GOVERNANCE: ISSUES AND CHALLENGES

Punya Prasad Neupane

2

Presentation outline Context Understanding governance Reimagining governance Government and governance Governance actors and their roles World governance indicators (WGI) Governance status in Nepal Issues and challenges

3

An exercise for identifying governance quality in Nepal

Governance Characteristics

Issues Actors involved Status

ParticipationRule of LawConsensus OrientedEquity and InclusivenessTransparencyAccountabilityResponsivenessEffectiveness and Efficiency

4

ContextNepal has everything in place except effective and efficient governance. People are bound to bear all sorts of sufferings like corruption, discrimination, lawlessness and several other unethical practices while receiving public goods and services. Hence, we are in serious 'Governance crisis'.

5

Understanding governance

World Bank (1991)the manner in which power is exercised in the management of a country's economic and social resources for development

World Bank (2006)the traditions and institutions by which authority in a country is exercised

6

Understanding…UNDP (1997)Governance is the exercise of economic, political, and administrative authority to manage a country’s affairs at all levels. It comprises the mechanisms, processes, and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences.

7

Reimagining governance

State

Citizens

Governance

system

Pillars of governance

Governance, NASC 2015

8Pa

rticip

atio

n

Rule

of L

aw

Cons

ensu

s Orie

nted

Equi

ty a

nd

Inclu

siven

ess

Tran

spar

ency

Acco

unta

bilit

y

Resp

onsiv

enes

s

Effec

tiven

ess a

nd

Efficie

ncy

Good Governance

Information and Communication Technology

9

Actors of governance and their roles

Change in governance philosophy- governance beyond government

State

MarketCivil SocietyMobilizing people’s

participation, promoting constructive engagement

Creating favourable political, legal and economic environment

Creating opportunities for people

Governance, NASC 2015

10

World Governance Indicators: 6 Dimensional Framework: World Bank

Voice and accountability Political stability and lack of violence Government effectiveness Regulatory quality Rule of law Control of corruption

(Kaufmann-Kraay-Mastruzzi Worldwide Governance Indicators- World Bank)

12

Governance status of Nepal

Source: World Bank, 2014 Worldwide Governance Indicators.

1996

2000

2003

2005

2007

2009

2011

2013

-2.50

-2.00

-1.50

-1.00

-0.50

0.00 Voice and Accountabil-ityPolitical Stability and Absence of ViolenceGovernment Ef -fectivenessRegulatory QualityRule of LawControl of Cor-ruption

13

Issues and challenges Low accountability,

responsiveness and transparency Rampant corruption Non-inclusive governance Low credibility of public

institutions Over politicization in governance

practices Low innovation in governance

system

14

Issues

15

Strengthening state-people relationship

State

Intermediary People

16

Issues Maintaining ethical

standards Using politics for

improve service delivery

Rule of law Inclusive governance Innovative

governance- use of technology

17

Reinforcing Governance Functions

Policy

Citizens

Governanc

e Syste

m

Political parities and environmentBureaucratic systems and cultureInternational contextCulture and social

values

Integrity LeadershipStrategic Thinking

18

Enhancing Governance- A Framework

Individual (Service

Provider)

Institution (Structure

and system)

Collective

(Society, WPEs, Community of

Practice)

Social Accountability

Capacity building

Empowerment, awareness, experience sharing

Revisit, restructure

Improved public service delivery

19

Thank you