Module I Development and Government PDF

MODULE 1 The Concept & Theories of Governance Introduction “Knowledge is knowledge only when the students do at their best on what they learn. “ This module is the first part of the course on Governance and Development. It is intended to make the teaching and learning process a more inter-active and productive endeavor. In each lesson are learning activities, concept development and drills/exercises. Productive and constructive teaching methodologies are presented and hopefully utilize to build the student's competencies which include among others: professional writing style, oral presentation skills, critical analytical thinking skills, political and administrative decision-making systems, discipline-specific knowledge (government, non-profit management, and corporate management skills), public service skills, research skills, proper documentation, library skills, technology skills, and globalization. This module also builds the knowledge base in governance and eventually will be applied by students in the latter part of the course. It also prepares and develops students to succeed as leaders, managers, analysts and administrators in meeting change and challenges of governance in the public and non-profit sectors. Hence this module attempts to discuss the concepts of governance according to different authors and institutions; the key actors in governance as well as the characteristics of good governance. A governance model of implementation is also explored as a theoretical alternative that offers the potential to synthesize disparate models and bring networks into the governance paradigm. Lesson 1 presents the basic discussions to introduce the nature, concept and theoretical framework of governance. It also provides students an understanding of the difference of governance from government as well as its evolution which will eventually develop students’ ability to apply these concepts to current issues on governance and development. Lesson 2 gives students a critical understanding of the role of the different key players/actors in the governance process. This will encourage them to develop their own ideas for enhancing participation in governance and improving accountability of the state. Lesson 3 discusses the definition and the elements or characteristics of good governance as introduced by different institutions and organizations. Lesson 4 presents the issues and challenges on governance. In here, students are required to give their insights and opinions with regards to the issues and challenges 2 presented. Reforms, initiatives and solutions to these challenges are also discussed. The students are likewise welcome to give their comments and suggestions. This is to realize the CL (Collaborative learning) process. Collaborative Learning (CL) encourages active student participation in the learning process. It encompasses a set of approaches to education, sometimes also called cooperative learning or small group learning. CL creates an environment "that involves students in doing things and thinking about the things they are doing", and reaches students who otherwise might not be engaged. Finally, CL is one teaching strategy among many, each of which can play a role to make learning an active and effective process. Before discussing the first part of the module, the teacher explains first the academic outcomes and the related grading criteria, major course assignments, deadlines, rationale and other particulars of course. General Objectives: Upon the use and application of this module as a guide for learning, the students should be able to: 1. Describe the development of the definition of governance as well as the current perspectives on the word governance; 2. Discuss sustainable human development and the new public management; 3. Discuss the functional and critical role of the different key players of governance; 4. Define the meaning and essence of “good governance” and internalize the importance of good governance in the development process; 5. Apply governance concepts and perspectives to a variety of real world situations; 6. Appreciate the role of UNDP and other international institutions in the development processes. 7. Manifest higher order thinking skills such as mental inquisitiveness, critical thinking as well as reflective thinking when given situations or issues related to governance. 3 Overview & Orientation on the Course Specific Objectives At the end of the lesson, the student should be able to: 1. Discuss the purpose and relevance of the Course on Fostering Democratic Governance; 2. Set their expectations on the course; on the instructor and on their classmates. 3. Participate in the group exercises/activities. Pedagogical Activities: Before the start of lesson 1, the teacher first gives an introduction of the course. This orients the students on the rationale, description and objectives of the course. Students are also introduced to one another. Below are some examples of activities/exercises to introduce students to one another and to set their expectations. Activity 1 “Getting to Know You” This activity is divided into three parts: Part I The students are given a card on which he/she draws a symbol/icon that would best represent him/her. Part II Each student picks one card with a logo/icon and locates who made the card and interviews the owner. Part III In the bigger class, each student introduces the person he/she interviewed to the group based on the information gathered. “My Expectations” The class shall be divided into four groups 1. In each groups, each student is given metacards on which to write expectation on the course, the instructor and peers. 