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Indian Polity & Governance

Topic

Good Governance

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Meaning of Governance

Governance is a Latin word that means steering. In the context

of public affairs, steering means taking society in a particular
direction by harnessing its resources- material and human.
Governance is generally understood as the process of decisionmaking and the process by which decisions are implemented.
Public institutions conduct public affairs, manage public resources,
and ensure civil rights - Good governance does it transparently
and with due regard for the rule of law.

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Ingredients of the Good Governance

Participation

Universal adult participation is important. Constitutional rights like

freedom of association and expression, local self-government and
RTI are examples.

Rule of law

Impersonal implementation of laws; independent judiciary; and

professional police force.

Transparency

Decisions taken and enforced on the basis of rules; rules are in public
domain; people can- verify if rules are being followed or not; not
only that, if rules are fair or not too. Due process norms ensure the
same.

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Responsiveness

It means that administration is responsive to peoples demands

expressed in any forum- parliament, civil society etc within a
reasonable timeframe.

Consensus-driven

Governance is characterized by balancing of various interests in

society for development. These needs may be mutually conflicting
landed and landless; workers and factory owners; polluters and the
victims of pollution. Consensus based governance all viewpoints
are considered and addressed. It leads to efficient allocation of
resources and guarantees sustainable human-development.

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Equity and Inclusiveness

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Long term interests of society are best served only when all
sections develop. Inclusiveness is the key to social development.
Governance should ensure that fruits of growth reach all- rural,
urban, women, men, all regions, rich and poor etc.

Effectiveness and Efficiency

Effectiveness of the government relates to how far government can

connect. With people delivery of services, access to people,
responsiveness to their needs and demands etc. Efficiency means
value for the given resources. Outcome budget is an example of the
government concern for efficiency - outlays are necessary but far
from sufficient for good governance.

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Accountability

All public authorities- government, corporate and civil society- are

expected to be accountable for their conduct. Accountability is
based on statute. It extends to the clients and other stake holders
primarily but where necessary, for the whole society.
For example a corporate is accountable to its stakeholders. But in
matters of environment, the entire society can demand
answerability. RTI citizens charters, stock exchange-listing by a
company etc. help in accountability.

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Good Governance and India

The democratic government that the elaborate Constitution

establishes, incorporates norms of good governance- in the
Preambular values, in Fundamental Rights, other Constitutional
rights and various statutes like Representation of People Act 1951
etc. Constitution sets up a welfare state whose responsibilities
require good governance so that the target groups benefit fully
and social divides are bridged. Millions of poor and illiterate people
need to be served and hundreds of billions of rupees are involved.
Good governance has been at the forefront of governance in India
as can be seen from the Balwant Rai Mehta Committee
recommendations in 1958.

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Administrative Reforms Commission under Morarji Desai in 196669; LK Jha Committee on Economic Administrative Reforms in
1982; Arjun Sen Gupta Committee to Review Policy for Public
Enterprises in 1984; P.C. Hota committee.
Report on Civil Service Reforms (2004); Second Administrative
Reforms Commission under Veerappa Moily (2005) and so on.

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Corporate Governance

Corporate governance refers to a system by which organizations

are directed and controlled. It is the process by which company
objectives are established, achieved and monitored. Corporate
governance is concerned with the relationships and
responsibilities between the management and stakeholderscustomers, shareholders, employees, suppliers, customers, banks
and other leaders regulators, the environment and the
community at large-within a legal and regulatory framework.

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PPPs and Good Governance

Public-private partnerships are acquiring an ever greater role in

the delivery of services and are replacing the traditional
bureaucracy in areas like power supply, roads etc. They are
expected to be more efficient and responsive given that theyhave no political compulsions. They need to be citizen-friendly
and accountable.

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Definition of Governance

The World Bank: the manner in which power is exercised in the

management of a countrys economic and social resources.
OECD (30-member Organization for Economic Co-operation and
Development, an international organization helping governments
tackle the economic, social and governance challenges of a
globalised economy): the use of political authority and exercise of
control in a society in relation to the management of its resources
for social and economic development

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Measuring Good Governance

In recent years, methods to measure good governance have been

developed. Worldwide Governance Indicators project, developed by
members of the World Bank and the World Bank Institute chose six
dimensions of governance measure how fair and effective the
governments are : voice and accountability, political stability and
lack of violence, government effectiveness, regulatory quality, rule
of law, control corruption.

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