LESSON 1

FUNDAMENTALS OF GOOD GOVERNANCE AND

SOCIAL RESPONSIBILITY
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MEANING OF GOVERNANCE
The word “governance” came from the Latin verb “gubernare,” or more originally
from the Greek word “kubernaein,” which means “to steer.” Basing on its etymology,
governance refers to the manner of steering or governing, or of directing and controlling,
a group of people or a state.

Governance is essentially related to politics, in that politics is often defined as the

art of governance. Just as politics talks about governments, institutions, power, order, and
the ideals of justice, governance also deals with the public sector, power structures, equity,
and ideals of public administration. Nevertheless, they are distinct from each other in the
sense that politics is broader than governance. Traditionally, the study of politics entails
the concept of the “good life” and the “ideal society,” which are so broad they include a
web of subjects and every possible form of government. The study of governance, on the
contrary, is generally attuned to the concept of democracy, and on how the government
and the civil society arrive at a decision in meeting their needs.

Definition of Governance
Governance is commonly defined as the exercise of power or authority by political
leaders for the well-being of their country’s citizens or subjects. It is the complex process
whereby some sectors of the society wield power, and enact and promulgate public policies
which directly affect human and institutional interactions, and economic and social
development. The power exercised by the participating sectors of the society is always for
the common good, as it is essential for demanding respect and cooperation from the citizens
and the state. As such, a great deal about governance is the proper and effective utilization
of resources.

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Governance and Government
Governance is traditionally associated with government. In literatures, they are
often used interchangeably. But in the 1980s, political scientists broadened the meaning of
governance as including, not just government actors, but also civil-society actors.[1]Today,
governance includes three sectors: the public sector (state actors and institutions), the
private sector (households and companies), and the civil society (non-governmental
organizations). These three sectors are said to work hand in hand in the process of
governance. This new use of the term focuses on the role of “networks” in the achievement
of the common good, whether these networks are intergovernmental, transnational, or
international.[2] In other words governance is broader than government in that other
sectors are included in it.
Many authors also distinguish the two by associating government with “control and
domination,” and governance with “decentralization and relational management.” On the
one hand, government refers to a central institution which wields power over its subjects.
It is the instrument patterned after the model of “command and control,” the government
being in command over the affairs of the people. On the other hand, governance is closely
associated with the concept of decentralization of power and the need for inter-sectoral
management. Governance is based on the realization that the government cannot do
everything for the people, so that in order to survive the state should not only rely on
government but also on the other sectors of the society.
Thus, under the current trend, there is a need to move from the “traditional
hierarchical exercise of power by the government” to the new notion of a “dispersed and
relational power in governance” – from government to governance. To govern should now
mean to facilitate or regulate, not to dominate or command.

Importance of Studying Governance

From the information learned in the discussion of governance, the people, most
especially the citizens, will be aware of the need for good governance. Consequently, such
awareness should move them to action. For their continued empowerment and sustainable
development, they have to know how to fight for their rights by knowing what to expect
from Philippine governance. Thus, what will follow is an exposition of the basic concepts

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of governance, the ideal type of governance, and the status of the Philippines vis-à-vis the
indicators of good governance.

CHARACTERISTICS OF GOOD GOVERNANCE

Eight Indicators of Good Governance

Good governance is understood through its eight indicators or characteristics: (1)
Participatory; (2) Rule of Law; (3) Effective and Efficient; (4) Transparent; (5) Responsive;
(6) Equitable and Inclusive; (7) Consensus Oriented; and (8) Accountability. They are
inextricably related to each other. For instance, without active participation among the
various actors in governance, there would be a concomitant lack of responsiveness.
Likewise, if decision-making is not transparent, then inevitably there would be no
participation, accountability, and decisions are not consensus oriented. These indicators
should, however, be understood in the context of good “democratic” governance. Some of
the indicators cannot be applied in other forms of government. For example, good
communist governance could never be consensus oriented or genuinely participatory.

It must also be emphasized that good governance and development should not be
based exclusively on economic growth. Through global persuasion, good governance and
development signify a broader spectrum of things, such as protection of human rights,
equitable distribution of wealth, enhancement of individual capabilities and creation of an
enabling environment to foster participation and growth of human potentials. As it evolved
today, sustainable development necessitates “people empowerment” and “respect for
human rights.”[5] After all, economic prosperity or the minimization of poverty and
unemployment depends on how the state unleashes the full potential of its human resource
by recognizing their vital roles and according full respect for human rights.