2. Each member of the group reads his/her expectations/ 3. The leader facilitates the sharing while the recorder writes the common answers on a manila paper 4 Presentation of Objectives and Overview of the Course. 1. Each group presents their expectations to the bigger class. 2. The teacher presents the objectives of the course and discusses the overview and the course outline. The teacher also discusses the school rules and policies; his/her house rules and the grading requirements for the course. Evaluation: Essay What is the significance of the course on Governance and Development? Lesson 1 GOVERNANCE What is Governance? Getting to a Definition This is the first leg of the module on governance. In this module, the instructor provides a practical introduction in the study of governance and development to analyze an array of definitions and meaning of the concept of governance. Later on, the students will be asked to crystallize their own notion of governance and how it may be applied in the real world. Specific Objectives At the end of the lesson, the learners should be able to: 1. Explain the significance of the shift in how people and nations perceive governance and how it differs from government; 2. Critically define the meaning of good governance; 3. Discuss the inter-relationship between the concept of governance and new public management (NPM); 4. Comment on and criticize the meanings and implications of various definitions of governance and develop your own definition of the concept of governance; 5. Trace the evolution of new public management which led to the definition of governance; 6. Synthesize the related and theoretically related concepts of governance; 5 7. Critique on the pervasive, shared and global perception of governance as propagated by various institutions like the World Bank, ADB and United Nations. 8. Explain the relationship between governance & Sustainable Human Development 9. Discuss the art of governance and identify the activities encompassed in the act of governing; and 10. Discuss the significance/essence of governance in the development process; PEDAGOGICAL ACVITITIES: (Note: The teacher has the discretion to apply any of the suggested teaching strategies/methodologies/activities listed below.) 1. Semantic Mapping The students will be grouped into small groups and each will be asked to come up with a semantic map on the generic concepts of governance. 2. Multi-Media Presentation- A slide show on the evolution of how governance is perceived and defined. 3. Brainstorming and Inter-active Discussions on the theories and evolution of governance. 4. A Panel discussion or an informal debate on the rationale of the course and on the significance of governance and development. 5. Journey Wall/Wall of Wonder The students are grouped into five. Each group selects a reporter and a secretary. Using the Manila paper, the group members make a time line to represent the evolution of governance. The members are required to jot down or draw ideas on the appropriate poster per significant period. After which, the group members shall discuss the following: 1. Link between periods. 2. Importance of knowing the development of the idea of governance. 3. Implications of the events that happened. 6 6. Team-Oriented/Cooperative Learning To facilitate greater interaction among students and to enhance team-oriented and cooperative learning, students in the class will be grouped into teams of five. Though significant amounts of class time will not be spent on team activities, the purpose of this learning strategy is to allow for greater clarification, elaboration, and discussion of the subject matter among team members and to minimize the impersonality of a large lecture class setting. Frequent use of this learning strategy will lead to better understanding and enjoyment of the subject matter as well. You will also develop some skills of team-work, such as task focus, collaboration, listening, encouragement of each other, and sharing of idea. 7. Concept Paper: Each student is expected to provide one-page write-ups on concepts discussed on lesson 1. This assignment would be most helpful if the student would submit each concept page within a week of the concept’s discussion in class. 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 7 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) Governance: Varying Definitions 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 8 6. refers to how any organization, including a nation, is run. It includes all the processes, systems, and controls that are used to safeguard and grow assets.” (UNDP, 1997) 7. “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" 8. "promoting fairness, transparency and accountability" – World Bank 9. "a system by which business organizations are directed and controlled".- OECD 10. “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 man The Asian Development Bank (ADB) 11. In broad terms, governance is about the institutional environment in which citizens interact among themselves and with government agencies/officials. (ADB, 2005). 12. 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. 13. 