GOOD GOVERNANCE

: CONCEPTS AND
COMPONENTS

Nayana Renukumar, Centre for Good Governance

 Presentation Structure
… G
Genesis
i off G
Good
dGGovernance
† From Public Administration to New Public Management
† Towards Governance
† Governance : Definition, key actors, stakeholders
† Towards Good Governance
† Defining Good Governance
… C
Components and
d Ch
Characteristics off G
Good
d Governance
G
† Four dimensional framework :World Bank
† Six dimensional framework : World Governance Indicators
† 8 characteristics of Good Governance : United Nations
† Strategies for Good Governance
† Critique of Good Governance
… Good Governance in India
† Good Governance strategies and initiatives of GoI
† Good Governance initiates of Andhra Pradesh
† Good Governance : Implication for civil servants
… Conclusion
 Introduction
Civil Servants
Central M d
Media
Public
Government Administration
New Public
Management

State Private sector

Government

Good
Governance Governance
Legislature
Civil society

Judiciary International
Agencies
GENESIS OF GOOD
GOVERNANCE
 From Public Administration to NPM

… Public administration in developing

… Globalization, liberalization and intensive
countries termed as overstaffed, weak, + application of IT
corrupt and inefficient

… New Public Management (NPM)

† Prescribed by Brettonwoods institutions : WB, IMF
† Optimizing resources
† Alternative service delivery mechanisms
„ Performance measurement, Efficiency, Economy,Value for Money
† Minimalist state
Grants, aids and loans in return for market oriented reforms
… Critique of NPM
† Does not distinguish between public and … Reality dawns ………
private spheres † Failure of structural adjustment programs
† Focuses on market
market-led
led growth † Mounting fiscal debt
† Neglects social concerns and public welfare

From economic reforms to governance…………

 Towards Governance

… World Bank publication ‘Sub-Saharan Africa - from crisis to

sustainable
i bl growth’,
h’ 1989
† Worsened economic performance in the region despite Structural
Adjustment
j Programs
g ((SAP’s))
† Failure of public institutions cited as reason for weak performance
† Term “governance” first used to describe the need for institutional reform
and a better and more efficient public sector in Sub-Saharan countries
† Defined governance as “the exercise of political power to manage a nation’s
affairs
affairs”
“Africa requires not just less government but better government”

1989 study introduced Governance without explicitly referring to the connotation “good”
 Governance

Governance is a
method
h d through
h h which
h h Governance is the
power is exercised in Governance is the
manner in which
the management of a process whereby
power is exercised in
country’ss political,
country political societies or
the management of a
economic, and social organizations make
country’s social and
resources for important decisions,
economic resources
development
development. determine whom theyy
f development.
for d l t
involve and how they
World Bank (1992) Asian Development render account.
Bank (1995)
Canada Institute of
Governance (2002)

Governance is the exercise of economic, political, and administrative authority to manage a

country’ss affairs at all levels
country levels. It comprises the mechanisms,
mechanisms processes,
processes and institutions
through which citizens and groups articulate their interests, exercise their legal rights, meet
their obligations and mediate their differences. UNDP (1997)
 Governance: Operation of 3 Key Actors

Governance: Goes beyond the Government

State: Creating a favorable political,

legal & economic environment
State

Civil Society Market Market:

Civil Society:
Creating opportunities for
Mobilizing peoples’ people
participation
 Stakeholders in Governance

L i l
Legislature
Executive

Judiciary
Media
Stakeholders in
G
Governance
Judiciary Media

Private
Social Sector
Orgns.

Governance is too important to be left to the government....