Participation
Good governance essentially requires participation of different sectors of the
society. Participation means active involvement of all affected and interested parties in the
decision-making process. It requires an enabling environment wherein pertinent

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information is effectively disseminated and people could respond in an unconstrained and
truthful manner. It also means gender equality, recognizing the vital roles of both men and
women in decision-making.

More fundamentally, the need for participation is a recognition of the limits of a

“verticalized system” of governance. A verticalized system, or the top-down approach,
refers to a state or government monopoly both of powers and responsibilities. While the
government is still the most potent actor in the process of governance, the participation of
other sectors is already a necessity because of the always evolving complexity and ever
growing needs of the societies, especially in the financial sphere. What should now be
utilized is the so-called “horizontal system” where the government works hand in hand
with other sectors of the society. The different sectors are considered partners of the
government in attaining development goals. Governance should no longer be government
monopoly but government management or inter-sectoral participation.

Participation in representative democracies may either be direct or indirect, and

recommendatory or actual. It could be indirect and recommendatory because in principle
the form of government is based on delegation of powers. In the Philippines, which
possesses features of both direct and indirect democracy, indirect participation is done
through public consultations or hearings, while direct participation is through elections,
initiatives and referendums.

The management of highly complex societies and of their ever growing needs
requires a participatory form of governance by diffusing power. The move
for decentralization is a response to this as it widens the base of participation and allows
local government units to exercise governmental powers directly within their respective
districts. Service delivery is enhanced because of the proximity of local government units
to their constituents, and because of the linking which happens between the national
government and regional concerns.

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 Participation is one of the strengths of Philippine governance. The 1987 Philippine
Constitution is replete of provisions dealing with relational and inter-sectoral governance.
The Local Government Act of 1989 was borne out of the need for decentralization in
Philippine governance. As such, these and other related legislations may be considered as
normative standards for good governance.

Rule of Law
Democracy is essentially the rule of law. It is through the law that people express
their will and exercise their sovereignty. That the government is of law and not of men is
an underlying democratic principle which puts no one, however rich and powerful, above
the law. Not even the government can arbitrarily act in contravention of the law. Thus,
good democratic governance is fundamentally adherence to the rule of law.

Rule of law demands that the people and the civil society render habitual obedience
to the law. It also demands that the government acts within the limits of the powers and
functions prescribed by the law. The absence of rule of law is anarchy. Anarchy happens
when people act in utter disregard of law and when the government act whimsically or
arbitrarily beyond their powers. In more concrete terms, rule of law means “peace and
order,” “absence of corruption,” “impartial and effective justice system,” “observance and
protection of human rights,” and “clear, publicized, and stable laws.”
What the law seeks to promote is justice. When there is dearth of legislation for
curbing social evils, or even if there is, but the same is ineffectual or unresponsive, and
when there is no faithful execution of the law, then justice is not attained. When the justice
system is biased and discriminatory, when it favors the rich and the influential over the
poor and lowly, or when the legal processes are long, arduous, unavailable or full of delays,
then justice is not attained. Then when the actors of governance can minimize, if not
eliminate, these injustices, then there is said to be rule of law.

Rule of law also requires that laws are responsive to the needs of the society.
Archaic or irrelevant laws must be amended or repealed to cater to modern demands. The
Philippines does not fare well in this aspect of good governance. In spite of being one of

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the oldest democracies in the region, the Philippines ranked as last among seven indexed
Asian countries according to the World Justice Project Rule of Law Index. Generally, the
reasons for ranking last are “lack of respect for law,” “pervasive and systemic corruption
in the government,” and “circumvention of the law.” Lack of respect for law is generally
caused by distrust on the integrity of law enforcement agencies. Order and security are
compromised and criminal justice is rendered ineffectual.

Systemic corruption has long been a problem in the Philippines that like a malignant
tumor it keeps on sucking the life out of the country. Allegedly, it is the key officials in the
government who direct the perpetration of this crime. What became clear from a long string
of corruption and plunder cases is the true motive of many aspiring politicians – money. The
huge amount of money spent during election campaigns are but mere investments for a more
profitable return during their term in office.