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) 14. “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, 9 who is engaged in the process and how account is rendered. (IOG, 2006) The Institute also provides a framework to further establish the concept of governance as shown below1. Figure 1 The need for governance exists anytime a group of people come together to accomplish an end. Most agree that the central component of governance is decision- making. It is the process through which this group of people make decisions that direct their collective efforts. (See figure 1) Figure 2 Source: Institute of Governance http://www.iog.ca/ If the group is too large to efficiently make all necessary decisions, it creates an entity to facilitate the process. Group members delegate a large portion of the decision- making responsibility to this entity. In voluntary sector organizations this entity is the board of directors. One simple definition of governance is "the art of steering societies and organizations." Governance is about the more strategic aspects of steering, making the larger decisions about both direction and roles. Some observers criticize this definition as being too simple. Steering suggests that governance is a straightforward process, akin to a steersman in a boat. These critics assert that governance is neither simple nor neat — by nature it may be messy, 1 The Institute of Governance (IOG) is a Canadian, non-profit think tank founded in 1990 with the mission to improve governance for public benefit. For further information visit their website at www.iog.org 10 tentative, unpredictable and fluid. Governance is complicated by the fact that it involves multiple actors, not a single helmsman. These multiple actors are the organization's stakeholders. (See figure 2) They articulate their interests; influence how decisions are made, who the decision-makers are and what decisions are taken. Figure 3 Source: Institute on Governance http://www.iog.ca Decision-makers must absorb this input into the decision-making process. Decision-makers are then accountable to those same stakeholders for the organization's output and the process of producing it. see Fig.3 Governance According to UNDP 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. Governance has three legs: economic, political and administrative. Economic governance includes decision-making processes that affect a country's economic activities and its relationships with other economies. It clearly has major implications for equity, poverty and quality of life. Political governance is the process of decision-making to formulate policy. Administrative governance is the system of policy implementation. 11 Encompassing all three, good governance defines the processes and structures that guide political and socio-economic relationships. Governance encompasses the state, but it transcends the state by including the private sector and civil society organizations. What constitutes the state is widely debated. Here, the state is defined to include political and public sector institutions. UNDP's primary interest lies in how effectively the state serves the needs of its people. The private sector covers private enterprises (manufacturing, trade, banking, cooperatives and so on) and the informal sector in the marketplace. Some say that the private sector is part of civil society. But the private sector is separate to the extent that private sector players influence social, economic and political policies in ways that create a more conducive environment for the marketplace and enterprises. Civil society, lying between the individual and the state, comprises individuals and groups (organized or unorganized) interacting socially, politically and economically - regulated by formal and informal rules and laws. GOVERNANCE & SUSTAINABLE HUMAN DEVELOPMENT: UNDP believes that developing the capacity of good governance is the primordial way to eliminate poverty. Notions of good governance and the link between governance and sustainable human development vary greatly, however, both in academic literature and among development practitioners2. (UNDP, 1997) So, what is sustainable human development? Human development as expanding the choices for all people in society. This means that men and women - particularly the poor and vulnerable - are at the centre of the development process. It also means "protection of the life opportunities of future generations...and...the natural systems on which all life depends" (UNDP, Human Development Report 1996). This makes the central purpose of development the creation of an enabling environment in which all can enjoy long, healthy and creative lives. Economic growth is a means to sustainable human development - not an end in itself. Human Development Report 1996 showed that economic growth does not automatically lead to sustainable human development and the elimination of poverty. For example, countries that do well when ranked by per capita income often slip down the ladder when ranked by the human development index. There are, moreover, marked disparities within countries - rich and poor alike - and these become striking when human development among indigenous peoples and ethnic minorities is evaluated 2 The United Nations Development Programme (UNDP) has been at the forefront of the growing international consensus that good governance and sustainable human development are indivisible. 12 separately. There are five aspects to sustainable human development - all affecting the lives of the poor and vulnerable:  Empowerment - The expansion of men and women's capabilities and choices increases their ability to exercise those choices free of hunger, want and deprivation. It also increases their opportunity to participate in, or endorse, decision-making affecting their lives  Co-operation - With a sense of belonging important for personal fulfillment, well- being and a sense of purpose and meaning, human development is concerned with the ways in which people work together and interact.  Equity - The expansion of capabilities and opportunities means more than income - it also means equity, such as an educational system to which everybody should have access.  Sustainability - The needs of this generation must be met without compromising the right of future generations to be free of poverty and deprivation and to exercise their basic capabilities.  