Governance and Good Governance:

A Conceptual Perspective
Muhammad Ali

Abstract
Good governance has been the subject of theoretical and
pragmatic discourses during the last three decades. Recently the
indeterminate terms "Governance" and Good governance are
being gradually used, in the literature of political science,
administrative sciences and development studies. It is being
increasingly recognized that Good governance is legitimate,
accountable and effective ways of obtaining and using public
power and resources in the pursuit of widely-accepted social
goals. Based on existing literature the study identified that good
governance relates to political and institutional processes and
outcomes that are deemed necessary to achieve the goals of
Sustainable development. The purpose of this conceptual study is
to explain, as simply as possible, the meaning of good
governance and governance. By which criteria can it be
measured? How is governance related to political participation
and democracy? It then explores the relationship between the
good governance, and sustainable development.

Keywords: Good governance; Accountability; Rule of law;

Transparency.

Introduction
The concept governance is though not a new; it is as old as human
civilization.1 Generally speaking, the perception of governance has
been in the human civilization since the time that the people
learned how to live in one community or society through the
process of making decisions and implementations of certain laws,
rules and policies in order to live orderly and harmoniously in one
environment. However, the term good governance has acquired
prominence in the context of revitalization of democratic
institutions (what may be termed as third wave of democracy); in
order to ensure participatory democracy, human development and
to attain the goals of globalization.2 Early post-second world years,
good governance was linked primarily to economic development.

Dr .Muhammad Ali, Assistant Professor, Department of Political

Science, University of Karachi. Email: [email protected]
Governance and Good Governance Muhammad Ali

As such, in many instances the essential ingredients of good

governance in the political context such as accountability, the rule
of law, public participation, human rights and democratization
were not addressed. The term was used mainly by aid givers when
evaluating the performance of the third world countries seeking
economic assistance. Until eighties, the focus remained on the
economy because the World Bank was constrained by its articles
of agreement not to take into account non-economic political
considerations when responding to loan applications. In due
course, non-economic factors, such as the environment, came to be
taken into account when in its World Development Report, 1999;
the Bank indicated a shift in its interpretation of good governance.
It has been widely accepted now that the main reasons for human
deprivation are not just economic. There are social and political
factors too rooted in poor governance.

Research Methodology/Literature Review

The study is planned as a qualitative method and based on
available literature review. Keeping in view the nature of research
of the problem and question, the efforts have been made to collect
material from diverse sources. Thus there is a combination of
primary and secondary sources. Information has been collected and
shifted from documents such as the International agencies
organization, books, journals, speeches, statements and official
declarations and communications. Interaction with other scholars
by attending international seminars, conferences and workshops,
has been very useful in developing clarity in thinking about various
aspect of the topic.

Significance of the Study

On the basis of reviewed literature, this theoretical research paper
is organized in four sections. First section deals with objectives,
methodology and research problem of the study. Second section
focuses on the brief but comprehensive back ground of research
problem. The third section is an attempt has been made to highlight
the significance of the good governance. A summary of findings
would be discusses in the last section of the study. It may be made
clear here that it does not provide an in depth analysis of various
factors and forces. Instead, provides synoptic view of various issues
and problems related to good governance. It is expected that the
results of this work would not only facilitate the scholars and
experts of politics and civil society activism but it would be also a

The Dialogue 66 Volume X Number 1

Governance and Good Governance Muhammad Ali

massive contribution for the students, and policymakers in the field

of development studies.

Good Governance: A Conceptual Perspective

The terms governance and good governance has been defined in
many way but it lacks uniformity.3 These definitions are based on
normative assumptions about new decision should be made within
organization and the functioning of formal and informal structure
for implementing such decision. The Governance is complex and
multi-faceted concept that is difficult to define in precise ways.
There is still no clear-cut unanimity as to its meaning among them.
Scholars have defined the term governance from different
approaches However, simply speaking, governance is the process
of decision making and the process by which decisions are
implemented (or not implemented).4 Tahir Naveed, defines
governance as the management of resources, and organization of
individuals and groups into formal and informal bodies and
institutions and businesses, through social, political, administrative
and economic mechanisms.5 The World Bank sees governance in
two related slightly different ways. Primarily the emphasis is on
how political power is exercised to manage a nations affairs. In
the second instance, World Bank defines the term in a broader
sense. It sees governance as the use of power in the management
of a countrys economic and social resources for development.6
Human development report 2002 of United Nations has given a
new perspective to governance by terming it as democratic
governance; which is essential for better human development. The
democratic governance encompasses the respecting peoples
human rights and freedom, say in decision making, which effect
their lives and holding decisions makers accountable. It attempts at
making the economic and social policies more responsive to the
peoples needs.7 According to Etounge Manguella:
Good governance implies presence of rule of law, safeguard of
human rights, and existence of honest and efficient government,
8
accountability, transparency, predictability and openness.