In addition, the justice system is flooded by legal practitioners who are experts at
circumventing the law. Circumvention happens when there is compliance with the letter of the
law but violation of its spirit and purpose. Due to technicalities, for instance, highly paid
lawyers can find ways for their rich and powerful clients to evade the law. Although apparently
there is observance of law, it is only superficial as the real end of the law is forfeited. As such,
there is a concomitant violation of fundamental rights of the people and ineffective
administration of justice.

Nevertheless, the Philippines has exerted efforts in promoting the rule of law. The
series of cases filed against high ranking officials, previous Presidents, members of the
judiciary, and high profile persons for graft and corrupt practices prove one thing clearly:
the honest drive of the current administration to clean the government from corrupt
traditional politicians. In addition, legislations were made to hasten the legal process. The
“Alternative Dispute Resolution Act of 2004” (R.A. 9285), for instance, seeks to unclog
the court dockets by promoting a speedy, efficient, and less expensive resolution of
disputes. The “Judicial Affidavit Rule” issued by the Supreme Court in 2013 also lessened
to a great extent the time and expenses of litigation.

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Effectiveness and Efficiency
Good governance requires that the institutions, processes, and actors could deliver
and meet the necessities of the society in a way that available resources are utilized well.
That the different actors meet the needs of the society means that there is effective
governance. That the valuable resources are utilized, without wasting or underutilizing any
of them, means that there is efficient governance. Effectiveness (meeting the needs) and
efficiency (proper utilization of resources) must necessarily go together to ensure the best
possible results for the community.
Concretely, effectiveness and efficiency demands “enhancement and
standardization of the quality of public service delivery consistent with international
standards,” “professionalization of bureaucracy,” “focusing of government efforts on its
vital functions, and elimination of redundancies or overlaps in functions and operations,”
“a citizen-centered government,” and “an improved financial management system of the
government.”[6]
Public service delivery, especially of front-line agencies, must promptly and
adequately cater the needs of the citizens. Doing so requires simplified government
procedures and inexpensive transaction costs. Cumbersome procedures and expensive
costs trigger corruption and red tape. “Red Tape” refers to the disregard for timeframes in
procedures by government agencies through procrastination in public service delivery or
under-the-table or unofficial transactions.[7] To further curb such possibilities, the
government agencies must comply with their citizen’s charter and use up-to-date
information and communications technology to reduce processing time. There must also
be coordination among various government agencies to eliminate redundant information
requirements.
Professionalism in Philippine bureaucracy requires competence and integrity in
civil service. Appointments to civil service must be depoliticized and must be based solely
on merits. Effectiveness and efficiency also demands that the programs and objectives of
the various government agencies are aligned with individual performance goals. The
increases in compensation are likewise necessary for the economic well-being, sustained
competence and boosted morale of the civil servants.

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 Although still insufficient, efforts were made to attain effectiveness and efficiency
in Philippine governance. The Anti-Red Tape Act of 2007 (ARTA), for instance, was
passed to require the setting up of Citizen’s Charter for a simplified procedure and to
facilitate governmental transactions. Also, many government departments and agencies
pursued a rationalization program to check excessive and redundant staffing.

Transparency

Transparency, as an indicator of good governance, means that people are open to

information regarding decision-making process and the implementation of the same. In
legal terms, it means that information on matters of public concern are made available to
the citizens or those who will be directly affected. It also means that transactions involving
public interests must be fully disclosed and made accessible to the people. It is anchored
on the democratic right to information and right to access of the same.

Transparency is necessary not just from government transactions but also in those
transactions of the civil society and private sector imbued with public interests.The reason
why there should be transparency is to promote and protect democratic ideals. When there
is transparency, people are placed in a better position to know and protect their rights as
well as denounce corrupt or fraudulent practices in the public sector and in the private
sector.

Although again insufficient, efforts were made in pursuit of transparency in

Philippine governance. As far as the government sector is concerned, the current
administration, consistent with its drive of curbing corruption, promotes honesty and
integrity in public service. It is currently pursuing the passage of the Freedom of
Information Bill and other related legislations, as well as intensifying people’s engagement
in local governance. Transparency in budget and disbursements are, however, still far from
being substantially implemented.