Security - Particularly the security of livelihood. People need to be freed from threats, such as disease or repression and from sudden harmful disruptions in their lives.  UNDP focuses on four critical elements of sustainable human development: eliminating poverty, creating jobs and sustaining livelihoods, protecting and regenerating the environment, and promoting the advancement of women. Developing the capacities for good governance underpins all these objectives. Source: Governance for Sustainable Human Development (1997) A UNDP Policy Document United Nations Development Programme Internet Source: http://magnet.undp.org/policy/ The Art of Governing To govern is to exercise power and authority over a territory, system or organization. This applies to both government and governance3. The exercise of authority is uppermost in government and remains significance in governance but is no longer the single focus. This is because the power in governance is not so much wielded as shared and authority is defined not so much by control of the ruler as by the 3 The discussions on the Art of Governing is an exceprt from (From Government to Governance)(2005) Reflections of Ledivina C. Carino of the University of the Philippines, National College of Public Administration & Governance, (UP-NCPAG) on the Concept of Governance as an off-shoot of the (World COG) 13 consent and participation of the governed. Is a state weak under a regime of governance? Not necessarily for it can be stronger than ever before except that the acts expected of it are different from the role of the state as government. In traditional parlance, government rules and controls, but in governance, it orchestrates and manages. These contrasts may seem overdrawn, but we will flesh out and qualify them as the discussion proceeds. Ruling and orchestrating rest on different bases. To rule is to be the sole authority, for which the appropriate response is to obey. A government that rules relies on force to exact compliance, and we know from introductory from the introductory political science that the state has the monopoly of legitimate violence. It enacts laws binding on all the inhabitants and metes out sanctions according to these laws. It delivers services to passive recipients who have little influence in the definition of the programs or their eligibility requirement and methods. By contrast, to orchestrate is to call on everyone to play a part in moving the society. Power rests on the trust the players have on the director and on each other. Because built on trust, transparency in the conduct of governing is essential. Laws still bind all, but they are laws they had a part in bringing about. Accountability is shared, and they who have the greatest power bear the greater responsibility. To control is not to manage, as Landau and Stout maintained in a classic article. We have not found a definition of governance that uses control instead of management. To control is to direct what each part of the system must do. It assumes that the controller knows the goals and is certain how an action it requires can lead to it. Deviation will be viewed as error in a context of full knowledge. Controlling assumes a law (using the term in scientific sense) but to manage is to act on a hypothesis. The manager works on incomplete information and tests if the hypothesis is borne out in a given situation. A manager then must be open to inputs from outside him which might provide new information and to methods other than those originally promulgated that could lead to the specified goal. Governance chooses management over control because its system is permeable, admits outside the influences, assumes no omnipotence or omniscience on the part of the decision-maker, and subjects decisions to the evaluation and critique of all those with a stake in them. All governing is an act of leadership, of moving a society towards a preferred direction. While government can have a connotation of being interested only in maintenance and in preserving peace and order, governance implies leadership toward societal development. This is shown in the following passage from the International Institute of Administrative Sciences. 14 Governance is the process whereby elements in society wield power and authority, and influence and enact policies and decisions concerning public life, economic and social development.” This shows that the concept is indeed a product of the late twentieth century when development became a preoccupation of societies and states. The definition of development shall be discussed on the succeeding modules. The Need for Good Governance: Why Governance Matters Good governance creates a strong future for an organization by continuously steering towards a vision and making sure that day-to-day management is always lined up with the organization’s goals. At its core, governance is about leadership. An effective board will improve the organization’s results, both financial and social, and make sure the owners' assets and funds are used appropriately. Poor governance can put organizations at risk of commercial failure, financial and legal problems for directors/trustees or allow an organization to lose sight of its purpose and its responsibilities to its owners and people who benefit from its success. The Rights-Based Approach to governance implies that the holders of rights should also participate fully in deciding how those rights are fulfilled, such as through participation and greater empowerment. And as the Millennium Declaration emphasizes, one of the most important requirements for achieving this and the MDG is “governance” The report points out that Asia and the Pacific has many diverse forms of democratic governments4. In some cases