components of good governance what do we do to make governance good? slides for a discussion with...

COMPONENTS OF GOOD GOVERNANCE

What do we do to make Governance good?

Slides for a discussion with Denis Osborne, 2007

Ethics and Good Governance

2

THE CONTEXT: ECONOMIC CHANGE Changed emphasis in industrialised countries

from high volume to high value-added from manufacturing to service from centralised to dispersed from producers to consumers to users from monopoly suppliers to ‘competition’

and elsewhere from unrestrained competition

to an emphasis on complianceand corporate governance


3

CHANGED PRIORITIESIN DEVELOPING & TRANSITIONAL ECONOMIES

by Governments and Agencies

Seven stages of thinking about development:

changing concepts and language- approach with cynicism -

development as a learning process


4

PRIORITIES FOR DEVELOPMENT POVERTY RELIEF 1940s PROJECTS 1950s PROGRAMMES 1960s PLANS AND STRATEGIES 1970s POLICIES (stabilise, adjust) 1980s PUBLIC SECTOR REFORM 1980s POLITICS, GOVERNANCE 1990s ETHICS FOR ALL? 2000+

as explained in printed handout, slides 19 – 26


5

DEFINING GOVERNANCE

The manner in which power is exercised in

the management of a country’s economic

and social resources for development World Bank

The exercise of economic, political and

administrative authority to manage

a country’s affairs at all levels …

equitable, rule of law, with consensus UNDP


6

WHAT AGENDA?

a caricature of donor concerns Management of development projects,

implement economic polices - World Bank Sustainability of human development - UNDP Assessment, indicators - OECD, DFID, UNDP Democracy - USAID Conflict resolution, prevention - UN Justice quick and fair - USAID, others Corruption reduced - World Bank, EU


7

QUALITIES OF GOVERNMENT Economic liberalism

private ownership, investment, equity Political pluralism

democracy, participation, decentralisation Social development

human rights, law, judiciary, press Administrative accountability

more transparency, less corruptionaimed at economy, efficiency, effectiveness


8

MORE QUALITIES IN THE PRIVATE SECTOR SEEKING TO: deregulate to remove restrictions, but ensure compliance with agreed codes

IN ALL TO: reduce monopolies and cartels

where corrupt benefits are increased by reducing supplies; and

increase competition, ownership where profits are increased by

supplying more and better goods, services


9

QUANTITIES OF GOVERNMENTIN THE PUBLIC SECTOR SEEKING: Less Government (economic necessity)

liberate economy, sell parastatalsreduce bureaucracy, contract work out

But more (to meet social and technological needs) fight drugs, terrorism, money-launderingregulate information, protect environment

And continued Government for security, defence, health, education, employment, etc...


10

PRIORITIES OF GOVERNANCEConcern of governments, donors, ‘CSOs’, with

Better goals or ‘ends’ Development, Economic growth Democracy, participation (or ‘keeping people happy’) Non-discrimination, fairness; poverty alleviation

Choosing means or techniques Transparency and accountability; competition

Measures combining means and ends Partnerships (public-private, civil society) Devolution; decentralisation; co-operation


11

DEMOCRACY(Demand of citizens, decided in constitution) Participatory (referenda, web)

but choices slow, uninformed, media-led

Or representative? Influence of experts, ‘professional push’, lobbies, bribes

Proportional representation or ‘First past post’ Candidates chosen by parties or people, consensus when?

Rule of Law, Human Rights (what rights?) Accountability; ‘separation of powers’

on last items see printed handout, slides 27 – 30


12

PARTICIPATIONEncourage Participation Aim at involvement, partnership Identify stakeholders, involve end users Inform them; give them voice; consult

But locate ownership and responsibility,with somebody held to account Seek co-operation for mutual benefit But take care with ‘co-ordination’

where co-coordinators may seize power, and bureaucracy cause delays


13

DEVOLUTION Modern societies are centralised, with power

exercised by an educated and equipped elite BUT the people want more say

as they get more educated and informed AND managers need more support

from more specialised staff HENCE we find pressures to

devolve, decentralise, delegate, empower AND need to strengthen core values


14

COMPETITIONMonopoly: resource shortage > high price, little effort incentive to corner resources, reduce supplies, take bribes

Market: produce more and better to sell more increase outputs, productivity, efficiency to keep costs low design to meet customers’ needs to win in marketplace

But markets need sufficient market size – several suppliers, secrecy! regulation to ensure competition fair (football) and ensure honest claims, advertising co-operation (trade associations, ‘chambers’)


