UNIT 2 GOVERNANCE: CONCEPTUAL

DIMENSIONS*
Structure
2.0 Objectives
2.1 Introduction
2.2 Governance: Conceptual Dimensions
2.3 Governance: Contextual Uses
2.4 Forms of Governance
2.5 Concept of Governance: An Appraisal
2.6 Conclusion
2.7 Glossary
2.8 References
2.9 Answers to Check Your Progress Exercises

2.0 OBJECTIVES
After reading this Unit, you should be able to:
• Explain the concept of governance;
• Examine its contextual uses;
• Discuss the forms of governance; and
• Make an appraisal of the concept of governance.

2.1 INTRODUCTION
Governance has become a prominent area of discussion and a part of public discourse
since the late twentieth century. Governance now not only occupies centre stage in the
development discourse but is also considered as the crucial element to be incorporated
in the development strategy.
Public administration as a major constituent of State has always been an instrument to
accomplish welfare goals and objectives. Over the past three decades, the impact of
globalisation, rise of market forces, increase in expectations of citizens, have widened
the process of governing and has also ushered in a major transformation in the role of
the State. The Welfare State has been transformed to a Corporatist State. From a
doer, it has become a facilitator and a regulator. Instead of government being the sole
agency to discharge the tasks of governance, need for participative and consultative
modes of governing has become strong.This along with the gradual blurring of
distinction between public and private sectors has given rise to the concept of governance
and over time gained a wider connotation. In this Unit, we shall attempt to examine the
concept of governance, its contextual uses, and forms. An appraisal of the concept of
governance shall also be made.