these have involved highly centralized administrations that have offered a limited space for popular participation. Nevertheless, in recent years there have been significant changes. One of the most dramatic examples has been in Indonesia, which for decades until the late 1990s had a strongly centralized administration. Now the democratic Government in Indonesia has not only offered free and fair elections; it has also enacted a radical process of decentralization. Another vital attribute of governance in MDGs is efficient and effective administration. The Government of India, for example, is determined to be more responsive and accountable to the public. A further governance priority in Asia and the Pacific is the fight against corruption, which degrades the quality of governance and hits hardest at the poorest. The Government of China for example is among those taking firm measures to combat corruption and promote integrity in governance. 4 The discussions on the Millennium Declaration as well as the comprehensive discussions of MDG are reflected on Module 2 of this course. 15 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 16 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 17 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 18 decisions on resource allocation and service delivery are made closer to the point of delivery (1998, p. 232)5. Evaluation Essay: 1.) What is your understanding of the concept of governance? and What is your own concept of governance. Explain. 2.) Explain the shift of government to governance. 3.) Discuss the theories of governance and New Public Management. 4.) Discuss the significance of governance in the development process. Activities: 1. Make a matrix summarizing the main points stressed by various theories and concepts and models of governance. Explain your output. 2. Written Report: “The Importance of Governance & Development and its inter- relationship” (individual output) 3. A project: Make a poster/collage/diorama that shows the significance of governance. Assessment of the Concept Paper Each submission will be assessed on the following – 1. identification of concept (2 points), 2. description of the concept (4 points), 3. application or example of the concept (4 points). The report is typewritten and not to exceed one page. Rubric for the output in the Journey Wall Activity. The output of the groups will be evaluated based on the following criteria: -concept relatedness 10points 30% - creativity 5 points 20% - teamwork 5 points 20% - workmanship 5 points 20% total 25 points 100% 5 Also refer to Ewalt, Jo Ann G. (2001) Theories of Governance and New Public Management: Links to Understanding Welfare Policy Implementation; A Second Draft. A Paper Presented at the Annual Conference of the American Society for Public Administration. 19 Lesson 2 The Key Actors in Governance SPECIFIC OBJECTIVES: at the end of the lesson, the students should be able to: 1. Identify the different actors in governance; 2. Critically explain the role of each player in the governance process; 3. Critique on the current efforts of these key actors in the any governance endeavors; 4. Illustrate the inter-relationship of the role of the key actors in governance; 5. Discuss some of the lessons and best practices in the governance of partnerships. 6. Critically assess the involvement of Civil Society organizations and the private sectors in governance. Pedagogical Activities: 1. Multi-Media Instruction Distribution of handouts on Lesson 2 3.2 PowerPoint Presentation on Lesson 2 3.3 Venn Diagram 2. Panel discussion/Debate - Exchange of opinions to analyze, clarify and reach conclusions about issues, questions and problems on the role of the different key actors in governance. 3. FGD- Focused Group Discussion. (Meta-planning) The students are going to answer the focus questions in a meta card. The answer should only be 5-8 words per meta card. Answers should be written in BOLD letters. 4. Paper/Oral Presentation: This is designed as a vehicle for the students to research and describe the role of each key actor in governance as well as their interplay in the governance process. This is also to express an evaluation of its impact to any governance endeavors like in policy formulation. The paper is due after the FGD. Each group (state, civil society and business sector) will orally 20 present (maximum of 10 minutes) their paper during the class. Fellow students listening to the presentation will provide a peer review of the presentations. Critique and synthesis is done by the instructor at the end of each or all presentations. 5. Role-Playing- The deliberate acting out of a role. This is to demonstrate the critical role of each key players of governance. LESSON PROPER 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, non- government 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. 21 Figure 4 Key Actors in Governance 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. 22 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, Rights-Based 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 23 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 reward- oriented 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 system environment comprising properly functioning parliaments, legal and judicial systems, and electoral processes. 5. Decentralizing the  Respond quickly to local needs and administrative system conditions  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 * The Country Governance Assessment of the Philippines is prepared by the Philippine Governance Assessment Study Team headed by the Team Leader Alex B. Brillantes Jr. of the UP National College of Public Administration & Governance. 24 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. 