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Responsiveness

Responsiveness means that institutions and processes serve all stakeholders in

a timely and appropriate manner. It also means that actors and structures of governance
easily give genuine expression to the will or desire of the people. In other words, the
interests of all citizens must be well protected in a prompt and appropriate manner so that
each of them can appreciate and take part in the process of governance. While
responsiveness is also a characteristic sought from the private sector and civil society, more
is demanded from the government or the public sector.

Gender equality is engrained in the egalitarian principles of democracy. Gender

concerns that respond to the women and their community must always be part of the agenda
of public sector and civil society. Thus, emerging as important areas in the study of
democratic governance are “Gender and Development” and “Gender Responsiveness.”
The participation of women in governance within the context of “gendered socialization”
rests on how responsive the structures and processes are to their roles and needs.

Some of the important efforts made to attain responsive governance in the

Philippines are decentralization, creation of citizen’s charter in all frontline agencies (as
required by ARTA), and gender sensitivity programs. First, through decentralization, local
governments, which are more proximate to their constituents, serve more promptly the
people, who in turn become more involved in decision-making. Second, every government
agency now has it Citizen’s Charter, which provides timeframes for every step in attaining
frontline services. Agencies now must also respond to written queries sent by the
stakeholders or interested parties within a period of ten days, otherwise there will be
delayed service. However, this aspect of governance still remains to be one of the causes
for the decline of public’s confidence in the public sector. Although the ARTA has been
passed, there is still so much delay in public service delivery. The failure of the government
agencies to explain the charters to the stakeholders is one of the main reasons why there is
still delay.

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Equity and Inclusiveness
Equity and inclusiveness means that all the members of the society, especially the
most vulnerable ones or the grassroots level, must be taken into consideration in policy-
making. Everyone has a stake in the society and no one should feel alienated from it.
Particularly, those who belong to the grassroots level must not only be the subject of
legislation but they must be given the opportunity to participate in decision or policy
making.

Social equity refers to a kind of justice that gives more opportunity to the less
fortunate members of the society. It is based on the principle that those who have less in
life should have more in law. Good governance demands that the actors must give
preferential attention to the plight of the poor. Laws must be geared towards this end and
the society must actively participate in the promotion of the same.

The Philippine Government has done extensive efforts in promoting equity and
inclusiveness. The Constitution makes it as one of its state policies the promotion of social
justice. Pursuant to this, the Congress has enacted social legislations like the
Comprehensive Agrarian Reform Law which aims at freeing the farmer tenants from the
bondage of the soil. Also, representation in the Congress, under the party list system, is
constitutionally mandated to have sectoral representation of the underprivileged. Gender
and Development programs are in the process of being integrated with the various
structures and institutions in the country. But legislation is one thing; implementation is
another. It is in the faithful implementation of these laws that the country failed. Inequality
is especially felt in the justice system, electoral system, and even in the bureaucracy itself.

Consensus Oriented

Governance is consensus oriented when decisions are made after taking into
consideration the different viewpoints of the actors of the society. Mechanisms for conflict
resolution must be in place because inevitably conflict that will arise from competing
interests of the actors. To meet the consensus, a strong, impartial, and flexible mediation

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structure must be established. Without such, compromises and a broad consensus cannot
be reached that serves that best interest of the whole community.

Fundamentally, democratic governance is based on the partnership of the actors of

the society in providing public services. Decisions-making must therefore entail
recognition of their respective interests as well as their respective duties. The essential of
governance could never be expressed in a unilateral act of policy making by the public
sector or other dominant sectors. Public hearings or consultations in arriving at a consensus
are therefore inherently necessary in the process of governance.

Among the things done by the Philippines in promoting a consensus oriented

governance are: (1) creation of a wide-based of representation in the Congress; (2) a two-
tiered legislature or bicameralism which subjects legislation to the evaluation of national
and district legislators; and (3) necessity of public hearings or consultations of various
governmental policies and actions.

Accountability

Accountability means answerability or responsibility for one’s action. It is based

on the principle that every person or group is responsible for their actions most especially
when their acts affect public interest. The actors have an obligation to explain and be
answerable for the consequences of decisions and actions they have made on behalf of the
community it serves.
Accountability comes in various forms: political, hierarchical, and managerial
accountability. Political accountability refers to the accountability of public officials to the
people they represent. Hierarchical accountability refers to the ordered accountability of
the various agencies and their respective officers and personnel in relation to their program
objectives. Managerial accountability refers to employee accountability based on
organization and individual performance. A system of rewards and punishment must be in
place to strengthen the processes and institutions of governance.

