UNIT 1 GOVERNANCE: AN

OVERVIEW
Structure
1.1 Introduction
1.2 Governance - Meaning, Need & Scope
1.3 Govemance and Development : Inter-Relationship
1.4 Features of Good Governance
1.5 Barriers to Good Governance
1.6 Let Us Sum Up
1.7 Key Words
1.8 References and Suggested Readings
1.9 Check Your Progress: Possible Answers

Governance is a buzzword now days, and you might be listening and reading this
word in daily life. People might be talking about the good governance in the
southern Indian states leading to better performance in various areas of
r development, as compared to some other states. Former UN Secretary General,
Kofi Annan said "good governance is perhaps the single most important factor in
eradicating poverty and promoting development". Therefore, knowing about the
meaning of governance has become important in studying development.
Governance is characterized mainly by transparency, accountability, participation,
rule of law, and efficiency. Good governance would promote and ensure
development. It is believed that sound economic policies and democratic institutions
that are responsive to people's needs are instrumental for sustained economic
growth, poverty eradication, and employment generation. This unit deals in detail
with governance and development.
The thrust of the unit is to analyse the concepts- governance and development,
where two concepts are closely linked.

! After studying this unit, you would able to:

explain the need, scope, and meaning of governance;
I analyze the features of good governance;

I distinguish the linkage between governance and development; and 1

I
I
discuss barriers to good governance.
1
I 1.2 GOVERNANCE: MEANING, NEED & SCOPE
The concept of the state occupies a central place in discourses on politics and
administration. Government is a critical and inseparable element of the state. The
government is constitutionallyresponsible state for administration through various
 institutions to ensure a better society and improved lives of citizens. So, the fwus
is on the state, and the state remains the principal actor in the entire process of
..
-on. In the course of administration, the government creates a relationship
between its various institutions and citizens. The nature of this relationship depends
the nature of the state, e.g.,. whether it is a military state, autocratic state, dernmtic
state, or any other form. Moreover, the relationship among the state, the market
and the civil society has undergone a rapid and huge change all over the world.
With this background, 'governance' is recognised as an important concept in
recent years both by the nation states as well as by the international agencies
giving f h d for developing activities. In In& it has gained prominence in academic,
as well other arenas, after the launch of liberal economic policies in 1991. As far
as the meaning of the concept is concerned, it can be said that an exact ni-on
of the concept of governance is still elusive. However, there are various
interpretations of the concept, and they seem to converge on a broad meaning,
i.e., reform in the governing process for better and improved policy outcome. So,
the meanings include building and strengtheningthe capcities of various institutions
of the state or public institution; e n c o w and facilitating participation of common
citizens in the governing process. But, with the beginning of the liberal economic
policies, another actor, called the market, has entered into the scenario. Many
people believe that the market has emerged as a viable alternative to the state as
the latter has failed in ensuring effective development policies, and their proper
implementation. So, in this context, the meaning of governance includes the
reduction of the role of the State in economic activities as well as the promotion
of the role of the market.
Governance has a clear relationship to the redefinition of the role of the state
in India. In many advanced countries, the redefinition of the role of the state has I

a direct bearing on the conceptualization of the term governance. The concept

was again strengthened with the beginning of the process of globalization. It got 4