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. 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. 25 The Philippines has a large and very vibrant Third Sector with a long history dating back to its colonial years. The total number of civil society organizations is estimated to between a low of 249,000 to a high of 497,000 (Cariño, 2002: 84). Ma. Oliva Z. Domingo also discussed in her paper entitled: Third Sector Governance: Meanings, Issues, and Challenges in the Philippines”, the Civil Society is the third sector governance. The extensive use of the term governance in the literature and day-to-day operations of Third Sector organizations precedes the now current, broader meaning popularized by the UNDP. Brian O’Connell’s work published in 1985, identifies governance as a basic role for the boards of voluntary organizations (1985: 22). An even much earlier work describes alternative governance models for nonprofit universities (Baldridge et al, 1997). Scholars writing on Third Sector organizations make fine distinctions between governance and management (Wood, 1996: 3-4), or even with administration (Lyons, 2001: 123-124), but affirm that the term governance captures the scope of the “special kind of management” applicable to these organizations. 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 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 maybe 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, 26 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) 3. The Private or Business Sector - Corporate Governance In a 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. 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. 27 Figure 5 Urban Actors Source: United Nations Economic & Social Commissions for Asia and the Pacific (UN ESCAP) (2001) Internet Source: http://www.unescap.org/huset/gg/governance.htm 28 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. Figure 5 provides the interconnections between actors involved in urban governance. 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) 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 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. 29 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. 30  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 individuals with the public realm and the state - it is the political face of society. 31 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) 32 EVALUATION: Critical Thinking Assessment Essay 1. In one paragraph discuss the inter-relationships of the 3 major actors in governance. You may provide a matrix or diagram to illustrate your answer. (20 points) 2. In your own perspective, what is view on the role of government in any governance efforts? 3. What can you suggest to the government, the private sector and the civil society to further improve their services? 2. FGD- Focused Group Discussion. (Meta-planning) The students are going to answer the focus questions in a meta card. The answer should only be 5-8 words per meta card. The FGD question is listed below. Critical-Thinking Assessment on the Oral Presentation: Measures/Criteria 1. Ability to respond to questions from peers and faculty; evidence of advance preparation. 2. Sharing of relevant materials/articles with the class. 3. Mastery of an understanding of facts, concepts, and the theories presented in the course 4. Demonstration a good command of the English language and language of the subject matter. 33 Action Areas What are the specific What are the What other activities being gaps/constraints in the opportunities/potentials for implemented in conduct of these complementation and partnership with activities jointly partnership can you other organizations? implemented with suggest? particular institutions? Policy Formulation Service Delivery Education & Advocacy Monitoring & Evaluation 34 LESSON 3 The Characteristics of Good Governance Specific Objectives At the end of the lesson, the learners should be able to: 1. Identify and enumerate the eight characteristics of good governance according to UNDP; 2. Describe each element or indicators of good governance; 3. 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; 4. Illustrate the inter-linkages among the different elements of governance; and 5. Present some examples of best practices in good governance; Pedagogical Activities 1. Multi-Media Instruction 1.1 Distribution of handouts on Lesson 3 1.2 PowerPoint Presentation on Lesson 3 2. Inter-active Discussion on the Characteristics of Good Governance 3. Field Conduct a simple survey in your locality on the implementation of some of its policies/programs/projects and assess whether they reflect the 8 characteristics of good governance as cited by the United Nations Development Programme (UNDP). The outputs will be presented in class for discussions and critiquing. 4. Collage-making The students are going to prepare a collage depicting the good practices on good governance. 35 What is good governa nce? 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 decisions6. 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. 6 The Concept of Governance, Ledivina V. Carino, From Government to Governance, Reflections on the 1999 World Conference on Governance. 2000. 36 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 37 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. 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. 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. 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 38 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. Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe. 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. 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. 