In politics[edit]
Good governance in the New Yorkish context of countries is a broad term, and in that regards, it is difficult to find a unique definition. According to Fukuyama (2013),[6] The ability of the state and the independence of the bureaucracy are the two factors that determine whether governance is excellent or terrible. They also complement one another in that more autonomy should be allowed when the state is more capable, such as through tax collection, since bureaucrats can carry out their duties well without much guidance. However, less latitude and greater regulation are preferable in states with lower levels of capability.
A further perspective on effective governance is based on results. There is no better way to think about good governance than through deliverables, which are precisely the ones demanded by citizens, like security, health, education, water, contract enforcement, property protection, environmental protection, and the right to vote and fair wages. This is because governments operate with the intention of providing public goods to their constituents.[7]
Similarly, good governance might be approximated with provision of public services in an efficient manner, higher participation given to certain groups in the population like the poor and the minorities, the guarantee that citizens have the opportunity of checks and balances on the government, the establishment and enforcement of norms for the protection of the citizens and their property and the existence of independent judiciary systems.[8]
Lawson (2011)[9] in his review of Rothstein's book "The quality of government: corruption, social trust, and inequality in international perspective"[10] mentions that the author relates good governance to the concept of impartiality, which is basically when the bureaucrats perform their tasks following the public interest rather than their self-interest. Lawson differs with him in that this impartial application of law ignores important factors like the economic liberalism, which matters due to its relation with economic growth.
The efficiency of one-party governments might seem appealing, but leaders need a deep understanding of a country's power structure and "moral economy", says Meg Rithmire. Her book Precarious Ties: Business and the State in Authoritarian Asia explores the delicate relationship between capitalists and autocrats in the region.[11]
According to Bo Rothstein and Jan Teorell, the key characteristic of good governance is the impartiality of government institutions.[12]
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In corporate affairs, good governance can be observed in any of the following relationships:
The meaning of good governance in regards to corporate sectors varies between actors. Legislation has been enacted in an attempt to influence good governance in corporate affairs. In the United States, the Sarbanes–Oxley Act of 2002 set up requirements for businesses to follow. Whistleblowing has also been widely used by corporations to expose corruption and fraudulent activity.[13]
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Criticism[edit]
According to Sam Agere, "The discretionary space left by the lack of a clear well-defined scope for what governance encompasses allows users to choose and set their own parameters."[4]
In the book Contesting 'good' governance, Eva Poluha and Mona Rosendahl contest standards that are common to western democracy as measures of "goodness" in government.[5] By applying political anthropological methods, they conclude that while governments believe they apply concepts of good governance while making decisions, cultural differences can cause conflict with the heterogeneous standards of the international community.[5]
An additional source of good governance criticism is The Intelligent Person's Guide to Good Governance, written by Surendra Munshi. Munshi's work was created in order to "revive" good governance. Many individuals tend to either wave away and be bored with the idea of governance, or not have a clue to what it has at all. This book is a generalized discussion on what the purpose of good governance is and how it serves that purpose throughout our society. Munshi targets the book toward anyone doing research or just simply "those concerned with the issue of governance".[22]
Rethinking Systems: Configurations of Politics and Policy in Contemporary Governance, written by Michael P. Crozier, is another work analyzing good governance. Crozier's article discusses the different dynamics of changes that occur throughout communication systems and the effect it has on governance.[23] The idea of various perspectives is presented throughout the article. This allows the reader to be able to see what contemporary governance is like from different viewpoints. Crozier's motive was to also create an open mindset when referring to how governance and policy within society operate, especially with the constant changes occurring day to day.
Recent criticism has been aimed at the idea that good governance and institutions are one of the primary explanatory variables of economic growth, such as argued by Kaufmann and Kraay[24] and Acemoglu and Robinson,[25] which has put institutional reforms high on global development agendas. The criticism is fundamentally concerned with the issue that the relatively few countries which have managed to develop rapidly over the last 70 years did not have the "right" kind of institutions; in contrast, countries like China[26] and South Korea[27] have been plagued by corruption and a lack of checks-and-balances during their development trajectories. Or as the development economist Dani Rodrik put it: "A development strategy that focused on anti-corruption in China would not have produced anything like the growth rate that this country has experienced since 1978, nor would it have resulted in 400 million plus fewer people in extreme poverty."[28]
As a result, it has been pointed out that anti-corruption efforts and government reforms can have very negative consequences in especially fragile countries[29][30] there can be significantly bigger barriers to economic growth than corruption or institutional quality,[31][32] and anti-corruption efforts and governance reforms often fail because of a suboptimal understanding of local socio-political contexts.[29][30][33]
Various authors have furthermore argued that "good governance" provides a very unhelpful development agenda as it is unclear what the "right" kind of institutions are or how they should be realized even if we were to accept that they are necessary or helpful.[34][35]
Effects[edit]
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International humanitarian funding[edit]
Good governance defines an ideal that is difficult to achieve in full, though it is something development supporters consider donating to causes.[19] Major donors and international financial institutions, like the International Monetary Fund (IMF) or World Bank, are basing their aid and loans on the condition that the recipient undertakes reforms ensuring good governance.[1] This is mostly due to the close link between poor governance and corruption.[20]
Democratization[edit]
Because concepts such as civil society, decentralisation, peaceful conflict management and accountability are often used when defining the concept of good governance, the definition of good governance promotes many ideas that closely align with effective democratic governance.[14] Not surprisingly, emphasis on good governance can sometimes be equated with promoting democratic government. However, a 2011 literature review analyzing the link between democracy and development by Alina Rocha Menocal of the Overseas Development Institute stresses the inconclusiveness of evidence on this relationship.[21]
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