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 The Philippines in the recent years had endeavored to comply with the requirements
of accountability. It had put in action the concept of political accountability as it held
answerable erring public officials involved in graft and corruption and for acts contrary to
the mandate of the constitution. It had also strengthened parliamentary scrutiny through
legislative investigations and creation of special committees exercising oversight
functions. The Office of the Ombudsman, considered as the public watchdog, has become
ever so active in investigating and prosecuting graft and plunders cases. Citizen’s Charter,
as required by ARTA, was also an important tool in promoting professional public service
values. In this area, Philippine governance has done relatively well.

CURRENT STATE OF GOVERNANCE IN THE PHILIPPINES

The Philippines is plagued by bad governance. Based on the six dimensions of

governance in the Worldwide Governance Indicators (WGI), it ranks in the lower half of
the percentile. In 2010-2011, the Philippines ranked only 85th in the Global Competitive
Index (GCI), lagging behind most of its Southeast Asian neighbors. The decline of trust on
the actors of governance and the consequential poor economic condition were brought
about by the systemic corruption among and between public officials and private
organizations. In 2013, it ranked 94th among 177 countries in the Corruption Perception
Index. Among the key institutions in the Philippines perceived to be most corrupt based on
the Global Corruption Index are “political parties,” “judiciary,” “police,” “public officials
and civil servants,” and “legislature.” This means all branches of the Philippine
government are now challenged.

As perceived and experienced by the common Filipino masses, the foremost

indicators of bad governance in the Philippines are the unending cycle of poverty, the huge
gap between the rich and the poor, the deep-seated tradition of corruption, mistrust on
formal government institutions, yawning cynicism on the true motive of political actions,
instability of the economic environment, constant threats to the authority of the established
government, and questions on accountability and transparency. These are the usual content

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of everyday broadcast media, so common that there perceived to be the normal state of
affairs in the Philippines.

Bad governance is the root cause of all evils. It is what prevents the Philippines
from achieving its Millennium Development Goals. Rising above such state of governance
is a political imperative and the ideal solution to a wide range of politico-economic
problems. While the Philippines has already created “islands of good governance” in some
national agencies and local government units, its overall state is still miserable.

HOW TO ACHIEVE GOOD GOVERNANCE

Good governance, to be effective and sustainable, must be anchored in a vigorous

working democracy which respects the rule of law, a free press, energetic civil society
organizations and effective and independent public bodies such as the Commission for
Human Rights and Good Governance, Prevention of Corruption Bureau and the Fair Trade
Commission. The Commission is important in ensuring the promotion and protection of
human rights, but also in ensuring both transparency and accountability on the part of the
government. Good governance requires transparency and efficiency also in different
government agencies.

At the political level democratic practices, including transparency in policy making

and administration, are important aspects of good governance. This is signified by a
pluralistic political system that allows the existence of diversity in political and ideological
opinions. No wonder that good governance is said to be more easily achieved and
guaranteed in a multi-party system than in a mono-party system. It also means the holding
of regular elections applying the principle of universal franchise. In order to qualify as
democratic, elections must be free and fair.

Good governance deals with the nature and limits of state power. The doctrine of
the separation of powers is therefore relevant in the establishment of whether or not a
country has a political system that is responsive to good governance. The doctrine of the
separation of powers is based on the acceptance that there are three main categories of

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government functions: legislative, executive, and judicial. Corresponding to these are the
three main organs of government in a state – the Legislature, the Executive and the
Judiciary. The doctrine insists that these three powers and functions of government in a
free democracy must be kept separate and exercised by separate organs of the state.

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 EXERCISE No. 1

Guide Questions:

1. Who are the actors in the process of governance? How do they interact in
coming up with, and in implementing, decisions?
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2. What are the indicators of good governance? Give a concrete example of your
answer.
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3. How does governance transform into bad governance? Give concrete examples.
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4. How’s the good governance and social responsibility implemented in the
Philippines organization and businesses?
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5. Give your recommendations to improve Philippine governance and social
responsibility.
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