24 * Contributed by Dr. Sweta Mishra, Senior Assistant Professor, Gargi College, University of Delhi
 Governance:
2.2 GOVERNANCE: CONCEPTUAL DIMENSIONS Conceptual
Dimensions
The concept of governance has been in use at least since the fourteenth century. During
that period it implied ‘seat of government’. It started with a range of meanings, from the
act or manner of governing its office or power, which made it synonymous with
government, to being virtuous or wise in one’s general behaviour. The term has been
derived from the Greek word ‘Kybernan’, which means to steer and to pilot or be at
the helm of things.
Governance, in simple terms, means “the process of decision-making and the process
by which decisions are implemented (or not implemented)”. The Concise Oxford
Dictionary defines it as an “act or manner of governing” and “the office or function of
governing”. Governance has also become a term used to describe a particular set of
changes. It signifies a set of elusive but potentially deeply significant shifts in the way in
which government seeks to govern (Pierre and Peters, 2000).
Governance refers to a process of exercise of authority to govern people or regulate
public affairs. In simplest terms, governance relates to the effective management of the
affairs of a country at all levels, guaranteeing its territorial integrity, and securing the
safety and overall welfare of the people. It means management of social and economic
resources for the development of the country. Governance refers to all processes of
governing whether done by the government, market or civil society that involves
interaction and decision making amongst all the stakeholders.
Harlan Cleveland used the word ‘governance’ for the first time in the mid-1970s as an
alternative to public administration. He was of the opinion that what people want is
‘less government and more governance’. He used this in the sense of blurring of distinction
between public and private organisations and multi-organisational systems (Medury,
2010). He identified governance with a cluster of concepts. It implied not only hierarchical
forms of organisation, but also networks within and outside organisation bringing in
consensual and consultative process.
The term governance in recent times has assumed significance since 1989 with its
advocacy by the World Bank which reinvented it in a different context as a new approach
to development especially in case of developing countries. It meant the exercise of
political power to manage nations’ affairs (World Bank, 1989).
Although it is too simple to define governance, many interrelated and interdependent
factors come into interplay, complicating the process of defining the term. Nevertheless,
if one were to simplify the definition of governance, it pertains to the coordination of all
public and private efforts by the government in the process of development by utilising
all the available resources within the country. In other words, governance includes formal
as well as informal organisations in the process of development.
In conceptualisation, divergent views either represent governance as a narrowly defined
phenomenon in the form of activities of only the executive branch of the State i.e., the
government or as one where the State comprising the legislature, executive and the
judiciary are the parts that constitute the whole without the positive, synergistic relation
with the private sector and civil society. Governance introduces the private sector, the
civil society including the local government system as participants in the process of
governing and their direct involvement in areas hitherto kept exclusively in the public
domain.
Governance can be interpreted as the undertaking of activities, management of resources,
organisation of citizens, communities, local government bodies, business organisations 25
Government and and the branches of the State (legislature, executive and judiciary) through social, political,
Governance : Concepts administrative and economic structures that meet the daily needs of the people and
ensure sustainable development. The government may through the conventional
constituents of State namely, parliament, judiciary and executive, encompass this diverse
area of governance at some particular point of time. Changes often take place
subsequently, that make a combination of these constituents of the State and other
actors, as collaborative partners in governance with clear cut and sometimes overlapping
jurisdictions.
Earlier the term governance was used in a broader sense of government, which is not
appropriate in present times. Governance means more than maintaining law and order.
The concept of governance is more encompassing and wider than that of the government
which conventionally refers to the formal institutional structure and the location of
authoritative decision making in the modern State. In other words, we can say that it is
a participative system in which those who are called upon to govern on behalf of the
people are motivated with a will to giving their best, serving and doing good to the
people, solving their problems and making their lives more livable, satisfying and
enjoyable.
The concept of governance received added importance in the late eighties and early
nineties in the hands of multilateral and bilateral aid-giving agencies. These agencies
used it as a pre-condition for providing aid especially to the developing countries for
carrying out economic and political reforms. In this context, in 1989, the World Bank
gave the lead followed by OECD, UNDP, and the UNESCO.
World Bank
The first official usage of the contemporary nation of governance was put forth in 1989
by the World Bank. It was the first international organisation to use the term governance
and defined it in the following words:
“… the manner in which power is exercised in the management of a country’s economic
and social resources by government. Governance, in general, has three distinct aspects
(a) the form of a political regime (parliamentary or presidential, military or civilian, and
authoritarian or democratic); (b) the processes by which authority is exercised in the
management of a country’s economic and social resources; and (c) the capacity of
governments to design, formulate, and implement policies, and, in general, to discharge
governmental functions. The terms usually describe conditions in a country as a whole”.
Organisation for Economic Cooperation and Development
The concept of governance denotes “the use of political authority and exercise of control
in a society in relation to the management of its resources for social and economic
development”. The Organisation for Economic Cooperation and Development (OECD)
lays down the key components of governance as follows:
a) Legitimacy of government;
b) Accountability of political and official elements of government;
c) Competence of governments to make policy and deliver services; and
d) Respect for human rights and the rule of law.
United Nations Development Programme (UNDP)
The United Nations Development Programme (1997) has viewed governance as “the
26
exercise of economic, political and administrative authority to manage a nation’s affairs Governance:
at all levels. It is the complex mechanisms, processes, and institutions through which Conceptual
Dimensions
citizens and groups articulate their interests, exercise their legal rights and obligations,
and mediate their differences”. UNDP has laid down the following characteristics of
good governance viz., participation, rule of law, transparency, responsiveness, consensus
orientation, equity, effectiveness and efficiency, accountability and strategic vision.
United Nations Educational, Scientific and Cultural Organisation (UNESCO)
UNESCO (1997) defines governance as … “a process whereby citizens’ needs and
interests are articulated for the positive social and economic development of the entire
society and in the light of a perceived common good. Governance means more than
government: it refers to a political process that encompasses the whole society and
contributes to the making of citizens, active contributors to the social contract that
binds them together. Their sense of political efficacy is one of the indicators of democratic
governance”.

