Attaullah Shah, Project Director AIOU-Islamabad.
Good Governance and
its Characteristics
By; Engr, Attaullah Shah
BSc Engg ( Gold Medlaist), MSc Engg ( Strs), MBA, MA ( Eco)
MSc Envir Design, PGD Computer Sc, PhD Scholar UET Taxila
Engr. Attaullah Shah, Project Director AIOU-Islamabad.
Some quotes on good governance

Caliph Omar ( R.A.) declared that if a dog dies of hunger at the bank of
Tigress, he is answerable to God.

A well balanced, inclusive approach, according to certain standards and
ideals, is essential for the proper governance of any country. Laisenia
Quarase

In situations of military conflict, civil strife, lawlessness, bad
governance, and human rights violations, terrorists find it easier to
hide, train and prepare their attacks. Gijs de Vries

Democracy, good governance and modernity cannot be imported or imposed
from outside a country. Emile Lahud

I have just come out of an electoral experience with the people of my country
in which I invited them to join me in a partnership for governance. Perry
Christie

Our identities have no bodies, so, unlike you, we cannot obtain order by
physical coercion. We believe that from ethics, enlightened self-interest, and
the commonweal, our governance
will emerge. John Perry Barlow
Attaullah Shah, Project Director AIOU-Islamabad.

Aid can work where there is good governance, and usually fails where
governments are unable or unwilling to commit aid to improve the lives of their
people. Lee H. Hamilton

Until we totally change the way we elect our leaders, until we remove private
money from public campaigns, lying will be the de facto method of governance in
this country.
Peter Schuyler

It must be remembered that the Bush White House has a separate talent for
character assassination that must not be confused with a talent for governance.
Richard Dreyfuss

Regional exchange can be a source of growth and development, and of enhancing
good governance. Anna Lindh

It is time for the world, the hemisphere and the region to make sure that relevant
institutions of civil society and relevant laws are embedded in the mechanisms of
governance.
Baldwin Spencer

The WTO has one of the most impressive records in global economic governance,
by promoting trade liberalization and economic development.
Anna Lindh

“It is good governance by good people that we need. And feudal kings, even
dictators, have provided and can provide good governance.” Mohatir
Attaullah Shah, Project Director AIOU-Islamabad.
“Good governance and development are
important goals in their own right and they
reinforce each other... Without the rule of law
and respect for human rights; without
transparency and accountability; and unless
governments derive their power legitimately,
through the ballot box, the path to prosperity
is likely to be more difficult, and gains would
remain fragile and reversible”.
- Mr. Kofi A. Annan, former UN Secretary-General
Attaullah Shah, Project Director AIOU-Islamabad.
What is good Governance

Governance describes the process of decision-making and the process
by which decisions are implemented (or not implemented).

Governance can be used in several contexts such as corporate
governance, international governance, national governance and local
governance.

Good governance defines an ideal which is difficult to achieve in its
totality.

However, to ensure sustainable human development, actions must be
taken to work towards this ideal


Government is one of the actors in governance.
Other actors may include influential land lords, associations of peasant
farmers, cooperatives, NGOs, research institutes, religious leaders,
finance institutions political parties, the military etc.
Attaullah Shah, Project Director AIOU-Islamabad.

‘Governance’ is the exercise of power or authority –
political, economic,
administrative or otherwise – to manage a country's
resources and affairs.

It comprises the mechanisms, processes and institutions
through which citizens and groups articulate their
interests, exercise their legal rights, meet their
obligations and mediate their differences.

‘Good governance’ means competent management of a
country’s resources and affairs in a manner that is open,
transparent, accountable, equitable and responsive to
people’s needs.
Attaullah Shah, Project Director AIOU-Islamabad.

