Good governance

Week 3
Theme objectives
• To discuss the concept of governance in Africa
• Discuss the following issues
 Democratic transitions
 Political inclusiveness
 Voice and accountability
 Economic management
• Discuss some major challenges to good governance in
Over the decade and recently, governance has become a
key concept in the international development debate and
policy discourse.
 There has a historical record of bad governance in Africa,
Improving the governance environment has been given a
major focal point
New Partnership for Africa’s Development (NEPAD) –
Is an initiative that represents the latest attempt by African leaders
• This is an effort to steer the African continent on a path of
sustainable development,
• Which should embrace good governance and success
 consolidation of peace,
 security, and
 Political stability.
The capable state deals head on with corruption, which
 impedes development and
 minimizes the ability of governments to reduce poverty.
 The Capable State builds an enabling environment for
the private sector
to generate economic growth,
jobs and income.
 At the core of this is
political and policy stability and
a fair and consistent application of the rule of law
Key Focal Point for Governance
• NEPAD suggest the following keys for
sustainable development:
proper adherence to good political,
economic, and
corporate governance.
 The capable state creates an enabling political and legal environment for
economic growth and promotes the equitable distribution of the fruits of growth.
 But growth must also be coupled with policies that deliberately attack
 poverty
 promote education,
 health, and
 social safety nets.
 This requires
 sound macro-economic management,
 institutional reform, and
 investment in human resources development.
 Sustained poverty reduction results when growth is equitable.
 And the best way to achieve that is by building strong forms of democratic
governance at all levels.
Definition of Governance
• Definition:
• We define Governance as actions that has to do with the manner in
which responsibility is discharged.
• Such a responsibility may be acquired through
• election;
• appointment or delegation in the public domain or in the area of
commerce - corporate governance.
• Therefore, we say that Good governance would mean a condition
whereby such responsibility is satisfied in
• an effective,
• transparent, and
• accountable manner
Good Governance
 Good governance entails the existence of efficient and accountable
 Political,
 Judicial,
 Administrative,
 Economic,
 Corporate
Rules that will
 promote development,
 protects human rights,
 respects the rule of law, and
 ensures that people are free to participate in, and be heard on, decisions that
affect their lives.
Good Governance….
• It has been demonstrated that good governance can be
positively correlated with the achievement of better growth
rates, and
• particularly through the building of institutions in support of
• Recent empirical analysis suggests a positive correlation
 democratic governance and the levels of income,
 investment,
 human capital,
 economic liberalization, and
 distributive income growth in society.
Quotes on Good governance…
 Kofi Anan-Former UN Secretary General said:
“good governance is perhaps the single most important factor in
eradicating poverty and promoting development”
 And a former Kenyan Vice-President also noted that “good
political and economic governance underpins sustainable
 African leaders have recognized the prominent importance of
good governance for achieving sustainable development
 They have set out principles pertaining to the strengthening
of democracy and political governance as well as
economic and corporate governance (NEPAD, 2003).
New partnership for African’s
Development - NEPAD
 Emphasize is placed on
• democracy,
• respect for human rights,
• peace, and
• good governance
 Principles here is to contribute to the strengthening of the
political and administrative framework of African countries
 If this is the case, why do we continue to see negation in
development and circles of poverty in SSA?
NEPAD framework document
• The institutional reforms to strengthen political
governance in Africa will need to focus on:
the administrative and civil services;
the strengthening of parliamentary oversight;
the promotion of participatory decision-making;
the adoption of effective measures to combat corruption and
embezzlement; and
the undertaking of judicial reforms.
Institution Performance
• In post-independence Africa, African leaders themselves are
pointing to the shortcomings of the institutional structure over
which they preside directly and/or have much say.
• Institutions, and public institutions in particular, have been a
failure in Africa.
• Many of these institutions have been captured by the elite to
serve narrow personal interests.
• The resultant effect has been the lack of the ability of the state
to provide the requisite institutional framework to support good
Institution performance…..
• In many African countries, both the public and private
sectors do not operate according to widely accepted rules
that are transparent and enforced by accountable
institutions, Why?
• We need to explore this further
Four Positive trends in Africa
 Democratic transitions,
Political inclusiveness,
Voice and accountability,
Economic management.
Democratic Transitions in Africa
Significant strides have been made in many African
countries, evolving from authoritarian or military regimes
to more democratic dispensations.
Where state institutions and processes are gradually
being reconstructed to promote the values of good
Indeed, elections have become the only acceptable basis
for choosing and alternating leadership.
Democratic Transitions in Africa…(2)
In 2004, Benin, Ghana, Kenya, Madagascar, Senegal,
and Zambia, incumbent regimes have all been defeated in
multi-party elections.
Last year, in Kenya, Madagascar, Ivory Coast, year
before that Zimbabwe, there has been disputed elections
which led to formation of multi-party government,
Democratic Transitions in Africa…(3)
Constitutions are being rewritten all over Africa, involving widespread
consultation with civil society.