According to Michael Johnston, Good governance is:

A competent management of a countrys resources and affairs
in a manner that is open, transparent, accountable, equitable
9
and responsive to peoples needs.

For good governance, the presence of five variables is mandatory.

These are: political freedom, constitutional and judicial protection

The Dialogue 67 Volume X Number 1

Governance and Good Governance Muhammad Ali

of individual rights, a stable currency, provision of education and

health care for all, and the executives accountability to a freely
elected legislature. The United Nations Development Programme
(UNDP) defines good governance as a process encouraging staff
incentives, training of civil servants, administrative and fiscal
decentralization and dialogue between governments and civil
society.10 The UNDP has further underlined following main
features of good governance:
Political accountability and legitimacy;
A free and fair judiciary
Accountability of bureaucracy;
Freedom of information and expression;
Infective and efficient public sector management and co-
operation with civil society organizations.11

The recent worldwide governance has articulated six indicators for

promotion of good governance:
Accountability and Transparency
Free from violence and stability in political system
Effectiveness of governmental policy
Elimination of corruption
Quality of governance
Establish the rule of law.12

Dev Raj believed that decentralization of political and economic

power is the core of good governance. The power should not be
concentrated at the center but needs to be developed to the
local institutions. It is assumed that decentralization will
ensure democracy and development and both are preconditions to
good governance. Thus, power within a political system
characterizes good governance.13 In more specific definition for
good governance may be given by Preti, as that which,
Applies to the exercise of power in a variety of
institutional contexts, the object of which is lo direct,
control, and regulate activities in the interests of people as
14
citizen, voters and workers.

Thus the governance in any society, aims to ensure transparency

through the exercise of economic political and administrative
authority. It basically strives to establish quality relationship
between the rulers and the ruled. In shorts it can be said that here
that the good is not a static concept. Good governance has to

The Dialogue 68 Volume X Number 1

Governance and Good Governance Muhammad Ali

work for the realization of popular aspirations. The aspirations

have to be based on a sense of realism and dynamism. In more
specific terms good governance may be defined as that which
"applies to the exercise of power in a variety of institutional
contexts, the object of which is lo direct, control, and regulate
activities in the interests of people as citizen, voters and workers.
Hence, it can be said that good governance is that which fosters
human development through popular participation and social and
economic equalities. The ultimate objective of good governance
has to be to create a civil society.15

Principles of Good Governance

The following parameters of good governance have been identified
on the basis of above definitions. The government should be
participatory, consensus oriented, accountable, transparent,
responsive, effective and efficient; as well as equitable and
inclusive; at the same time, it follows the rule of law. More
importantly, it gives assurance to its people that its governance
would be free from corruption practices. In addition to that, the
government should give priority to the views of minorities and
listen to the voice of most vulnerable group of people in the society
when it comes to decision making. See the box l

