Components & Indicators/Characteristic of Good Governance

Four components of Good Governance:

- The concept of good governance came from world bank itself. It argued that for the development of nation it required for a better government not less government.

- World Bank entails four components as a policy guideline for Good Governance:

1. Public sector management entails civil service reform and private sector initiatives.
2. Legal framework for development is about making and enforcing rules than can make a market work, such as private property rights (Market friendly initiatives).
3. Accountability aims at strengthening the institutions to hold the government accountable.
4. Transparency and information are the key words for programs free media. that support.

Harnessing ICT is considered to be one of the efficient way to achieve Good Governance was recognized by many global institutions and national Government.

Indicators or Characteristic of Good Governance

• In the 1992 report entitled “Governance and Development”, the World Bank set out its definition of Good Governance. It defined Good Governance as “the manner in which power is exercised in the management of a country’s economic and social resources for development”.
• Good governance has 8 major characteristics. ‘It is participatory, consensus-oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive and follows the rule of law.
• It assures that corruption is minimized, the views of minorities are taken into account and that the voices of the most vulnerable in society are heard in decision-making.
• It is also responsive to the present and future needs of society.

Indicators or Characteristic

• Participatory: 
• Good governance essentially requires participation of different sectors of the society. The management of highly complex societies and of their ever growing needs requires a participatory form of governance by diffusing power.
• The move for decentralizationis a response to this as it widens the base of participation and allows local government units to exercise governmental powers directly within their respective districts.
• This means freedom of association and expression and an organized civil society should go hand in hand.
• Rule of Law:
• Democracy is essentially the rule of law. It is through the law that people express their will and exercise their sovereignty.
• Effective and Efficient:
• Good governance requires that the institutions, processes, and actors could deliver and meet the necessities of the society in a way that available resources are utilized well. That the different actors meet the needs of the society means that there is effective
• Transparent:
• Transparency, as an indicator of good governance, means that people are open to information regarding decision-making process and the implementation of the same.
• Responsive :
• Responsiveness means that institutions and processes serve all stakeholders in a timely and appropriate
• Equitable and Inclusive:
• Equity and inclusiveness means that all the members of the society, especially the most vulnerable ones or the grassroots level, must be taken into consideration in policy-making.
• Consensus Oriented:
• Governance is consensus oriented when decisions are made after taking into consideration the different viewpoints of the actors of the society. Mechanisms for conflict resolution must be in place because inevitably conflict that will arise from competing interests of the actors.
• Accountability:
• Accountability means answerability or responsibility for one’s action. It is based on the principle that every person or group is responsible for their actions most especially when their acts affect public interest.

- “Good” governance promotes gender equality, sustains the environment, enables citizens to exercise personal freedoms, and provides tools to reduce poverty, deprivation, fear, and violence. The UN views good governance as participatory, transparent and accountable. It encompasses state institutions and their operations and includes private sector and civil society organizations.

- Good governance is significant in public institutions to conduct and manage public affairs and resources to guarantee human rights in free of abuse and corruption, and with due regard for the rule of law.

- Good governance is thus, a function of installation of positive virtues of administration and elimination of vices of dysfunctionalities. It makes the government work effective, credible and legitimate in administrative system and citizen-friendly, value caring and people-sharing.