MGT 202: Good Governance and Social Responsibility - PDF

MGT 202: Good Governance and Social Responsibility LESSON 2: The Key Actors in Governance 1.​ THE STATE -​ The principal actor of government to facilitate...

MGT 202: Good Governance and Social Responsibility LESSON 2: The Key Actors in Governance 1.​ THE STATE -​ The principal actor of government to facilitate participation and provide an enabling environment to other elements of the society. The management of public affairs is not an exclusive domain It’s a powerful organization that understands of government and the concept of governance goes beyond the the importance of other groups or sectors and realm of the state or public sector. It also involves the Civil doesn’t try to control or overpower them. It Society which comprises schools/academe, non government respects their independence while still playing organizations (NGO), People’s Organization, Voluntary important roles like setting rules, providing Organizations, and the Private or the Business Sectors. The services, or making sure everyone’s rights are involvement of these sectors is based on their common interest protected. The government or entity plays a key and similar aspirations committed to the same public concerns. part in organizing and supporting society, but it As Louise Frechette, Deputy Secretary General of the UN said, doesn’t take over the work or decisions of other “Governance is not something the state does to society, but the groups, like schools, businesses, or way society itself, and the individuals who compose it, regulate communities. It helps guide and support them all the different aspects of their collective life.” It means that without being too controlling. governance isn’t just about the government telling us what to -​ The state as enabler provides for the legal and do. It’s about how we, as a society, along with the government, regulatory framework and political order within work together to make decisions and rules that help everyone which firms and organizations can plan and act. live and work well together. It’s a team effort, and everyone has -​ It can assure private firms that policies are fair a part in how things are run. - Dle and not subject to caprice or whim (a "whim" is a sudden, impulsive decision, while a "caprice" Key Actors in Governance refers to an unpredictable or irrational change in direction, often lacking logical reasoning or long-term planning) or the private interest of political officials. -​ 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 helps the national government put its plans into action. For example, if the national government wants to build new schools or improve healthcare, the local  government works on making those projects happen in their area. They handle the details, like finding the 1.​ Creating a conducive economic environment land, hiring workers, and making sure everything ​ Enact and enforce laws that promote economic runs smoothly. So, they play a big part in making competition sure the plans actually work for the people. The Philippine Competition Act (PCA) or R.A. 10667 is the primary competition law of the Philippines for LOCAL GOVERNMENT promoting fair competition in the marketplace and -​ The Local Government is an avenue where the protecting the well-being of consumers in the process. civil society groups at the community level can participate meaningfully in the decision-making The act reflects the belief that competition: processes. By virtue of the powers and authority provided in the Local Government ​ promotes entrepreneurial spirit; Code of 1991, local government formulates and ​ encourages private investments; defines the legal and regulatory framework. ​ facilitates technology development and transfer, This serves as the basis for the involvement and and participation of the various organizations and ​ enhances resource productivity. groups in the governance of the community. ​ Decentralize economic decision making and -​ maintains a political order and provides the stabilize inflation necessary resources such as technical expertise ​ Reduce public deficit and free market to set and infrastructure to the various groups, most prices for privately produced goods and especially to those who are placed at services disadvantaged positions. -​ 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 2. Protecting the Vulnerable fulfilling basic human rights for all and of ​ Ensure the survival of pension systems empowering everyone to shape their own ​ Create or maintain reasonable unemployment destiny under a regime in which the realization benefits of basic rights is guaranteed” (J. Natividad, ​ Establish and maintain a system of private health Rights-Based Philippine Governance Review, and social insurance DAP, 2005: 21) ​ Maintain social assistance programs for the disabled and disadvantaged Roles of the States and Key Milestones in Governance 3. Improving government efficiency and responsiveness 2. THE PRIVATE OR BUSINESS SECTOR - Corporate Governance 4. Empowering people and democratizing the -​ In governance parlance, the private/business sector political system serves as the engine of the society. It is an important ​ Establish a conducive institutional environment collaborator in the economic development of the comprising properly functioning parliaments, legal community. It generates jobs and incomes for the and judicial systems, and electoral processes. people in the community. -​ It can also provide the needed resources for the 5. Decentralizing the administrative system government to enable it to pursue big and wide scale ​ Respond quickly to local needs and conditions projects that are beyond the local government’s ​ Redistribute authority, responsibility and finances financial capability. Efficiency and economy are for public services among different government expected outputs or products of corporate governance. levels -​ In the field of information technology, the private sector ​ Strengthen sub-national units of governments can help the local government in the development of ​ Respect traditional structures of authority as well technologies that would