2.3 GOVERNANCE: CONTEXTUAL USES

In the preceding sections, we have acquainted you with the concept of governance and
its several interpretations. The concept of governance is used in several contexts. Rhodes
(1997) has highlighted the following:
Governance as the Minimal State
In this sense, governance redefines the extent and form of public intervention, the use of
markets and quasi-markets to deliver ‘public’ services. In U.K. the size of government
was reduced due to privatisation and reduction in the size of civil service. However,
public expenditure remained roughly constant as a proportion of Gross Domestic Product
(GDP); public employment fell only slightly in local government and the National Health
Service; and regulation replaced ownership as the preferred form of public intervention,
with the government creating ten major regulatory bodies.
Governance as Corporate Governance
This relates to governing of public and private enterprises. In this context, governance
refers to “the system by which organisations are directed and controlled” (Cadbury
Report, 1992). Thus, the role of governance is not only concerned with running the
business of the company, per se, but also with giving overall directions to the enterprise,
with overseeing and controlling the executive actions of management and ensuring
adequate accountability and regulatory framework.
Governance as New Public Management (NPM)
In its third use, governance is related to the New Public Management which aims at
making public administration market-based, committed to the three prime goals of
Efficiency, Economy and Effectiveness (3 E’s). NPM has emerged as a major
manifestation of Competition State approach. This new paradigm, which gained wider
usage, with varied labels – reinventing, re-engineering, quality management and
performance management, focuses basically on changes in the structure and processes
of government (Medury, 2010). New Public Management, initially, had two meanings.
In its first meaning it means managerialism, i.e., introducing private sector management
methods to the public sector. In its second sense, it refers to new institutional economics,
i.e., introducing market competition into public service provision.
New Public Management is relevant to the discussion of governance because steering 27
Government and is central to the analysis of public management and it is a synonym for governance.
Governance : Concepts Osborne and Gaebler, (1992) for example, distinguish between ‘policy decisions
(steering) and service delivery (rowing)’. They argue that bureaucracy is not capable of
delivering services. Hence, they propose entrepreneurial government based on certain
principles, viz., competition between service providers, empowering citizens, focusing
on outcomes, decentralisation of authority, catalysing all sectors, putting energies into
earning money, missions and goals, etc.
New Public Management and entrepreneurial government share a concern with
competition, markets, customers, and outcomes. Governance calls for more steering,
providing impetus to other forces, rather than rowing. The emphasis has thus been
placed on ‘enabling’ rather than ‘providing’.
Governance as ‘Good Governance’
This use of governance became popular after the World Bank (1992) popularised the
phrase ‘good governance’. For the World Bank, governance is ‘the exercise of political
power to manage a nation’s affairs’. The bank came to realise that good governance is
central to creating and sustaining an environment, which fosters strong and equitable
development, and it is an essential complement to sound economic policies.
Good governance is an attempt to widen the scope of public administration by going
beyond formal government. In other words, it is a broad reform strategy to make
government more open, responsive, accountable and democratic; regulate the private
sector and strengthen the institutions of civil society. It is the qualitative dimension of
governance. It is a combination of the efficiency concerns of public management and
the accountability concerns of governance. It underlines the basic features of good
governance as (Medury, op.cit.):
i) Voice and accountability which includes civil liberties and political stability;
ii) Effectiveness of the government, which includes the quality of policy making and
public service delivery;
iii) The quality of the regulatory framework;
iv) The rule of law which includes protection of property rights;
v) Independence of judiciary; and
vi) Curbs on corruption.
The good governance agenda advocates freedom of information, a strong legal system
and efficient administration to help the underprivileged sections’ claim to equality; but
these have been most successful when backed up by strong political mobilisation through
social movements or political parties with a clear-cut mission. Good governance means
bringing about goodness in all the three sectors: government, civil society and corporate
world including transnational corporations. Good governance is a tryst with trust, a
commitment of the people, for the people, a social contract for the greatest good, the
collective conscience of the community (Mishra, 2003).
The basic features of good governance as conceptualised by policy makers, researchers
and international agencies can be summarised in the word “SMART”, each letter of
which is a prerequisite of good governance. SMART stands for simple, moral,
accountable, responsive and transparent. In other words, it indicates the qualitative
dimension of governance rather than enhancing the quality of governance.
28
Governance as a Socio-cybernetic System Governance:
Conceptual
Governance, according to Kooiman (1993), is the pattern or structure that emerges in Dimensions
a socio-political system as a ‘common’ result or outcome of the interacting intervention
efforts of all involved actors. This pattern cannot be reduced to one actor or group of
actors in particular.
In other words, policy outcomes are not the product of actions by central government.
The government may pass a law but subsequently it interacts with local government,
health authorities, the voluntary sector, the private sector and, in turn, they interact with
one another.
The socio-cybernetic approach views governance as the result of interactive social-
political forms of governing. The approach highlights the limits to governing by a central
actor and claims there is no longer a single sovereign authority. Rather, there is a
multiplicity of actors specific to each policy area; interdependence among these social-
political-administrative actors; shared goals; blurred boundaries between public, private
and voluntary sectors; and multiplying and new forms of action, intervention and control
(Rhodes, op.cit).
Governance as Self-organising Networks
This use sees governance as a broader term than government, with services provided
by a combination of government, the private sector and the voluntary agencies. For
example, the British government creates agencies, bypasses local government, uses
special-purpose bodies to deliver services, and encourages public-private partnerships;
so, ‘networks’ become increasingly prominent among British governing structures.
This model is driven by networks and collaborative government rather than hierarchies.
It lays stress on horizontal linkages among the three actors i.e., the State, market and
civil society. Networks are a widespread form of social coordination and managing
inter-organisational links and are just as important for public as well as private sector
management.
From the above discussion, it becomes clear that governance has too many meanings
to be useful. As such, it becomes difficult to provide a single definition of governance.
According to Rhodes (op.cit.), it incorporates most notably the minimal State, a socio-
cybernetic system and self-organising networks. On the basis of above uses, he
summarises the characteristics of governance as:
a) Interdependence between organisations. Governance is broader than government,
covering non-state actors; changing the boundaries of the State meant the boundaries
between public, private and voluntary sectors became shifting and opaque.
b) Continuing interactions between network members, caused by the need to exchange
resources and negotiate shared purposes.
c) Game-like interactions, rooted in trust and regulated by rules of the game negotiated
and agreed by network participants.
d) A significant degree of autonomy from the State. Networks are not accountable to
the State; they are self-organising. Although the State does not occupy a sovereign
position, it can indirectly and imperfectly steer networks.

