective interpretations especially in the context of large multicultural and diverse economies that
characterize the developing world.

The characteristics of good governance

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

1. 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.

2. 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.

3. 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.

4. Responsiveness

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

5. 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.

6. 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.

7. 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.

8. 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.
How to achieve good governance

Good governance, to be effective and sustainable, must be anchored in a vigorous working democracy
which respects the rule of law, a free press, energetic civil society organizations and effective and
independent public bodies such as the Commission for Human Rights and Good Governance, Prevention
of Corruption Bureau and the Fair Trade Commission. The Commission is important in ensuring the
promotion and protection of human rights, but also in ensuring both transparency and accountability on
the part of the government. Good governance requires transparency and efficiency also in different
government agencies.

At the political level democratic practices, including transparency in policy making and administration,
are important aspects of good governance. This is signified by a pluralistic political system that allows
the existence of diversity in political and ideological opinions. No wonder that good governance is said
to be more easily achieved and guaranteed in a multi-party system than in a mono-party system. It also
means the holding of regular elections applying the principle of universal franchise. In order to qualify as
democratic, elections must be free and fair.

Good governance deals with the nature and limits of state power. The doctrine of the separation of
powers is therefore relevant in the establishment of whether or not a country has a political system that
is responsive to good governance. The doctrine of the separation of powers is based on the acceptance
that there are three main categories of government functions: legislative, executive, and judicial.
Corresponding to these are the three main organs of government in a state – the Legislature, the
Executive and the Judiciary. The doctrine insists that these three powers and functions of government in
a free democracy must be kept separate and exercised by separate organs of the state.

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.

References
Macdonald, B. (1998), “‘Good’ governance and Pacific island states”, in Larmour, P. (Ed.), Governance
and Reform in the South Pacific, National Centre for Development Studies Australian National
University, Canberra, pp. 21-53.

Woods, N. (1999) Good Governance in International Organizations, Global Governance 5, 39-61.

Burnell, Peter. ‘Good Government and Democratization: A Sideways Look at Aid and Political
Conditionality’, Democratization, vol.1, no.3, pp.485-503.

UKEssays. (November 2018). Principles and Characteristics of Good Governance. Retrieved from
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