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Module 1, Topic 2

Topic 2:
Good Governance and Public Administration

Source: Brillantes, Alex B. and Fernandez, Maricel. Is there a Philippine Public Administration? Or Better Still, , for whom is Philippine Public
Administration?

A paper presented in the public colloquium on: “Is there a Philippine Public Administration: A Timeless Issue,” held on June 26-27, 2008 at the
UP National College of Public Administration and Governance (UP NCPAG).

The historical roots of the development of public administration in the Philippines as a young nation-state
can be traced back in the post –WWII era, when the Philippines gained its independence from the Americans. To
a certain degree, it can be said that in the early years of its statehood, the Philippines was heavily influenced by
the American brand of public administration (this will be elaborated in our topic on nature of public administration
and bureaucracy). So, what is the relationship of governance to public administration?

The many failed development interventions in the 1950s into the 1990s spurred the introduction of other
development reforms in the so called third world or developing countries like the Philippines. The “governance”
paradigm was introduced and advocated by the United Nations (UN), World Bank (WB), Asian Development
Bank (ADB) and other international institutions. The word “governance” suddenly “has become something of a
mantra in recent years, uttered by donors, reformers and pundits alike.” (Frechette 2000: 25)

Governance entails a larger scope and has a wider meaning. Though the term “governance” has been
used to refer mostly to “government,” when correctly used, “governance” really goes beyond government. It
involves the institutionalization of a system through which citizens, institutions, organizations, and groups in a
society articulate their interests, exercise their rights, and mediate their differences in pursuit of the collective
good. (ADB 1995 as cited in ADB 2005: 1)

UNDP describes it as “the exercise of political, economic and administrative authority to manage a
nation’s affairs. It embraces all of the methods- good and bad – that societies use to distribute power and manage
public resources and problems.” (UNDP 1997: 9)

Cariño (2000), in her reflections on the term “governance,” identified actors and factors that pushed for
governance. She acknowledges that governance is not the sole responsibility of the government per se but the
role of the market and civil society are of equal importance too and should also be recognized. She then identified
the factors or processes that pushed for governance and some of these are:

1. the quest for growth and development,

2. the environmental movement,
3. globalization and
4. consolidating peace.

These are practically the same values or virtues found in the UN Charter. Likewise, governance promotes
the virtues of decentralization, participation, responsiveness and accountability among others. From
“governance”, the concept of “good governance” has emerged and became prominent in international aid circles
around 1989 or 1990. It served as a general guiding principle for donor agencies to demand that recipient
governments adhere to proper administrative processes in the handling of development assistance and put in
place effective policy instruments towards that end. When there is good governance, there is sustainable
development. (Doornbos , 2003)
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Module 1, Topic 2

Kofi Annan, in his inaugural speech in the 1st International Conference on Governance for Sustainable
Growth and Equity in United Nations, New York, in July 28-30, 1997 affirms this when he said that:

“Good governance and sustainable development are indivisible. That is the lesson of all our efforts and experiences, from
Africa to Asia to Latin America. Without good governance – without the rule of law, predictable administration, legitimate
power, and responsive regulation -- no amount of funding, no amount of charity will set us on the path to prosperity…We are
fully engaged in efforts to improve governance around the world…good governance is indispensable for building peaceful,
prosperous and democratic societies.” (Annan, 1997)

Annan concluded that “good governance is perhaps the single most important factor in eradicating poverty and
promoting development.” (Annan 1997)

An ADB document (2005) affirmed that good governance is synonymous with sound development management.
They then identified some key principles of development which may be considered as elements of good governance. These
are: accountability, participation, predictability, and transparency.