15

NON-DISCRIMINATION In providing the services of Government

No favours for the rich and powerful No prejudice against people on basis of

politics, race, creed In appointing and promoting staff

Have clear (transparent) criteria of merit and representation of different groups

eg on basis of gender or ethnic origin

(if so agreed by society and in law)


16

POVERTY ALLEVIATION Why fight poverty? Their needs as the poor

Physical: hunger, disease, victims of crime Intellectual: education, information Political: powerless, voiceless, no stake

Hence also our safety as ‘the rich’ Those with no hope get angry; those

with ‘nothing to lose’ threaten societyhappy to destroy what others have


17

PUBLIC SERVICE ‘RETRENCHMENT’ One country: public service pay 25% private sector Add ‘benefits’ & pension, pay nearly 50%

Must pay more to get good staff, give good service, but numbers increase: top officials build empires, MPs use Government as school-leavers’ last-resort employer

If not employed or made redundant, young may riot If tax doubled, best may go abroad True for one country, maybe more? How will we solve it?


18

THE STAKEHOLDERS SEEK: Political leaders seek public support,

political stability, international credit Public servants seek to avoid retrenchment Employees, ‘workers’, to protect sunset industries The people seek basic needs, and when educated

seek voice, participation in deciding Partners (donors!), investors, seek what? Professionals, priorities for profession Advocacy groups, human rights


19

1: POVERTY RELIEF1940s

People in need after major war triage principle as for wounded in battle?

walking wounded, let them walk badly wounded, give them help, and those beyond hope, leave to die

BUTpoor countries never dieneed for ever-increasing relief


20

2: PROJECTS

1950s

Development to help people help themselves better to teach people to fish

than to give them fish to eat

BUT uncoordinatedbenefits not sustained


21

3: PROGRAMMES

1960s development activities combined strategies, such as “basic needs” programmes, for example for

“integrated rural development” BUT

ignorance about what to dointerdependence caused delaysimposition from outside community


22

4: PLANS1970s

central planning, “DevPlans”, large scale command economies (and US corporations) import substitution, exchange controls

BUTplans failed, investments poor debts increased, andinterest and repayments escalated


23

5: POLICIES1980s

SUSTAINABLE ECONOMIC & FISCAL POLICIES Stabilisation to reduce demand, devalue,

cut spending, imports, subsidies Structural adjustment to increase supply and

efficiency, liberalise trade, privatiseBUT

high social costs, benefits slowpolicies failed, not implementedaid conditionality much resented


24

6: PUBLIC SECTOR REFORM1980s

Policies failed to deliver,so the implementation blamed, not the policies

New focus on need to improve administration Also more radical policy approaches to

cut costs and reduce roles of governments improve service to the citizens (the voters)

BUTPoor motivation of public servants Political interference (appointments)


25

7: POLITICS-GOVERNANCE1990s

Africa and Central Europe showed need to manage better, and protect rights

Emphasis on Accountability, transparency, participation Aid as partnership

BUTweak partnership with civil society corruption continued, work poorvision and values unclear


26

8: ETHICSTHE NEW PRIORITY FOR DEVELOPMENT?

Need for a National Vision and Values in GovernmentAND with shared and similar values in: the Private Sector Civil Society (including the Media!), ‘The People’AND internationally acceptable to promote trade and combat corruption, money-laundering, terrorism, etc


27

ACCOUNTABILITY in Central Government

Institution and functions Ministers

decide policies Parliament/Legislature

check on policies, and Ministers

Civil/Public Servicegive service to peopleenforce regulationsimplement policieshelp formulate policies

Accountability Parliament

People, electorate

MinistersCustomersThe Public


28

ACCOUNTABILITY in Central Government

Institution and functions The Judiciary

justice The Army

defence The Police

law and order

Accountability Parliament

(security of tenure) Minister

Government Parliament


29

ACCOUNTABILITY in Civil Society

Institution and functions Political parties

Private businessproduction, service

NGOs, CSOs(eg Trade Unions, Religious bodies)welfare, developmentspecial interests

Accountability Members, supporters

the public Shareholders

workers, customers Members

contributorssupporterspublic


30

ACCOUNTABILITY in Civil Society

Institution and functions Press and media

inform, criticisebuild consensus?

Familieswelfaresocial knowledge

Accountability Owners

the public, the courts (transparency?)

Each othersociety

components of good governance what do we do to make governance good? slides for a discussion with...

Documents

cynicism development

economic growthdemocracy

economic change

government economic

private sector seeking

governance good

public sector seeking

components of good governance