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    The Essentials of Good Governance

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    deepali02
    1. The document outlines seven essentials of good governance: rule of law, defined functions of the state, securing fair competition, internalization of external effects, provision of public goods, investment in education, and regional integration and global compatibility. 2. It argues that good governance, defined by these seven essentials, is positively correlated with a society's success and is not a solely Western concept. 3. For societies and economies to thrive, the document asserts that good governance must be established through implementing the rule of law, ensuring state functions and fair competition, minimizing external costs, providing public goods and education, and integrating regions and cultures globally.

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    The Essentials of Good Governance

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    deepali02
    193 views2 pages
    1. The document outlines seven essentials of good governance: rule of law, defined functions of the state, securing fair competition, internalization of external effects, provision of public goods, investment in education, and regional integration and global compatibility. 2. It argues that good governance, defined by these seven essentials, is positively correlated with a society's success and is not a solely Western concept. 3. For societies and economies to thrive, the document asserts that good governance must be established through implementing the rule of law, ensuring state functions and fair competition, minimizing external costs, providing public goods and education, and integrating regions and cultures globally.

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    good governance

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    1. The document outlines seven essentials of good governance: rule of law, defined functions of the state, securing fair competition, internalization of external effects, provision of public goods, investment in education, and regional integration and global compatibility. 2. It argues that good governance, defined by these seven essentials, is positively correlated with a society's success and is not a solely Western concept. 3. For societies and economies to thrive, the document asserts that good governance must be established through implementing the rule of law, ensuring state functions and fair competition, minimizing external costs, providing public goods and education, and integrating regions and cultures globally.

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    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    193 views2 pages

    The Essentials of Good Governance

    Uploaded by

    deepali02
    1. The document outlines seven essentials of good governance: rule of law, defined functions of the state, securing fair competition, internalization of external effects, provision of public goods, investment in education, and regional integration and global compatibility. 2. It argues that good governance, defined by these seven essentials, is positively correlated with a society's success and is not a solely Western concept. 3. For societies and economies to thrive, the document asserts that good governance must be established through implementing the rule of law, ensuring state functions and fair competition, minimizing external costs, providing public goods and education, and integrating regions and cultures globally.

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    The Essentials of Good Governance By Friedemann Mueller and Philipp Mueller Mueller, Friedemann and Philipp Mueller.

    "The Essentials of Good Governance." Caspian Studies Program, Harvard enned! School of Government, "##". Friedemann Mueller is head of the Glo$al %ssue &esearch 'nit and Philipp Mueller is research associate at the (mericas &esearch 'nit at the German %nstitute for %nternational and Securit! (ffairs )S*P+ in ,erlin. *hat ma-es societies and economies successful. %s it the availa$ilit! of natural resources, climate, religion, ethnic multiplicit!, or access to foreign mar-ets. %ntuitivel!, each of these varia$les seems influential, even if a direct relationship $et/een them and a countr!0s success is impossi$le to identif!1 Finland and the 'nited States $oth ran- high on an! scale of success, even though their ethnic ma-eup is ver! different2 3or/a! and 3igeria $oth are endo/ed /ith similar energ! resources, $ut their success rates could not $e more different. There is, ho/ever, a positive correlation $et/een success and one varia$le1 good governance. %t has $ecome conventional /isdom that development aid can do more harm than good if aid mone! is channeled into societies /ith $ad governance, $ecause the mone! might $e used to sta$ili4e inefficient structures and increase corruption. Good governance is not a *estern concept. %t relies on the core values and human rights advocated $! all mem$ers of the 'nited 3ations and on the idea of open competition in a glo$ali4ing, d!namicall! changing /orld. Good governance rests on the follo/ing essentials1 5. Rule of law: ( societ! needs to implement the rule of la/. This means that the la/ is a$ove an! individual actor or group, even the most po/erful. The la/ must $e e6uall! valid for all mem$ers of the societ!. The legal s!stem must provide 7ustice and e6ual treatment for all groups and individuals of the societ!. This includes the o$servation of human rights. ". Functions of the state: The state must have a monopol! over the legitimate use of force in societ! and guarantee the enforcement of its la/s. The state must also offer a political process that guarantees the participation of all mem$ers of its societ! through some t!pe of representative process, and ensure that its chec-s and $alances /or- properl!. ,e!ond these functions, the state is an institution that must /orto ma8imi4e the $enefits of all of its mem$ers. 9. Securing fair competition: %n order to ma-e mar-et economies /or- efficientl!, an effective economic frame/or- is re6uired. The state has to assure that contracts are enforced )/hich re6uires an efficient legal and 7uridical s!stem+, a trusted medium of e8change e8ists )/hich re6uires consistent monetar! polic! and /ell:regulated financial mar-ets+, and that fair competition is guaranteed )/hich re6uires antitrust legislation, consumer protection legislation, intellectual propert! legislation+. ;. Internalization of external effects: The state is responsi$le for minimi4ing the negative side effects of production. %f a producer is a$le to shift the costs of environmental pollution to the pu$lic, this e8ternali4ation has the effect of an )undesired+ su$sid! to the producer, there$! distorting the mar-et signals. <. Public goods: Good governance re6uires the state to provide pu$lic goods /hich, $! definition, are not provided $! a mar-et, such as internal and e8ternal securit! )police=militar!+, a $asic infrastructure for transportation and communication, the preservation of the societ!0s cultural heritage, $asic education, and a social polic! that guarantees residents a minimum income and health care. (lthough the 6ualit! and 6uantit! of pu$lic goods depends on the economic /ealth and foundational philosoph! of a societ!, /ithout these goods a successful societ! cannot e8ist. >. Education: The state has the responsi$ilit! to ma-e optimal use of the intellectual resources of its societ!. This includes giving all children access to afforda$le education according to their a$ilities and protecting them from e8ploitation for short term gains, there$! securing a societ!0s longer term investment in ade6uate education. ?. Regional integration and global compatibility: %n a glo$ali4ing /orld, economies and societies cannot e8ist self:sufficientl!. Therefore, the! need to ma-e themselves more compati$le to other societies $! adhering to glo$al economic and social standards and integrating into larger mar-ets. This re6uires a state structure that can guarantee fair domestic competition even against po/erful e8ternal investors. &egional integration is not merel! a$out issues such as reduction of custom rates2 it should focus on the harmoni4ation of legal rules and standards in order to create via$le mar-ets and on accords /ith

    neigh$ors centering on the provision of regional pu$lic goods )securit!, /ater, environment, etc.+. These seven essentials offer a guideline for states to succeed in a glo$ali4ing /orld. The! are compati$le /ith all cultures, even if the implementation of these principles ma! not $enefit ever! actor in societ! e6uall!. *arlords, clan chieftains, or corrupt pu$lic officials /ill oppose such reforms. The vast ma7orit! of people from an! cultural $ac-ground, ho/ever, /ould /elcome the implementation of such good governance principles. Therefore, foreign aid needs to focus on assisting countries in developing, implementing, monitoring, and improving good governance.

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