Good Governance and its Characteristics

1. Attaullah Shah, Project Director AIOU-Islamabad.

2. Good Governance and its Characteristics By; Engr, Attaullah Shah BSc Engg ( Gold Medlaist), MSc Engg ( Strs), MBA, MA ( Eco) MSc Envir Design, PGD Computer Sc, PhD Scholar UET Taxila Engr. Attaullah Shah, Project Director AIOU-Islamabad.

3. Some quotes on good governance • Caliph Omar ( R.A.) declared that if a dog dies of hunger at the bank of Tigress, he is answerable to God. • A well balanced, inclusive approach, according to certain standards and ideals, is essential for the proper governance of any country. Laisenia Quarase • In situations of military conflict, civil strife, lawlessness, bad governance, and human rights violations, terrorists find it easier to hide, train and prepare their attacks. Gijs de Vries • Democracy, good governance and modernity cannot be imported or imposed from outside a country. Emile Lahud • I have just come out of an electoral experience with the people of my country in which I invited them to join me in a partnership for governance. Perry Christie • Our identities have no bodies, so, unlike you, we cannot obtain order by physical coercion. We believe that from ethics, enlightened self-interest, and the commonweal, our governance will emerge. John Perry Barlow Attaullah Shah, Project Director AIOU-Islamabad.

4. Aid can work where there is good governance, and usually fails where governments are unable or unwilling to commit aid to improve the lives of their people. Lee H. Hamilton • Until we totally change the way we elect our leaders, until we remove private money from public campaigns, lying will be the de facto method of governance in this country. Peter Schuyler • It must be remembered that the Bush White House has a separate talent for character assassination that must not be confused with a talent for governance. Richard Dreyfuss • Regional exchange can be a source of growth and development, and of enhancing good governance. Anna Lindh • It is time for the world, the hemisphere and the region to make sure that relevant institutions of civil society and relevant laws are embedded in the mechanisms of governance. Baldwin Spencer • The WTO has one of the most impressive records in global economic governance, by promoting trade liberalization and economic development. Anna Lindh • “It is good governance by good people that we need. And feudal kings, even dictators, have provided and can provide good governance.” Mohatir Attaullah Shah, Project Director AIOU-Islamabad.

5. “Good governance and development are important goals in their own right and they reinforce each other... Without the rule of law and respect for human rights; without transparency and accountability; and unless governments derive their power legitimately, through the ballot box, the path to prosperity is likely to be more difficult, and gains would remain fragile and reversible”. - Mr. Kofi A. Annan, former UN Secretary-General Attaullah Shah, Project Director AIOU-Islamabad.

6. What is good Governance • Governance describes the process of decision-making and the process by which decisions are implemented (or not implemented). • Governance can be used in several contexts such as corporate governance, international governance, national governance and local governance. • Good governance defines an ideal which is difficult to achieve in its totality. • However, to ensure sustainable human development, actions must be taken to work towards this ideal • Government is one of the actors in governance. • Other actors may include influential land lords, associations of peasant farmers, cooperatives, NGOs, research institutes, religious leaders, finance institutions political parties, the military etc. Attaullah Shah, Project Director AIOU-Islamabad.

7. ‘Governance’ is the exercise of power or authority – political, economic, administrative or otherwise – to manage a country's resources and affairs. • It comprises the mechanisms, processes and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences. • ‘Good governance’ means competent management of a country’s resources and affairs in a manner that is open, transparent, accountable, equitable and responsive to people’s needs. Attaullah Shah, Project Director AIOU-Islamabad.

8. An academic definition of public sector governance includes • the process by which governments are selected, monitored and replaced; • the capacity of the government to formulate and implement policies effectively; and • the respect of citizens and the state for the institutions that govern economic and social interactions among them Attaullah Shah, Project Director AIOU-Islamabad.

9. Six use of ‘Governance’ • As a minimal state: This use is a blanket term redefining the extent and form of public intervention and the use of markets and quasi-markets to deliver ‘public’ services. ‘Governance is the acceptable face of spending cut (Stoker, 1997).’ Mostly political rhetoric (public expenditure fell remained roughly constant as % of GDP)? Attaullah Shah, Project Director AIOU-Islamabad.