29
Government and Check Your Progress 1
Governance : Concepts
Note: i) Use the space given below for your answers.
ii) Check your answers with those given at the end of the Unit.
1) Explain the concept of governance.
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2) Discuss the concept of New Public Management.
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3) List the characteristics of good governance.
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2.4 FORMS OF GOVERNANCE

In the preceding sections, we have examined the different interpretations and conceptual
uses of governance. Similarly, there are various forms of governance more important
among which are political, economic and social.
Political
Due to the global political and economic shifts, the nation states’ capacity to govern has
been limited. There is a general feeling that there is a ‘hollowing out’ of the State. This
has resulted in shifting of the power outwards to international financial markets, to
global companies to be able to move capital and other resources from one site of
investment to another, and to supra-national entities such as the World Bank or European
Union. Power has also percolated downwards to the sub-national level of regions and
cities. As a result of these changes, a series of reforms have taken place resulting in
reduction in the size of the machinery of government and its fragmentation.
New strategies based on informal influence, enabling and regulation have grown in
importance. However, this does not necessarily mean a decline in the role of the State.
30
The forms of control through hierarchical, institutional channels continue alongside new Governance:
forms of governance. Conceptual
Dimensions
Economic
A central theme in the governance literature is the idea that markets, hierarchies and
networks form alternative strategies of coordination. Different modes of governance,
including those based on markets, hierarchies and network, are likely to coexist, with
different institutional combinations in specific nations, but with networks becoming
increasingly significant (Newman, 2001).
The neo-liberal political/economic regime of the 1980s and 1990s partly dismantled
the conception of the State as a direct service provider. The introduction of market
mechanisms has led to a more fragmented and dispersed pattern of service delivery
and regulation that required new forms of coordination. As a result of privatisation,
contracting out, quasi-markets, the removal of functions from local authorities, the
separation between the policy and delivery functions in the civil service with the setting
up of executive agencies, governments had to develop new forms of control. These
types of control included framework documents, contracts, targets, performance
indicators, service standards, contracts and customer charters (ibid.).
Even at the local level similar changes took place. Network based patterns of interaction
had become increasingly important, leading to the conclusion that local government had
been transformed into a system of local governance involving a plurality of organisations
across the public, private and voluntary sectors.
Economic governance requires removal of market distortions, setting appropriate service
standards, ensuring fair competition amongst the players and a level playing field,
protecting the interests of all concerned key stakeholders.
Social
Another form of analysis of governance is responding to complexity, diversity and
dynamic changes in society. Kooiman and Van Vliet (1993), link governance to the
need for an interactive form of governing. The purpose of governance in our societies
can be described as not only about coping with the problems but also dealing with the
opportunities of complex, diverse and fragmented societies. Complexity, dynamics and
diversity has led to a shrinking external autonomy of the Nation State combined with
the shrinking internal dominance vis-à-vis social subsystems. Governing in modern society
is predominantly a process of coordination and influencing social, political and
administrative interactions, meaning that new forms of interactive government are
necessary. Governing in an interactive perspective is directed at the balancing of social
interests and creating the possibilities and limits of social actors and systems to organise
themselves.
In the present scenario, the government is not acting alone. Rather it is increasingly
engaging in co-regulation, co-steering, co-production, cooperative management, public/
private partnerships and other forms of governing that cross the boundaries between
government and society and between public and private sectors (ibid.). The tasks of
steering, managing, controlling or guiding are carried out through a wide a range of
agencies in the public, private and voluntary sectors, acting in conjunction or combination
with each other. It is no longer the domain of the government. Governance in this context
stands for developing, strengthening and sustaining collaborative and participative
processes, bringing about networking and coordination and building human capacities.
31
Government and
Governance : Concepts 2.5 CONCEPT OF GOVERNANCE: AN APPRAISAL
It should be clear by now that the term ‘governance’, has, over the last two decades,
occupied a prominent place in the discipline of public administration. As we have
discussed in this Unit, the form of governance is not homogeneous and it has several
elements, be it civil society, market forces, third-party government, network management
