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GOOD GOVERNANCE
The World Bank Approach

"Governance" and "good governance have become two of the most widely used
concepts in debates in Political Science, Public Policy, and International Relations. Also are
increasingly used in development studies usually as efforts to understand the reasons of the
problems on societies.
The topic of governance is an enormous one so this paper is a modest effort to
conceptualize somewhat it is governance which at this point will amount to nothing more than
an elaboration of the issue's complexity and the confused state of current discussions related
with it to conclude with the concept of governance and good governance according World
Bank.
We cannot define the prcised period of

the birth this concept but according to

Kaufman, early discussions about this concept go back to at least 400B.C. with the Kautilyas
Arthashastra, chief minister to the King of India, written in the 4th century BC, considered also
as the first known Indian treatise on Public Administration. In this treatise on governance are
presented key pillars of the art of governance emphasizing justice, ethics, and anti-autocratic
tendencies. He considered the State as an institutional necessity for human advancement
outlining what State should do and described how it should be managed for the maximum
happiness of its citizens: In the happiness of his public rests the kings happiness, in their
welfare his welfare. He shall not consider as good only that which pleases him but treat as
beneficial to him whatever pleases his public.1
John Pierre and Guy Peters are two authors traits those theoretical and conceptual
issues,. Resuming their argument, the governance concept includes the change of the 20 the
century state model and the 21 st century state model. According to them first in the public
sphere and the Weberian model of public service characterized most of the advanced westerns
democracies for more than a century. This was essentially governance by law. The state was
distinctly separated from the rest of society but governed the society by imposition of the law
and other forms of regulation.

The present western society is becoming increasingly

horizontal. In the network models, the government is conceptualized as components of the

complex pattern of interaction. The state now seeks to play coordinating role, bringing
together public and private resources at little direct cost to the public budget.2

1
2

Governance in Classic India, Transparency International India,

John Pierre guy peters. Governance, Politics and the State, pps 15- 16, 35, 55

The usage of the concept of governance, then, is applied in many different contexts
and is related to many different theoretical debates. Despite all the plural definitions, it could
be found a common understanding says Danish political scientist, Kjr, that governance
refers to something broader than government and the core contents are legitimacy, efficiency,
democracy and accountability 3
In 1992, World Bank defines governance as a method through which power it is
exercised in the management of a countrys political economic and social resources for
development. The concept of good governance was introduced by the World Bank as
referring to good government practices. This concept afterwards denoted the accountability,
transparency, responsiveness, a strong civil society, and clean government.4 Good
governance is an essential complement to sound economic policies. Efficient and accountable
management by the public sector and a predictable and transparent policy framework are
critical to the efficiency of markets and governments, and hence to economic development.
Four areas of governance that are consistent with the Bank's mandate and which are
the most importang goals that should be faced by governements are e: public sector
management, accountability, the legal framework for development, and information and
transparency. It focuses on the last three areas, analyzes issues of relevance to the Bank, and
cites examples of Bank experience and best practice in each area. 5 To resume according to
Kaufman governance has to do with the traditions and institutions by which authority in a
country is exercised. This includes (a) the process by which governments are selected,
monitored and replaced; (b) the capacity of the government to effectively formulate and
implement sound policies; and (c) the respect of citizens and the state for the institutions that
govern economic and social interactions among them.6
Also Kaufman and his group constructed six aggregates governance indicators (the
indicators are detailed and the total 45 items in 1997 increased to 116 items in 2002 and 190
items in 20005 7 The six dimensions of governance are Voice and Accountability (VA); Political
Stability and Absence of Violence/Terrorism (PV);

Government Effectiveness (GE);

Introduction to International Development Studies: An Interdisciplinary Approach to Developemnt Studies,"

originally published in Japanese in December 2009
4
Anne Mette Kjaer, An overview of its usages, Conference on Democratic Network Governance, Helsingr,
2001.
5
Worl Bank, Governance and Development, Washington, 1992.
6
Daniel kaufman, Art kraay, Massimo Mastruzzi, Governance matters, governance indicators for 1996=2002,
2005
7
Daniel kaufman, Art kraay, Massimo Mastruzzi, Governance matters, governance indicators for 1996=2002,
2005

Regulatory Quality (RQ); Rule of Law (RL); Control of Corruption (CC). The indicators are
based on several hundred individual variables measuring perceptions of govern-ance, drawn
from 35 separate data sources constructed by 32 different organizations from around the
world Despite the number of the indicators that can be measured he states that no one
indicator, or combination of indicators, can provide a completely reliable measure of any of
these dimensions of governance.8
Thomas Weiss, another author who works on governance issues, describes the distinct
significance of the term governance used in various international organizations. The World
Banks position on governance is preoccupied with public sector managementbut is not
framed as central to a conception of and strategy for governance that as a priority seeks to
maximize local participation in addressing the most pressing needs in a given community. In
contrast, UNDPs and UN systems evolving human development approach to governance
exhibits relatively greater support for empowermentThe Bank may not be adverse to these
issues but treats them as second order concepts. 9
UNDP defined governance as the exercise of political, economic and administrative
authority in the management of a countrys affairs at all levels Governance is the exercise of
economic, political and administrative authority to manage a countrys affairs at all levels. It
comprises the mechanisms, process and institutions through which citizens and mediate their
differences.10-11
The Danish author Kjr embeds governmental economic growth policy into part of
governance. She states that exist three economical governance models: economic liberalist
model of governance, during the 19 century, the Keynesian model, dominant for the most of
the twentieth century and the neoliberal. Economic governance is about setting rules that
induce economic actors to cooperate more effectively with each other and that support the
implementation of economic policy. 12

Daniel Kaufmann Aart Kraay, Governance Indicators: Where Are We, Where Should We Be Going?
Introduction to International Development Studies: An Interdisciplinary Approach to Developemnt Studies,"
originally published in Japanese in December 2009
10
http://mirror.undp.org/magnet/policy/
11
Thomas Weiss, in his 2000 research paper, describes well the distinct significance of the term governance used
in various international organizations.
12
Kjr, Anne Mette, Governance, The State and Economic Development, 2004.
9

According to her in development studies there has been a critique on imposing the neo
liberal models of governance on the developing world based on the argument that this concept
is ideological and based on the currently dominant Anglo American liberal, pluralist
sociopolitical doctrine. She also states that the World Bank governance concept is not based
on the empirical study of the type of governance that has worked in promoting development.
Good governance was introduced by World Bank she explains in order to explain why
a number of countries failed to develop, in spite of the fact that they had adopted the
neoliberal adjusted policies imposed on them by International Momentary Fund and the
World Bank. The World Banks governance concept, for example, is not based on an
empirical study of the type of governance that has actually worked in promoting development,
argues Mick Moore: Such an empirical assessment would force recognition of the factors that
have promoted economic development in East Asia.13

13

Kjr, Anne Mette, Governance,2004.