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Good governance is the process of measuring how public institutions conduct public affairs and manage public resources and guarantee the realization of
human rights Human rights are universally recognized Morality, moral principles or Social norm, norms that establish standards of human behavior and are often protected by both Municipal law, national and international laws. These rights are considered ...
in a manner essentially free of abuse and
corruption Corruption is a form of dishonesty or a criminal offense that is undertaken by a person or an organization that is entrusted in a position of authority to acquire illicit benefits or abuse power for one's gain. Corruption may involve activities ...
and with due regard for the
rule of law The essence of the rule of law is that all people and institutions within a Body politic, political body are subject to the same laws. This concept is sometimes stated simply as "no one is above the law" or "all are equal before the law". Acco ...
.
Governance Governance is the overall complex system or framework of Process, processes, functions, structures, Social norm, rules, Law, laws and Norms (sociology), norms born out of the Interpersonal relationship, relationships, Social interaction, intera ...
is "the process of
decision-making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be ...
and the process by which decisions are implemented (or not implemented)"."What is Good Governance"
UNESCAP, 2009. Accessed April 6, 2021.
Governance in this context can apply to corporate, international, national, or local governance as well as the interactions between other sectors of society. The concept of "good governance" thus emerges as a model to compare ineffective economies or political bodies with viable economies and political bodies. The concept centers on the responsibility of governments and governing bodies to meet the needs of the masses as opposed to select groups in society. Because countries often described as "most successful" are
liberal-democratic Liberal democracy, also called Western-style democracy, or substantive democracy, is a form of government that combines the organization of a democracy with ideas of liberal political philosophy. Common elements within a liberal democracy are: ...
states, concentrated in Europe and the Americas, good governance standards often measure other state institutions against these states.Khan 16 Aid organizations and the authorities of developed countries often will focus the meaning of "good governance" to a set of requirements that conform to the organization's agenda, making "good governance" imply many different things in many different contexts.Agere 1


In politics

Good governance in the New Yorkish context of countries is a broad term, and in that regards, it is difficult to find a unique definition. According to Fukuyama (2013), the ability of the state and the independence of the bureaucracy are the two factors that determine whether governance is excellent or terrible. They also complement one another in that more autonomy should be allowed when the state is more capable, such as through tax collection, since bureaucrats can carry out their duties well without much guidance. However, less latitude and greater regulation are preferable in states with lower levels of capability. A further perspective on effective governance is based on results. There is no better way to think about good governance than through deliverables, which are precisely the ones demanded by citizens, like security,
health Health has a variety of definitions, which have been used for different purposes over time. In general, it refers to physical and emotional well-being, especially that associated with normal functioning of the human body, absent of disease, p ...
, education,
water Water is an inorganic compound with the chemical formula . It is a transparent, tasteless, odorless, and Color of water, nearly colorless chemical substance. It is the main constituent of Earth's hydrosphere and the fluids of all known liv ...
, contract enforcement, property protection,
environmental protection Environmental protection, or environment protection, refers to the taking of measures to protecting the natural environment, prevent pollution and maintain ecological balance. Action may be taken by individuals, advocacy groups and governments. ...
, and the right to vote and fair wages. This is because governments operate with the intention of providing public goods to their constituents. Similarly, good governance might be approximated with provision of public services in an efficient manner, higher participation given to certain groups in the population like the poor and the minorities, the guarantee that citizens have the opportunity of
checks and balances The separation of powers principle functionally differentiates several types of state power (usually law-making, adjudication, and execution) and requires these operations of government to be conceptually and institutionally distinguishabl ...
on the government, the establishment and enforcement of norms for the protection of the citizens and their property and the existence of independent judiciary systems. Lawson (2011) in his review of Rothstein's book ''The Quality of Government: Corruption, Social Trust, and Inequality in International Perspective'' mentions that the author relates good governance to the concept of impartiality, which is basically when the bureaucrats perform their tasks following the public interest rather than their self-interest. Lawson differs with him in that this impartial application of law ignores important factors like the economic liberalism, which matters due to its relation with economic growth. The efficiency of one-party governments might seem appealing, but leaders need a deep understanding of a country's power structure and "moral economy", says Meg Rithmire. Her book ''Precarious Ties: Business and the State in Authoritarian Asia'' explores the delicate relationship between capitalists and autocrats in the region. According to Bo Rothstein and Jan Teorell, the key characteristic of good governance is the impartiality of government institutions.


