group 4 governance.ppt - The Concept and Definition of Governance The concept of\"governance is not new It is as old as human civilization Simply

group 4 governance.ppt - The Concept and Definition of...

This preview shows page 1 out of 34 pages.

You've reached the end of your free preview.

Want to read all 34 pages?

Unformatted text preview: The Concept and Definition of Governance The concept of "governance" is not new. It is as old as human civilization. Simply put "governance" means: the process of decisionmaking 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. Governance is a method through which power is exercised in the management of a country’s political economic, and social resources for development (World Bank, 1992). The Concept and Definition of Governance Cont’d Governance is the manner in which power is exercised in the management of a country’s social and economic resources for development (Asian Development Bank, 1995). Governance is the process whereby societies or organizations make important decisions, determine whom they involve and how they render account Canada Institute of Governance (2002). Governance is the exercise of economic, political, and administrative authority to manage a country’s affairs at all levels. It comprises the mechanisms, processes, and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences. UNDP (1997). Definition of Governance Cont’d Governance concerns the structures, functions, processes, and organizational traditions that have been put in place within the context of a program’s authorizing environment “to ensure that the [institution/program] is run in such a way that it achieves its objectives in an effective and transparent manner. It is the “framework of accountability to users, stakeholders and the wider community, within which organizations take decisions, and lead and control their functions, to achieve their objectives. Definition of Governance Cont’d All in all, governance, has been defined as a system of values, policies, and institutions by which a society manages its economic, social, and political affairs through interactions within and among the state, civil society and private sector. It comprises the mechanisms and processes for citizens and groups to articulate their interests, mediate their differences, and exercise their legal rights and obligations (UNDP 2000). . Three actors are involved in governance: the State, which creates a conducive political and legal environment; the private sector, which generates jobs and income; and civil society, which facilitates social and political interaction. The essence of governance is to foster interaction between these three types of actors to promote people-centered development. The Concept of Governance Cont’d A. Governance in theoretical sense (according to Frederickson, 2005): continuum with hierarchical government and horizontal governing (network type) as the opposite sides / introduction of public governance within hierarchical systems governance has actually the same meaning as public administration types (showing the stages in departure from the vertical, government type of managing public affairs): Inter-jurisdictional g. (example: environmental i-j.g.): voluntary participation of several jurisdictions/administrative organizations/ministries in specific policy area. third-party g.: the first party is elected democratic legislative authority; the second is executive and public administration; the third party can be every subject outside the first and second, including municipalities, other public and private organizations and persons; third-party governance is based on contracts or grants. Public nongovernmental g.: based on actors outside government that are engaged in policy making; they have substantive autonomy and represent the interests or well-being of citizens. The Concept of Governance Cont’d A. Governance in theoretical sense: B. Governance as a type of administrative doctrine: Administrative doctrine: a system of ideas about desirable ways of operating and prescriptions about good practices, grounded on dominant values and systematised experiences, comprising standards with regard to organisation, functioning, regulation, management, etc. in public administration (values are the main pi llars of administrative doctrines) The new public management (NPM; 1980s): economic values (economy, efficiency, effectiveness, public entrepreneurship, quality of public services, marketization, support to economic development, etc.) Good governance (1990s): democratic, social & legal values (accountability, transparency, openness, legitimacy, human rights, the rule of law, the role of citizens and civil society, etc.) Neoweberian state (2000s, Eastern Europe): stronger position of administrative law, lawfulness, efficiency, professionalism, administrative education, depoliticization, written communications… Governance Systems: Actors, Capacities and Accountability Citizens/Firms Political Actors & Institutions • Political Parties • Competition, transparency Check & Balance Institutions • Parliament • Judiciary • Oversight institutions Civil Society & Private Sector Cross-cutting Control Agencies (Finance, HR) • Civil Society Watchdogs • Media • Business Associations Citizens/Firms Citizens/Firms Executive-Central Govt Service Delivery & Regulatory Agencies Subnational Govt & Communities Citizens/Firms Outcomes: Services, Regulations, Corruption Governance Systems: When Accountability Breaks Down Citizens/Firms Political Actors & Institutions • Political Parties • Competition, transparency State Capture Check & Balance Institutions • Parliament • Judiciary • Oversight institutions administrative corruption Patronage & Cross-cutting