The Dialogue 69 Volume X Number 1

Governance and Good Governance Muhammad Ali

Democratization and Civil Society

Democracy is an essential prerequisite of good governance. A
democratic government may also face crisis of governability.16
However, a democrat system is essential because that alone can
promote the ethics of economic and political freedom and
development for individuals increase the mass
participation, which are features of good governance.17 The
good governance is a situation where there is a mutual trust
between the stale and the citizen. It has been said in this
context that the only tenable normative aspiration, to modern
politics can be to make states more trustworthy to all who
must live under them: to make them more graceful and
civilized in their dealings with their citizens and with one
another.18 Relatively, it is very essential to give emphasis on the
democratic form of governance. The government must have
participation from the citizenry; both men and women in the
society should take part in various activities and organizations in
the government sectors. The principle of equality is one of the
most important constitutional principles upon which the
contemporary system rests. This means that the principle of
equality contained in the individual communities are equal in
rights, responsibilities and public duties that will be enjoyed by all
without discrimination of race, origin, or belief. 19 It is believed
by some scholar Nasir Islam and David. R. Morision
believed that human rights, civil society and democratization are
essential components of good governance.20 Mustafa Kamal has
further been asserted by some scholars that the issue of building a
civil society is central to good governance. It is believed that the
civil society is indeed a driving force behind political and
economic reforms which is a pre-condition towards good
governance.21 In fact, good governance has been considered as tin-
hall mark of a civil society: a society which ensures a democratic
political culture with accountability and popular participation
in the developmental process. In the present times, the globalized
market process induced by globalization and liberalization has laid
a greater demand for civil society and human rights. It means
empowerment of people, which is possible only through good
governance.22

Accountability
Accountability is one of the cornerstones of good governance,
which denotes responsibility of the government towards governed
and also the mechanism through which people can exercise their

The Dialogue 70 Volume X Number 1

Governance and Good Governance Muhammad Ali

influence over the- government. The accountability is complex and

multi-faceted concept that is difficult to define in precise terms.
However, broadly speaking, accountability is the process via which
a person or group can be held to account for their conduct.
Normally, accountability is applied on political and civil executive
(public officers) who are responsible before the citizens. They
exercise their powers and functions in the name and interest of the
peoples, In the case of political accountability, peoples hold their
representative accountable through the election.23
Accountability can be categorized in terms of Horizontal,
Vertical, social and political mechanisms. Horizontal
accountability is a method or capacity towards structure
accountability that relies on institutions such as legislature
(parliament or congress) and the judiciary, or other autonomous
institutions that can call into question, and ultimately punish to any
public officer because of inappropriate ways of performing their
assigned responsibilities. Horizontal accountability normally refers
to internal mechanisms within government. It consist of formal
relationship with in state and government itself .It focus on internal
check and oversight process. For instant executive must explain
their decision to legislature. In other words, horizontal
accountability is the ability of state institutions or government to
check the abuses by branches of government, public agencies or
other public officers. Vertical accountability/Social Accountability
usually link citizen and state through formal mechanisms, most
obviously through local and national elections. In vertical forms of
accountability through which citizens , media, Non-Governmental
Organizations (NGOs) and Civil Society Groups (CSG) play
directly or indirectly roles in holding the powerful to account. In
short Accountability is one of the foundations of good governance.
Both types of Accountability plays significant role to achieve the
goal of good governance.

Rule of Law
It is widely political consensus that the rule of law is a necessary
foundation for efforts to achieve the goal of good governance.
Justice is valued as central in governance. Therefore, it values
justice as most important for establishing a just society in which
people from all walks of life, from different faiths can live in peace
and harmony with no discrimination. Equally important, good
governance requires fair legal structure that must be applied
objectively in order to give full protection to the human rights of
the people, most especially those minorities. And, to implement

The Dialogue 71 Volume X Number 1

Governance and Good Governance Muhammad Ali

this effectively, there must be unbiased implementation of laws

that require independent judiciary and an impartial, as well as
corrupt-free police force.

Transparency
Transparency is the provision, which makes it possible for the
people to know about the' decision making process of the
government. It is also one of the significant elements of the good
governance.
Today, transparency or openness in governance is signific
ant in the process of development. The government must have
complete transparency with all its decision makings; as well as
with its implementations of laws and policies that should be
aligned to the rules and regulations of good governance.
Additionally, all information must be easily accessible and
understandable by the media as well as by the ordinary citizens.
By doing this, disseminating important information about the
activities and real status of the government would be easily
monitored and understood by the entire citizenry.

Meritocracy and Absence of Corruption

Government is the most vital actor of good governance. It is
necessary for the survival for every state that government official
should be appointed on merit. Similarly, a system of strict
accountability should be in place to monitor their performance so
that they stay on the right track and do not deviate from their main
role as specified by the constitution of the state.
Corruption has unfortunately almost become the norm today. Its
dimensions include, among others, the inflation of contracts in
return for kick-backs, frauds and falsification of accounts in the
public service, and the taking of bribes and perversion of justice
and fairness at various levels. Needless to say, corruption creates a
grave obstacle in the way of good governance.

