Institutional Mechanisms for Good Governance

Governance

Governance is essentially related to politics and politics is often defined as the art of governance. Governance is commonly defined as the exercise of power or authority by political leaders for the well-being of their country’s citizens or subjects.

Until the late 1980s, the concept of governance was not discussed within the development community. Today, it is a buzzword (popular word or phrase) used freely in most publications originating from government departments, donor agencies and academies. It is heavily relied upon to explain developmental outcomes. The concept of ‘good governance‘ assumed significance since 1990s with the publication of two reports by the World Bank.

In the first report entitled as Sub-Saharan Africa from Crisis to Sustainable Growth (1989), the bank emphasised upon the need for good governance. While in the second report entitled as Governance and Development (1992). the bank identified a number of aspects of good governance. These governance are political, legal and administrative in nature.

Governance includes the processes by which governments are chosen, monitored and charged. It is the system of interaction between the administration, the legislature and the judiciary. It includes the mechanisms by which citizens and groups define their interests and interact with institutions of authority and with each other. It is the ability of government to create and to implement public policy.

Definitions of Governance

The important definitions of governance are given as under

• According to the World Bank, “Governance is the traditions and institutions by which authority in a country is exercised for common good”.
• According to United Nations Development Programme (UNDP), “Governance is the exercise of political, economic and administrative authority to manage a nation’s affairs. It is the complex mechanism, process and institution through which citizens and groups articulate their interests, exercise their legal rights and obligations and mediate their differences”.
• According to Asian Development Bank (ADB) “Governance is the manner in which power is exercised in the management of a country’s social and economic resources for development. Governance means the way those with power use that power”.