pdate on 10 December2015China Railway Construction Corporation said its unit, China Railway 20th Bureau Group Co, and Zahir Khan and Brothers Engineers and Constructors havesecured a $1.46 billion contract to build the 1,152km section of Karachi-Lahore motorway. TheEconomic Times.Update on 27July2015Prime MinisterNawaz Sharif said the Peshawar-Karachi motorway should be completed by 2017, energy projects under CPEC tobefast-trackedandGwadar International Airport tobe completed in the shortest possible time.Update on 10 July2015Pakistan becomes full-timemember of Shanghai Cooperation Organisation (SCO).Update on 28 May 2015Western alignment of CPEC from Khunjrab to Gwadar to be completed firston priority basis. Prime Minister Nawaz Sharif gains support of all political parties on CPEC.The route isvia Hasan Abdal, Mianwali, D.I. Khan, Zhob and all the way to Gwadar.Update on 22 April2015Chinese President Xi Jinpingconcluded his Pakistanvisit and signed agreements worth an unprecedented US$46 billion.VIDEO: CPEC by China TVVideo Player

Update on 17 April2015A Special Security Division (SSD) is being set up for the China-Pakistan Economic Corridor, consisting of nine battalions of the army and six battalions of the civilian forces. $250 million sanctioned for army force to guard Chinese personnel working on CPEC $60 million annual budget.See also:Economic Corridor gets 4-layer security as Gwadar to be made weapon-freeUpdate on 11 March 2015Prime Minister Nawaz Sharif inaugurated the first phase of the Karachi-Lahore (M-9) Motorway, which will cost Rs 36 billion. M-9will facilitate people commuting between Karachi and major cities including Sukkur, Badin, Ghotki, Rohri, Dadu, Pannu Aqil, Ubaro, Sadiqabad, Rahim Yar Khan, Zahir Pir, Jalalpur Peerwala, Abdul Hakim, Mamu Kanjan and Nankana Sahib.

Industrial parks and special economic zones are part of the China-Pakistan Economic Corridor (CPEC) memoranda of understanding recently agreed between the leaders of the two countries.The key pre-requisite for the establishment of these zones are resolution of the energy crisis and building of a competitive infrastructure in Pakistan.

China-Pakistan Economic Corridor is a 15-year plan and will be completed in fourphases:2018 Early Harvest2020 Short Term2025 Medium Term2030 Long Term

Energy and infrastructureThe first phase of the economic corridor is focused on $45.6 billion worth of energy and infrastructure projects. Chinas state-owned banks will finance Chinese companies to fund, build and operate $45.6 billion worth of energy and infrastructure projects in Pakistan over the next six years, according to Reuters.Major Chinese companies investing in Pakistans energy sector will include Chinas Three Gorges Corp which built the worlds biggest hydro power project, and China Power International Development Ltd.Under the agreement signed by Chinese and Pakistani leaders at a Beijing summit recently, $15.5 billion worth of coal, wind, solar and hydro energy projects will come online by 2017 and add 10,400 megawatts of energy to the national grid.An additional 6,120 megawatts will be added to the national grid at a cost of $18.2 billion by 2021.The transport and communication infrastructureroads, railways, cable, and oil and gas pipelineswill stretch 2,700 kilometers from Gwadar on the Arabian Sea to the Khunjerab Pass at the China-Pakistan border in the Karakorams.Starting this year, the Chinese companies will invest an average of over $7 billion a year until 2021, a figure exceeding the previous record of $5.5 billion foreign direct investment in 2007 in Pakistan.

Special economic zonesBeyond the initial phase, there are plans to establish special economic zones in the Corridor where Chinese companies will locate factories.Extensive manufacturing collaboration between the two neighbours will include a wide range of products from cheap toys and textiles to consumer electronics and supersonic fighter planes.The basic idea of an industrial corridor is to develop a sound industrial base, served by competitive infrastructure as a prerequisite for attracting investments into export oriented industries and manufacturing.Such industries have helped a succession of countries like Indonesia, Japan, Hong Kong, Malaysia, South Korea, Taiwan, China and now even Vietnam rise from low-cost manufacturing base to more advanced, high-end exports.As a countrys labour gets too expensive to be used to produce low-value products, some poorer country takes over and starts the climb to prosperity.Once completed, the China-Pakistan Economic Corridorwith a sound industrial base and competitive infrastructure combined with low labour costs is expected to draw growing FDI from manufacturers in many other countries looking for a low-cost location to build products for exports to rich OECD nations.

