What is Governance?

One might conclude that governance is the process – by which authority is conferred on rulers, by which they make
the rules, and by which those rules are enforced and modified. Thus, understanding governance requires an
identification of both the rulers and the rules, as well as the various processes by which they are selected, defined,
and linked together and with the society generally.

Governance
“The traditions and institutions by which authority in a country is exercised” – Kaufman et al

The way “ … power is exercised through a country’s economic, political, and social institutions.” – the
World Bank’s PRSP Handbook.

“The exercise of economic, political, and administrative authority to manage a country’s affairs at all
levels. It comprises mechanisms, processes, and institutions through which citizens and groups articulate
their interests, exercise their legal rights, meet their obligations, and mediate their differences.” – UNDP.

Governance has been defined to refer to structures and processes that are designed to ensure
accountability, transparency, responsiveness, rule of law, stability, equity and inclusiveness,
empowerment, and broad-based participation. Governance also represents the norms, values and rules
of the game through which public affairs are managed in a manner that is transparent, participatory,
inclusive and responsive. Governance therefore can be subtle and may not be easily observable. In a
broad sense, governance is about the culture and institutional environment in which citizens and
stakeholders interact among themselves and participate in public affairs.
 Summary: Administration, Management, Governance

1. Development Administration/Traditional Public Administration

 Under this era, main focus was on economic development and indicators.
 All development is responsibility of state, state/government was doing business
also, making banks, running companies.
 State system was only run through bureaucracy
 Development and all kind of service delivery like education, health etc was
responsibility of the government or public sector.
 Modernization and Industrialization was focused
 Bring new machinery
  New Dams will be developed
 Profit making is not purpose of government
 Classical Theories of Management were used to manage organizations and
people
 Through this way, some countries did well, some had good economic indicators,
but majority had issues of poverty and lack of education etc. The basic issues
were still not resolved. The traditional public administration and economics
practices were not giving desired results of success. Even in less developed
countries, only certain elite groups got benefit and majority did not.
 In British India and then Pakistan also after independence, this mechanism was
used and same practices were followed.
 This led to change in ideology and resulted in development management time
period.

2. Development Management/New Public Management

 This era started in 1980s.

 Capitalism was on maximum rise.
 Concept of using business like or private sector like management to ensure quick
decision making and efficiency of public sector was introduced.
 They said that, new departments, new organizations will be made that will do
public service delivery.
 It was suggested that role of government should be decreased.
 During this time, privatization and autonomy was encouraged.
 In Pakistan, many banks were privatized, hospitals were given autonomy. Many
new power plants were established by private sector.
 Many private universities and schools were established.
 Many companies in Punjab like Saaf Pani, Waste Management etc are example
of NPM.
 During this era, private sector was given much power and business. Many service
delivery responsibility was given to private sector.
  Result of this was that efficiency increased, but cost of services increased, only
people with money had access to quality services and majority population was
deprived of basic necessities. Development was still not achieved.

3. Development Governance/New Public Governance/Good Governance

 In the current/final era, which started in 1990s but major shift towards it was seen
after 2000s.
 Its focus was third world countries to help them achieve development. It provides
several guidelines for governments.
 Came as a result of failure of New Public Management or Development
Management. NPM era failed, people still suffered from poverty and lack of
services like clean water, road connectivity, health and education.
 Difference between rich and poor was increasing continuously
 Now, it was suggested that civil society, NGOs, and private sector, all will join
hands with government for service delivery because governments alone cannot
do everything. Basic focus now for development is partnership.
 Government does not have unlimited funds and human resource and machinery,
so they need others sectors also.
 Government and citizens should come closer.
 Government should facilitate and shouldn’t give free hand to every private
sector.
 PEF and Care are great examples in education sector.
 You may see filtration plants installed by NGOs in different areas, this is also an
example of new public governance. Government only gave space, and the NGO
installed the plant and common man got benefit of clean drinking water.