Governance, according to their interpretation has four main components:
i. Public Sector Management;
ii. Accountability;
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iii. Legal Framework for Development; and
iv. Transparency and Information Accessibility.
Governance as per these components basically implies the proper formulation and implementation of policies by government agencies, within well-defined legal framework. It also emphasises on people getting the necessary information, fostering openness in the system and ensuring accountability on the part of politicians and bureaucracy or administrators.
The World Bank, in 1992, in its Report titled “Governance and Development” considered good governance as central for creating a proper environment which is necessary for sound economic policies.
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It pointed out the basic problems of governance faced by developing countries, which include delays in implementation of projects, inadequately enforced laws, increasing competition, lack of involvement of people in design and implementation of projects etc. Hence, it outlined the need for striving for economic, human and institutional development, as well as achieving it through key governance processes and activities.
Governance is very important in any political system, as it is the process through which the policies of a State that affect the public are implemented. Governance depends upon the three pillars of the Constitution, namely, the executive, legislature and judiciary. The legislature formulates the laws, the executive (including political and permanent) implements the laws, while the judiciary interprets the laws.
For instance, the provision of adequate health, education, housing facilities, infrastructure to the citizens requires effective governance. Presently, there is a lot of discussion on not just governance, but also good governance. It’s worthwhile to keep in mind the distinction between the two.
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While governance deals with policy formulation and implementation, good governance tries to make this very activity not just efficient and effective but more accountable, democratic and responsive to people’s needs.
The concept of governance, which implies processes and mechanisms of policy formulation and implementation, is quite wide in nature. It includes government, private sector and the community as a whole. For example, the government intends to pursue the policy of provision for education for all.
The policy can be formulated only by the government, but its execution involves collective efforts. Governance basically attempts to promote collaboration, working together by the government, markets, and people thereby emphasising on collective action.
It aims at maximum good to the maximum number of people, which cannot be achieved only by the government, so it involves a large number of people and other public as well as private organisations.
