Charlotte McClain-Nhlapo Senior Operations Officer World Bank 26 th February, 2010

Defining Governance. The traditions and institutions by which authority in a country is exercised” – Kaufman et al The way “ … power is exercised through a country’s economic, political, and social institutions.” – the World Bank’s PRSP Handbook. "the exercise of economic, political, and administrative authority to manage a country’s affairs at all levels and the means by which states promote social cohesion and integration, and ensure the well- being of their populations’. (UNDP)

It seeks to: Embrace all methods used to distribute power and manage public resources, & the organizations that shape government & the execution of policy. Encompass the mechanisms, processes & institutions, through which citizens & groups articulate their interests, exercise their legal rights, meet their obligations & resolve their differences.

Good Governance ~ therefore Depends on public participation to ensure that political, social & economic priorities are based on a broad societal consensus & that the poorest & most vulnerable populations can directly influence political decision making, particularly with respect to the allocation of development resources. It also is effective and equitable, & promotes the rule of law & the transparency of institutions, officials, & transactions.

Good governance & MDGs Good governance is needed to achieve the MDGs & eradicate extreme poverty. Achieving the MDGs is not simply about money. It is about removing physical, legal, financial, socio- cultural and political barriers to basic services for all, in particular for the poor and disadvantaged groups.

It can be measured… The quality of governance may be measured according to a set of nine principles: 1. Inclusiveness and equity: the principle that no one can be excluded from the process of development on the basis of gender, race, religion etc. 2. Participation: the opportunity for people affected by the decision to influence the process of decision- making directly or indirectly.

Nine principles (cont) 3.Transparency: the degree to which the rules, standards and procedures for decision-making are open, clear, verifiable and predictable. 4. Efficiency: a measure of how economically resources are used to produce the intended results. 5.Effectiveness: a measure of the extent to which the intervention achieves its objectives. 6. Subsidiarity: the principle that decision-making takes place at the level most appropriate for the issue (usually the lowest level possible).

Principles (cont) 7. Adherence to the rule of law: the principle that every member of a society, even a ruler, must follow the law. 8. Accountability: the responsibility of a decisionmaker to explain and justify the decisions it made and implemented, and the results these produced. 9. Sustainability: The likelihood that the positive effects of an intervention will persist for an extended period after the intervention as such ends.

What can it achieve? Good governance ensures that the poor and other disadvantaged groups are included in decision-making about providing services that affect their lives & about the objectives of the resulting policies & programmes. The inclusion & involvement of the poor empowers them to become agents of their own development & to participate in other relevant areas. The adoption of a rights-based approach to development by governments can help to ensure inclusiveness and equity.

Good Governance fosters… the acquisition of new capacities, the establishment of new institutions, the promotion of new ways of working within existing organizations the formulation of new rules for interaction. the adoption of inclusive nondiscriminatory values & norms & the distribution of power between social groups, so that none is marginalized & loses the right to speak and be heard.

Good Governance in brief.. Refers to a high quality of processes by which decisions affecting public affairs are reached and implemented. Ensures that all, including the poor & other disadvantaged groups, are included & have the means: (a) to influence the direction of development in particular as far as it affects their lives, (b) to make contributions to development & have these recognized, (c) to share in the benefits of development & improve their lives & livelihoods. (d) to ensure that all people have adequate access to basic services.