According to the World Bank’s document on “Governance and Development” (1992) that governance is considered a process by which the legitimized power had been exercised for the utilization of resources of a country for development but not growth.
In 1989 the World Bank studied “Sub-Saharan Africa-from Crisis to Sustainable Growth”, referred to as governance as the need for institutional reform and a better and more efficient public sector. The main focus of the bank study was to analyze the developmental problems in sub-Saharan countries.
The bank emphasized the reformation of the public sector from the government to governance. During this period, the term governance was distinct from the government, and it was associated with civil society actors.
After the 1990s governance has become more important. During this time, public sectors have been reformed by the New Public Management’s aims e.g. economy, efficiency, and effectiveness through the principles of decentralization and de-bureaucratization.
Now It has been considered in terms of the utilization of socio-economic resources for ensuring effectiveness and efficiency in public services. The administrator has been considered as manager and the city has considered the consumer.
It has been also considered in terms of service delivery to the citizens. In other words, we can say that “governance involves decisions that define s expectations, grant power or verify performance”.
Table of Contents
What does governance mean?
Governance refers to all aspects of the way the government fulfills its job for societal and economic development. It is a process of governing by which all governmental, as well as non-governmental organizations, civil societies, and private sectors, are involved in the process of policymaking and the process of implementation of that policies.
In simple words, The processes that lead policymaking and its implementation can be called governance.
Below, I have mentioned some definitions of governance that help you to understand governance from different angles.
Definitions of Governance
Governance can be defined as “the exercise of political authority and the use of institutional resources to manage problems and the affairs of the society”.
According to the World Bank “Governance is the manner in which power is exercised in the management of a country’s economic and social resources for development.”
According to Rhodes “Governance refers to self-organizing, inter-organizational networks characterized by interdependence, resource-exchange, rules of the game, and significant autonomy from the state”.
To Hyden “Governance is the stewardship of the formal and informal political rules of the game. Governance refers to those measures that involve setting the rules for the exercise of power and settling conflict over such rules”.
From the above definitions, it can be concluded that governance is defined as the set of networks in the pursuit of common goals. These networks of governing processes can be intergovernmental or inter-organizational or can be transnational. It also can be defined in terms of the interaction between state and society.
Types of Governance
Governance depends on the type or nature of the organization’s work. Their governance is also different because of the differences in their activities. Below are some of the types of governance mentioned.
- Participatory or Democratic Governance
- Global Governance
- Good Governance
- Corporate Governance
- Environmental Governance
- E-Governance
1. Participatory or Democratic Governance
Participatory or democratic governance ensures the participation of citizens in the process of policy-making and its implementation. Participation can be through election, referendum, Landsgemeinde or local self-governance, protest, etc.
Democratic governance is not just a set of rules and institutions, it refers to the processes in which democratic institutions are functioning according to democratic processes.
The fundamental of this type of governance is to ensure the service delivery to all sectors of the societies. And it is only possible by securing the people’s participation in the process of decision-making processes in all the democratic institutions.
2. Global Governance
This is one of the most relevant types of governance. The term ‘Global Governance’ was first used by Rosenau. He argues that “Global governance is conceived to include systems of rule at all levels of the human activity-from the family to the international organization- in which the pursuit of goals through the exercise of the control has transnational repercussions”.
The idea of global governance has its roots in the fact that today the states exist with non-state actors. Today alongside states we have the presence of international institutions like the United Nations (UN), the International Monetary Fund (IMF), the World Bank, World Trade Organization (WTO). We also have powerful non-state actors like multinational corporations (MNCs), global civil society, and non-governmental organizations (NGOs).
This shows that the idea of governance in the present time and looking at it from the global perspective it’s a very complex and contested notion. Similarly, this also has implications for domestic policymaking that is governance in domestic realism also is having contestant contours.
3. Good Governance
Good governance is the ideal concept or normative concept. This concept is born when ethics and values are included in the discussion of governance. Now the question is when will we call any governance good governance?
When governance is characterized by Participation, Rule of Law, Transparency, Responsiveness, Consensus Oriented, Equity and Inclusiveness, Effectiveness, Efficiency, and Accountability then we called it good governance.
Must Read- Good Governance: Definitions, Characteristics, And Importance
4. Corporate Governance
Today corporate governance is a buzzword in the corporate boardroom across the world. Corporate Governance is a set of rules or codes of conduct for the corporate sector or corporate governance. Through corporate governance, the government can regulate corporate companies. Every company has to follow those rules or codes of conduct to start their business in a particular state or region.
