GOOD GOVERNANCE : CONCEPT

S AND COMPONENT S
Introduction Civil Servants Public Administration Central Government Media
New Public Management Private sector Good Governance Governance
State Government Civil society Legislature International Agencies Judiciary
Governance ’
Governance is the process whereby societies
or Governance is a method through which power is exercised in the management of a c
ountry
spolitical
, Governance is the manner in which power is exercised in the management of a econo
mic,
andsocial
resources for development. World Bank (1992) country’s social and economic resource
s for development. Asian Development Bank (1995) organizations make important decisi
ons, determine whom they involve and how they render account. Canada Institute of Go
vernance (2002) ’ Governance is the exercise of economic,
political,and
administrative authority to manage a country s affairs at all levels. It comprises the mec
hanisms, processes, and institutions through which citizens and groups articulate their in
terests, exercise their legal
rights,meet their obligations and mediate their differences. UNDP(1997)
Governance: Operation of
3 Key Actors Governance: Goes beyond the Government State: Creating a favorable po
litical, legal & economic environment State Market: Civil Society: Civil Society
Marke t Creating opportunities for people Mobilizing peoples’ participation
Stakeholders in Governance Executive Legislature Judiciary Media
Stakeholders in Governance Social Orgns. Private Sector Governance is
too important to be left to the government....
Towards Good Governance  Governance □
Value neutral,‘good’ governance to qualify gov
ernance  WB Report ‘Governance and Devel
opment’,1992 □ Further developed the concept
of Governance □ Defines Good Governance 
Synonymous to sound development managem
ent  Central to creating and sustaining an envi
ronment which fosters strong and equitable dev
elopment  Essential component of sound eco
nomic policies
Defining Good Governance  World
Bank: Good governance entails □ sou
nd public sector management (efficien
cy, effectiveness, and economy), □ acc
ountability, □ exchange and free flow o
f information (transparency) □ and a le
gal framework for development(justice,
respect for human rights and liberties)
.  DFID Good Governance is defined
focusingon □ legitimacy (government
should have the consent of the govern
ed), □ accountability (ensuring transpa
rency, being answerable for actions an
Summar y  Goal of
state – ‘Governance’  Public admin
istration □ Major constituent of state
□ Instrument to achieve state’s goals
and objectives □ Traditional concept
□ Recent prominence  Globalizatio
n □ + removal of trade barriers □ +ent
ry of MNCs □ + intensive application
of IT  Influence on Administration -
NPM □ Managerial orientation □ Man
agerial reforms : Disinvestment, corp
oratization, outsourcing,shrinking stat
COMPONENTS OF GOOD
GOVERNANCE
Components of Good
Governance : 4 Dimensional Framework - World
Bank
 Public sector management □ Public expenditur
e management (public investments, budget plann
ing,budget processes) □ Civil service reform (to m
anage less but manage better) □ Reform of public
enterprises (privatisation, strengthening managm
ent of PSEs, improving competitive conditions) Im
provement in efficiency of public institutions  Ac
countbility □ Constituted an innovation in the Ban
k’s sphere of action □ Described as being “at the
heart of governance”. □ Described as “holding pu
blic officials responsible for their actions □ Horizo
ntal (internal) and vertical (external) accountability
Concept of exit (access to other service provider
Components of Good
Governance : 4 Dimensional Framework - World
Bank
 Legal framework for development □ Important
contribution to equitable and just society and thus
to prospects for social development and poverty
alleviation □ Focus on judicial reform, legislative r
eforms, and the improvement oflegal education a
nd training Rule of law represents the legal dimen
sion of good governance by a country  Transpar
ency and information □ Economic efficiency □ Pre
vention of corruption □ Analysis, articulation and a
cceptance of governmental policy choices  Corr
uption □ Cross-cutting theme, across Transparen
cy and information,Accountability, Rule of law and
PSM □ Enhanced engagement of Good Governa
World Governance Indicators
: 6 Dimensional Framework : World Bank
