WHAT IS GOVERNANCE?
The survey of DAC efforts in the democracy area reported by Gastil revealed differences among respondents in their definition of the phrase “good governance.” The British, for example, use “good government” to encompasses democratization; effective, efficient, and accountable government; and respect for human rights and law: given this approach they see no need for a separate category labeled “good governance.” Gastil noted that very few attempts have been made to develop indicators for governance, but, like democracy, it should be possible to construct a “minimalist” definition based on the efficiency of the system. Michael Coppedge also observed that less work had been done on the concept of governance than on democracy. He offered a conceptual definition of “good governance” that includes regime stability, lack of violent opposition, lack of corruption, responsiveness of government, and timely decision making. Key measurable dimensions of these concepts might be effectiveness of leadership, technical policy competence, and administrative efficiency.
The most detailed discussion of governance was provided by Mark Schacter. He noted that the World Bank has focused its efforts on the conceptualization of governance rather than on democracy. From the World Bank’s perspective, governance is regarded as being instrumental in promoting economic development, rather than democracy or human rights. With regard to operations, the work on governance consists of public-sector management, financial accounting, promoting the rule of law, and information and transparency in the budget process. Ongoing research projects include the legal status of women in Africa, the politics of adjustment, and the sequencing of economic and political reform. Examples of questions that are asked in these projects include the following: Can democracy and structural adjustment co-exist? What are the conditions for successful service organizations? How can the transition from a command to a market economy be managed? How can public expenditures be used effectively to direct resources to help the poor? How should economic and political reform measures be sequenced? The World Bank’s approach to the study of relationships between democracy and economic performance has been through the use of case materials gathered from governments that have asked the bank for assistance. The research has not included efforts to develop indicators of the concepts for policy purposes or statistical analysis.
A comprehensive and detailed discussion of governance is contained in a recent discussion paper “Managing Development: The Governance Dimension” (World Bank, 1991). They define governance as “the manner in which power is exercised in the management of a country’s economic and social resources for development” (p. i). For the World Bank, governance is a central concern arising from the effectiveness of the development efforts it supports. Good governance is needed for “sustaining an environment which fosters strong and equitable development, and is an essential complement to sound economic policies” (p. ii). The concept is construed along a continuum with changes occurring over time toward or away from good governance.
The three key dimensions of good governance are accountability, the legal framework for development, and information and transparency. Accountability means holding public officials responsible for their actions, including both economic and financial management. The rule of law consists of five elements: (1) a set of rules that are known in advance; (2)