help propel the growth and as traditional mechanisms for resolving conflicts development of the economy of the community. and managing common property in society 3. THE CIVIL SOCIETY 6. Reducing gaps between rich and poor -​ The Civil Society consists of the complex of citizens and ​Reduce social disparities groups outside government working in the public arena. It is often called as CSOs- civil society organizations and also 7. Encouraging cultural diversity and social sometimes referred to as the Third Sector. integration -​ The civil society comprises the academe or schools, NGOs ​Maintain cultural identity and roots while e.g. Association of Schools of Public Administration in the promoting social cohesion Philippines, Inc. (ASPAP, Inc) housed at the National ​Ensure political systems are accessible to all and College of Public Administration and Governance which is that legal systems afford equal opportunities religiously collaborating with Government and NGOs (GOP-UNDP Programme, Galing-Pook Foundation, Social 8.​ Protecting the environment Watch Philippines, TAN, TI etc.) in promoting governance ​integrate economic and environmental accounting and development.). Other civil society groups include POs ​Promote interregional equity and voluntary groups. -​ Within the broad view of governance, Third Sector 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 decisions are arrived at and implemented. At the national level, integration by mobilizing and empowering people to informal decision-making structures, such as "kitchen cabinets" or participate in economic, social, and political activities. informal advisors may exist. -​ In local governance, a critical role that the civil society plays is that it provides the forum for the airing of -​ In urban areas, organized crime syndicates such as the grievances, complaints, concerns, issues and problems "land Mafia" may influence decision-making. among the populace. -​ 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. 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, 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 Government is one of the key actors in governance. Other actors from the government, as well as greater decentralization. involved in governance vary depending on the level of government -​ Global pressures from supranational and worldwide social that is under discussion. In rural areas, for example, other actors and economic trends are challenging the identity and nature may include influential landlords, associations of peasant farmers, of the state. cooperatives, NGOs, research institutes, religious leaders, finance institutions, political parties, the military etc. The situation in urban areas is much more complex. Relationships between Governance and Human Development as performed by each Domain of Governance All actors other than government and the military are grouped together as part of the "civil society." In some countries in addition 1.​ THE STATE to the civil society, organized crime syndicates also influence -​ The state's functions are manifold - among decision-making, particularly in urban areas and at the national level. them, being the focus of the social contract that defines citizenship, being the authority that is Similarly formal government structures are one means by which mandated to control and exert force, having  responsibility for public services and creating standards. Most states now recognize that the an enabling environment for sustainable human private sector is the primary source of development. opportunities for productive employment. Economic globalization is fundamentally -​ In all four roles, the state faces a challenge - changing the ways in which industries and ensuring that good governance addresses the enterprises operate. In many developing concerns and needs of the poorest by increasing countries, private enterprise must be the opportunities for people to seek, achieve encouraged and supported to be more and sustain the kind of life they aspire to. transparent and competitive in the international -​ The state, of course, can do much in such areas marketplace as -​ States can foster private sector development -​ upholding the rights of the vulnerable, that is sustainable by: -​ protecting the environment, -​ Creating a stable macroeconomic -​ maintaining stable macroeconomic environment. conditions, -​ Maintaining competitive markets. -​ maintaining standards of public health -​ Ensuring that the poor (especially and safety for all at an affordable cost, women) have easy access to credit. -​ mobilizing resources to provide -​ Nurturing enterprises that generate the essential public services and most jobs and opportunities. infrastructure and -​ Attracting investment and helping to -​ maintaining order, security and social transfer knowledge and technologies, harmony. particularly to the poor. -​ State institutions can also empower the people -​ Enforcing the rule of law. they are meant to serve - providing equal -​ Providing incentives for human opportunities and ensuring social, economic resource development. and political inclusion and access to resources. -​ Protecting the environment and natural But people can be empowered only if their resources. legislatures, electoral processes and legal and judicial systems work properly. 2.​ THE PRIVATE SECTOR 3.​ CIVIL SOCIETY -​ The state is a big force for development - but it is not the only one. Sustainable human -​ Civil society also has to protect the rights of all development depends in part on creating jobs citizens. As the state and the private sector are that provide enough income to improve living being reshaped and their relationships  redefined, civil society is changing in important permeable. 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 individuals with the public realm and the state - it is the political face of society. -​ 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, and helping communication among business people. 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. 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, the 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