GOOD GOVERNANCE A SCHEMATIC APPROACH Dr. jorge enrique romero – perez [email protected] . Prof. School of Law . University of Costa Rica Central America telfax ( 00- 506 ) 250 - 1160 P.O. 1264 Y griega 1011 San José Costa Rica Faculty of Law . University of Utrecht February 2002 1 CONTENTS Introduction 1 1. Definitions : 1 Democracy , Good governance , Governance , Transparency , Corruption , Public sector management 2. Functions of government 4 3. Effects of governance 4 4. Principles of good governance 5 5. Goals of good governance 6 6. Transparency 7 7. Corruption 10 8. Works of good governance 11 9. The promotion of good governance 11 10. Areas of the quality of governance 12 11. Administration of public resources 12 12. The topics of the role of public administration 13 13. The specific topics under the theme capacity – building in Public Administration 14 14 The roles for public development 14 15 State reforms 15 16 Sector private reform 18 Conclusions and Summary 19 References References selection Websities 2 ABBREVIATIONS CEC Commission of the European Communities ECOSOC Economic and Social Council ( of the UN ) EU European Union IADB Inter American Development Bank IMF International Monetary Found OECD Organization for Economic Co-Operation and Development UN United Nations UNCHR United Nations Commission on Human Rights WB World Bank WTO World Trade Organization Tell me and I’ll forget “ Show me and I’ll remember Involve me and I’ll understand “ Chinese proverb Key words : Democracy, Government , Good Governance, Transparency , Corruption , Human Rights , Rule of Law , Public Administration . 3 INTRODUCTION Good governance ensures the political , social and economic priorities are based on broad consensus in society and that the voices of the poores and the most vulnerable are heard in decision – making over the allocation of development resources Good governance is , among other things , participatory , transparent and accountable.It is also effective and equitable . And it promotes the rule of law . Good governance ensures that political , social and economic priorities are based on broad consensus in society and that the voice of the poorest and the most vulnerable are heard in decistion-making over the allocation of development resources . 1 . - DEFINITIONS 1.1. Democracy : 1.1. 1Government of the People ,by the People and for the People (USA President Abraham Lincoln , Gettysburg speeche 1863 ; 1809 – 1865 ) .Is necessary : “ with the People” .- 1.1. 2 Democracy , respect for the human rights and fundamental freedoms including : + the right to development + transparent and accountable governance + administration in all sector of society ,as well as active participation by civil society, are essential part of the necessary foundations for the realization of social - and people - centred sustainable development . Democracy 1.1.3 Democracy , development and respect for human rights and fundamental freedoms are interdependent and mutually 4 reinforcing . The link between democracy and development which is meant to be positive , can however , also be problematic . Democracy has raised development expectations . 1.2 Good Governance : 1.2.1 The effective and transparent management of public resources , and stable economic , regulatory . Legal environment conductive to the sound management . Efficient use of private and public resources . Rule of Law . Improving the efficiency and accountable of public sector . Tacking corruption . 1.2.2 Is the transparent and responsible assertion of authority and use of resources by goverments . 1.2.3 The exercise of economic ,political and administrative authority to manage a country ‘s affairs at all levels . 1.2. 4 Everyone has the right of equal access to public service . 1.2.5 Is synonimus with sound development management . 1.2.6 Good governance in the words of the UNCHR : Democracy , respect for all human rights and fundamental freedoms ,including the right to development ,transparent an accountable governance and administration in all sector of society, as well as active participation by civil society , are an essential part of the necessary foundations for the realization of social - and people -centred sustainable development . (Resolution 1998 /2 ) . 5 The independence of officials and agencies responsible for ensuring with good governance is essential to reduce the possibility of political interference and the influence of vested interests and establish the credibility of the agencies . 1.3 Governance 1.3.1 The manner in which power is exercised in the management of a country ‘s economic and social resources for development . 1.4 Transparency 1.4. 1 Transparency is a guarantee that we can know who did what , when and why , which allows us to determine political , legal and administrative responsibilities . 1.4.2 Transparency in government operations is wedely as an important precondition for macroeconomic fiscal accountability , good governance and overall fiscal rectitude . Measures that promote transparency an courage adherence to sound public resource management practices are important . 