i.
ii.
iii.
An academic definition of public sector
governance includes
the process by which governments are
selected, monitored and replaced;
the capacity of the government to formulate
and implement policies effectively; and
the respect of citizens and the state for the
institutions that govern economic and social
interactions among them
Attaullah Shah, Project Director AIOU-Islamabad.
Six use of ‘Governance’
1.
As a minimal state: This use is a blanket term
redefining the extent and form of public
intervention and the use of markets and quasimarkets to deliver ‘public’ services.
‘Governance is the acceptable face of
spending cut (Stoker, 1997).’ Mostly political
rhetoric (public expenditure fell remained
roughly constant as % of GDP)?
Attaullah Shah, Project Director AIOU-Islamabad.
2.
As a corporate governance: Governance is
the system by which organisations are directed
and controlled. The governance role is not
concerned with running the business of the
company, per se, but with giving overall
direction to the enterprise, with overseeing and
controlling the executive actions of
management and with satisfying legitimate
expectations for accountability and regulation
by the interests beyond the corporate
boundaries.
Attaullah Shah, Project Director AIOU-Islamabad.
2.
(1)
(2)
(3)
As a corporate governance: A report of the
Chartered Institute of Public Finance and
Accountability identifies three fundamental
principles.
openness or the disclosure of information;
integrity or straightforward dealing and
completeness;
accountability or holding individuals
responsible for their actions by a clear
allocation of responsibilities and clearly defined
roles.
Attaullah Shah, Project Director AIOU-Islamabad.
3.
As the new public management (NPM):
Initially NPM had two meanings:
managerialism and the new institutional
economics. Clearly NPM and entrepreneurial
government share a concern with competition,
markets, customers and outcomes. This
transformation of the public sector involves
‘less government’ (or less rowing) but ‘more
governance’ (or more steering).
Attaullah Shah, Project Director AIOU-Islamabad.
4.
As ‘Good Governance’: For WB, governance
is the exercise of political power to manage
nation’s affairs and good governance involves
an efficient pubic service, an independent
judicial system and legal framework to enforce
contracts; the accountable administration of
public funds; an independent public auditor,
responsible to a representative legislature;
respect for the law and human rights at all
levels of government; a pluralistic institutional
structure, and a free press.
Attaullah Shah, Project Director AIOU-Islamabad.
5.
As a socio-cybernetic system: Policy
outcomes are not the product of actions by
central government but results of interactions
of all involved mutually dependent actors
including central and local governments, the
voluntary sector, and the private sector.
Central government is no longer supreme. This
definition can be used also in the international
system.
Attaullah Shah, Project Director AIOU-Islamabad.
6.
As self-organising networks: This use sees
governance as a broader term than
government with services provided by any
permutation of government and the private and
voluntary sectors. As British government
creates agencies, bypasses local government,
uses special-purpose bodies to deliver
services, and encourages public-private
partnerships, so networks become increasingly
prominent. Governance is about managing
networks and it is not limited to the public
sector.
Attaullah Shah, Project Director AIOU-Islamabad.
Attaullah Shah, Project Director AIOU-Islamabad.

Characteristic of good governance
Attaullah Shah, Project Director AIOU-Islamabad.
Participation

Participation by both men and women is a
key cornerstone of good governance.
Participation could be either direct or
through legitimate intermediate institutions
or representatives.

This means freedom of association and
expression on the one hand and an
organized civil society on the other hand
Attaullah Shah, Project Director AIOU-Islamabad.
Rule of law

Good governance requires fair legal frameworks
that are enforced impartially.

It also requires full protection of human rights,
particularly those of minorities.

Impartial enforcement of laws requires an
independent judiciary and an impartial and
incorruptible police force
Attaullah Shah, Project Director AIOU-Islamabad.
Transparency

Transparency means that decisions taken and
their enforcement are done in a manner that
follows rules and regulations.

It also means that information is freely available
and directly accessible to those who will be
affected by such decisions and their
enforcement.

It also means that enough information is
provided and that it is provided in easily
understandable forms and media.
Attaullah Shah, Project Director AIOU-Islamabad.
Responsiveness

Good governance requires that institutions
and processes try to serve all stakeholders
within a reasonable timeframe.
Attaullah Shah, Project Director AIOU-Islamabad.
Consensus oriented

Good governance requires mediation of the different
interests in society to reach a broad consensus in
society on what is in the best interest of the whole
community and how this can be achieved.

It also requires a broad and long-term perspective on
what is needed for sustainable human development and
how to achieve the goals of such development.

This can only result from an understanding of the
historical, cultural and social contexts of a given society
or community.
Attaullah Shah, Project Director AIOU-Islamabad.
Equity and inclusiveness

All groups, but particularly the most
vulnerable, must have opportunities to
improve or maintain their well being.
Attaullah Shah, Project Director AIOU-Islamabad.
Effectiveness and efficiency

Processes and institutions produce results
that meet the needs of society while
making the best use of resources at their
disposal.

The concept of efficiency in the context of
good governance also covers the
sustainable use of natural resources and
the protection of the environment.
Attaullah Shah, Project Director AIOU-Islamabad.
Accountability

Not only governmental institutions but also the
private sector and civil society organizations
must be accountable to the public and to their
institutional stakeholders.

In general an organization or an institution is
accountable to those who will be affected by its
decisions or actions. Accountability cannot be
enforced without transparency and the rule of
law.
Attaullah Shah, Project Director AIOU-Islamabad.
Principles of Democratic Governance

The word ‘democracy’ derives from the name given to
the ancient Greek arrangement of citizens selfgovernment: demokratia, meaning ‘rule of the people’.