and so on. To recapitulate, the validity of the governance concept has been questioned
on the ground of its usefulness. George Frederickson (2001) has questioned the utility
of the concept of governance. According to him, the utility of the concept could diminish
over time. He also feared that the capacity of the core State executive to steer could
diminish too, as governance is often centered on non-state institutions. In such a situation,
conditions of steering get reversed and the State gets steered by its governance partners.
Rather, in a hollow State, it is the partners who start dictating the governance.
According to Frederickson (op.cit.) two important implications arise from the critique
of governance. One is that governance approach to public administration focuses on
change and reform rather than functioning of institutions including the State. The second
implication of the critique is that governance theorists look for an all pervasive pattern
of organisational and administrative behaviour, a ‘general theory’ that provides an
explanation for the past and a means to predict the future.
Frederickson suggests a fundamental distinction between public administration as the
internal day to day management of an organisation and governance as management of
extended State. It includes management of non-governmental, institutional and other
organisations in so far as their policies or actions affect the citizens in the same way as
State agencies. This leads to a three-fold theory of governance in public administration.
First, is inter- jurisdictional governance. This refers to policy area, specific, formalised
or voluntary patterns of inter-organisational or inter-jurisdictional cooperation. Second,
is the idea of third party governance that extends the functions of the State by contract,
to third parties. Third, is the area of public non-governmental governance. This accounts
for those activities of non- governmental organisations that bear on the interests of
citizens in the same way as governmental agencies (www.rhu/ac.uk.mgt/news and events/
seminars). But the concept of governance despite its deficiencies is still the most useful
proposition in understanding State-market and State-society synergy. The activity of
governance has assumed a new complexion with involvement of several stakeholders
in the exercise of power for ‘public good’ It is the institutions and citizens responsible
for managing the governance system that need to play a key role in coping with the
challenges of governance.
Check Your Progress 2
Note: i) Use the space given below for your answers.
ii) Check your answers with those given at the end of the Unit.
1) Explain political form of governance.
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 2) Make an appraisal of concept of governance. Governance:
Conceptual
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2.6 CONCLUSION
Governance basically focuses on the process of governing, involving interactions between
various formal and informal institutions as well as influencing the policies and decisions
that concern public lives. The success of governance depends on the reinvention of the
government, re-invigoration of non-government sectors, with a social motive. There is
a need to have political will, normative concerns and organisational flexibility. Besides,
it is imperative to pay attention to the mechanisms and modalities followed by governments
to determine public policies and equally important, to critically examine whether the
policies are being efficiently and honestly implemented by the government agencies and
organisations responsible for performing the assigned tasks. It also needs to be seen
whether, and to what extent, the governments have established meaningful linkages
with various elements of civil society, which can support the concern for good governance.
Governance needs to be transformed to make it the key instrument towards effective
implementation of public policies. This requires a multi-pronged strategy to strengthen
the capacities of all the actors involved in the governance process. Governance needs
to be given a wider connotation, so as to bring within its fold, not just good government,
but also other formal and informal institutions, public-private interface, legal and regulatory
reforms, decentralisation of economic functions; and empowerment of communities.
The State, the private sector and the NGOs, especially the community-based
organisations should cooperate and coordinate with each other to make good governance
possible.
Governance now not only occupies centre stage in the development discourse but is
also considered as the crucial element to be incorporated in a development strategy. It
is a policy making device that underlines transparency, accountability, responsibility,
integrity and legitimacy of the institutions as also the policy makers. It signifies a change
in the meaning of government, referring to a new process of governing; or a changed
condition or ordered rule; or the new method by which society is governed. It
incorporates the minimal State, a socio-cybernetic system, self-organising networks,
corporate governance and good governance. It basically focuses on the process of
governing, involving interactions between various formal and informal institutions as
well as influencing the policies and decisions that concern public lives. It now acts as an
interface between the State, market and the civil society.