WHAT IS GOOD GOVERNANCE?Good governance is aboutthe processes for making and implementing decisions. Its not about making correct decisions, but about the best possible process formaking those decisions.Good decision-making processes, and therefore good governance, share several characteristics. All have a positive effect on various aspects of local government including consultation policies and practices, meeting procedures, service quality protocols, councillor and officer conduct, role clarification and good working relationships.WHAT ARE THE MAIN CHARACTERISTICS OF GOOD GOVERNANCE?Good governance is accountableAccountability is afundamental requirement of good governance. Local government has an obligation toreport, explain and be answerable for the consequencesof decisions it has madeon behalf of the community it represents.Good governance is transparentPeople should beable to follow and understand the decision-making process. This means that theywill be able to clearly see how and why a decision was made what information,advice and consultation council considered, and which legislative requirements(when relevant) council followed.Good governance follows the rule of lawThis means thatdecisions are consistent with relevant legislation or common law and are withinthe powers of council. In the case of Victorian local government, relevant legislation includes theLocal Government Act 1989and other legislation such as thePublic Health and Wellbeing Act 2008, andtheEqualOpportunityAct 2010.Good governance is responsiveLocal governmentshould always try to serve the needs of the entire community while balancingcompeting interests in a timely, appropriate and responsivemanner.Good governance is equitable andinclusiveA communityswellbeing results from all of its members feeling their interests have beenconsidered by council in the decision-making process. This means that all groups, particularly the most vulnerable, should have opportunities to participatein the process.Good governance is effective andefficientLocal governmentshould implement decisions and follow processes that make the best use of theavailable people, resources and time to ensure the bestpossible results fortheir community.Good governanceis participatoryAnyone affected byor interested in a decision should have the opportunity to participate in theprocess for making that decision. This can happen in several ways communitymembers may be provided with information, asked for their opinion, given theopportunity to make recommendations or, in some cases, be part of the actual decision-making process.It is important to remember that under theLocal Government Act 1989the council is required to either makedecisions or delegate thedecision-making power to officers or Special Committees. For more information seeHow decisions are made.

ParticipationAll men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests. Such broad participation is built on freedom of association and speech, as well as capacities to participate constructively. Rule of lawLegal frameworks should be fair and enforced impartially, particularly the laws on human rights. TransparencyTransparency is built on the free flow of information. Processes, institutions and information are directly accessible to those concerned with them, and enough information is provided to understand and monitor them. ResponsivenessInstitutions and processes try to serve all stakeholders. Consensus orientationGood governance mediates differing interests to reach a broad consensus on what is in the best interests of the group and,. where possible, on policies and procedures. EquityAll men and women have opportunities to improve or maintain their well-being. Effectiveness and efficiencyProcesses and institutions produce results that meet needs while making the best use of resources. AccountabilityDecision-makers in government, the private sector and civil society organisations are accountable to the public, as well as to institutional stakeholders. This accountability differs depending on the organisations and whether the decision is internal or external to an organisation. Strategic visionLeaders and the public have a broad and long-term perspective on good governance and human development, along with a sense of what is needed for such development. There is also an understanding of the historical, cultural and social complexities in which that perspective is grounded.Eight Elements of Good GovernanceGood governance has 8 major characteristics. It is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and follows the rule of law. Good governance is responsive to the present and future needs of the organization, exercises prudence in policy-setting and decision-making, and that the best interests of all stakeholders are taken into account.

1. Rule of LawGood governance requires fair legal frameworks that are enforced by an impartial regulatory body, for the full protection of stakeholders.

2. TransparencyTransparency means that information should be provided in easily understandable forms and media; that it should be freely available and directly accessible to those who will be affected by governance policies and practices, as well as the outcomes resulting therefrom; and that any decisions taken and their enforcement are in compliance with established rules and regulations.

3. ResponsivenessGood governance requires that organizations and their processes are designed to serve the best interests of stakeholders within a reasonable timeframe.

4. Consensus OrientedGood governance requires consultation to understand the different interests of stakeholders in order to reach a broad consensus of what is in the best interest of the entire stakeholder group and how this can be achieved in a sustainable and prudent manner.

5. Equity and InclusivenessThe organization that provides the opportunity for its stakeholders to maintain, enhance, or generally improve their well-being provides the most compelling message regarding its reason for existence and value to society.

6. Effectiveness and EfficiencyGood governance means that the processes implemented by the organization to produce favorable results meet the needs of its stakeholders, while making the best use of resources human, technological, financial, natural and environmental at its disposal.

7. AccountabilityAccountability is a key tenet of good governance. Who is accountable for what should be documented in policy statements. In general, an organization is accountable to those who will be affected by its decisions or actions as well as the applicable rules of law.

8. ParticipationParticipation by both men and women, either directly or through legitimate representatives, is a key cornerstone of good governance. Participation needs to be informed and organized, including freedom of expression and assiduous concern for the best interests of the organization and society in general.