 Towards Good Governance

… Governance
† Value neutral, ‘good’ governance to qualify governance
… WB Report ‘Governance and Development’ , 1992
† Further developed the concept of Governance
† Defines Good Governance
„ Synonymous to sound development management
„ Central to creating and sustaining an environment which fosters
strong and equitable development
„ Essential component of sound economic policies
 Defining Good Governance

… World Bank: Good ggovernance entails

† sound public sector management (efficiency, effectiveness, and economy),
† accountability,
† exchange and free flow of information (transparency),
(transparency)
† and a legal framework for development (justice, respect for human
rights and liberties).
… DFID: Good Governance is defined focusing on
† legitimacy (government should have the consent of the governed),
† accountability (ensuring transparency, being answerable for actions and media
f d )
freedom),
† competence (effective policy making, implementation and service delivery),
† and respect for law and human rights.
 Summary

… Public administration … Goal of state – ‘Governance’

† Majorr constituent
Maj c nstit ent off state
† Traditional concept
† Instrument to achieve state’s
goals and objectives † Recent prominence

… Influence on Administration - NPM

… Globalization
† Managerial orientation
† + removal of trade barriers
† Managerial
M i lreforms
f : Disinvestment,
Di i t t
† +entry of MNCs
corporatization, outsourcing, shrinking
state role † + intensive application of IT
† Larger
g collaboration between state,,
market and civil society – PPPs
State

Civil Society Market Good

Government Governance Governance
COMPONENTS OF GOOD GOVERNANCE
 Components of Good Governance : 4 Dimensional
Framework - World Bank

… Public sector management

† P bl expenditure
Public d management (public investments, budget planning, budget processes)
† Civil service reform (to manage less but manage better)
† Reform of public enterprises (privatisation, strengthening managment of PSEs, improving
competitive conditions)

Improvement in efficiency of public institutions

… Accountbilityy
† Constituted an innovation in the Bank’s sphere of action
† Described as being “at the heart of governance”.
† Described as “holding public officials responsible for their actions
† Horizontal (internal) and vertical (external) accountability
Concept of exit (access to other service providers) and voice (participation)

For the first time, quality of a government w.r.t its ability to satisfy needs of citizens apart from
economic performance was put up for discussion
 Components of Good Governance : 4 Dimensional
Framework - World Bank

… Legal framework for development

† IImportant contribution
ib i to equitable
i bl and d jjust society
i and
d thus
h to prospects for
f
social development and poverty alleviation
† Focus on judicial reform, legislative reforms, and the improvement of legal
education and training
Rule of law represents the legal dimension of good governance by a country
… Transparency and information
† E
Economic
i efficiency
ffi i
† Prevention of corruption
† Analysis, articulation and acceptance of governmental policy choices

… Corruption
† Cross-cutting theme, across Transparency and information, Accountability, Rule of law and PSM
† Enhanced engagement of Good Governance with anti anti-corruption
corruption since 1997
“Improving governance is certainly about fighting corruption, although it is also about much
more than fighting corruption”.
 World Governance Indicators : 6 Dimensional
Framework : World Bank

… Voice & Accountability

… Political Stability and Lack of Violence
… Government Effectiveness
… Regulatory Quality
… R l off LLaw
Rule
… Control of Corruption

(Kaufmann-Kraay-Mastruzzi Worldwide Governance Indicators –

World Bank )
 Governance
Governance Issues Indicators
Components
• Extent of citizens participation in selection
of governments
The Process by which • Voice and
• Civil liberties , political rights
Governments are selected, Accountability
• Perceptions that the government in power
monitored, and replaced • Political Stability will be destabilised by possible
unconstitutional means

• Perceptions of quality of public service

pprovision, qqualityy of bureaucracy,
y
The capacity
Th i h •
off the Government
competence of civil servants, independence
government to effectively Effectiveness of civil service from political pressures,
formulate and implement • credibility of government’s commitment to
Regulatory ppolicies.
policies
olicies Quality • The incidence of market unfriendly policies
such as price controls
• Success of the society in developing an
The respect off citizens
Th environment
i i which
in hi h fair
f i and
d predictable
di bl
and the state for • Rule of Law rules form the basis for economic and
social interactions
institutions that govern • Control of • Perceptions of the incidence of crime,
economic i and
d social
i l Corruption effectiveness and predictability of judiciary
interaction among them and enforceability of contracts.
• Perceptions of corruption
Eight Characteristics of Good Governance –
United Nations