 Voice &Accountability  Political Stability and L
ack ofViolence  Government Effectiveness  R
egulatory Quality  Rule of Law  Control of Corr
uption (Kaufmann-Kraay-Mastruzzi Worldwide G
overnance Indicators – World Bank )
Governance Issues Governance Components
Indicators
 Extent
of citizens participation in selection The Process
by which Governments are selected, monitored, a
nd replaced  Voice and Accountabilit y  Politic
al Stability of governments  Civil liberties , politic
alrights  Perceptions that the government in po
wer will be destabilised by possible unconstitution
al means  Perceptions of quality of public servic
e provision, quality of bureaucracy, The capacity
of the government to effectively formulate and im
plement policies  Governmen t Effectivene ss 
Regulator y Quality competence of civil servants,
independence of civil service from political press
ures, credibility of government’s commitment to p
Eight Characteristics of
Good Governance – United Nations
Accountabl e Transpare nt Consens
us oriented Responsi ve Participator
y Equitable and Inclusive Follows the
Rule of Law Effective and Efficient
Characteristics of Good Governance 
Accountability □ Key requirement of Good
Governance □ Applicable to government, ci
vil society and privatesector □ Types : Politi
cal, legal, administrative and social account
ability □ Components :Answerability, sanctio
n,redress,and system improvement  Trans
parency □ Free flow of information □ Acces
sibility of information to those affected by de
cisions taken in governance process  Res
ponsiveness □ Citizen orientation, citizenfrie
ndliness □ Timely delivery of services □ Red
ress of citizen grievances
Characteristics of Good Governance 
Effectiveness and efficiency □ Optimum us
e of resources □ Competency and performa
nce of civil servants □ Result orientation 
Rule of law □ Fair legal framework □ Imparti
al enforcement machinery □ Independent ju
diciary  Participation □ Cornerstone of Go
od Governance □ Opportunities for citizens
to participate in decision making, implement
ation and monitoring of government activitie
s □ Freedom of expression and association,
organized civil society
Characteristics of Good Governance 
Equity and inclusiveness □ All groups, parti
cularly the most vulnerable,have opportuniti
es to improve or maintain their well being □
Equal opportunities for participation in decis
ion making process  Consensus Orientati
on □ Mediation of different interests in socie
ty to reach a broad consensus on  What is
in the best interest of the whole community
 How this can be achieved
Strategies for Good Governance 
Reorienting priorities of the state thr
ough appropriate investment in huma
n needs, and provision of social safet
y nets for the poor and marginalized
 Strengthening state institutions  I
ntroducing appropriate reforms in the
functioning of Parliament and increa
sing its effectiveness  Enhancing ci
vil service capacity through appropria
te reform measures that matches per
formance and accountability  Forgin
Critique of Good Governance 
Need contextual understanding □ G
ood Governance – Neo liberal thrust
+ Globalization  Tendency to depolit
icize government □ Reduce the art of
governing to an apolitical and techni
cal exercise  Ambiguous definition
of good governance □ ‘Good’ in Goo
d Governance is subjective and is su
bject to interpretations □ Who defines
what is good ?  Over emphasis on
governance indicators and quantificat
Service Delivery Service
Standards Decentralization and Self
- Government Regulation and user-f
eedback Macro-Governance aspect
s Inclusive policy making Developm
ent program for weaker sections and
backwardAreas Technology and syst
em Gender Sensitivity Use of ICT fo
r citizen interface Redesign of Delive
ry system for efficiency Improvement
gains Financial Management Budge
tary Process Financial Management
Social Accountability  An approach
towards building accountability that relies o
n civic engagement, i.e., in which it is ordina
ry citizens and/or civil society organizations
who participate directly or indirectly in exacti
ng accountability People’s planning, Kerala
Policy/Budge t Formulation Community Sco
recards - AP, Maharashtra Citizen Report C
ards, Bangalore Performance Monitoring Ci
vic Engagemen t Policy/Budge t Analysis P
olicy/Budget Expenditure Tracking Budget A
nalysis/ Review, Gujarat, Bangalore SocialA