Control Agencies nepotism (Finance, HR) Civil Society & Private Sector • Civil Society Watchdogs • Media • Business Associations Citizens/Firms Citizens/Firms Executive-Central Govt Service Delivery & Regulatory Agencies Subnational Govt & Communities Citizens/Firms Outcomes: Services, Regulations, Corruption GOVERNANCE PROBLEMS: SOME EXAMPLES Grand Corruption: State Capture Leaders plundering(stealling) state assets Powerful “oligarchs” buying state officials Corrupt leaders colluding(interacting) with corrupt investors: noncompetitive, non-transparent award of contracts Nepotism and Patronage in Public Service Political pressure for award of contracts, appointments Politicized transfers Administrative (Petty) Corruption & Inefficiency: Bribes for licenses, permits, government services Diversion of funds for public programs Inefficient and ineffective service delivery Two Governance Patterns Good (enough) governance: Clientelist: Political leaders use authority to maintain Developmental orientation of political leadership, functional check & balances, system not highest performing but mutually reinforcing and self-correcting their power base or are captured by powerful private interests. Leaders bypass check and balance institutions and use bureaucracy for patronage. Good government requires good governance Good governance: is a managerial approach, aimed to reach efficiency, sustainable growth and better satisfaction of citizens needs. means an ideal governing system that is inevitable for political, economic, social and cultural development of a country. Good governance refers to the question of how a society can organize itself to ensure equality of opportunity and equity (social and economic justice) for all citizens. Meaning of Good Governance Cont’d Good governance is the ideal orientation of a state that works best to achieve selfreliance, sustainable development and social justice. Many scholars define good governance as it is, "a system of governance that is able to unambiguously identify the basic values of the society where values are economic, political and socio-culture issues including human rights, and pursue these values through an accountable and honest administration.“ Good Governance has many dimensions Cont’d Good governance combines medium term policy : short and A) more cares and investments for solving the current needs of societies (job, education, health) , but also B) coping with common society challenges (lack of resources, ageing population, pollution, climate changes, quality of life, intensive migration and so on) Good Governance has many dimensions Cont’d Good governance adjust country development towards the changing world: Dynamic technological advance, Openess of markets, Global competition, Higher citizens expectations for better life OVERALL RESPONSIBILITY TO DETERMINE THE GOVERNANCE FRAMEWORK National cultural norms and values, and rules and regulations usually dictate the structure of the regulatory framework and its key constituent bodies which, in turn, reflect the nature and level of financial accountability to civil society. In many countries the responsibility to determine the overall governance framework is usually the responsibility of the Legislature and/or Executive arms of government on behalf of the civil society. Cont----- The roles of each of these parties in relation to the overall governance framework often overlap. For example, the Legislature may initiate or provide the authority for the establishment of regulatory or oversight bodies and may approve/comment on governance policies formulated by the Executive (Ministers as the political heads). To enable Parliament to effectively hold the government accountable for its performance in the use of resources and management of assets, clarity on the boundaries of the government reporting entity is essential. Accountability cannot be effective without the provision of complete and appropriate information. Cont----- It is normally the responsibility of the Executive that controls other entities or agencies, to ensure that appropriate governance arrangements are applied in all such controlled entities. It is not adequate to only appoint a governing body of a controlled entity, Without ensuring mechanisms are in place to secure adherence to recommendations of governance. Similarly, governing bodies of such controlled entities also have a responsibility to ensure governance of the entities under their control, while government is the ultimate controlling entity. OVERSIGHT FUNCTION OF THE LEGISLATURE CONTRASTED WITH THE EXECUTIVE FUNCTION OF GOVERNMENT In most governments, there is a separation of executive and legislative functions. Legislatures (Parliament) provide authority for the acquisition and use of financial resources and are responsible for overseeing administration. Management of financial affairs and resources is usually the responsibility of the Executive (Ministers/Cabinet/Government Business Enterprises/executing agencies or entities). EXAMPLE OF OVERALL ACCOUNTABILITY PROCESS IN THE PUBLIC SECTOR Legislature Independent, objective information d re ility r fe ib n s Co pon s re si b ili t po n re s Co Legislative Auditor y l it bi ta ng un rti co po Ac re t r ep o r t i ng nf er re d Au di y Transparency AUDIT Acknowledgement of Responsibility Executive Cont----- The Executive is responsible for Approving a budget or financial plan within the overall approved level of expenditure Provide authorization for the acquisition and use of financial resources, overseeing and monitoring the implementation of the approved budget or financial plan. The executive is usually responsible for the planning, directing and controlling of day-to-day operations Cont----- Preparing