2.7 GLOSSARY
Accountability : It means answerability as well as proper enforcement for violating
certain laid down norms. It involves making politicians, administrators, governmental,
non-governmental and private sector organisations accountable for their activities.
Corporate Governance : It is the system by which business corporations are directed
and controlled. The corporate governance structure specifies the distribution of rights 33
Government and and responsibilities among different participants in the corporation, such as the board
Governance : Concepts managers, shareholders and other stakeholders, and spells out the rules and procedures
for making decisions on corporate affairs.
Hollowing out of the State : The phrase summarises many of the changes, which
have taken, and are taking, place in British government. It refers to: (i) privatisation and
limiting the scope and forms of public intervention; (ii) the giving away of functions by
central and local government departments to alternative delivery systems (such as
agencies); (iii) the devolving of functions by British government to European Union
Institutions; and (iv) limiting the discretion of public servants through application of new
public management principles, with emphasis on managerial accountability, and clearer
political control through a sharper distinction between politics and administration.
New-Institutional Economics : It is an approach to the study of economic phenomena
that focuses on institutions other than the market- on norms, conventions, and patterns
of social interaction, to examine as to which institutional arrangement fosters growth,
development and efficiency and which hinder these.
Responsiveness : It means that the institutions and the governance process should be
responsive to the needs of all those who are likely to be affected by their decisions. It
refers to the capacity of the government to respond to changes and accordingly alter its
processes and practices.
Rule of Law : Governance does not mean the arbitrary use of authority. It means
governance supplemented by a fair legal system and only then it will be effective. This
should be supported by appropriate law enforcement machinery and an independent
judiciary that can instill confidence in the people.
Transparency : It refers to all those activities of the government aimed at disseminating
information pertaining to the activities of the citizens without any inhibition. It is based
on the premise of the free flow of information and its accessibility to those affected by
the decisions, which are taken in the governance process. The information provided
has to be understandable and of relevance to those concerned.