Must Read- Corporate Governance: Meaning, Principles, And Importance
5. Environmental Governance
It provides explanations of ways that can be implemented in the development of international environmental regulations, the development of environmental sciences and information, and sustainable development and implementation policies in line with national policy.
It controls the management of the environment and natural resources for proper utilization of the resources and securing sustainable development.
According to the UNEP (United Nations Environment Programme), “Environmental governance is a key driver for the achievement of sustainable development.” It can be achieved by fulfilling three initiatives-
- Coherent international decision-making processes;
- Adequate capacities for agreed objectives and national environmental priorities through adequate legal and institutional measures;
- Integration of environmental sustainability in development at regional, sub-regional, and national levels.
6. E-Governance
The application of Information and Communication Technologies in the process of governance gave birth to the idea of E-Governance. E-Governance or Electronic governance is a modern initiative to make the governing process more transparent and accountable. Its goal is to use technology for the greater good of society.
This system secures service delivery to the citizens at minimal cost, effort, and time using internet services. It also ensures a strong relationship between the state and civil society and The functioning of public authorities at all levels of planning. This is also called a service-oriented concept.
e-governance services are available at Four levels.
- G2C (Government to Citizens)
- G2B (Government to Business)
- G2G (Government to Government)
- G2E (Government to Employee)
Must-Read– E-Governance: Meaning, Objectives, Features, and 4 Types
Dimensions of Governance
According to the World Bank document ‘Governance and Development (1992), there are 4 key dimensions of governance. They are-
- Public Sector Management
- Accountability
- The Legal Framework for Development
- Transparency and Information
1. Public Sector Management
This dimension has been emphasized in the capacity building of the public sectors for a sound economy and quality service delivery to the citizens.
Within this dimension, there are basically three key areas that have been focused on:
- Public expenditure management, Civil service reform, and parastatal reform for improving public investment programming and the budget process,
- Strengthening the personnel management and
- The effectiveness and efficiency of public services through the process of decentralization.
2. Accountability
This is one of the most important dimensions of governance. The World Bank very much emphasizes accountability. It has been described as ‘the heart of governance’. Generally, accountability means ‘holding public officials responsible for their action’. Political leaders have been responsible for the citizen for the implementation of sound socio-economic policies.
It has also been referred to as the balance between public policy and its implementation and proper allocation of public resources for social and economic development.
Public accountability depended on three indicators:
- The interrelationship between public services and people,
- Relationship between political leaders and supervisors of public services or private services,
- Aims and Objectives of Supervisors of public services.
Accountability has been considered in terms of satisfactory service delivery to the citizens and how much effect the people’s participation in the policymaking process of governance.
3. The Legal framework for Development
The bank has discussed the legal framework for development on the basis of the rule of law for stable economic growth. The rule of law has been considered the legal dimension of governance by the state.
The bank has highlighted two ways of understanding the rule of law:
- Instrumental and
- Substantive.
The former concentrates on the ‘formal elements necessary for a system of law to exist’ and later refers to the ‘content of the law and concepts such as justice (for example, due process), fairness (the principles of equality), and liberty (civil and political rights)’.
4. Transparency and Information
The last but not the least dimensions of governance is transparency and information according to the bank, a competitive market economy requires that economic actors have access to relevant, timely, and reliable information.
To the bank, transparency, and information have been beneficial in terms of three areas:
- Economic efficiency;
- Transparency as a means of preventing corruption; and
- The importance of information in the analysis, articulation, and acceptance of policy choices.
Conclusion
From the above discussion, on meaning, definitions, dimensions, and types of governance, it can be said that governance is the process in which policies are made and implemented. For policymaking and its proper implementation, governance needs reformation of public sector management, accountability, the legal framework for development, transparency, and information. It can be discussed in a descriptive or empirical as well as normative or prescriptive way.
When we study it in an empirical way then we find the concept of participatory governance, global governance, corporate governance, e-governance, and environmental governance. In normative ways of study, the concept of good governance arises.
References
- Kjaer, A.M. (2005). Governance. New Delhi: Atlantic Publishers.
- Mangla, S. (2015). Citizenship and Governance. New Delhi: Kaveri Books.
- Singh and Sachdeva. (2012). Public Administration: Theory and Practice, Noida: Pearson Publication.
To the authors:
I am very much thankful as your publication substantiate the instructional materials (Governance) I need in my subject in Forest Laws, Rules and Regulation under the B. S. Forestry program of the President Ramon Magsaysay State University.
Again thank you very much and MABUHAY PO KAYO!!!!!
I enjoy a governance! it’s a part of leadership.
Very useful article.
An intelligent and holistic explanation of governance for the people, governments and in particular those that assume public office and accountability for this role.
Sef
Very good write up. very educative and informative and in simple language