Examples are found in
 Kenya,
 Nigeria,
 Zambia,
 Zimbabwe and
 Madagascar.
• Uganda has also gone through a similar process.
• Many African countries are increasingly seeking to ensure that the
executive and legislative arms of government reflect the
 profile of their people in regional,
 ethnic,
 racial and
 religious terms.
Political inclusiveness
Nigeria has adopted the principle, which is enshrined in
the Constitution,
Which will be done to accommodate the country’s
diversity in all state appointments.
Now it is more widely accepted in Africa that women’s
perspectives are needed at all levels of decision-making
if we are to achieve our sustainable development goals
Political inclusiveness…..Gender
Mozambique, Namibia, South Africa, and Uganda---
women occupy over 25% of national parliamentary seats,
The South African cabinet is composed of 30% women.
At the highest level of African governance, half of the
Commissioners of the African Union (AU) are women.
Questions for discussion:
1. In your own opinion, is this a good idea?
2. What are the benefits of having women involved in politics?
Political inclusiveness…
Governments are monitoring their commitments and
improve their policies and programs to better close the
‘gender gap.’
Countries are making their national accounts and budgets
more gender sensitive with a
view to aligning public expenditures with pro-poor--and pro-women-
Political inclusiveness and the Youth
The youth are still marginalized,
• both in terms of formal participation in politics and in influencing public
policy in vital areas such as on
 education, and
 job creation.
On average around 10 million new entrants come into Africa’s
labor market each year
Many of these are young people, the majority in rural areas.
• To make agriculture an attractive employment option for our youth,
• To equip them educationally to be entrepreneurs, and
• To create an environment for micro-enterprise to flourish.
Voice and Accountability
Avenues are being created to allow citizens to participate
in the political process and express their demands,
without fear of reprisal.
This is making the government more responsive to its
The process of democratization in Africa has induced
the explosive growth of civil society groups who have emerged to
promote and defend various interests.
Political inclusiveness
The media is now widely acknowledged across the continent
• to have an important role to play as a public watchdog in exposing
corruption and checking abuses of power.
The media has been prominent in defending
• human rights and upholding democratic transparency through the
effective monitoring of elections.
Increasingly in Africa, governments are also putting into
operation mechanisms and processes to check Executive
 For example significant initiatives, are the creations of
watchdog agencies like
 the Ombudsman and
Inspector or Minister of Governance in some African countries
Corruption in Africa
 Other countries have established independent Auditor-
General offices,
 charged with enforcing leadership codes of conduct,
 investigating decisions that might involve fraud, and
 generally promoting good governance in the country.
But there are efforts on the ground to deal effectively with
these critical challenges to good governance.
As an example, several governments have established
Anti-corruption commissions- ACC.
Corruption in Africa….(2)
 Corruption flourishes in Africa because most of the regulatory
institutions are
• still weak,
• lack autonomy, or
• are shady themselves.
Many people deem watchdog institutions to be totally controlled by
the Executive branch.
 People believe that, ‘‘big money’’ corruption flourishes in Africa due
to deals struck in Paris, DC, or in Houston, London, Brussels or
Zurich, How trues is this statement?
It is believed that these deals enrich
 a few Africans and their western partners,
 but cheat millions of Africans out of the fruits of the continent’s resources, and
particularly its oil.
Better Economic Governance
This focuses on public financial management and
Statistics shows that more countries are running smaller
deficits, meeting their targets for:
 revenue mobilization,
 managing their tax systems more effectively,
 improving fiscal transparency, and
 creating institutions and arrangements for better auditing of public
Better Economic governance…(2)
 On public expenditures,
• governments have declared a war on poverty and put policies in
• but tangible results have still eluded them.
 Insufficient resource allocation,
 poor targeting,
 inefficiencies in program implementation, and
lack of fiscal transparency are to blame.
• Most African countries are channeling a greater proportion
of their GDP to social services as compared to the
Policy Performance Stance
The Expanded Policy Stance Index, featured in Annual
Economic Report on Africa measures
 policy performance in macroeconomics,
 poverty reduction, and
 institution building
The five worst performers according to these indices were
 in conflict, or recovering from recent conflict, and
 consumed by considerable debt and
 political tensions
Policy performance Stance….(2)
The top performers, are well-managed with solid reform
agendas and a record of political stability and good
The top five:
• Botswana,
• South Africa,
• Mauritius,
• Namibia, and
• Tunisia
These countries have maintained sound economic
fundamentals with
lower foreign debt,
Lower budget deficits,
inflation, and
interest rates.
Top performers…
These are countries that have
healthier institutions of policy analysis and coordination and
more competent civil services.
 Pro-poor policies and targeting are more effective.
• And laws and regulations are more predictable and
transparent and applied more uniformly.
Corporate governance in Africa
 African countries recognizes the need to promote the
development of the private sector.