The core idea of democracy comprises two principles
about decision-making competence with respect to
public affairs:

Decision-making needs to be subject to the control of
those affected
 Control be distributed among those affected on the
basis of equality
Attaullah Shah, Project Director AIOU-Islamabad.
POLITICAL PRINCIPLES

Good governance is based on the establishment of a representative and
accountable form of government.
■ Good governance requires a strong and pluralistic civil society, where
there is
freedom of expression and association.
■ Good governance requires good institutions – sets of rules governing the
actions of individuals and organizations and the negotiation of
differences between them.
■
Good governance requires the primacy of the rule of law, maintained
through an impartial and effective legal system.
■ Good governance requires a high degree of transparency and
accountability in public and corporate processes. A participatory
approach to service delivery is important for public services to be
effective.
Attaullah Shah, Project Director AIOU-Islamabad.
ECONOMIC PRINCIPLES

Good governance requires policies to promote broad-based
economic growth, a dynamic private sector and social policies
that will lead to poverty reduction. Economic growth is best
achieved in an efficient, open, market based economy.
■ Investment in people is a high priority, through policies and
institutions that improve access to quality education, health
and other services that underpin a country’s human resource
base.
■ Effective institutions and good corporate governance are
needed to support the development of a competitive private
sector. In particular, for markets to function, social norms are
needed that respect contract and property rights.
■ Careful management of the national economy is vital in order to
maximize
economic and social advancement.
Attaullah Shah, Project Director AIOU-Islamabad.
Major Problems faced by Pakistan

Poor management of resources, disparities in the pace and
level of development across provinces and across districts.

Denial of basic needs of food, water and shelter to a
substantial proportion of the population.

Marginalization, exclusion or even persecution of people on
account of social, religious, ethnic or even gender affiliations.

Lack of sensitivity, transparency and accountability in many
facets of the State machinery, particularly those that have an
interface with the public.

Lack of credibility – the gap between the intent and the
actions – of some institutions in society.
Attaullah Shah, Project Director AIOU-Islamabad.

Inadequate application of rules, evasion of taxes
and failure in getting timely justice.

Existence of a significant number of voiceless
poor with little opportunities for participating.

Deterioration of physical environment in the
urban and rural areas
Attaullah Shah, Project Director AIOU-Islamabad.
Approaches for good Governance in Pakistan
Devolution
 Police Reforms
 Participation, Civil Society, and Social Capital
 Access to Justice
 Corporate Governance
 Public Sector Management
 Capacity Building
 e-governance

Attaullah Shah, Project Director AIOU-Islamabad.
The Fact

Good governance, to tell the bitter truth
rather very painfully and regretfully, has
withered away in thin air even before it
became visible in any form.
Attaullah Shah, Project Director AIOU-Islamabad.
Pakistan
Attaullah Shah, Project Director AIOU-Islamabad.
Attaullah Shah, Project Director AIOU-Islamabad.
Attaullah Shah, Project Director AIOU-Islamabad.
Attaullah Shah, Project Director AIOU-Islamabad.
Challenges and Opportunities for Pakistan

Population: Pakistan would have the world’s fifth largest population with
a population ranging between 230 and 260 million, of which 130-140 million
are expected to be living in urban areas.

Employment: Employment generation and matching of skills in a
changing workplace will be central to poverty elimination, economic growth,
and social stability.

Resources: Natural resources will be severely depleted and
stressed, especially water and land. The greatest threat would be
faced by the arid parts of the planet, including Pakistan.

Sustainability: The battle for biodiversity in the context of
mankind’s quest for high growth will determine the future of the
planet.

Climate Change: The resource crunch will be aggravated by the
looming climate change,
Attaullah Shah, Project Director AIOU-Islamabad.

Food: Globally, food security will be under threat as much from degraded
land and insufficient production, as it will be from a growing demand for
different foods and higher nutrition requirements.

Energy: The world will demand even more energy, on the wave of rapidly
growing demand from Asia; it will be in short supply, and may not be
affordable. Pakistan too will require enormous amounts of energy to meet
its developmental challenges, and to attain and sustain its vision for growth.

Rural and Urban Dimensions: In 2007, more people will live in urban
habitats than rural areas for the first time in human history. Pakistan too will
face the challenge of managing approximately 80 million more city dwellers
by 2030

The Race for Talent: Men and women of talent and skills will be valued and
sought after by all nations, driven by changes in the nature of work and the
workplace, demands for greater productivity and innovation, and to make up
for aging populations.

Political Aspects: Governments and societies will be under strain from
economic globalization and the dispersion of technologies, especially
information technologies.
Attaullah Shah, Project Director AIOU-Islamabad.