udits, Rajasthan People’s Estimate,AP
Grievance Redress  Grievance redress
mechanisms (GRMs) are institutions, instru
ments, methods, and processes by which a
resolution to a grievance is sought and prov
ided  Integral to good governance – indica
tes responsiveness to citizens  Grievance
redress mechanisms □ Online grievance sy
stems at state, department, municipality an
d district levels
E Governance  Transformation of
government to provide efficient, conv
enient & transparent services to the c
itizens & businesses through informa
tion & communication technologies E
asy to access Easy to access Increa
sed efficiency single point delivery of
public services to citizens single point
delivery of public services to citizens
due to connectivity Increased efficie
ncy due to connectivity Higher penetr
ation due to automation Higher penet
Conclusio n Good Governance ma
y
be a rhetoric, but good government,
responsive administration and a just l
egal system are eternal requirements
External drive to policy change to be
replaced by local commitment and o
wnership of reform Ingenuous ideas f
or improving governance, ownership
of initiative and commitment to refor
m extremely important
WHAT IS SOCIAL RESPONSIBILITY 
“The social responsibility of business enco
mpasses the economic legal, ethical and di
scretionary expectations that a society has
of organization at a given point in time “  A
ccording to Keith Davis “Social Responsibilit
y refers to types of business obligations : (a
)the socio economic obligation (b)the social
human obligation
OBJECTIVES OF SOCIAL RESPO
NSIBILITY Economic
objectives The owners The employ
ees The customers
OBJECTIVES OF SOCIAL RESPO
NSIBILITY Human
Objectives The employees The cus
tomers
OBJECTIVES OF SOCIAL RESPO
NSIBILITY Social
Objectives Micro Level (i.e., immedi
ate environmental objectives ) Macr
o level (i.e., national objectives)
TYPES OF SOCIAL RESPONSIBILI
TY
TYPES OF SOCIAL RESPONSIBILI
TY ETHICAL
This includes the behavior of the firm
that is expected by society but not c
odified by law. LEGAL A business ha
s a responsibility to operate by the la
ws of the land, since laws are meant
for the good of society.
TYPES OF SOCIAL RESPONSIBILI
TY FINANCIAL(Economical) A
business enterprise is an economic
entity therefore its primary responsibil
ity in making profit.
TYPES OF SOCIAL RESPONSIBILI
TY DISCTRETIONARY (Philanthro
pic)
The voluntary obligation that an ente
rprise assumes, it is the responsibility
of a company to safeguard the capit
al investment by avoiding speculative
activity and undertaking only healthy
business ventures which give good r
eturns on investment.
CORPORATE GOVERNANCE Ref
ers
to the set of systems, principles and
processes by which a company is go
verned. It is based on conducting bu
siness with integrity and fairness, ma
king all disclosures and decisions co
mplying with the laws of the land and
conducting business in an ethical ma
nner.
BUSINESS ETHICS The
word ‘ethics’ is derived from the Gre
ek word ‘ethos’ meaning character, id
eals, norms or morals prevailing in so
ciety. It is concerned with what is rig
ht and wrong in human behavior. Eth
ics can be viewed as an entire body
of moral values that society attaches
to the actions of human beings. Ethi
cs concerns itself with relationship be
tween business objectives, practices
and techniques and the good of soci
BENEFITS OF CORPORATE GOVE
RNANCE
Creates overall market confidence a
nd long term trust Increases share pr
ices Ensures integrity of financial rep
orts Limits liability by top manageme
nt Improves strategic thinking
LIMITATIONS OF CORPORATE GO
VERNANCE
Costs of Monitoring Easily Corruptib
le Family-Owned Companies
BUSINESS AND ENVIRONMENTAL
PROTECTION
Environment – The totality of man’s
surrounding which are in the nature o
f resources such as land, water, flora,
fauna etc. Pollution – The introducti
on of harmful substances into the en
vironment.
BUSINESS AND ENVIRONMENTAL
PROTECTION
Reduction of Health Hazard Reduci
ng Liability Cost Saving Improved P
ublic Image Other Social Benefits
ROLE OF BUSINESSES
IN ENVIRONMENTAL STEWARDS
HIP Creating, maintaining and devel
oping work culture for environmental
protection Adopting eco-friendly tech
niques Complying with laws enacted
by the government for prevention of
pollution Involvement in environment
al protection programs Assessment
of pollution control Arranging worksh
ops and training materials