 They accept that the public sector alone is unlikely to mobilize
the resources required for economic development,
 They know that foreign direct investments (FDIs) will play a
decisive role in this process
Measures taken by African countries in this area are;
• granting tax and other incentives,
• creating institutions to facilitate the establishment and operation of
Corporate governance in Africa….(2)
 Targeting the informal sector so that it can become part of the
formal sector,
 Expanding and improving infrastructure facilities
 We should take note that, despite these measures and an
increase in the conviction of governments,
The overall environment is still not yet conducive enough to
attract foreign investment, Why?
The procedures and costs of starting and operating
businesses are still cumbersome and costly
Corporate governance in Africa…(3)
 World Bank study in 2006,
 Mentioned that it takes an average of about 4 days to satisfy the regulatory requirements to start
a business in North America,
 While in Africa it takes about nearly 70 days, or 17 times as long.
 Is this a good thing?
 Investment flows to Africa, especially foreign direct investment, lag behind
investments in other regions of the developing world, because of the red tape
 People going through all the paper works, trying to identify loopholes for siphoning
 The continent attracts less than 1% of global capital flows and accounts for less
than 1% of world trade – tiny value!
 For interest sake, the stock of capital flight from Sub-Saharan Africa is estimated
at $148 billion or 90 percent of the combined GDP.
Blueprint for Capital Flows to Africa
 The focal point should be on:
 Trade liberalization,
 Capacity building,
 Debt,
 Development assistance,
 Privatization, and
 Infrastructure development
 The US through USAID’s AGOA plan and OECD
continue to push for improvement in Africa’s economic
conditions and the climate for private sector investment.
Way forward
 In order to continue with the reform process,
 governments and citizens have to believe that it is worthwhile and yields benefits.
 Without tangible results, the citizenry is likely to be frustrated, resentful and ‘‘fatigued’’ by so-called
 We saw and witnessed the regime change in North Africa
 Whether it is in the process of going to court,
 paying a bill,
 opening a business,
 interacting with a Member of Parliament,
 or casting a vote,
 People want to see improvements in efficiency, transparency, and accountability.
 There is now a strong popular perception in Africa that upgrades in the delivery of
 the basics of education,
 health, sanitation,
 housing,
 electricity, and
 water
 They are seen as the major dividends of democracy and good governance.
Way forward….(2)
The capacity and autonomy of local governments, therefore, has to be
given due consideration in the governance agenda of African countries,
• because they are nearest to the rural communities where over 73% - 80% of Africa’s
population lives.
 Decentralized structure, community interests can be far better fielded.
Here we should note that, Capacity building is about identifying
concrete gaps in the institutions and organizations that work together
 to promote better outcomes, and providing the necessary policy and resources for
Identifying deficits at all levels of government will be critical to getting the
results that the African people are hoping for.
Way forward…(3)
 The revitalized Commission of the African Union (AU), and its priority of regional
integration is vital in that regard.
 It provides a viable framework for
 addressing the challenges of growing African economies,
 protecting the environment,
 utilizing our natural resources,
 fighting disease, and
 resolving conflict.
 Furthermore,
 the New Partnership for Africa’s Development (NEPAD),
 the AU, and
 the prospect of a Pan-African Parliament should continue to offer new promise on better
 The African Union’s conflict resolution efforts in several places including Burundi,
the Democratic Republic of Congo, and Liberia.
 Regional economic communities (RECs) have begun to create formal institutional
frameworks for peacekeeping - SADC in Zimbabwe, DR Congo.
Challenges for Africa
Collapsed states
Overburdened States
Nurturing Democracy
Gender equity
Alleviation of Poverty
Management of financial and natural resources
Ownership of governance reforms
Challenge for Africa
The implementation of the policies needed to meet the
WTO issues on market access
• How can a cotton farmer from Burkina Faso compete on the world
market in the face of huge US cotton subsidies?
Battle against the HIV/AIDS pandemic
Any observations or Questions
• How is good governance in the U.S?
Reflection questions: 126 points
In your own words, how would you define good governance?[5 point]
What does NEPAD stands for?[5 points]
What do you understand by term “Capable States”?[5 points]
What are the tow most important aspects to consider when building an enabling environment for
private sector to create jobs? [10 points]
There is a positive correlation between good governance and investment, human capital. True or
false. [5 points]
List four focal points for NEPAD. [8 points]
List five things that NEPAD Framework document focuses on in Africa. [10 points]
Name the four major positive trends in Africa? [8 points]
Explain what you understand by the concept of democratic transitions? [5 points]
Give example of countries in which constitutions have been rewritten, and give reason why this
was done? [10 points]
What you do understand by the following terms
Political inclusiveness? [5 points]
Voice and accountability? [5 points]
What would you suggest are the major causes of corruption in Africa? [5 points]
What measures are some countries in Africa putting in place to combat corruption? [5 points]
What are the major facets for better economic governance in Africa? [10 points]
What are measures suggested by African governments to lure FDIs? [5 points]
What are blueprint for capital flow in Africa? [10 points]
What are the major challenges for good governance in Africa? [10 points]
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