Accountable

Consensus
Transparent
oriented

Participatory
p y Responsive
p

Follows the Equitable and

Rule of Law Inclusive
Effective and
Effi i t
Efficient
 Characteristics of Good Governance

… Accountability
† Key requirement of Good Governance
† Applicable to government, civil society and private sector
† Types : Political, legal, administrative and social accountability
† C
Components : Answerability,
A bili sanction,
i redress,
d and
d system
improvement
… Transparency
p y
† Free flow of information
† Accessibility of information to those affected by decisions taken
in governance process
… Responsiveness
† Citizen orientation, citizen friendliness
† T l d
Timely delivery
l off services
† Redress of citizen grievances
 Characteristics of Good Governance

… Effectiveness and efficiencyy

† Optimum use of resources
† Competency and performance of civil servants
† Result orientation
… Rule of law
† Fair legal
g framework
† Impartial enforcement machinery
† Independent judiciary
… P
Participation
† Cornerstone of Good Governance
† Opportunities for citizens to participate in decision making,
implementation and monitoring of government activities
† Freedom of expression and association, organized civil society
 Characteristics of Good Governance

… Equity
q y and inclusiveness
† All groups, particularly the most vulnerable, have opportunities to
improve or maintain their well being
† Equal opportunities for participation in decision making process
… Consensus Orientation
† Mediation of different interests in society to reach a broad consensus on
„ What is in the best interest of the whole community
„ H
How this
h can be
b achieved
h d
 Strategies for Good Governance

… Reorientingg priorities
p of the state through
g appropriate
pp p investment
in human needs, and provision of social safety nets for the poor
and marginalized
… S
Strengthening
h state institutions
… Introducing appropriate reforms in the functioning of Parliament
and increasing its effectiveness
… Enhancing civil service capacity through appropriate reform
measures that matches performance and accountability
… Forging new alliances with civil society
… Evolving a new framework for government-business co-operation
 Critique of Good Governance
… Need contextual understanding
† Good Governance – Neo liberal thrust + Globalization
… Tendency to depoliticize government
† Reduce the art of governing to an apolitical and technical exercise
… A b
Ambiguous definition
d f off good
d governance
† ‘Good’ in Good Governance is subjective and is subject to interpretations
† Who defines what is good ?
… Over emphasis on governance indicators and quantification
† "Not everything that can be counted counts, and not everything that counts can be
counted“ - Albert Einstein
… Good governance institutions do not guarantee automatic reduction of poverty and
sustainable development
… Tendency to do governance without government
† PPPs, NGOs (non-state actors) – unaccountable, invisible
GOOD GOVERNANCE :
INDIA
 Good Governance Strategies - India

… Conference of Chief Secretaries and Chief Ministers – 1996, 1997

† Deliberation on improving governance
† Action plan for accountable and citizen friendly government
† Formulation of initiatives
… Good Governance initiatives
† Decentralization and People’s Participation
† Citizen’ss Charters
Citizen
† Sevottam
† Results Framework Document
† State of Civil Services Survey
† Model Code of Governance – State of Governance Report
† Redress of Citizen’s Grievances
† E Governance
E-Governance
† Social Accountability - Right to Information, Social Audits, Community Score Cards
 Model Code of Governance

… Model Code of Governance

† Developed by GoI in collaboration with State Governments,
† Governance issues identified in model code to guide state governments
„ in participative and citizen-centric
citizen centric development
„ in benchmarking their performance on Governance
† Provides the basis for assessing governance in Indian context

Governance Components

Financial
Accountability Improving Technology and Public
Management Incentivizing Anti
and Service System Service Rule of Law
and Budget Reforms Corruption
Transparency Delivery Improvement morale
Sanctity
 State of Governance Report