additional emphasis with the beginning of the process of globalisation. Hence,

the state-centric approach has changed, and the meaning of governance has i
also changed with the rise of the market as a player in development. The
market involves international and aid-providing agencies, and, with the rise to
prominence of the market, these organizations have emerged as p o w d players.
These agencies interpret governance as the set of guiding principles to improve
and strengthen the capacity of the recipient countries towards better and effective
implementation of development initiatives. There is a quest for alternative
framework for policy making and implementation. Thus with globalisation, a
new set of actors, such as the state and its institutions, the market, civic
organizations, and citizens have emerged. This has resulted to a new pattern of
relationship between these actors, giving a new twist to the meaning of the term,
governance. It may be said that governance implies the renewed pattern of
relationships between these ictors.
1
The term, governance, is derived from the Greek term, kubemao, which means 1
'to steer'. So, governance is the process that steers affairs of the State. In
ancient times, the Greek philosopher, Plato, also used the term, governance. A !
close examhation of the literature on governance reveals that the term came into
the limelight with the publication of the World Bank's report on sub Sahara in
1989. The report said that development initiatives taken up by the World Bank
had not been able to produce the desired development benefits due to the I
weak role of the stateI and its ineffective institutions. Summarizing this problem,
6 the World Bank report coined the term 'crisis of governance'. Thus, the focus
i
 Governance: An Overview
was cast on improving governance by improving managerial and administrative
competencies. Further, in 1992, the World Bank, in its publication, The World
Development Report, focused on the renewed meaping of governance by re-
conceptualization of the role of the State. It advocated an efficient and effective
administrative state that is detached from its earlier omnipresent involvement in
economic and administrative matters. From the above discussion, it can be
deduced that the different problems relating to administration can be tackled by
institutions of the state, and by other actors as well. Jon Pierre comments, in

i his book, Debating Governance, that political institutions no longer have a

monopoly on the orchestration of governance. This statement indicates that the
process of governance is no longer state-centric and that other actors have,
also, emerged as critical players. Stoker has identified the follqwing features of
governance while summarizing various perspectives on governance.

9 it refers to a complex set of institutions and actors that are drawn not only
from government, but from beyond

n governance identifies the power dependence involved in the relationship

between institutions that are involved in collective action

m) it recognizes the blurring of boundaries and responsibilities for tackling social

and economic issues

I iv) it is about autonomous self-governing networks of actors

I v) Governance ensures that the government is able to use new tools and
techniques to steer and guide.
Prof. Kuldeep Mathur opines in his book, From Government to Governance,
that governance is concerned with changes taking place in the organization of the
state, and with changes in its relationship with the private sector and civil society
actors (Mathur, 2009). The World Bank definesgovmance as, 'The exercise of
political authority, and the use of institutional resources to manage the society's
1
i
problems and affairs.' The World Bank interprets governance as the institutional
capacity of public organizations to provide public and other goods demanded by
a country's citizens in an effective, t r a n s ~ timpartial,
, and accountable manner,
subject to resource constraints.

I
In the Worldwide Governance Indicators project, the World Bank further defines
governance as: ''The traditions and institutions by which authority in a country is
exercised. This considers the process by which governments are selected,
monitored and replaced; the capacity of the government to effectively formulate .
and implement sound policies and the respect of citizens and the state of the
institutions that govern economic and social interactions among them."
The United Nations Development Progmme's regional project on local governance
for Latin America has been able to define the concept of governance in a
t
comprehensive way. It includes three key ingdents, namely, legality, legitimacy,
and participation. It says, "Governance has been defined as the rules of the
I political system to solve conflicts between actors and adopt decision (legality).It
has also been used to describe the proper functioning of institutions and their
acceptance by the public (legitimacy).And it has been used to invoke the efficacy
of government and achievement of c o m u s by demomitic means (participation)".
The last feature that is participation is crucial to the process of governance and
it facilitates a healthy relationship between the government and the governed. It 7
Governance also enhances a sense of belongingness among the citizens towards their respective
states.

Based on these discussions, it can be said that govemance means the process of
decision making, and the process by which the decisions, are implemented, or
even not implemented. Over the last couple of years, the concept of governance
has undergone change. It has included a few elements like accountability,
transparency, and effectiveness into its broad contours. So, it has led to the
emergence of a new aspect of governance, which is termed, good governance.
Here, again, the World Bank cites four essential components of good governance,
which are

Public sector management requires civil service reform and involvement of

i1
j)
private sector. The civil service reform as suggested by the Administrative
Reforms Commission in India is an example of this. Again, the publioprivate
partnership in hhtmmne development, popularly known as the PPP model,
is also an example of private sector initiative. 1
1

n A legal framework for development to ensure the working of market. 1

mi The establishment of accountability through various institutions such as an
Ombudsman, and the parliamentary public accounts committee.

iv) Ensuring transparency and access to information. The existence of free media
or the fourth estate, and the enactment of the Right to Information in India
I
are examples of initiatives towards having transparency and access to
information. The innovative Jan Sunwai (public hearing) and pubic display
of budget allocation for development schemes and expenditure are other
good examples in this regard.