reports that provide an account of their administration. Directing operations with due regard to economy and efficiency, Maintaining an adequate system of internal control, Ensuring compliance with applicable authorities, Selecting and applying appropriate accounting policies, safeguarding assets, measuring the effectiveness of programs and Reporting on their performance to those to whom they are accountable. Cont----- The legislature is usually responsible for sanctioning the overall public sector financial plan or budget and authorizing the Executive to make expenditures (within the overall level of expenditure), invest, borrow and administer programs in accordance with any laws that may affect them. Cont----- The Legislature needs to exercise control over the expenditure of public monies made available to the Executive authorities by way of budgets. It usually reviews the annual reports of public sector entities, evaluates the standard of their work and makes recommendations, based on the facts contained in the various audit reports by the legislative auditor and the Executive in question. Cont----- In the interest of transparency, such hearings need to be public hearings. This Inner Accountability Cycle Usually Involves Four Steps — Audit And Reporting By The Legislative Auditor, Hearing By The Legislature, Recommendations Of The Legislature To The Executive, And The Response Of The Executive. The efficiency of the cycle depends on the timeliness with which all four steps are completed. Cont----- The Legislature also needs to review performance audit reports of the legislative auditor. The extent to which the Legislature utilizes a performance audit report depends on the efficiency of the accountability cycle, amongst other things. The legislative auditor needs to perform a follow up of the performance audit to review the earlier stance and the implementation of the recommendations of the Legislature. PRICIPLES/CHARACTERISTICS OF GOOD GOVERNANCE 1. Rule of the law 2. Openess and transperancy 3. Efficiency: results should reflect mission and goals? 4. Efectiveness: inputs/outputs 5. Citizens as a clients of government 6. Accountability (how we used taxpayers money) 7. Predictability and reliability 8. Partnership with concerned parties 9. Coherency in all government actions Features of Good Governance Good Governance consists of principles/characteristics. These are: 8 major 1. Participation, 2. Rule of Law, 3.Transparency, 4. Consensus, 5.E quity and Inclusiveness, 6. Effectiveness and Efficiency, 7.Respo nsiveness and 8. Accountability. These principles/characteristics assure that: Corruption is minimized, The views of minorities are taken into account, The voice of the most vulnerable in society is heard in decision making. It is also responsive to the present and future needs of society Characteristics/ Principles of good governance Cont’d 1) PARTICIPATION A key cornerstone of good governance is participation by both men and women. Participation needs to be informed and organized. Involving all groups of stakeholders and taking int o due consideration their opinions. It could be either direct or through legitimate inte rmediate institutions or representatives. 1) Participation cont’d 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. Characteristics/ Principles of good governance Cont’d 2) RULE OF LAW Good governance requires fair legal frameworks that are enforced impartially Most important point is full protection of human rights particularly those of minorities Impartial enforcement of laws requires an independent judiciary and an impartial and incorruptible police force. Characteristics/ Principles of good governance Cont’d 3) TRANSPARENCY Transparency means that decisions taken and their enforcement are done in a manner that follows rules and regulations. Information flow must be free and directly accessible to those who will be affected by such decisions and their enforcement. Enough information is provided and that are provided in easily understandable forms and media. Characteristics/ Principles of good governance Cont’d 4) RESPONSIVENESS Good governance requires that institutions and process try to serve all stakeholders within a reasonable timeframe. 5) CONSENSUS There are several actors and as many view points in a given society. Good governance requires mediation of the society to reach a broad consensus in society interest of the whole community and how this 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. different interests in on what is in the best can be achieved. Characteristics/ Principles of good governance Cont’d 6) EQUITY AND INCLUSIVENESS 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 especially the most vulnerable in society should have opportunity to improve or maintain their wellbeing. 7) EFFECTIVENESS AND EFFICIENCY 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. Efficiency also covers the protection of environment and sustainable use of natural resources. Characteristics/ Principles of good governance Cont’d 8) ACCOUNTABILITY 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 Accountability is the process whereby public sector entities, and the individuals within them, are responsible for their decisions and actions, including their stewardship of public funds and all aspects of performance, and submit themselves to appropriate external scrutiny. It is achieved by all parties having a clear understanding of those responsibilities, and having clearly defined roles through a robust structure. In effect, accountability is the obligation to answer for a responsibility conferred. ...
View Full Document

  • Winter '20
  • Good governance

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes