Good Governance

There are various definitions of the term good governance. These definitions are based on normative assumptions about how decisions should be made within organizations and the functioning of formal and informal structures for implementing such decisions. The United Nations' Commission on Human Rights identifies transparency, responsibility, accountability, participation, and responsiveness as key attributes of good governance. By linking good governance specifically to human rights and sustainable human development, the UN explicitly recognizes that governance issues are global in nature and consequently require a more nuanced and integrated approach. The Canadian International Development Agency defines good governance as the exercise of power by an organization (or government) in an effective, equitable, honest, transparent, and accountable way. This definition is consonant with a shift among member countries of the Organisation for Economic Co-operation and Development to respond to increasing pressure ushered in by fiscal crises, a globally coordinated economy, and dissatisfied citizens. Some of the trends that flow from this changing governance context include downsizing the public service, undertaking regulatory reforms, measuring performance, benchmarking progress, and linking more explicitly actions and outcomes. This approach to governance focuses on how organizations are directed, controlled, and shown to be acting responsibly.

Good governance is increasingly seen as essential for ensuring national prosperity by increasing the accountability, reliability, and predictability of decision making in governments, corporations, and non-governmental organizations. Furthermore, this concept is being used in the development and management literature because “bad” governance is often identified as a root cause of social inequality, development failures, and corporate scandals.

The UN Development Program (1997) articulates eight principles of good governance. First, good governance involves equality of participation in decision making. All people, irrespective of sex, class, or race should be heard and allowed to participate in deliberations that affect them directly or indirectly. In [Page 360]democratic societies, citizens can participate in various ways, ranging from voting to involvement in acts of civil disobedience. Unfettered participation is key to good governance since it counterbalances dominant actors in society with checks and balances that expand the discursive space in which societal debates can unfold. In many instances, participation must be informed and organized through civil society actors who can often leverage resources more successfully. Good governance implies that organizations encourage participation from those who may both benefit or be harmed by any decisions taken. Additionally, good governance involves sacrificing some decision-making authority by empowering other actors to seek and collectively achieve ends that maximize the public good. Lastly, participation also means that individuals have the rights of freedom of association and expression, and to participate in organized civil society without fear of retribution or the stigma of being labeled unfairly as a “special interest” group.

Second, organizations must be responsive to the needs of all stakeholders in a reasonable timeframe. Good governance is about building trust and ensuring that all stakeholders are treated fairly. To achieve these goals, organizations must have the technical and managerial competence to respond in a timely manner. On one level, this means that organizations must hire, train, and retain employees to achieve optimal response time and high quality outcomes. On a more general level, organizations must ensure that they have the capacity, and in some cases the autonomy, to implement changes to structure and management systems to maximize efficiency.

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