Governance / Good Governance [1]

Though they are not new concepts, the terms “governance” and “good governance” have recently come to occupy an important place in development literature, and in the concerns and considerations of major international donors. Indeed, more and more importance is attached to the notion of good governance, thus rendering bad governance as one of the worst possible features of society and a major cause of its problems and dysfunctions.

But what exactly is meant by these two terms?

According to the UN paper, What is Good Governance?, the term “governance” means “the process of decision-making and the process by which decisions are implemented (or not implemented)” [2]. In other words, dealing with governance involves the analysis of the processes and systems by which a specific society, or organisation, operates. Though government is one of the main actors of governance, it is far from being the only one; depending on the specific entity under study, other actors can include “influential land lords, associations of peasant farmers, cooperatives, NGOs, research institutes, religious leaders, finance institutions, political parties, the military, [… as well as the] media, lobbyists, international donors, multi-national corporations, etc.” [3]. Moreover, governance applies to several contexts: corporate governance, international governance, and national, regional or local governance.

Good governance is a form of governance that embodies eight specific characteristics, and can be seen as an ideal of governance. Good governance embodies processes that are “participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and [which follow] the rule of law” [4]. See Table 1 for further information. Moreover, good governance “assures that corruption is minimised, the views of minorities are taken into account, and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of society” [5]. Clearly, there is a close relation between good governance and respect for human rights.

Table 1. The eight characteristics of good governance as defined by the United Nations
Source: United Nations paper, What is Good Governance?, www.unescap.org/huset/gg/governance.htm (24 December 2006).
CHARACTERISTICDEFINITION
AccountabilityAccountability is a key requirement of good governance. Not only government institutions but also the private sector and civil society organisations must be accountable to the public and to their institutional stakeholders. Who is accountable to whom varies, depending on whether decisions or actions taken are internal or external to an organisation or institution. In general, an organisation or an institution is accountable to those who will be affected by its decisions or actions. Accountability cannot be enforced without transparency and the rule of law.
Consensus-orientedThere are several actors and as many viewpoints in a given society. Good governance requires mediation of the different interests in society to reach a broad consensus on what is in the best interest of the whole community and how this can be achieved. It also requires a broad and long-term perspective on what is needed for sustainable human development and how to achieve such development. This can only result from an understanding of the historical, cultural and social contexts of a given society or community.
Effectiveness and efficiencyGood governance means that processes and institutions produce results that meet the needs of society while making the best use of the resources at their disposal. The concept of efficiency in the context of good governance also covers the sustainable use of natural resources and the protection of the environment.
Equity and inclusivenessA 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 that all groups, but particularly the most vulnerable, have opportunities to improve or maintain their well being.
ParticipationParticipation by both men and women is a cornerstone of good governance. Participation could be either direct or through legitimate intermediate institutions or representatives. 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 organised, which requires freedom of association and expression and an organised civil society.
ResponsivenessGood governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe.
Rule of lawGood governance requires fair legal frameworks that are enforced impartially. It also requires full protection of human rights, particularly those of minorities. Impartial enforcement of laws requires an independent judiciary and an impartial and incorruptible police force.
TransparencyTransparency means that decisions made and their enforcement are achieved in a manner that follows rules and regulations. It also means that information is freely available and directly accessible to those who will be affected by such decisions and their enforcement. It also means that enough information is provided and that it is provided in easily understandable forms and media.

1. This definition is essentially based on the UN paper What is Good Governance? www.unescap.org/huset/gg/governance.htm (24 December 2006). Please refer to this article for more detailed information.

2. As defined by the UN in What is Good Governance? www.unescap.org/huset/gg/governance.htm.

3. Ibid.

4. Ibid.

5. Ibid.