39 Figure 6 Characteristics of good governance Source: Governance for Sustainable Human Development A UNDP Policy Document (1997) 40 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. 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. Strategic vision Leaders and the public have a broad and long-term perspective on good governance and human development, along with a sense of what is needed for such development. There is also an understanding of the historical, cultural and social complexities in which that perspective is grounded. The World Bank on the other hand, cites 4 dimensions of governance which are: Public Sector Management, Accountability, and Legal Framework for Development and Transparency & Information The World Bank’s interest in governance stems from its concern with the effectiveness of the development efforts it supports. From this perspective, sound development management is critical in ensuring adequate returns and efficacy of the programs and projects financed and for the World Bank’s underlying objectives of helping countries reduce poverty and promoting sustainable development growth. 41 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. This maybe achieved differently in different countries or political structures, depending on the history, cultural milieu, and value systems involved. 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. Lack of accountability tends in time to reduce the state’s credibility as an economic partner. It undermines the capacity of governments to sustain the long-term business confidence essential for growth-enhancing private sector investment. Looked at from this angle, accountability can help reduce sovereign risk. The accountability of public sector institutions is facilitated by evaluation of their economic and financial performance. Economic accountability relates to the effectiveness of policy formulation and implementation, and efficiency in resource use. Financial accountability covers accounting systems for expenditure control, and internal and external audits. 2. Participation The principle of participation derives from an acceptance that people at the heart of development. They are not only the ultimate beneficiaries of development but are also the agents of development. In the latter capacity, they 42 act through groups or associations (e.g. trade unions, chambers of commerce, NGOs, political parties) and as individuals. (e.g through letters to newspaper editors, participating in radio and television talk shows, voting). Since development is both for and by the people, they need to have access to the institutions that promote it. Participation is often related to accountability but not necessarily so. In representative democracies, where citizens participate in government through the electoral process, public officials are indeed accountable ultimately to the electorate. This may not be the case however, in other political systems. For all economies though, the benefits of participatory approaches can be considerable. These include improved performance and sustainability of policies, programs, and projects as well as enhanced capacity and skills of stakeholders. 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. This increases “ownership” and enhances results. At a different level, the effectiveness of policies and institutions impinging on the economy as a whole may require the broad support and cooperation of major economic actors concerned. To the extent that the interface between the public agencies and the private sector is conducive to the latter’s participation in the economy, national economic performance will be enhanced. 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. These elements of civil society offer an alternative means of channeling the energies of private citizens. They can be helpful in identifying people’s interests, mobilizing public opinion in support of these interests and organizing action accordingly. Being close to their constituents, NGOs can provide governments with a useful ally in enhancing participation at the community level and fostering a “bottom-up” approach to economic and social development. 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. The rule of law encompasses both well-defined rights and duties, as well as mechanisms for enforcing them, and settling disputes in an impartial manner. It requires the state and its subsidiary agencies to be as much bound by and answerable to, the legal system as are private individuals and enterprises. The importance of rules-based systems for economic life is obvious. They are essential component of the environment within which economic actors plan and take investment decisions. To the extent, therefore, that legal frameworks 43 help ensure that 1. business risks can be assessed rationally, 2. transaction costs are lowered and 3 governmental arbitrariness is minimized, they should prove conducive to risk taking, growth and development. In an opposite scenario, the capricious application of rules generates uncertainty and inhibits the growth of private sector initiatives. Regulatory uncertainty also tends to raise the cost of capital by increasing the risk of investment. Besides legal and regulatory frameworks, consistency of public policy is also important. Government policies affect the investment climate directly and economic actors require reasonable assurance about the future behavior of key variables such as prices, the exchange rates, and the employment levels. However, consistency does not mean rigidity. Governments do need to respond flexibly to changing circumstances and to make midcourse corrections as necessary. Also when government’s change

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