… Assessment ((through
g scoring),
g), of Indian States on ppre-
determined dimensions of governance
… Output --- methodology for measuring and preparing a
Report on the State of Governance for States/sub national
units, by taking in account the indicators with specific
reference to poverty reduction
… Methodology tested in three states, to be rolled out in other
States and UTs
… SoGR framework expected to enable temporal comparison
of Governance indicators for a given State
 • Service Standards
• Decentralization and Self-Government
Service Delivery
• Regulation and user-feedback
user feedback
• Macro-Governance aspects
Development program for • Inclusive policy making
weaker sections and
backward Areas • Gender Sensitivity

• Use of ICT for citizen interface

Technology
gy and system
y
Improvement • Redesign
R d i off Delivery
D li system
t for
f efficiency
ffi i
gains

Financial Management and • Financial Management

Budget sanctity • Budgetary Process

• Regulatory burden
Investment Climate
• Quality of industrial infrastructure

Public service morale and • Quality of civil service

anticorruption • Anti-corruption
p

Accountability and
Transparency • Transparency and citizen-access
 Social Accountability
… An approach towards building accountability that relies on civic engagement,
i.e.,, in which it is ordinaryy citizens and/or civil societyy organizations
g who
participate directly or indirectly in exacting accountability

Community Scorecards - AP,

AP People’s
p pplanning,
g Kerala
Maharashtra Policy/Budget
Citizen Report Cards, Bangalore Formulation

Performance Civic Policy/Budget

Monitoring Engagement
g g Analysis

Policy/Budget
P li /B d
Expenditure Budget Analysis/ Review,
Social Audits, Rajasthan Tracking Gujarat, Bangalore
People’s Estimate, AP
 Grievance Redress

… Grievance redress mechanisms (GRMs) are institutions, instruments,

methods, and processes by which a resolution to a grievance is sought and
provided
… Integral to good governance – indicates responsiveness to citizens
… Grievance redress mechanisms
† DAR&PG – nodal department for redress of grievances
† Centralized grievance redress management system (CGRMS)
† Ombudsman
„ For local government grievances in Kerala
„ For NREGS grievances
„ Central and State Information Commissions for RTI
† Departmental grievance redress systems
† Online grievance systems at state, department, municipality and district levels
 E Governance
… Transformation of government to provide efficient, convenient & transparent
services to the citizens & businesses through information & communication
technologies

Easy to access
single
l point Increased efficiency
Higher penetration due to connectivity
delivery of public due to automation
services to citizens

Reduction in cost
Increased
of delivery of
accountability
services

Higher availability
Increased Reduced
of public domain
transparency C
Corruption
information
 Good Governance initiatives – Andhra Pradesh

… Andhra Pradesh – pioneers in adoption of good governance

principles
i i l
… Four pronged strategy for Good Governance

Structural Citizen Centric Systemic Improving

Mechanisms Reform Initiatives Improvements Service Delivery

• Governance,, • Citizens’ Charters • Public Finance • E-Governance &

Public • Redressal of Public Management IT Initiatives
Management & Grievances • Human Resource • Process Re-
Administrative Management engineering
Reforms Wing • Civil Society
Empowerment
p • Procurement and • Online ggrievance
• Strategy and Initiatives other Reforms redress
Performance
Innovation Units • Right to
Information Act
• Centre for Good
G
Governance • Anti
Anti-corruption
corruption
 Good Governance –Implication for Indian civil servants

Need to
Administrative update
Accountability Public-
Reforms – Technological Attitudinal existing
and Private
Addi i l
Additional Ad
Advancements changes
h skills
kill and
d
Transparency Partnership
responsibilities acquire
new skills
 Conclusion

Good Governance may be a rhetoric,

rhetoric but good
government, responsive administration and a
just legal system are eternal requirements

External drive to policy change to be replaced

byy local commitment and ownershipp of reform

Ingenuous ideas for improving governance,

ownership
hi off initiative
i ii i and
d commitment
i to
reform extremely important
THANK YOU