FOUR BASIC ELEMENTS OF GOOD GOVERNANCE BY ADB

ADB likewise regards governance as synonymous with sound development management. It relates to
governance to the effectiveness with which development assistance is used, the impact development programs
and projects and the absorptive capacity of borrowing countries. To address governance issues, the Asian
Development bank has built upon the approach of the World Bank and has identified four basic elements of good
governance

1. Accountability

Accountability is imperative to make public officials answerable for government behavior and responsive
to the entity from which they derive their authority. This may be achieved differently in different countries or
political structures, depending on the history, cultural milieu, and value systems involved.

Accountability also means establishing criteria to measure the performance of public officials, as well as
oversight mechanisms to ensure that standards are met. The litmus test is whether private actors in the economy
have procedurally simple and swift recourse for redress of unfair actions or incompetence of the executive
authority.

Lack of accountability tends in time to reduce the state’s credibility as an economic partner. It undermines
the capacity of governments to sustain the long-term business confidence essential for growth-enhancing private
sector investment. Looked at from this angle, accountability can help reduce sovereign risk.

The accountability of public sector institutions is facilitated by evaluation of their economic and financial
performance. Economic accountability relates to the effectiveness of policy formulation and implementation, and
efficiency in resource use. Financial accountability covers accounting systems for expenditure control, and
internal and external audit

2. Participation

The principle of participation derives from an acceptance that people at the heart of development. They
are not only the ultimate beneficiaries of development but are also the agents of development. In the latter
capacity, they act through groups or associations (e.g. trade unions, chambers of commerce, NGOs, political
parties) and as individuals. (e.g through letters to newspaper editors, participating in radio and television talk
shows, voting) . Since development is both for and by the people, they need to have access to the institutions that
promote it.
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Module 1, Topic 2

Participation is often related to accountability but not necessarily so. In representative democracies,
where citizens participate in government through the electoral process, public officials are indeed accountable
ultimately to the electorate. This may not be the case however, in other political systems. For all economies
though, the benefits of participatory approaches can be considerable.

These include improved performance and sustainability of policies, programs, and projects as well as
enhanced capacity and skills of stakeholders. At the grassroots level, participation implies that government
structures are flexible enough to offer beneficiaries and others affected, the opportunity to improve the design and
implementation of public programs and projects.

This increases “ownership” and enhances results. At a different level, the effectiveness of policies and
institutions impinging on the economy as a whole may require the broad support and cooperation of major
economic actors concerned. To the extent that the interface between the public agencies and the private sector is
conducive to the latter’s participation in the economy, national economic performance will be enhanced.
Participation in economic life by agents other than the state would cover not only the role of the private
sector but also the activities of NGOs. These elements of civil society offer an alternative means of channeling the
energies of private citizens. They can be helpful in identifying people’s interests, mobilizing public opinion in
support of these interests and organizing action accordingly. Being close to their constituents, NGOs can provide
governments with a useful ally in enhancing participation at the community level and fostering a “bottom-up”
approach to economic and social development.

3. Predictability

Predictability refers to the existence of laws, regulations and policies to regulate society; and their fair and
consistent application. The importance of predictability cannot be overstated since, without it, the orderly
existence of citizens and institutions would be impossible.

The rule of law encompasses both well-defined rights and duties, as well as mechanisms for enforcing
them, and settling disputes in an impartial manner. It requires the state and its subsidiary agencies to be as much
bound by and answerable to, the legal system as are private individuals and enterprises. The importance of rules-
based systems for economic life is obvious. They are essential component of the environment within which
economic actors plan and take investment decisions. To the extent, therefore, that legal frameworks help ensure
that

a. business risks can be assessed rationally,

b. transaction costs are lowered and

c. governmental arbitrariness is minimized, they should prove conducive to risk taking, growth and
development.

In an opposite scenario, the capricious application of rules generates uncertainty and inhibits the growth
of private sector initiatives. Regulatory uncertainty also tends to raise the cost of capital by increasing the risk of
investment. Besides legal and regulatory frameworks, consistency of public policy is also important.

Government policies affect the investment climate directly and economic actors require reasonable
assurance about the future behavior of key variables such as prices, the exchange rates, and the employment
levels. However, it must be emphasized that consistency does not mean rigidity.