In business

In corporate affairs, good governance can be observed in any of the following relationships: * between governance and corporate management * between governance and employee standards * between governance and corruption in the workplace The meaning of good governance in regards to corporate sectors varies between actors. Legislation has been enacted in an attempt to influence good governance in corporate affairs. In the United States, the
Sarbanes–Oxley Act The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations. The act, , also known as the "Public Company Accounting Reform and Investor Protectio ...
of 2002 set up requirements for businesses to follow.
Whistleblowing Whistleblowing (also whistle-blowing or whistle blowing) is the activity of a person, often an employee, revealing information about activity within a private or public organization that is deemed illegal, immoral, illicit, unsafe, unethical or ...
has also been widely used by corporations to expose corruption and fraudulent activity.


Reform and standards

Three institutions can be reformed to promote good governance: the state, the
private sector The private sector is the part of the economy which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government. Employment The private sector employs most of the workfo ...
and civil society. However, among different cultures, the need and demand for reform can vary depending on the priorities of that country's society.Agere 11 A variety of country level initiatives and international movements put emphasis on various types of governance reform. Each movement for reform establishes criteria for what they consider good governance based on their own needs and agendas. The following are examples of good governance standards for prominent organizations in the international community.


United Nations

The
United Nations The United Nations (UN) is the Earth, global intergovernmental organization established by the signing of the Charter of the United Nations, UN Charter on 26 June 1945 with the stated purpose of maintaining international peace and internationa ...
(UN) is playing an increasing role in good governance. According to former UN Secretary-General
Kofi Annan Kofi Atta Annan (8 April 193818 August 2018) was a Ghanaian diplomat who served as the seventh secretary-general of the United Nations from 1997 to 2006. Annan and the UN were the co-recipients of the 2001 Nobel Peace Prize. He was the founder a ...
, "Good governance is ensuring respect for human rights and the rule of law; strengthening democracy; promoting transparency and capacity in public administration." To implement this, the UN follows eight principles: * Participation – People should be able to voice their own opinions through legitimate immediate organizations or representatives. * Rule of Law – Legal framework should be enforced impartially, especially on human right laws. * Consensus Oriented – Mediates differing interests to meet the broad consensus on the best interests of a community. * Equity and Inclusiveness – People should have opportunities to improve or maintain their well-being. * Effectiveness and Efficiency – Processes and institutions should be able to produce results that meet the needs of their community while making the best of their resources. * Accountability – Governmental institutions, private sectors, and civil society organizations should be held accountable to the public and institutional stakeholders. * Transparency – Information should be accessible to the public and should be understandable and monitored. * Responsiveness – Institutions and processes should serve all stakeholders.


International Monetary Fund

The
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...
(IMF) was created at a United Nations (UN) conference in Bretton Woods, New Hampshire. In 1996, the IMF declared "promoting good governance in all its aspects, including by ensuring the rule of law, improving the efficiency and accountability of the public sector, and tackling corruption, as essential elements of a framework within which economies can prosper". The IMF feels that corruption within economies is caused by the ineffective governance of the economy, either too much regulation or too little regulation. To receive loans from the IMF, countries must have certain good governance policies, as determined by the IMF, in place.