The definition provided by the United Nations Development Programme on

governance is also worth mentioning. It says that governance is, ". ..the exercise
of economic, political and administrative authority to manage a country's affairs
at all levels and the means by which states promote social cohesion and integration,
and ensure the well-being of their population. It embraces all methods used to
distribute power and manage public resources, and the organizations that shape
government and the execution of policy. It encompasses the mechanisms, processes
and institutions, through which citizens and groups articulate their interests, exercise
their legal rights, meet their obligations and resolve their differences."

In a critical analysis on the process of governance, the issue of corruption emerges

as the major impediment in ensuring development benefits reach the needy and
the other target groups. So, the World Bank's formulation of governance is
critically linked to reduction of corruption and ensuring rule-bound behavior by all
institutions associated with governance. Some people use the term, hir governance,
also, which implies a mechanism which allows various institutions to respect the
rights and interests of the beneficiaries.

Measures of Governance

The big question that has emerged is how the amount, or extent of governance
quantifi or measure in any country. The World Bank has identified six dimensions
in which to measure governance. These are
8 r cs
I
Governance: An Overview
I 0 Voice and accountability: they measure political, civil and human rights.

I ] Instability and violence: they measure the likelihood of violent threats to, or
changes in government, this includes terrorism.
I
I Effectiveness of government: This measures the competence of the

t bureaucracy, and the quality of public service delivery.

iv) Regulatory burden: this measures the policies which are market unfriendly.

v) Rule of law: this measures the quality of contract enforcement, the police, the
court, as well as the likelihood of crime and violence.

vi) Control of corruption: this helps in measuring the exercise of public power
for private gain, including both petty and large scale corruption.

To measure the concept of governance and its quality, the International Fund for
Agricultural Development has devised the following set of principles

9 Inclusiveness and Equity: the principle that no one can be excluded from the
process of development on the basis of gender, race and religion.

ii) Participation: the opportunity for people who are affected by a particular
decision to influence the process of decision making directly, or, indirectly.

I i Transparency: the degree to which the rules, standards and procedures for
decision making are open, clear, verifiable, and predictable.

iv) Efficiency: a measure of how economically resources are used to produce

the intended results.

v) Effectiveness: a measure of the extent to which an intervention achieves its

I
I objectives.
I

vi) Subsidiarity: the principles that decision making should t&e place at the level
that is most appropriate for a particular issue.

1 Adherence to the rule of the law: the principle that every member of a
society, even a ruler, must follow the law.

vi5i Accountability: the responsibility for decisions made, and for their
implementation, and for the results that the intervention has produced.

ix) Sustainability: the likelihood that the positive effects of an intervention will
persist for an extended period after the intervention ends.

Countries are categorized and ranked on the parameters of good governance

based on these dimensions. There have been many attempts by various countries
and international organizations to attain good governance in its totality. Although
the results vary, the attempts to achieve good governance have resulted in
tremendous improvements in the process of governance.

So far, you have read about the meaning and importance of governance, and,
measure of governance. Now, you should be able to answer the questions, given
below, in order to check your progress.
Governance Check Your Progress 1
Note: a) Write your answer in about 50 words.
b) Check your answers with possible answers given at the end of the
unit
1) Governance is a buzzword in contemporary times. What does the term
mean?

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2) Explain the significance of governance.