Social Aspects: Globally, societies will move inexorably towards a
creeping mono-culture. However, to ensure a fulfilling environment, we
must ensure that Pakistanis will lead a richer and better quality life in
2030, within the framework of social justice based on our rich and
diverse cultural heritage.

Gender Parity: Attaining gender parity and youth literacy remains a
challenge due to large regional variations and low female enrolment in
rural areas.

Just Society: Like all successful nation states in 2030, Pakistan too
will continue to be multiethnic, multi-cultural, and multi-religious, and
Pakistan would need to effectively manage its transition to a just
society and a developed nation.

Techno-Economic-Knowledge Revolution: The ongoing massive
economic globalization and dispersion of information and technology is
changing the scale and nature of human enterprise.
Attaullah Shah, Project Director AIOU-Islamabad.

Globally Integrated Economy: By 2030 economies are likely to diffuse across
national boundaries into truly global supply chains, whether in industry,
services or ownership.

Markets and Trade Liberalization: There will be fierce competition in both
domestic and external markets.

Electronically Networked World Economy: A new economic landscape is
being created globally that highlights a shift from geographical industrial
clusters to virtual clusters, driven by digital innovation.

Nature of Work and Workplace: Several factors are influencing work and
employment in the emerging global 24 hour / 7 day societies and economies of
but nearly all of them are technology related.

The Asian Region: The most abrupt transformation is occurring in Asia which
is expected to be the engine of global growth and consumption in the
foreseeable future
Attaullah Shah, Project Director AIOU-Islamabad.
The Global Paradigm for Pakistan







Only those countries would grow rich and powerful in the 21st century
who:
Position Themselves for Competitive Advantage
Generate Knowledge and Innovate for High Growth
Use Globalization to Attract Relocation of Manufacturing , Design , and
Services
Attract and Retain Foreign Funds including Foreign Private Investment
Move Rapidly into Regional and Global Hubs
FAILURE WILL LEAD TO MARGINALISATION
Attaullah Shah, Project Director AIOU-Islamabad.
Many Challenges for 2030: Take Just Four
 Energy
 Water
and Agriculture
 Demographics
 Urbanization
Attaullah Shah, Project Director AIOU-Islamabad.

Energy for Growth:


Energy security plan 2030 already approved (MTDF)
Total primary energy consumption to rise 7 fold (55 to 360
MTOE by 2030)

Power generation : from 19,540 MW to 162,590 MW

Major shift planned: to coal, nuclear, and renewable

Pakistan is running out of useable, affordable energy …
more efficient use absolutely vital
Attaullah Shah, Project Director AIOU-Islamabad.
 Water and Agriculture
High growth rates in agriculture unrealizable with:
 Present technology, practice and attitude
 Low water storage, high wastage
 Sub-optimal cropping pattern

Demographics: 218 million in 2030
(over 60 % urban)

To realize the dividend of demographic transition
investment in HRD is of critical importance:
Employment opportunities
Productivity increase


Attaullah Shah, Project Director AIOU-Islamabad.
 Urbanization
2030
Global Urban Dwellers exceeded those in rural areas for the
first time in human history in 2005 … [Shenzhen, a small
town, now has reached a higher population than London in
only 20 years]
 In Pakistan, too, more and more settlements will grow
into their equilibrium size – optimal and functional hierarchies
of settlements.
 Pakistan’s urban population is projected to increase from the
current 55 million to about 130 m by 2030
 … another 70-80 million people in only 25 years!
 Housing? Services? Slums? Unemployment? Social
cohesion?

Attaullah Shah, Project Director AIOU-Islamabad.
The Changing Face of Competition
Competitive advantage will be achieved through:
– Excellence of public institutions
– Knowledge, information, skill levels and
competence in technology ….. and its assimilation
– Macroeconomic environment restructuring and
reform of the educational system
– Enablers of the knowledge economy
– Legal and regulatory infrastructure for IPR and
resolution of commercial disputes
Attaullah Shah, Project Director AIOU-Islamabad.
PAKISTAN- Vision 2030
…….. Developed, industrialized, just
and prosperous Pakistan through
rapid and sustainable development
in a resource constrained economy
by deploying knowledge inputs
Attaullah Shah, Project Director AIOU-Islamabad.
Essence of Survival
“Every morning in Africa, a Gazelle wakes up,
it knows it must run faster than the fastest Lion or
it will be killed. Every morning a Lion wakes
up, it knows it must outrun the slowest Gazelle or
it will starve to death. It does not matter whether
you are a Lion or a Gazelle – when the sun
comes up; You’d better be running.”
Attaullah Shah, Project Director AIOU-Islamabad.