Consensus Oriented
Society consists of various stake holders. It is required for good
governance to mediate among these different interest base stake
holders in case of conflict of interest. It is responsibility of
government to make consensus oriented decision making. Today,
governance signifies a transformation from a type of relationship
where a limited group of people have the ultimate authority to rule
others to a set of relationships where mutual interaction takes place
in order to make desirable choices for all stakeholders. It involves

The Dialogue 72 Volume X Number 1

Governance and Good Governance Muhammad Ali

the mechanism, processes and institutions that individuals,

corporations, groups and societies utilize in joint decision-making
and implementation among social actors as well as in solving
conflicts.24

Effectiveness and Efficiency

Good governance means that processes and institutions produce
results that meet the needs of society while making the best use of
resources at their disposal. The concept of efficiency in the context
of good governance also covers the sustainable use of natural
resources and the protection of the environment.25 Decision maker
should have a broad and long term vision on how to better the
process of governance to ensure continued economic and social
development. Process must be in place to ensure the most
productive use of resource.26

Equity and Inclusiveness

Good governance involves guarantee the right of all individual to
opportunities to improve or maintain their well-being in an
equitable and inclusive manner. This last point perhaps the most
important principle of Good governance because it require that all
decisions of an organization be made within frame work that is
outward looking and future oriented.

Why is Good Governance Important?

Good governance is about the processes for making and
implementing decisions. Its not about making correct decisions,
but about the best possible process for making those decisions. It is
in this context, the study of good governance has become very
important in the literature of political science, Administrative
Sciences and development studies. Good governance is important
for several benefits. First and foremost, quality of governance has
to be judged by the performance of the relevant institution.
Therefore, the goal of the institution has to be clearly defined as a
matter of priority. Then, steering towards that goal requires
defining decision rights and processes, as well as establishing a
feedback loop to verify and control performance. Governance is
how an institution is ruled; it is how the authority, responsibility,
and controls are required in the institution. Governance is relevant
to any institution, small or large; for profit or not; extending from a
single family all the way to global institutions that have an impact
on our lives. Hence, governance is relevant for humanity for
quality of life now and for its sustainability in the future. It

The Dialogue 73 Volume X Number 1

Governance and Good Governance Muhammad Ali

commonly acknowledged that in the absence of democracy, peace

and good governance, sustainable socio economic progress is not
possible.
In the context of developing societies there has been an
added emphasis on human development in recent years. It means
development of human capabilities and opportunities. The good
governance is a prerequisite for human development and
governance which would ensure human development is human
governance. It has been widely accepted now that the main reasons for
human deprivation are not just economic. There are social and
political factors too rooted in poor governance. It is thus clear that
the issue of good governance focuses on the inseparable linkages
between social-economic and political development.27 It has rightly
been pointed out that the good governance means political
pluralism with free and fair elections, It means far pending on
military preparation and infrastructure and war and much more on
education, health and basic amenities. It means fighting the graft
and nepotism. This also suggests that good governance has to
concentrate more on building a congenial political atmosphere for
social and economic development. The good governance has also to
ensure that the funds of the state are utilized on the development of
human and productive areas instead of non-human and non-
productive areas.28
In short, governance is about performance. Thus the
governance in any society, aims to ensure transparency through the
exercise of economic political and administrative authority. It
basically strives to establish quality relationship between the rulers
and the ruled. In the context, governance point out to the nature of
mutual interaction among social actors as well as between social
actors and public administration, and it contains the meaning the
meaning of ruling together with aim of helping individuals
realize their potential for improving the quality of their lives.

Conclusion
The term good governance is a multi-dimensional which
occupies a central stage in the development discourse. It is
considered as the crucial element to be incorporated in the
development strategy. However, the development experts in recent
years have emphasized good governance as a prerequisite for
development. It is clear from the above discussion that good
governance mean the art of government, in which all public
decisions and other affairs are dealt transparency and the
government official are made responsible and appointed on merit,