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1.3 GOVERNANCE AND DEVELOPMENT:

INTER-RELATIONSHIP
The term development is closely related to the process of governance. Every state
in the world initiates a series of development activities in order to bring about a
positive change in the economy, society and the lives of its citizens. In the entire
process of development, the state has played a dominant role. However, it has
been observed that the benefits from development initiatives have not had the
desired effects, and that the initiatives have failed to bring about a positive change
in the lives of the intended people. So, basic questions regarding the role of the
state and its efficiency have been raised. The search for alternative mechanisms
to ensure that development benefits reach the people has been on the agenda of
policy makers.The recent arrangement of public-private partnerships has emerged
as the viable alternative in providing service delivery in certain sectors of the
economy. Thus, the basic approach to development has undergone changes in
recent times.
The United Nations General Assembly 2005 World Summit outcome envisaged
that ". ..good governance is essential for sustainable development; that sound
economic policies, solid democratic institutions responsive to the needs of the
people and improved infi-astructure are the basis for sustained economic growth,
poverty eradication and employment creation; and that -om, peace and security,
domestic stability, respects for human rights, including the right to development,
the rule of law, gender equality and market oriented policies and an over all 4
commitment to just and democratic societies are also essential and mutually
,,arcing ". I
The Asian Development Bank, while emphasing the role of governance in
development mentioned that poor governance holds back and distorts the process
 Governance: An Overview
of developent, and has a disproportionate impact on the poorer and weaker
sections of society. Therefore, assisting developing countries in improving
governance is a strategic priority of the ADB in eliminating poverty in Asia and
the Pacific. The four key areas of interrelationship between governance and
development identified by the ADB:

b) Participation
c) Predictability
i d) Transparency
I
I
The UNDP governance and development linkage is given below in the flow chart.

I The central point in development and governance is that both concepts aim at
offering benefits to the citizens. However, neither concepts have any meaning if
they do not deliver benefits to citizens. Moreover, neither of the concepts are
detached from each other, rather they complement each other. Development
initiatives bear fruit in the presence of good governance. Again, good governance
ensures participation of people in decision making related to development
programmes. The participation of people in development initiatives truly reflects

pzizizq
1
1
Econonuc Governance Political Governance
4

+
1 +

v
.) 4
Empowerment Participation Access
+ 1)

+
Growth pro-poor Accountability
Promoting & transparency

7 Income

Achievements of Millennium Development Goals (MDGs)

T
-
Source: Governance for the Millemlurn Development Goals: Core Issues & Good Pract~ces,UNDP, 2007

Generally speaking, development implies the process of improving the standard

of living and wellbeing of citizens by raising per capita income. Per capita income
is definitely an important parameter of development, but, the question is, how
much benefit has it provided to common citizens in terms of availing the basic
elements of life, such as health and education is an aspect to be taken into
consideration. In recent years, development has transformed from mere economic
terms to value loaded terms, or, human development. So, based on their
Governance performance on the human development fiont, all countries are ranked through
the human development index. Nobel prize winner Amartya Sen has contributed
sigmflcantly towards changing the meaning of development and making it a broad
and inclusive concept. He argued that one way of seeing development is in terms
of expansion of the real freedoms that the citizens enjoy to pursue the objectives,
they have reason to value, and in this sense the expansion of human capability can
be, broadly, seen as the central feature of the process of development (Dreze and
Sen, 1996).

