Transcript GoodGovernance - http://good

COMPONENTS OF
GOOD GOVERNANCE
What do we do to make
Governance good?
Slides for a discussion with Denis Osborne, 2007
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 compliance
and corporate governance
Ethics and Good Governance
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CHANGED PRIORITIES
IN 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
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Ethics and Good Governance
PRIORITIES FOR DEVELOPMENT
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POVERTY RELIEF
PROJECTS
PROGRAMMES
PLANS AND STRATEGIES
POLICIES (stabilise, adjust)
PUBLIC SECTOR REFORM
POLITICS, GOVERNANCE
ETHICS FOR ALL?
1940s
1950s
1960s
1970s
1980s
1980s
1990s
2000+
as explained in printed handout, slides 19 – 26
Ethics and Good Governance
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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
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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
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QUALITIES OF GOVERNMENT
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Economic liberalism
private ownership, investment, equity
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Political pluralism
democracy, participation, decentralisation
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Social development
human rights, law, judiciary, press
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Administrative accountability
more transparency, less corruption
aimed at economy, efficiency, effectiveness
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Ethics and Good Governance
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
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increase competition, ownership
 where profits are increased by
supplying more and better goods, services
Ethics and Good Governance
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QUANTITIES OF GOVERNMENT
IN THE PUBLIC SECTOR SEEKING:
 Less Government (economic necessity)
liberate economy, sell parastatals
reduce bureaucracy, contract work out
 But more (to meet social and technological needs)
fight drugs, terrorism, money-laundering
regulate information, protect environment
 And continued Government for
security, defence, health, education, employment, etc...
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Ethics and Good Governance
PRIORITIES OF GOVERNANCE
Concern of governments, donors, ‘CSOs’, with
Better goals or ‘ends’
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Development, Economic growth
Democracy, participation (or ‘keeping people happy’)
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Non-discrimination, fairness; poverty alleviation
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Choosing means or techniques
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Transparency and accountability; competition
Measures combining means and ends
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Partnerships (public-private, civil society)
Devolution; decentralisation; co-operation
Ethics and Good Governance
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DEMOCRACY
(Demand of citizens, decided in constitution)
 Participatory (referenda, web)
 but choices slow, uninformed, media-led
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Or representative?
 Influence of experts, ‘professional push’, lobbies, bribes
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Proportional representation or ‘First past post’
 Candidates chosen by parties or people, consensus when?
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Rule of Law, Human Rights (what rights?)
Accountability; ‘separation of powers’
on last items see printed handout, slides 27 – 30
Ethics and Good Governance
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PARTICIPATION
Encourage 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
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Ethics and Good Governance
DEVOLUTION
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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
13
Ethics and Good Governance
COMPETITION
Monopoly: resource shortage > high price, little effort
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incentive to corner resources, reduce supplies, take bribes
Market: produce more and better to sell more
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increase outputs, productivity, efficiency to keep costs low
design to meet customers’ needs to win in marketplace
But markets need sufficient
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market size – several suppliers, secrecy!
regulation to ensure competition fair (football)
and ensure honest claims, advertising
co-operation (trade associations, ‘chambers’)
Ethics and Good Governance
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NON-DISCRIMINATION
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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)
Ethics and Good Governance
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POVERTY ALLEVIATION
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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 society
happy to destroy what others have
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Ethics and Good Governance
PUBLIC SERVICE ‘RETRENCHMENT’
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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
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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?
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Ethics and Good Governance
THE STAKEHOLDERS SEEK:
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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
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Ethics and Good Governance
1: POVERTY RELIEF
1940s
 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
BUT
poor countries never die
need for ever-increasing relief
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Ethics and Good Governance
2: PROJECTS
1950s
Development
 to help people help themselves
 better to teach people to fish
than to give them fish to eat
BUT
uncoordinated
benefits not sustained
20
Ethics and Good Governance
3: PROGRAMMES
1960s
 development activities combined
 strategies, such as “basic needs”
 programmes, for example for
“integrated rural development”
BUT
ignorance about what to do
interdependence caused delays
imposition from outside community
21
Ethics and Good Governance
4: PLANS
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1970s
central planning, “DevPlans”, large scale
command economies (and US corporations)
import substitution, exchange controls
BUT
plans failed, investments poor
debts increased, and
interest and repayments escalated
Ethics and Good Governance
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5: POLICIES
1980s
SUSTAINABLE ECONOMIC & FISCAL POLICIES
 Stabilisation to reduce demand, devalue,
cut spending, imports, subsidies
 Structural adjustment to increase supply and
efficiency, liberalise trade, privatise
BUT
high social costs, benefits slow
policies failed, not implemented
aid conditionality much resented
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Ethics and Good Governance
6: PUBLIC SECTOR REFORM
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1980s
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)
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BUT
Poor motivation of public servants
Political interference (appointments)
Ethics and Good Governance
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7: POLITICS-GOVERNANCE
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1990s
Africa and Central Europe showed need to
manage better, and protect rights
Emphasis on
 Accountability, transparency, participation
 Aid as partnership
BUT
weak partnership with civil society
corruption continued, work poor
vision and values unclear
Ethics and Good Governance
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8: ETHICS
THE NEW PRIORITY FOR DEVELOPMENT?
Need for a National Vision and Values in Government
AND 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
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Ethics and Good Governance
ACCOUNTABILITY
in Central Government
Institution and functions
 Ministers
decide policies
 Parliament/Legislature
check on policies, and
Ministers
 Civil/Public Service
give service to people
enforce regulations
implement policies
help formulate policies
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Accountability
Parliament
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People, electorate
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Ministers
Customers
The Public
Ethics and Good Governance
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ACCOUNTABILITY
in Central Government
Institution and functions
 The Judiciary
justice
 The Army
defence
 The Police
law and order
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Accountability
Parliament
(security of tenure)
Minister
Government
Parliament
28
Ethics and Good Governance
ACCOUNTABILITY
in Civil Society
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Institution and functions
Political parties
Private business
production, service
NGOs, CSOs
(eg Trade Unions,
Religious bodies)
welfare, development
special interests
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Accountability
Members, supporters
the public
Shareholders
workers, customers
Members
contributors
supporters
public
29
Ethics and Good Governance
ACCOUNTABILITY
in Civil Society
Institution and functions
 Press and media
inform, criticise
build consensus?
 Families
welfare
social knowledge
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Accountability
Owners
the public, the courts
(transparency?)
Each other
society
30
Ethics and Good Governance