World Bank

The
World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
introduced the concept in its 1992 report entitled "Governance and Development". According to the document, good governance is an essential complement to sound economic policies and is central to creating and sustaining an environment which fosters strong and
equitable development Social development theory attempts to explain qualitative changes in the structure and framework of society, that help the society to better realize aims and objectives. Development can be defined in a manner applicable to all societies at all h ...
. For the World Bank, good governance consists of the following components: capacity and efficiency in
public sector The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, pu ...
management,
accountability In ethics and governance, accountability is equated with answerability, culpability, liability, and the expectation of account-giving. As in an aspect of governance, it has been central to discussions related to problems in the public secto ...
, legal framework for development, and information and transparency. The
Worldwide Governance Indicators Based on a long-standing research program of the World Bank, the Worldwide Governance Indicators capture six key dimensions of governance (Voice & Accountability, Political Stability and Lack of Violence, Government Effectiveness, Regulatory Qua ...
is a program funded by the World Bank to measure the quality of governance of over 200 countries. It uses six dimensions of governance for their measurements, Voice & Accountability, Political Stability and Lack of Violence,
Government A government is the system or group of people governing an organized community, generally a State (polity), state. In the case of its broad associative definition, government normally consists of legislature, executive (government), execu ...
Effectiveness, Regulatory Quality,
Rule of Law The essence of the rule of law is that all people and institutions within a Body politic, political body are subject to the same laws. This concept is sometimes stated simply as "no one is above the law" or "all are equal before the law". Acco ...
, and Control of
Corruption Corruption is a form of dishonesty or a criminal offense that is undertaken by a person or an organization that is entrusted in a position of authority to acquire illicit benefits or abuse power for one's gain. Corruption may involve activities ...
. They have been studying countries since 1996.Kaufmann, Daniel and Kraay, Aart
"Growth Without Governance"
(November 2002). World Bank Policy Research Working Paper No. 2928.


Effects


International humanitarian funding

Good governance defines an ideal that is difficult to achieve in full, though it is something development supporters consider supporting.Agere 2 Major donors and international financial institutions, like the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...
(IMF) World Bank, are basing their
aid In international relations, aid (also known as international aid, overseas aid, foreign aid, economic aid or foreign assistance) is – from the perspective of governments – a voluntary transfer of resources from one country to another. Th ...
and loans on the condition that the recipient undertakes reforms ensuring good governance. Several bilateral donors, such as the US Government's
Millennium Challenge Corporation The Millennium Challenge Corporation (MCC) is a bilateral United States foreign aid agency established by the U.S. Congress in 2004. It is an independent agency separate from the State Department and USAID. It provides grants to countries tha ...
require countries to meet certain standards of good governance prior to receiving assistance. These conditions are due to the close link between poor governance and corruption, the connection between good governance and aid effectiveness, and the relationship between good governance and poverty reduction.


Democratization

Because concepts such as
civil society Civil society can be understood as the "third sector" of society, distinct from government and business, and including the family and the private sphere.decentralisation Decentralization or decentralisation is the process by which the activities of an organization, particularly those related to planning and decision-making, are distributed or delegated away from a central, authoritative location or group and gi ...
, peaceful conflict management and accountability are often used when defining the concept of good governance, the definition of good governance promotes many ideas that closely align with effective democratic governance.Agere 10 Not surprisingly, emphasis on good governance can sometimes be equated with promoting democratic government. However, a 2011 literature review analyzing the link between democracy and development by Alina Rocha Menocal of the
Overseas Development Institute ODI Global (formerly Overseas Development Institute) is a global affairs think tank, founded in 1960. Its mission is "to inspire people to act on injustice and inequality through collaborative research and ideas that matter for people and the ...
stresses the inconclusiveness of evidence on this relationship.


Example

A good example of this close association, for some actors, between western democratic governance and the concept of good governance is the following statement made by U.S. Secretary of State
Hillary Clinton Hillary Diane Rodham Clinton ( Rodham; born October 26, 1947) is an American politician, lawyer and diplomat. She was the 67th United States secretary of state in the administration of Barack Obama from 2009 to 2013, a U.S. senator represent ...
in
Nigeria Nigeria, officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf of Guinea in the Atlantic Ocean to the south. It covers an area of . With Demographics of Nigeria, ...
on August 12, 2009:


Poverty

A range of sources have found linkages between poverty reduction and good governance. Some find that growth is most effective at reducing poverty in well governed countries. Others find that there is a direct impact of good governance on poverty reduction. Some studies find that good governance above a certain level contributes positively to poverty reduction. Others still find a relationship between governance and poverty even controlling for economic growth, indicating an independent association.