The quality of governance relates to the practice of domestic politics and to public
action. Public action is the action by the public or the people rather than just for
'
the public by the government. Loolung at the functioning of the various democratic
countries, it can be said that the role of the public is not confined to influencing
or challenging the decisions of the government. Rather it is to play a constructive
and definitive role in the socio-economic development of society, and to reduce
social inequalities. Arnartya Sen argues that public action has the potential of
making a government really accountable and transparent. (Dreze and Sen,
1996). As discussed earlier, accountability and transparency are the two key
components of good governance. Thus, governance can be ensured and
strengthened by public action, or more involvement of people in the process of
governance. The role of the government is to build institutions to help facilitate the
involvement of people in the entire process of governance. Initiatives by the
Government of India, such as the 73rdand 74" amendments which provided
constitutional status to grassroot institutions, like the panchayat and nagarpalika
have been landmark achievements that ensure the involvement of people in the
process of governance. Moreover, another significant step taken by the
Government of India to constitutionally ensure 50 per cent seats inpanchayats
for women, is a positive step to involve women in the process of governance. As
the people are direct beneficiaries in the process of governance, they have a
definitive say in the decision making process. Having a say in the decision making
process at the grassroot level, people can, themselves, decide what kind of
development they want rather than having a development plan imposed on them
by the state. The much publicized National Rural Employment Guarantee Act
(NREGA) reflects the requirements of citizens and is an excellent example of the
importance of critical linkage between governance and development. It validates
the view that development and good governance are mutually complimentary.
Good governance facilitates development, and in turn development ensures the
fintherance of good governance. The success of NREGA in bringing a development
turnaround in rural areas in different parts of hdia is also crucially linked to the
practice of transparency in both development and governance practices. The
display of budget allocations, and how that amount has been utilized are regularly
and transparently publicized in the public places, and on the agendas ofpanchayat
meetings hopularly known as 'social audit'. As citizens get a concrete idea about
the progress of development initiatives at their local level, it bringp in transparency,
and there is a sense of increased accountability among government officials. The
social audit has become an integral part of the development process at the
grassroots. The awareness among the people has brought a positive impact on the
implementation of the development initiatives. This can also be interpreted as
public action, as identified by Amartya Sen. %s process has again gained strength
with the enactment of the Right to Information Act, which has empowered the
citizens to ask for information fiom officials. The participation of people has also
12
 Governance: An Overview
brought about a qualitative and significant change in the development process, and
its impact on the larger section of the society.

1.4 FEATURES OF GOOD GOVERNANCE

After reading about governance, now it is appropriate to introduce you to the
term, good governance, a key development concept, today. The people of a
country expect that their government should deliver effective administration,which
promotes their quality of life. In ancient times, the legendary administrator of the
Mauryan Empire, Kautilya emphasized that it is the duty of a government to act
in a manner that realizes the material, mental, moral, and cultural, wellbeing of the
people.

The World Bank in its reports of 1989 and 1992, the Organization for Economic
Cooperation and Development (OECD) Commission on Global Governance
(1995), United Nations Development Programme (UNDP) 1997 have all dealt
with the authorities of good governance extensively. The OECD (1992) delineated
the key features of good governance in the following words: ". ..it is the promotion
of democracy and open pluralistic societies; the strengthening of transparent
accountable, efficient and effective national and local government; the promotion
of respect for human rights; the reinforcement of rule of law, including fair and
accessible legal and judicial system, the promotion of independent media and the
dissemination of information; anti corruption initiatives and efforts to reduce
excessive military expenditures."

Over the past few years, the concept of good governance has became the subject
of intense interest. Precisely speaking, the distinctive features of good governance
are: participation, accountability, consensus oriented, transparency, responsiveness,
i
effectiveness, efficiency, equitable-ness, inclusiveness, and following the rule of
I
law. The concept of good governance also includes feature such as the minimkition
of corruption, and, being responsive to current and future needs, and taking into
account, the aspirations of society in large.

Focusing on the concept of good governance, the United Nations Development

Programme emphasised on a high quality of processes by which decisions affecting
public aEiirs are reached and implemented. It M e r , highlights, good governance
need to ensures that all, including the poor and other disadvantaged groups, are
included and have the means: (a) to influence the direction of development, (b)
to make contributions to development and have these recognized, and (c) to
share the benefits of development to improve their lives and livelihoods.
The concern for good governance has been well voiced in Asian Development
Bank Report (1999) titled G o v m c e in Asia: From Crisis to Opportunity which
could be discussed through the following questions:
Do people fully participate in governance?
Are people fully informed?

I Do people make decisions, or, can they, at least, hold the decision makers
accountable?
Are the women equal partners with men in governance?
13
Governance e Are the needs of the poor and disadvantaged met?
Are people's human rights guaranteed?
e Are the needs of the future generation taken into account in current policies?
e Do people own their structures of governance?
The key feature of good governance are explained in the chart given below.

