What is meant by good governance, why has this concept become so popular among international financial institutions and policymakers and is it a force for democratic political change in Asia?

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What is meant by ‘good governance’, why has this concept become so popular among international financial institutions and policymakers and is it a force for democratic political change in Asia?

This essay will critically analyse available evidence to define what is meant by ‘good governance’. Using this established definition and by applying additional critical analysis, this essay will examine why the concept has become popular among international financial institutions and policymakers. Understanding why the concept has become popular will allow further analysis of the concept and provide an evidentiary basis for the determination that good governance can both act as a driver for democratic political change in Asia, and provide the means by which an established government may retard the advance of a liberal style democracy by using the tenets good governance. The basis of evidence will be formed by case studies that examine how good governance has been implemented in Asian governments; an examination of Malaysia will show how opposition movement have been able to use the lack of good governance in Malaysian policy to highlight the deficiencies in the ruling elite. Looking at Singapore will demonstrate how the same narrative on good governance, can be used by a ruling elite to demonstrate why their current system is sufficient and to therefore retard any progress toward real change. Understanding how these particular Asia governments have changed and either progressed or regressed in the context of democratic political change will establish that good governance can act to either progress or retard democratic political change in Asia

To begin to define what the terms good governance means, especially in the context of South Asian geographical locations, this paper will utilise the definitions as provided by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). Beginning with a definition of what Governance means, the UNESCAP paper offers this definition. Governance is the, “process of decision-making and the process by which decisions are implemented (or not implemented)”. UNESCAP goes on to define the main players in governance, listing government as one of the principle actors, but also highlighting the involvement of other actors depending on the context. IN rural areas we see the involvement of actors such as influential land owners, associations of peasant farmers, Non-Government Organisations (NGOs), research institutes, religious leaders, financial institutions, political parties and the military. In the urban context we add to his list the various social strata of the urban poor, the urban middle class and the urban elite, and various political entities such as unions and businesses.

At a national level we see the addition of media, lobbyists, international donors and multi-national corporations (MNCs), as well as other players who may play a role in influencing the decision making process. These various non –governmental actors are grouped together as ‘civil society’.  Finally in certain spaces we may also see criminal organisations acting as influencing factors.  This then is the basis of governance; the process of decision making and the process by which those decision are then implemented as policy, and the formal and informal actors that influence that process. What then is good governance?

Continuing to utilise the definitions provided by UNESCAP good governance rests on a foundation of eight specific principles. Firstly good governance must be participatory by both men and women, and take into account the most vulnerable elements of society. Participation can either be through direct participation or through legitimate intermediate representatives.  Secondly it must be consensus oriented. With some many actors involved in the general governance of any nation state there must be mediation process that facilities the broad consensus on what is in the interest for that particular society. Thirdly good governance must be an accountable variant of governing methodologies.  Accountability cannot simply be the sole responsibility of government, but all elements of that established civil society must be accountable to the general public and their institutional stakeholders and those that are affected by the decisions of those elements that make up the governing structures of a nation state. Fourthly good governance is transparent.  This means that the decision making processes, the decisions made and their enforcement, are done in a manner that follows the established rule set that governs the nation state. It also means that information about those processes must be freely available to those who seek that information. Fifthly good governance is responsive, and requires that processes and those in charge of those processes try as best they can to serve the stakeholders in a within a reasonable timeframe.  Sixthly good governance must be both effective and efficient. This translates to the best possible use of the resources that are required to meet the needs of the various stakeholders that make up a nation state in the most sustainable manner feasible. Seventhly there is a requirement that good governance is equitable and inclusive.  UNESCAP places a high degree of importance on this particular principle. A society that is governed well will see the benefits accrued to that society apportioned to all its members, inclusive of the most disadvantaged, and not simply allocate to elites or a stable middle class that can vocalise its need for those benefits. Opportunities to improve an individuals or groups particular societal standing must be freely available and supported by the state.  Lastly good governance dictates that the nation state must follow the rule of law, both internal rule sets and those external to the state such as international law, and the governing principles of international organisations.  This will require a robust legal framework that is enforced impartially and without favour for a particular element of society. It includes the promotion of human rights, and requires an independent judiciary and an impartial and incorruptible police force.  In addition to these eight principles, UNESCAP also highlights the importance of broader characteristics, such as a responsiveness to the present and future needs of society, the assurance that corruption will be minimised and the views of minorities will be heard.  This then defines what the term good governance means, what elements provide the foundation for assessing whether a state has a semblance of good governance inherent to its governing structures. Why then is the term so popular among international financial institutions and policymakers?

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The development of nation states is bound to the idea that it is money that drives any development. Martin Doornbos notes that while good governance served as a guiding principle for agencies committing development funds to ensure that the recipients adhered to certain best practise for over a decade, it is increasingly used as a criterion for selection for investment. Countries that do not exhibit signs of good governance will not qualify for development aid. The power of the World Bank to determine where development dollars flow allows the Bank to influence those receiving investments to change governing structures, fail to ...

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