10. As a corporate governance: Governance is the system by which organisations are directed and controlled. The governance role is not concerned with running the business of the company, per se, but with giving overall direction to the enterprise, with overseeing and controlling the executive actions of management and with satisfying legitimate expectations for accountability and regulation by the interests beyond the corporate boundaries. Attaullah Shah, Project Director AIOU-Islamabad.

11. As a corporate governance: A report of the Chartered Institute of Public Finance and Accountability identifies three fundamental principles. • openness or the disclosure of information; • integrity or straightforward dealing and completeness; • accountability or holding individuals responsible for their actions by a clear allocation of responsibilities and clearly defined roles. Attaullah Shah, Project Director AIOU-Islamabad.

12. As the new public management (NPM): Initially NPM had two meanings: managerialism and the new institutional economics. Clearly NPM and entrepreneurial government share a concern with competition, markets, customers and outcomes. This transformation of the public sector involves ‘less government’ (or less rowing) but ‘more governance’ (or more steering). Attaullah Shah, Project Director AIOU-Islamabad.

13. As ‘Good Governance’:For WB, governance is the exercise of political power to manage nation’s affairs and good governance involves an efficient pubic service, an independent judicial system and legal framework to enforce contracts; the accountable administration of public funds; an independent public auditor, responsible to a representative legislature; respect for the law and human rights at all levels of government; a pluralistic institutional structure, and a free press. Attaullah Shah, Project Director AIOU-Islamabad.

14. As a socio-cybernetic system: Policy outcomes are not the product of actions by central government but results of interactions of all involved mutually dependent actors including central and local governments, the voluntary sector, and the private sector. Central government is no longer supreme. This definition can be used also in the international system. Attaullah Shah, Project Director AIOU-Islamabad.

15. As self-organising networks: This use sees governance as a broader term than government with services provided by any permutation of government and the private and voluntary sectors. As British government creates agencies, bypasses local government, uses special-purpose bodies to deliver services, and encourages public-private partnerships, so networks become increasingly prominent. Governance is about managing networks and it is not limited to the public sector. Attaullah Shah, Project Director AIOU-Islamabad.

16. Attaullah Shah, Project Director AIOU-Islamabad.

17. Characteristic of good governance Attaullah Shah, Project Director AIOU-Islamabad.

18. Participation • Participation by both men and women is a key cornerstone of good governance. Participation could be either direct or through legitimate intermediate institutions or representatives. • This means freedom of association and expression on the one hand and an organized civil society on the other hand Attaullah Shah, Project Director AIOU-Islamabad.

19. Rule of law • 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 Attaullah Shah, Project Director AIOU-Islamabad.

20. Transparency • 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 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. Attaullah Shah, Project Director AIOU-Islamabad.

21. Responsiveness • Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe. Attaullah Shah, Project Director AIOU-Islamabad.

22. Consensus oriented • 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. Attaullah Shah, Project Director AIOU-Islamabad.

23. Equity and inclusiveness • All groups, but particularly the most vulnerable, must have opportunities to improve or maintain their well being. Attaullah Shah, Project Director AIOU-Islamabad.

24. Effectiveness and efficiency • 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. Attaullah Shah, Project Director AIOU-Islamabad.

25. Accountability • Not only governmental institutions but also the private sector and civil society organizations must be accountable to the public and to their institutional stakeholders. • 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. Attaullah Shah, Project Director AIOU-Islamabad.

26. Principles of Democratic Governance Attaullah Shah, Project Director AIOU-Islamabad. • The word ‘democracy’ derives from the name given to the ancient Greek arrangement of citizens self-government: demokratia, meaning ‘rule of the people’. • The core idea of democracy comprises two principles about decision-making competence with respect to public affairs: • Decision-making needs to be subject to the control of those affected  Control be distributed among those affected on the basis of equality

27. POLITICAL PRINCIPLES • Good governance is based on the establishment of a representative and accountable form of government. ■ Good governance requires a strong and pluralistic civil society, where there is freedom of expression and association. ■ Good governance requires good institutions – sets of rules governing the actions of individuals and organizations and the negotiation of differences between them. ■ Good governance requires the primacy of the rule of law, maintained through an impartial and effective legal system. ■ Good governance requires a high degree of transparency and accountability in public and corporate processes. A participatory approach to service delivery is important for public services to be effective. Attaullah Shah, Project Director AIOU-Islamabad.

