PAD603 Official Handouts

Governance, Democracy and Society

Lesson 1

“Governance is defined as the exercise of authority or power in order to manage a country’s economic, political and administrative affairs.” (UNDP, World Bank, OECD Development Assistance Committee (DAC))

“Governance is defined as power relationships, formal and informal processes of formulating policies and allocating resources, processes of decision-making and mechanisms for holding governments accountable.” (Global Monitoring Report, 2009)

“Governance refers to the formation and stewardship to the formal and informal rules that regulate the public realm, the arena in which state as well economic and societal actors interact to make decisions.” (Goran Hyden, Julius Court & Kenneth Mease, 2005)

Key Actors of Governance

According to Hyden, Court & Mease; Civil Society Political Society

Bureaucracy Economic Society Judicial System

State

State is the means of rule over a defined or sovereign territory. State is comprised of different institutions like executive, bureaucracy, judiciary and other. According to Plato, State is the association of individuals and considers individuals as an organs of state. Society is a broad term. It is a collectivity of people living together and working for mutual benefits and interests. According to Jean-Jacques Rousseau, the group of people is agreed to a set of rules for the society and he terms it ‘social contract’.

Society

According to John Rawl, society is governed by a shared comprehensive, religious, philosophical, or moral doctrine. Society should have agreed upon set of rules or codes of conduct for proper and effective functionality.

Citizen

Citizen is an inhabitant of a particular area, town or country. Citizen is a national or legally recognized person of a state. Citizen enjoys the rights and privileges granted by the state.

Democracy

“Government of the people, by the people, for the people.” (Abraham Lincoln) Democracy is a form of government where a constitution assures; - basic personal and political rights

• fair and free elections

-independent judicial system or court of law

Lesson 2

Components of Governance

Governance is an old concept and it is as old as human civilization. World Bank has highlighted the concept of ‘Governance’ in 1989. It includes the process of decision making and how these decisions are implemented. According to World Bank in its report named as, ‘Governance and Development’ (1992); “Governance is defined as the manner in which power is exercised in the management of a country’s economic and social resources for development.” Different features or characteristics of Governance;

• Form of Political Regime
• Process to exercise the authority
• Capacity to discharge functions Following are the components or elements of Governance identified by World Bank;

Public Sector Management

Transparency and Information

Public Sector Management (PSM)

PSM is most important component.

PSM is related to;

• Capacity of government to make and implement public policy
• Effectiveness of Public programs
• Strength of public institutions

PSM explains the relationship of public enterprises with government and also the association of different tiers of government with one another.

PSM includes;

• Civil Services Reforms
• Financial Management
• State Enterprises

Civil Services Reforms aim to;

Enable environment for private sector

Ensure efficient service delivery

Manage human resources efficiently (Skillful bureaucracy)

Major Public Financial Management (FM) areas are budgeting, public investment, accounting and auditing.

Financial Management (FM) requires integrated activities for managing the financial resources effectively.

Experts are required in both executive and legislature for FM.

State Enterprises are owned by state.

State Enterprises should be efficient and effective in terms of service delivery.

Performance indicators should be clearly defined for measuring the performance of the enterprises for effective monitoring and evaluation. Accountability means holding individuals and organizations responsible for performance measured objectively.

Public Accountability refers to the collection of approaches, mechanisms and practices used by government to ensure their activities and outputs meet the intended goals and standards.

Following are the different types of accountability;

Democratic Accountability

Professional Accountability

Legal Accountability

Social Accountability

Democratic Accountability is a;

Mix of administrative and political accountability.

Government (ministries, bureaucracy and its constituent parts) is accountable to political leadership (elected or otherwise).

It is macro level accountability.

Democratic Accountability includes different instruments for implementation like;

• Legislative reviews of ministries. - Periodic audit reports on public expenditures.
• Practice of questioning ministers in parliament.

Democratic Accountability includes different instruments for implementation like;

• Legislative reviews of ministries.
• Periodic audit reports on public expenditures.
• Practice of questioning ministers in parliament.

Professional Accountability is required where technical expertise are practiced.

It is micro level accountability.

Professional norms are used as guide for performing of the tasks.

Accountability framework is devised on the basis of professional norms.

Legal Accountability includes Judicial System and formulated laws.

Public-bureaucracy interaction is basis of emergence of this accountability.

Evolution of this accountability is associated with public rights to seek information from government.

Legal Accountability explains the rights of general public to sue individual civil servants and public agencies in law courts and power of courts to make them liable financially for violations of public interests.

It is more confined to mature democracies and developed countries.

Social Accountability is defined as “the ability of the citizens, civil society and the private sector to scrutinize public institutions and governments and to hold them to account.” (DFID)

It revolves around the participation of citizens and civil society organizations in public decision-making process .

Social Accountability is defined as the idea that lays the foundation for good governance.