Features of Good Governance

Prior political and administrativeresponsivenessto the need

of the people

( Transparency Free access to information with all openness hardly any

concealment of facts and information
1
[~artici~at- People's participation is given adequate space in the scheme
of governance

1
IRule of Law Effective implementation of legal provisions for public good

1
r 3
Eficiencyl
Effectiveness
Efficiency and effectiveness in dealing of public service
and proper use of public funds

1
1 Equity All should be equal, with promotion of gender equity, and,
with adequate emphasis on the poor and the disadvantaged

1.5 BARRIERS TO GOOD GOVERNANCE

1
Now, let us understand the barriers to good governance. Going through the
I
discussion on good governance, it can be said that development is a value-loaded
concept and has a strong relationship to good governance. However, the process
of good governance encounters various barriers. The barriers are multifold and
intense in nature. Most importantly, all the barriers are inter related to each other.
The barriers to good governance are discussed briefly.

i) Lack of awareness: this is one of the biggest barriers that come in the way
of good governance. Due to inadequate literacy, lack of information fiom the
government side, and the failure of civil society institutions there is a lack of
awareness among people about the process of governance, and development 1
initiatives. The sense of apathy among people also compounds the problem. (

ii) Absence of transparency and accountability: governance gets derailed I

due to lack of transparency. Moreover, lack of accountability leads to

authoritarianism and creates a huge gap between the government and the i
governed.
 Governance: An Overview
iii) Corruption and failure to check corruption: corruption is generally
identified as private gains h m using public means through unethical p d c e s .
This phenomenon takes away development benefits from people.
iv) Weak civil society: civil society bridges the gap between government and
governed, and checks the growth of unethical practices. But, when there is
an absence of civil society institutions, or when they m weakened, the gap
between people and the government gets widened. Good governance is
badly affected by weak civil society institutions.

v) Lack of strong institutions of governance: governance functions with the

support of various institutions such as the legislature, executive, and the
judiciary, with a clear separation of power. If these institutions succumb to
illegal and unethical pressures, and they fail to perform their designated
functions, then the institutions get weakened. Thls results in the failure of the
i process of governance, and hampers development initiatives.
I
I
The process of governance is being stmgthened by modem information technology.
Video conferencing, for example, is a way to organize direct discussions between
officials and citizens. The availability of information on internet sites, the conversion
of documents into electronic format, the storage of all data related to citizens,
makes the process of transparency and accountability simple. The devolution of
power by giving constitutional status to grassroot organizations has brought an
upsurge of democratic values and participation among citizens. The participation
of citizens in the development process enhances governance, and, ultimately,
democratic ideals.
In these last sections, you have read about the features of good governance, and
barriers to good governance. Now, attempt the answers to the questions given in
the Check Your Progress 2.
Check Your Progress 2
Note: a) Write your answer in about 50 words.
b) Check your answers with possible answers given at the end of the
unit

1) Discuss the key features of good governance.

2) What is the relationship between governance and development? How do

they strengthen each other?
 Governance
LET US SUM UP
Good governance is a qualitative term which gets strengthened with people's
participation, with transparent and accountable mechanism. The rule of law also
plays a definitive role towards ensuring good governance. This process is, now,
being strengthened by the application of science and technology, which has
revolutionized governance, and plays an important role in bringing people closer
to the process of governance. Governance plays an important role in development.

1.7 KEY WORDS

- - - - -- -

State: This is the basic actor in today's world, representing a defimte population,
having a definite territory,a government, and sovereignty (the ultimate authority in
handling its affairs).
Market: An institution which represents the interests of private players in the
economy. Over the years, some people claim that it has emerged as the alternative
to the state.
Civil Society: This represents the organizations that have emerged as voluntary
initiatives of citizens, and without the support of the State. It articulates the voices
of citizens, and helps to facilitate a smooth relationship between the State and the
citizens.
Governance: This represents the complex relationship between the state, market,
and the civil society. It reflects the nature of hctioning of the authority and
government. Recently, it has transformed into a value-loaded concept called good
governance ,and it features rule of law, participation of people, transparency, and
accountability, among others.