28. ECONOMIC PRINCIPLES • Good governance requires policies to promote broad-based economic growth, a dynamic private sector and social policies that will lead to poverty reduction. Economic growth is best achieved in an efficient, open, market based economy. ■ Investment in people is a high priority, through policies and institutions that improve access to quality education, health and other services that underpin a country’s human resource base. ■ Effective institutions and good corporate governance are needed to support the development of a competitive private sector. In particular, for markets to function, social norms are needed that respect contract and property rights. ■ Careful management of the national economy is vital in order to maximize economic and social advancement. Attaullah Shah, Project Director AIOU-Islamabad.

29. Major Problems faced by Pakistan • Poor management of resources, disparities in the pace and level of development across provinces and across districts. • Denial of basic needs of food, water and shelter to a substantial proportion of the population. • Marginalization, exclusion or even persecution of people on account of social, religious, ethnic or even gender affiliations. • Lack of sensitivity, transparency and accountability in many facets of the State machinery, particularly those that have an interface with the public. • Lack of credibility – the gap between the intent and the actions – of some institutions in society. Attaullah Shah, Project Director AIOU-Islamabad.

30. Inadequate application of rules, evasion of taxes and failure in getting timely justice. • Existence of a significant number of voiceless poor with little opportunities for participating. • Deterioration of physical environment in the urban and rural areas Attaullah Shah, Project Director AIOU-Islamabad.

31. Approaches for good Governance in Pakistan • Devolution • Police Reforms • Participation, Civil Society, and Social Capital • Access to Justice • Corporate Governance • Public Sector Management • Capacity Building • e-governance Attaullah Shah, Project Director AIOU-Islamabad.

32. The Fact • Good governance, to tell the bitter truth rather very painfully and regretfully, has withered away in thin air even before it became visible in any form. Attaullah Shah, Project Director AIOU-Islamabad.

33. Pakistan Attaullah Shah, Project Director AIOU-Islamabad.

34. Attaullah Shah, Project Director AIOU-Islamabad.

35. Attaullah Shah, Project Director AIOU-Islamabad.

36. Attaullah Shah, Project Director AIOU-Islamabad.

37. Challenges and Opportunities for Pakistan • Population: Pakistan would have the world’s fifth largest population with a population ranging between 230 and 260 million, of which 130-140 million are expected to be living in urban areas. • Employment: Employment generation and matching of skills in a changing workplace will be central to poverty elimination, economic growth, and social stability. • Resources: Natural resources will be severely depleted and stressed, especially water and land. The greatest threat would be faced by the arid parts of the planet, including Pakistan. • Sustainability: The battle for biodiversity in the context of mankind’s quest for high growth will determine the future of the planet. • Climate Change: The resource crunch will be aggravated by the looming climate change, Attaullah Shah, Project Director AIOU-Islamabad.

38. Food: Globally, food security will be under threat as much from degraded land and insufficient production, as it will be from a growing demand for different foods and higher nutrition requirements. • Energy: The world will demand even more energy, on the wave of rapidly growing demand from Asia; it will be in short supply, and may not be affordable. Pakistan too will require enormous amounts of energy to meet its developmental challenges, and to attain and sustain its vision for growth. • Rural and Urban Dimensions: In 2007, more people will live in urban habitats than rural areas for the first time in human history. Pakistan too will face the challenge of managing approximately 80 million more city dwellers by 2030 • The Race for Talent: Men and women of talent and skills will be valued and sought after by all nations, driven by changes in the nature of work and the workplace, demands for greater productivity and innovation, and to make up for aging populations. • Political Aspects: Governments and societies will be under strain from economic globalization and the dispersion of technologies, especially information technologies. Attaullah Shah, Project Director AIOU-Islamabad.