Criticism

According to Sam Agere, "The discretionary space left by the lack of a clear well-defined scope for what governance encompasses allows users to choose and set their own parameters."Agere 4 In the book ''Contesting 'good' governance'', Eva Poluha and Mona Rosendahl contest standards that are common to western democracy as measures of "goodness" in government. By applying political anthropological methods, they conclude that while governments believe they apply concepts of good governance while making decisions, cultural differences can cause conflict with the heterogeneous standards of the international community. An additional source of good governance criticism is ''The Intelligent Person's Guide to Good Governance'', written by Surendra Munshi. Munshi's work was created in order to "revive" good governance. Many individuals tend to either wave away and be bored with the idea of governance, or not have a clue to what it has at all. This book is a generalized discussion on what the purpose of good governance is and how it serves that purpose throughout our society. Munshi targets the book toward anyone doing research or just simply "those concerned with the issue of governance". ''Rethinking Systems: Configurations of Politics and Policy in Contemporary Governance'', written by Michael P. Crozier, is another work analyzing good governance. Crozier's article discusses the different dynamics of changes that occur throughout communication systems and the effect it has on governance. The idea of various perspectives is presented throughout the article. This allows the reader to be able to see what contemporary governance is like from different viewpoints. Crozier's motive was to also create an open mindset when referring to how governance and policy within society operate, especially with the constant changes occurring day to day. Recent criticism has been aimed at the idea that good governance and institutions are one of the primary explanatory variables of economic growth, such as argued by Kaufmann and Kraay and Acemoglu and Robinson, which has put institutional reforms high on global development agendas. The criticism is fundamentally concerned with the issue that the relatively few countries which have managed to develop rapidly over the last 70 years did not have the "right" kind of institutions; in contrast, countries like China and South Korea have been plagued by corruption and a lack of checks-and-balances during their development trajectories. Or as the development economist Dani Rodrik put it: "A development strategy that focused on anti-corruption in China would not have produced anything like the growth rate that this country has experienced since 1978, nor would it have resulted in 400 million plus fewer people in extreme poverty." As a result, it has been pointed out that anti-corruption efforts and government reforms can have very negative consequences in especially fragile countriesKuipers, S. (2021), "Rethinking anti-corruption efforts in international development", ''Journal of Financial Crime'', Vol. ahead-of-print No. ahead-of-print. .North, D.C. et al. (2013), "Limited Access Orders: An Introduction to the Conceptual Framework", North, D.C. et al. (eds.), ''In the Shadow of Violence: Politics, Economics and the Problems of Development'', Cambridge University Press, Cambridge, pp. 1–23. there can be significantly bigger barriers to economic growth than corruption or institutional quality, and anti-corruption efforts and governance reforms often fail because of a suboptimal understanding of local socio-political contexts. Various authors have furthermore argued that "good governance" provides a very unhelpful development agenda as it is unclear what the "right" kind of institutions are or how they should be realized even if we were to accept that they are necessary or helpful.Grindle, M.S. (2017), "Good Governance, R.I.P.: A Critique and an Alternative", ''Governance'', Vol. 30, No. 1, pp. 17–22.


See also

*
Developing country A developing country is a sovereign state with a less-developed industrial base and a lower Human Development Index (HDI) relative to developed countries. However, this definition is not universally agreed upon. There is also no clear agreeme ...
*
Due diligence Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care. Due diligence ...
* Good Governance Day * Peace, order and good government


References


Sources

* found a
Google Books
* found a
Google Books
{Dead link, date=June 2024 , bot=InternetArchiveBot , fix-attempted=yes * Heritier, P. & Silvestri P. (Eds.)
''Good government, Governance, Human complexity. Luigi Einaudi's legacy and contemporary societies'', Leo Olschki, Firenze, 2012
* Quian, Yingyi (2003) 'How Reform Worked in China', in Rodrik.


External links


What is good governance?
UNESCAP
Sustainable Governance Indicators


Anti-corruption measures Governance International development Political science terminology