2.8 REFERENCES
Bhattacharya, M. (2011). New Horizons of Public Administration. New Delhi, India:
Jawahar Publishers and Distributors.
Cadbury Report. (1992). The Report of the Committee on the Financial Aspects
of Corporate Governance. London, UK: Gee & Co.
Chakrabarty, B. & Bhattacharya, M (Eds.). (2008). The Governance Discourse: A
Reader. New Delhi, India: Oxford University Press.
Chakrabarty, B & Chand, P (2017). Public Administration from Government to
Governance. Hyderabad, India: Orient BlackSwan.
Frederickson, G. (2001). Whatever happened to Public Administration? Governance,
Governance Everywhere. Retrieved from www.rhul.ac.uk.mgt/newsandevents/seminars.
Kooiman, J. & Van Vliet, M. (1993). Governance and Public Management. In K.A.
Eliassen & J. Kooiman (Eds.), Managing Public Organizations: Lessons from
Contemporary European Experience. London, UK: Sage.
Medury, U. (2016). Concept of New Public Management. In Alka Dhameja & Sweta
Mishra (Eds.), Public Administration Approaches and Applications. New Delhi,
34 India: Pearson.
Medury, U. (2010). Public Administration in the Globalisation Era. The New Public Governance:
Mangement Perspective. New Delhi, India: Orient BlackSwan. Conceptual
Dimensions
Mishra, A.D. (2003). Good Governance: A Conceptual Analysis. In Alka Dhameja
(Ed), Contemporary Debates in Public Administration. New Delhi, India: Prentice-
Hall of India.
Osborne, D. & Gaebler, T. (Eds.) (1992). Reinventing Government: How the
Entrepreneurial Spirit is Transforming the Public Sector. Addison, UK: Wesley
Reading.
Pierre, J. & Peters, B.J. (1991). Governance, Politics and the State. Basingstoke,
UK: Macmillan.
Rhodes, R.A.W. (1997). Understanding Governance Policy Networks,
Governance, Reflexivity and Accountability. Buckingham, UK: Open University
Press.
World Bank. (1989). Sub-Saharan Africa: From Crisis to Sustainable Growth – A
Long-term Perspective Study. Washington D.C., USA.

2.9 ANSWERS TO CHECK YOUR PROGRESS

EXERCISES
Check Your Progress 1
1) Your answer should include the following points:
• Governance in simple terms implies process of exercise of authority to govern
people or regulate public affairs.
• It is broad in nature and encompasses State, government, private sector,
local government bodies and citizens.
• It refers to all processes of governing whether by government, market or civil
society that involves interaction and decision making amongst all stakeholders.
2) Your answer should include the following points:
• New Public Management is the manifestation of Competition State approach.
• It aims at making public administration market-based, by focusing on three
goals of efficiency, economy and effectiveness.
• It emphasises on introducing private sector management methods in public
sector, market competition, decentralisation of authority, focusing on
outcomes.
3) Your answer should include the following points:
• Rule of Law.
• Freedom of information.
• Strong legal system.
• Accountability.
• Responsiveness.
• Transparency.
35
Government and Check Your Progress 2
Governance : Concepts
1) Your answer should include the following points:
• Hollowing out of the State.
• Shifting of power outwards to financial market, global companies.
• Percolation of power downwards to the sub-national level of regions and
cities.
• Changing role of State.
2) Your answer should include the following points:
• Governance approach focuses on change and reforms rather than functioning
of institutions.
• Governance theorists attempt to provide a pervasive pattern of organisational
and administrative behaviour.
• It gives a ‘general theory’ that provides an explanation for the past and a
means to predict future.

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