39. Social Aspects:Globally, societies will move inexorably towards a creeping mono-culture. However, to ensure a fulfilling environment, we must ensure that Pakistanis will lead a richer and better quality life in 2030, within the framework of social justice based on our rich and diverse cultural heritage. • Gender Parity: Attaining gender parity and youth literacy remains a challenge due to large regional variations and low female enrolment in rural areas. • Just Society: Like all successful nation states in 2030, Pakistan too will continue to be multiethnic, multi-cultural, and multi-religious, and Pakistan would need to effectively manage its transition to a just society and a developed nation. • Techno-Economic-Knowledge Revolution: The ongoing massive economic globalization and dispersion of information and technology is changing the scale and nature of human enterprise. Attaullah Shah, Project Director AIOU-Islamabad.

40. Globally Integrated Economy: By 2030 economies are likely to diffuse across national boundaries into truly global supply chains, whether in industry, services or ownership. • Markets and Trade Liberalization: There will be fierce competition in both domestic and external markets. • Electronically Networked World Economy: A new economic landscape is being created globally that highlights a shift from geographical industrial clusters to virtual clusters, driven by digital innovation. • Nature of Work and Workplace: Several factors are influencing work and employment in the emerging global 24 hour / 7 day societies and economies of but nearly all of them are technology related. • The Asian Region: The most abrupt transformation is occurring in Asia which is expected to be the engine of global growth and consumption in the foreseeable future Attaullah Shah, Project Director AIOU-Islamabad.

41. The Global Paradigm for Pakistan • Only those countries would grow rich and powerful in the 21st century who: • Position Themselves for Competitive Advantage • Generate Knowledge and Innovate for High Growth • Use Globalization to Attract Relocation of Manufacturing , Design , and Services • Attract and Retain Foreign Funds including Foreign Private Investment • Move Rapidly into Regional and Global Hubs • FAILURE WILL LEAD TO MARGINALISATION Attaullah Shah, Project Director AIOU-Islamabad.

42. Many Challenges for 2030: Take Just Four • Energy • Water and Agriculture • Demographics • Urbanization Attaullah Shah, Project Director AIOU-Islamabad.

43. Energy for Growth: • Energy security plan 2030 already approved (MTDF) • Total primary energy consumption to rise 7 fold (55 to 360 MTOE by 2030) • Power generation : from 19,540 MW to 162,590 MW • Major shift planned: to coal, nuclear, and renewable • Pakistan is running out of useable, affordable energy … more efficient use absolutely vital Attaullah Shah, Project Director AIOU-Islamabad.

44. Water and AgricultureHigh growth rates in agriculture unrealizable with: • Present technology, practice and attitude • Low water storage, high wastage • Sub-optimal cropping pattern • Demographics: 218 million in 2030 (over 60 % urban) • To realize the dividend of demographic transition investment in HRD is of critical importance: • Employment opportunities • Productivity increase Attaullah Shah, Project Director AIOU-Islamabad.

45. Urbanization 2030 • Global Urban Dwellers exceeded those in rural areas for the first time in human history in 2005 … [Shenzhen, a small town, now has reached a higher population than London in only 20 years] • In Pakistan, too, more and more settlements will grow into their equilibrium size – optimal and functional hierarchies of settlements. • Pakistan’s urban population is projected to increase from the current 55 million to about 130 m by 2030 • … another 70-80 million people in only 25 years! • Housing? Services? Slums? Unemployment? Social cohesion? Attaullah Shah, Project Director AIOU-Islamabad.

46. The Changing Face of Competition Competitive advantage will be achieved through: – Excellence of public institutions – Knowledge, information, skill levels and competence in technology ….. and its assimilation – Macroeconomic environment restructuring and reform of the educational system – Enablers of the knowledge economy – Legal and regulatory infrastructure for IPR and resolution of commercial disputes Attaullah Shah, Project Director AIOU-Islamabad.

47. PAKISTAN- Vision 2030 …….. Developed, industrialized, just and prosperous Pakistan through rapid and sustainable development in a resource constrained economy by deploying knowledge inputs Attaullah Shah, Project Director AIOU-Islamabad.

48. Essence of Survival“Every morning in Africa, a Gazelle wakes up,it knows it must run faster than the fastest Lion or it will be killed. Every morning a Lion wakesup, it knows it must outrun the slowest Gazelle orit will starve to death. It does not matter whetheryou are a Lion or a Gazelle – when the sun comes up; You’d better be running.” Attaullah Shah, Project Director AIOU-Islamabad.