The Dialogue 74 Volume X Number 1

Governance and Good Governance Muhammad Ali

and the gap between the government and people is bridged. All
these aspects of good governance are complimentary to each
other. Scholars and experts have also paid attention to the way
of achieving good governance. Scholars tend to link good
governance with a democratic polity. Governance becomes good
when the decisions and actions of the government are based on
peoples consent, legitimacy and accountability. Good governance
has got the great importance in every state as the problem of
corruption, red-tapism and in-efficiency has gradually crept into
administrative structure of the country and the development has
stood still and the gap between rulers and ruled has widened. The
lack of understanding between them has always stood in the way
of building a system that espouses the elements of accountability,
transparency, and responsiveness. The paper can be concluding
that good governance is that which fosters human
development through popular participation and social and
economic equalities. The ultimate objective of good
governance has to be to create lea civil society. It may also be
pointed out here that the good is not a static concept. Good
governance has to work for the realization of popular
aspirations. The aspirations have to be based on a sense of
realism and dynamism. Today, good governance not only
occupies central place in the development discourse but is also
considered as a crucial elements in building the nation.

The Dialogue 75 Volume X Number 1

Governance and Good Governance Muhammad Ali

Notes & References

1
B.C Preti, Contemporary South Asia, Good Governance in South Asia
(New Delhi: Kaling publication, 2004), 57
2
Ibid.
3
Sarfraz Khawaja, Good Governance and Result Based Monitoring
(Islamabad: Poorab Academy, 2011), 15
4
Ramakant Rao, Good Governance Modern Global and Regional
Perspective (New Dehli: MG. Kaniska Publisher Distributors, 2008), 10-
11
5
Naveed Ahmed Tahir, Problems of Good Governance In South Asian
Countries: Learning From European Political Models, Area Study
Center For Europe (Karachi: B.C.C.& T. press, 1998)
6
Mohammad Mohabbat Khan, Good governance: Concept and the case
of Bangladesh". In Mahfuzul Hassan Chowdhury (ed.) Thirty years of
Bangladesh politics: Essays in memory of Dr. Mahfuzul Huq (Dhaka:
University Press Limited 2002): 63-76
7
Good Governance and Human Development Report 2002. Available
at: http://hdr.undp.org/en/content/human-Development Report-2002.
(Accessed on November 12, 2014)
8 Pierre Landellmills and Ismail Serageldin, Governance and the
external factor, World Bank Economic Review (1991): 303-320
9 Michael Johnston, Good governance: Rule of law, Transparency and
accountability, Colgate University New York. (2004). Available at:
http://unpan1.un.org/intradoc/groups/public/documents/un/unpan010193.
pdf (Accessed on November 13, 2014
10
Public Sector Management M Governance And Sustainable Human
Development, United Nations Development Programme, (1996): 22
11
United Nations Development Programme (1997)
12
Worldwide Governance (2014). Available at:
http://info.worldbank.org/governance/wgi/index.aspx#home (Access on
January 3, 2015)
13
Dev Raj Dahal, The Challenge of Good Governances, Centre for
Governance and Development Studies, Kathmandu (1996): 8
14
Preti, Contemporary South Asia, 59
15
Ibid., 61
16
Atual Kohli, Democracy And Discontent (New Delhi: Foundation
Book, 1992)
17
Ibid.
18
Preti, Contemporary South Asia, 61
19
Mark Bevir, Encyclopaedia of Governance (Berkeley: SAGE
Publications, 2006), 359
20
Nasir Islam and David R. Morision, Introduction :Governance
Democracy and Human Rights, Canadian Journal of Development
Studies, Special Issue, (1996): 7

The Dialogue 76 Volume X Number 1

Governance and Good Governance Muhammad Ali

21
Mustapha Kamal Pasha The Hyper Extended state; Civil Society and
Democracy. In Rasul Bakhsh Rais (Ed.), State, and Society and
Democratic Change in Pakistan (Karachi; Oxford University Press, 1997)
22
Preti, Contemporary South Asia, 61
23
Alnoor Ebrahim, Making sense of accountability: Conceptual
perspectives for northern and southern nonprofits, Nonprofit
Management and Leadership 14, no. 2 (2003): 191-212.
24
Mark Bevir, Encyclopaedia of Governance, 361
25
What is Good Governance?, UNESCAP. Available at:
http://www.unescap.org/sites/default/files/good-governance.pdf
(Accesses on November, 12, 2014)
26
Mark Bevir, Encyclopaedia of Governance, 361
27
Atual Kohli, Democracy And Discontent,
28
Preti, Contemporary South Asia, 59.

The Dialogue 77 Volume X Number 1