1.5 Corruption 1.5.1 The abuse of public office for private gain ( World Bank ) . Public office is abused for private gain when a official accepts , solicits ,or extorts a bride . It is also abused when private actively offer brides to circumvent public policies and processes for competitive advantage and profit . corruption 1.5. 2 C = M + D - A 6 C : corruption M : monopoly D : discretion A : accountability Corruption will tend to emerge when an organization or person has monopoly power over a good or service which generates rent , has the discretion to decide who will recive it ( thus on how rents will be allocated ) , and is not accountable . Monopoly rents can be large in highly regulated economies , ad corruption itself often breeds demand for more regulations . The discretion of public officials may be large , exacerbated by badly defined , ever - changing and poorly dissemined and regulations . Accountability may be weak . 1.6 Public sector management The capacity of the State to perform its functions in the service of society , through its people , systems , processes and structures . 2. FUNCTIONS OF GOVERNMENT 2.1 Promoting an enabling environment for development . 2.2 In the absence of a sufficient driving force form other social institutions , through their leadership role and for periods of time , working as the engine of development . 2.3. Playing a major role in building development capacity . 2.4 Undertaking to remedy the development deficiencies and failings of other social institutions . 3. EFFECTS OF GOVERNANCE 3.1 Promoting economic stability and high quality grown . 3.2 Promoting good governance including the Rule of Law . Effects of Governance 3.3 Improving the efficiency and accountability of the public sector . 7 3.4 Tackling corruption . 3.4 Is central to creating and sustaining an environment wich fosters strong and equitable development, and it is an complement to sound economic policies . 4. PRINCIPLES OF GOOD GOVERNANCE 4.1 Prohibition of misure power or the principle of prohibition of detournement de pouvoir ( specialization- principle ) . 4.2 Prohibition of arbitrariness ( the principle of reasonnableness ) . 4.3 Legal certainty . 4.4 Confidence . 4.5 Equality . 4.6 Proportionality . 4.7 Carefulness . 4.8 Reasoning . 4.9 Sensible economics and social policies . 4.10 Democratic decisition-making . 4.11 Adecuate governmental transparency and financial accountability . 4.12 Creation of a market-friendly environment for development . 4.12 Measures to combat corruption , as well as respect for the Rule of Law . 4.13 Human Rights and Freedom of the press and expression . 4.13 Transparency . 4.14 Simplicity . 4.15 Accountability . 4.16 Fairness . 4.17 Openness . 4.18 Participation . 4.19 Effectiveness . 4.20 Coherence . 8 5. GOALS OF GOOD GOVERNANCE 5.1. Human rights . 5.2. Play a major role in assenting the effectiveness of economic and social policies of governments for sustainable development . 5.3 Financial transparency . 5.4 Quality of the public sector . 5.5 The effectiveness of public delivery . 5.6 The equity of taxtion by the government . 5.7 The quality of the legal and institutional framework that permits and proyects people to undertake independent activities withim the private sector and civil society are part and parcel of good governance . 5.8 Sustained economic growth . 5.9 The promotion of social development . 5.10 The facilitation of infrastructure development an the protection of the environment . 5.11 The promiton of public – private partneships . 5.12 The management of development programmes . 5.13 The maintenance of a legal framework for development . 5.14 The enhancement of policy development capacity . 5.15 Organizational strenghtening . 5.16 Improved civil service systems . 5.17 The strenghtening of financial management for development . 5.18 Human resource development for the public sector . 5.19 The development of administrative capacities for post- conflict and crisis conditions . 9 6 TRANSPARENCY ( positive face of the Public Administration ) Transparent enforcement of good governance can have an important demostration and breakthrough impact . 6.1 Transparency in government operations has several dimensions: First , transparency requieres the provisions of relieble information on the government’s fiscal policy intentions and forecats . Second , detailed data and information are requiered on government operations , including the publication of comprehensive budget documents that contain properly classified accounts for the general government and estimates of quasi- fiscal activities conducted outside the government . The third dimension consists of many behavioral aspects , including clearly established conflict-of-interest rules for elected and appointed officials , freedom -of- requirements , a transparent regulatory framework , public procurement and employment practices ,a code of conduct for tax officials , and published performance audits . Transparency improves the perfomance in the economy and facilities the achivement of the basic macroeconomic policy objetives . Transparency entails risks when the resulting behavior of some groups may be inimical to the general welfare or may erode the effectiveness of a specific policy instrument . transparency 6.2 Good practices in institutional transparency 10