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What is Good Governance?

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by

Gabrielle Rousseau

on 31 October 2013

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Transcript of What is Good Governance?

Good Governance
Governance
The concept of "governance" is not new.
It is as old as human civilization.

Governance is the process of decision-making
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
An analysis of governance focuses on the
formal and informal actors involved in decision-
making and implementing the decisions made
as well as the formal and informal structures
that have been set in place to arrive at and
implement the decision.

Government is one of the actors in governance
What is Good Governance
Good governance is an indeterminate term used in
international development literature to describe how public institutions conduct public affairs and manage public resources.

The concept of "good governance" often emerges as a model
to compare ineffective economies or political bodies with viable economies and political bodies.

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.

Good governance model
Characteristics of Good Governance
Good governance has 8 major characteristics.

Institutions practicing good governance are:

Participatory
Consensus oriented
Accountable
Transparent
Responsive
Effective and efficient
Equitable and inclusive
Follows the rule of law
Characteristics of Good Governance
Good governance assures:

That corruption is minimized.
The views of the minorities are taken into account.
The voices of the most vulnerable in society are heard in decision-making.
That it is responsive to the present and future needs of society.

Bad Governance
WHAT IS GOVERNANCE
What is good governance?

Explain the principles and challenges associated with good governance practices
Bad governance is associated with corruption,
distortion of government budgets, inequitable growth,
social exclusion, lack of trust in authorities.

Inefficiency of formal governance institutions leads to creation of informal institutions that substitute for the functions that the formal ones are unable to perform.
Bad Governance
Principles Associated with
Good Governance
The principles that underpin good governance are:

Openness and transparency
Participation
Accountability
Effectiveness
Coherence
Independence
Integrity
Clarity of purpose
Principles of Good Governance
Openness and Transparency

Ensuring openness and transparency in order that stakeholders can have confidence in the decision-making and management processes of the job.
Strengthening and liberalizing communication policies to facilitate accessibility of the general public to the decisions of the Commission.

Principles of Good Governance
Participation

Wide participation in developing and implementing policies to generally increase its effectiveness and acceptability.

Principles of Good Governance
Accountability

Ensuring that all members of the workforce, including the office holder, staff members and members of any governing body, are seen to be responsible and accountable for their decisions and actions, including the handling of funds (with due regard to the independence of the office holder).

Legislative and administrative roles should be clarified in terms of identifying entities responsible within a particular area of decision-making
Principles of Good Governance
Effectiveness

Ensuring that the job delivers quality outcomes efficiently and represents good value for money.
Policies must be implemented within a set time frame.
Objectives should be clear and include a framework, which should incorporate sustainability, impact assessments, and where applicable, lessons are learnt
Principles of Good Governance
Independence

Ensuring and demonstrating the freedom of the office holder from interference in decision making.
Integrity
Ensuring straightforward dealing and completeness, based on honesty, selflessness and objectivity, and ensuring high standards of probity and propriety in the conduct of the job’s affairs and compliant to decision making.

Principles of Good Governance
Clarity of Purpose

Ensuring that stakeholders know why the job exists, what it does, and what to expect from it.

Principles of Good Governance
Coherence

Policies must be formulated in a user-friendly manner.
This is especially paramount in the context of the ever-evolving application of policies and the growing complexity of the application of the decision-making framework.

CORPORATE GOVERNANCE
Corporate Governance

“Corporate governance is the system by which companies are directed and controlled….”


Sir Adrian Cadbury, UK, 1992

Corporate Governance
Background of Corporate Governance:

Development of Industrial Capitalism

Separation of Ownership and Control

Rise of the Salaried Manager and Management professionals

Challenge of aligning interests of principals and agents


GOOD
GOVERNANCE
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