Governments do need to respond flexibly to changing circumstances and to make midcourse corrections
as necessary. Also when government’s change, the successor administration will, understandably, want public
policy to reflect its priorities, rather those of its predecessor.
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Module 1, Topic 2

4. Transparency

Transparency refers to the availability of information to the general public and clarity about government
rules, regulations and decisions. Thus, it both complements and reinforces predictability. The difficulty with
ensuring transparency is that only the generator of information may know about it, and may limit access to it.
Hence, it may be useful to strengthen the citizen’s right for information with a degree of legal enforceability, for
similar reasons.

Broadly restrictive laws that permit public officials to deny information to citizens need to provide for
independent review of claims that such denial is justified in the greater public interest. Transparency in
government decision making and public policy implementation reduces uncertainty and can help inhibit corruption
among public official. To this end, rules and procedures that are simple, straightforward, and easy to apply are
preferable to those that provide discretionary powers to government officials or that are susceptible to different
interpretations. The table below shows the basic elements of good governance and its key dimensions, as
published by the Asian Development Bank in 2005.

Key Dimensions and Specific Areas of Actions in Good Governance

KEY DIMENSIONS SPECIFIC AREAS OF ACTION

1. ACCOUNTABILITY • Public Sector Management

• means making public officials answerable for • Public Enterprise Management
government • Public Financial Management
• behavior and responsive to the entity from which they • Civil Service Reform
derive authority
• Establishing criteria to measure performance of public
officials
• Institutionalizing mechanisms to ensure that
standards are met.

2. PARTICIPATION • Participation of beneficiaries and affected groups

• refers to enhancing people’s access to and influence • Interface between government and the private
on public policy processes sector service delivery functions (empowerment of
• Undertaking development for and by the people Local Governments)
• Cooperation with Non-Government
Organizations

3. PREDICTABILITY
• refers to the existence of laws, regulations and
policies to regulate society and the fair and consistent • Law and Development
application of these • Legal Frameworks for Private
• establishing and sustaining appropriate legal and Sector Development
institutional arrangements
• Observing and upholding the rule of law
• Maintaining consistency of public policies

4. TRANSPARENCY
• refers to the availability of Information to the general
public and clear government rules, regulations, and • Disclosure of Information
decisions
• Ensuring access to accurate and timely information
about the economy and government policies
Source: ADB, 2005
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Module 1, Topic 2

THE EIGHT CHARACTERISTICS OF GOOD GOVERNANCE BY the UN DEVELOPMENT PROGRAM

Source: United Nations Development Programme(1997): Reconceptualizing Governance. Discussion Paper 2. New York: Management
Development and Governance Division, Bureau of Policy and Programme Support, UNDP, retrieved from:
http://www.ombudsman.gov.ph/UNDP4/wp-content/uploads/2013/01/Module_I.pdf

Good governance is participatory, consensus oriented, accountable, transparent, responsive, effective

and efficient, equitable and inclusive and follows the rule of law. It assures that corruption is minimized, the views
of minorities are taken into account and that the voices of the most vulnerable in society are heard in decision-
making. It is also responsive to the present and future needs of society. Much has been written about the
characteristics of efficient government, successful businesses and effective civil society organizations, but the
characteristics of good governance defined in societal terms remain elusive.

Interrelated, these core characteristics are mutually reinforcing and cannot stand alone. For example,
accessible information means more transparency, broader participation and more effective decision-making.
Broad participation contributes both to the exchange of information needed for effective decision-making and for
the legitimacy of those decisions.

Legitimacy, in turn, means effective implementation and encourages further participation. And responsive
institutions must be transparent and function according to the rule of law if they are to be equitable. These core
characteristics represent the ideal - and no society has them all.