Rule of Law: This implies the proper and rational codification of laws and
application of laws to one and all, uniformly.

Development: Means the betterment of the lives of people which is measured

by a rise in per capita income. However, the term has undergone a transformation,
and the new view is termed human development, which means the benefits in
terms of health, education, drinking water kcility, food availability, among others,
through the development process.

1.8 REFERENCES AND SUGGESTED READINGS

Dreze, Jean and Sen, Amartya (1995), India: Economic Development and
Social Opportunity,Oxford University Press, New Delhi.

Fernandes, Aurleno (2003), "Aggrandizer Government and Local Governance",

Economic and Political Weekly,'Volume-xxxviii, No. 27, July 5-12.

Fukuyama, Francis (2004), State Building and World Order in the Twenty-
First Century, Profile Books, London.

Hyden, Goran; Court, Julius and Mease, Kenneth (2005), Making Sense of
Governance (Empirical EvidenceBm 16Developing Countries), Viva Books
16 Private Limited, New Delhi (Lynne Rienner Publishers).
',,
 Governance: An Overview
Mathur, Kuldeep (2009), From Government to Governance, National Book
Trust, New Delhi.

OECD (1992), Development Assistance Committee Work on Participatory

Development, NewYork.

Pierre, Jon (ed.) (2000), Debating Governance, Oxford University Press, Oxford.

Social Watch Coalition (2007), Citizen 5 Report on Governance and

Development, Sage Publications, New Delhi.

United Nations Development Programme, Decentralization in India: Challenges

and Opportunity, Human Development Resource Cene, Discussion Paper Series-
1, New Delhi.

World Bank (1989), Sub-Saharan Africa: From Crisis to Sustainable Growth,

World Bank, Washington DC.

World Bank (1992), Governance and Development, World Bank, Washington

DC.

Website-
mdg-access-
www.unescap.org/pdd~publications/mdg-access2basic-service/
tobasic.services.pdf http://adb.org/govemance/

1.9 CHECK YOUR PROGRESS - POSSIBLE .

ANSWERS
Check Your Progress 1

1) Governance is a buzzword in contemporary times. What do you mean

by it?
Answer: Govemance has entered into the academic discourse in a big way. In
this changing world, the nature of state activities has undergone rapid changes.
So, the nature of service delivej mechanism has changed from state-centric
activities to an arrangement between state and other actors, such as the market
and civil society. Govemance refers to a set of complex relationships between the
state, market, and civil society organizations with the aim of rapid development.

2) Explain the significance of governance.

Answer: The term, governance, implies the relationship between the state,
I
market and civil society. Over the years, the term has attained a comprehensive
meaning that includes features like efficiency, transparency, accountability, and rule
of law. The definition provided by the United Nations Development Programme
is the widely accepted, comprehensive explanation on governance. (Also see
section-1.2)
Check Your Progress 2
I
1) Discuss the key features of good governance.
Answer: According to Kautilya, governance refers to the role of public
organizations to realise the material, mental, moral, and cultural well being of the
people. Recent changes in the concept have added the term, good, to encompas
Governance a broader meaning. The key features of good governance are accountability,
transparency, participation, rule of law, efficiency, effectiveness, and equity. These
features help government to deliver services for public welfare. It has been dealt
with at length in section 1.4. Read this section and analyse each points.

2) What is the relationship between governance and development. How

do they help strengthen each other?
Answer: Govemance and development are interconnected. Both concepts aim at
improvements in the lives of the citizens. Governance aims to attain its objectives
through greater participation of citizens in the governance process with transparency
and accountability, supported by the rule of law. Development becomes effective
and meaningfid with good governance in place. (For M e r details, go through the
section-1.3)