Good governance

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Good governance is an indeterminate term used in international development
literature to describe how public institutions conduct public affairs and
manage public resources. Governance is "the process of decision-making and
the process by which decisions are implemented (or not implemented)".[1]
The term governance can apply to corporate, international, national, local

governance[1] or to the interactions between other sectors of society.

The concept of "good governance" often emerges as a model to compare

ineffective economies or political bodies with viable economies and political
bodies.[2] The concept centers around the responsibility of governments and
governing bodies to meet the needs of the masses as opposed to select
groups in society. Liberal democratic states, concentrated in Europe and the
Americas, are often used to set the standards to compare to other states'
institutions when talking about governance.[2] 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.[3][4][5]

Contents [hide]
1 Forms
2 Reform and standards
2.1 IMF
2.2 UN
2.3 World Bank
3 Effects
3.1 International humanitarian funding
3.2 Democratization
3.2.1 Example
4 Role of political parties
5 Scholarly approaches
6 Criticism
7 See also
8 References
8.1 Book sources

9 External links
Forms[edit]
In international affairs, analysis of good governance can look at any of the
following relationships:[3]

between governments and markets,

between governments and citizens,
between governments and the private or voluntary sector,
between elected officials and appointed officials,

The varying types of comparisons comprising the analysis of governance in

scholastic and practical discussion can cause the meaning of "good
governance" to vary greatly from practitioner to practitioner.[3]

Reform and standards[edit]

Three institutions can be reformed to promote good governance: the state,
the private sector and civil society.[6] However, amongst different cultures,
the need and demand for reform can vary depending on the priorities of that
country's society.[7] 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.

IMF[edit]
See also: Structural adjustment
The International Monetary Fund (IMF) declared in 1996 that "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."[8] The IMF feels that corruption within economies is caused by the
ineffective governance of the economy, either too much regulation or too

little regulation.[8] To receive loans from the IMF, countries must have certain
good governance policies, as determined by the IMF, in place.[8]

UN[edit]
The United Nations emphasizes reform through human development and
political institution reform.[9] According to the UN, good governance has
eight characteristics.[1] Good governance is:[1]

Consensus Oriented
Participatory
following the Rule of Law
Effective and Efficient
Accountable
Transparent
Responsive
Equitable and Inclusive
World Bank[edit]
Main article: Worldwide Governance Indicators
The World Bank is more concerned with the reform of economic and social
resource control.[9] In 1992, it underlined three aspects of society which they
feel affect the nature of a country's governance:[9]

type of political regime;

process by which authority is exercised in the management of the economic
and social resources, with a view to development; and
capacity of governments to formulate policies and have them effectively
implemented.
Effects[edit]
International humanitarian funding[edit]

Good governance defines an ideal which is difficult to achieve in full, though

it is something development supporters consider donating to causes.[10]
Major donors and international financial institutions, like the International
Monetary Fund (IMF) or World Bank, are basing their aid and loans on the
condition that the recipient undertake reforms ensuring good governance .[1]
This is mostly due to the close link between poor governance and corruption.
[8]

Democratization[edit]
Because concepts such as civil society, decentralisation, 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.[6] 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 stresses the inconclusiveness of evidence on
this relationship.[11]

Example[edit]
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 in Nigeria on
August 12, 2009:[12]

Again, to refer to President Obamas speech, what Africa needs is not more
strong men, it needs more strong democratic institutions that will stand the
test of time. (Applause.) Without good governance, no amount of oil or no
amount of aid, no amount of effort can guarantee Nigerias success. But with
good governance, nothing can stop Nigeria. Its the same message that I
have carried in all of my meetings, including my meeting this afternoon with
your president. The United States supports the seven-point agenda for reform
that was outlined by President Yar'Adua. We believe that delivering on roads
and on electricity and on education and all the other points of that agenda
will demonstrate the kind of concrete progress that the people of Nigeria are
waiting for.

Role of political parties[edit]

Researchers at the Overseas Development Institute have criticised past
studies of good governance to place too little importance on developing
political parties, their capacity and their ties to their grassroots supporters.
[13] While political parties play a key role in well-functioning democracies,
elsewhere political parties are disconnected from voters and dominated by
elites, with few incentives or capabilities to increase the representation of
other voters.[13] Political parties can play a key role in pivotal moments of a
state's development, either negatively (e.g. organising and instigating
violence) or positively (e.g. by leading dialogue in a fractured society).[13]
While differences in the electoral system play their role in defining the
number of parties and their influence once in power (proportional, first past
the post, etc.), the funding and expertise available to parties also plays an
important role not only in their existence, but their ability to connect to a
broad base of support.[13] While the United Nations Development Program
and the European Commission have been providing funding to political
parties since the 1990s, there are still calls to increase the support for
capacity development activities including the development of party
manifestos, party constitutions and campaigning skills.[13]

Scholarly approaches[edit]
[icon] This section requires expansion. (March 2013)
Nayef Al-Rodhan, in his 2009 book Sustainable History and the Dignity of
Man: A Philosophy of History and Civilisational Triumph, proposed eight
minimum criteria for ensuring good national governance.[14] Al-Rodhan's
eight minimum criteria are: 1) participation, equity, and inclusiveness, 2) rule
of law, 3) separation of powers, 4) free, independent, and responsible media,
5) government legitimacy, 6) accountability, 7) transparency, and 8) limiting
the distorting effect of money in politics. In the book, he argues that good
national governance is an important component in creating a history of
sustainability for the human race. For Al-Rodhan, the eight minimal criteria of
good governance are expressions of the fundamental values of democracy
and more liberal constitutionalism.

Criticism[edit]
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."[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.[5] 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.[5]