Even so, UNDP believes that societies should aim, through broad-based consensus-building, to define
which of the core features are most important to them, what the best balance is between the state and the
market, how each socio-cultural and economic setting can move from here to there. UNDP is faced increasingly
with post-crisis situations and disintegrating societies. For them, the issue is not developing good governance - it
is building the basic institutions of governance. The first step is towards reconciliation - building society's ability to
carry on a dialogue on the meaning of governance and the needs of all citizens .

Good governance has major characteristics. It is participatory, consensus oriented, accountable,

transparent, responsive, effective and efficient, equitable and inclusive and follows the rule of law. It assures that
corruption is minimized, the views of minorities are taken into account and that the voices of the most vulnerable
in society are heard in decision-making. It is also responsive to the present and future needs of society.

1. Participation/Participatory

Participation by both men and women is a key cornerstone of good governance All men and women
should have a voice in decision-making, either directly or through legitimate intermediate institutions that
represent their interests. Such broad participation is built on freedom of association and speech, as well as
capacities to participate constructively. Participation could be either direct or through legitimate intermediate
institutions or representatives. It is important to point out that representative democracy does not necessarily
mean that the concerns of the most vulnerable in society would be taken into consideration in decision making.
Participation needs to be informed and organized. This means freedom of association and expression on the one
hand and an organized civil society on the other hand.

2. Rule of law

Legal frameworks should be fair and enforced impartially, particularly the laws on human rights. Good
governance requires fair legal frameworks that are enforced impartially. It also requires full protection of human
rights, particularly those of minorities. Impartial enforcement of laws requires an independent judiciary and an
impartial and incorruptible police force.
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Module 1, Topic 2

3. Transparency

Transparency is built on the free flow of information. Processes, institutions and information are directly
accessible to those concerned with them, and enough information is provided to understand and monitor them.
Transparency means that decisions taken and their enforcement are done in a manner that follows rules and
regulations. It also means that information is freely 38 available and directly accessible to those who will be
affected by such decisions and their enforcement. It also means that enough information is provided and that it is
provided in easily understandable forms and media.

4. Responsiveness

Institutions and processes try to serve all stakeholders. Good governance requires that institutions and
processes try to serve all stakeholders within a reasonable timeframe.

5. Consensus oriented

Good governance mediates differing interests to reach a broad consensus on what is in the best interests
of the group and, where possible, on policies and procedures. There are several actors and as many view points
in a given society. Good governance requires mediation of the different interests in society to reach a broad
consensus in society on what is in the best interest of the whole community and how this can be achieved. It also
requires a broad and long-term perspective on what is needed for sustainable human development and how to
achieve the goals of such development. This can only result from an understanding of the historical, cultural and
social contexts of a given society or community.

6. Equity and inclusiveness

All men and women have opportunities to improve or maintain their well-being. A society’s well being
depends on ensuring that all its members feel that they have a stake in it and do not feel excluded from the
mainstream of society. This requires all groups, but particularly the most vulnerable, have opportunities to improve
or maintain their well being.

7. 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.

8. Accountability

Decision-makers in government, the private sector and civil society organizations are accountable to the
public, as well as to institutional stakeholders. This accountability differs depending on the organization and
whether the decision is internal or external to an organization. Accountability is a key requirement of good
governance. Not only governmental institutions but also the private sector and civil society organizations must be
accountable to the public and to their institutional stakeholders. Who is accountable to whom varies depending on
whether decisions or actions taken are internal or external to an organization or institution. In general an
organization or an institution is accountable to those who will be affected by its decisions or actions. Accountability
cannot be enforced without transparency and the rule of law.

After knowing the different perspectives of good governance from the different sources , we can
safely say that:

Good governance is, among other things, participatory, transparent and accountable. It is also effective and
equitable, and it promotes the rule of law. Good governance ensures that political, social and economic priorities
are based on broad consensus in society and that the voices of the poorest and the most vulnerable are heard in
decision-making over the allocation of development resources.
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Module 1, Topic 2