Public Sector Management

“Governance, E-Governance & concept of

Good Governance & its Indicators”

Lecture 7
 Objectives of the Lesson

 To understand the concept, origin and importance of Governance .

 To explore various models and theories of Governance.
 To highlight the importance of stakeholders in Public Sector Governance System.
 To introduce the difference between E- Governance and E- Government specifically in the
case of Pakistan.
 Specific Learning Outcomes
 Concept, History and Analytical Framework of Governance.
 Detail Study of Models and Theories of Governance in the perspective of efficient governance
system worldwide.
 Governance Systems: Actors, Capacities and Accountability.
 E- Governance and Difference between E-Government and E-Governance.
 Good Governance Framework and Measures to evaluate the state of Governance.
 Islamic Governance System in Pursuance of Hazrat Ali Letter to Governor of Egypt.
 Worldwide Governance Indicators and current situation of governance in South Asia countries and
Pakistan as well.
 What is Governance

 The traditions and institutions by which authority in a country is exercised”

 Governance refers to "all processes of governing, whether undertaken by a
government, market, or network, whether over a family, tribe, formal or
informal organization, or territory, and whether through laws, norms, power, or
language. It relates to processes and decisions that seek to define actions, grant
power, and verify performance.
 The way “ … power is exercised through a country’s economic, political, and
social institutions.” 
 History of Governance
 Antiquity, Pharaohs, kings: Ancient Egyptian history is a long and complex one with more than 3,000 years of
details. Throughout these 3,000 years ancient Egyptians lived under about 30 dynasties, with each dynasty being
based on the lineage/family of the kings/pharaohs).
 In medieval times -”fall of Imperial Rome and the beginning of the Early modern Europe”. (in European history,
the Middle Ages, or Medieval period, lasted from the 5th to the 15th century): the need for expert civil servants
whose ability to read and write formed the basis for developing expertise in such necessary activities as legal
record-keeping, paying and feeding armies and levying taxes.
 Prior to 19th century public administrations was rife with nepotism/favoritism and was spoils system.
 In Modern USA Woodrow Wilson(1887) is considered the father of public administration advocated concepts:
Separation of politics and administration, Comparative analysis of political and private, Organisations efficiency,
effectiveness of public service merit-based assessment.
 Separation of Politics with administration is still play imp role however the dominance of this dichotomy was
challenged by second-generation scholars, beginning in the1940s. Gulick gave public administration concept of;
POSDCORB, Fayol gave 14 points for private management (DIVISION OF WORK, AUTHORITY: DISCIPLINE:
UNITY OF COMMAND: UNITY OF DIRECTION: SUBORDINATION OF INDIVIDUAL INTERESTS TO
THE GENERAL INTERESTS: REMUNERATION: CENTRALIZATION: SCALAR CHAIN ( Highest to Lowest
rank): ORDER: EQUITY: STABILITY OF TENURE OF PERSONNEL; INITIATIVE: SPIRIT DE CORPS):
 History of Governance
 Second-generation theorists drew upon private management practices for administrative sciences.
 The mid-1940s theorists challenged Wilson and Gulick. The politics-administration dichotomy remained the
centre of criticism in the third generation. In addition to this area of criticism, government itself came under fire
as ineffective in-efficient, and largely a wasted effort.
 In the late 1980s, New Public Management was proposed by David Osborne and Ted Gaebler; combination of
splitting large bureaucracies into smaller, more fragmented ones, competition between different public agencies
and between public agencies and private firms and incentivisation on more economic lines. Some critics argue
that the New Public Management concept of treating people as "customers" rather than "citizens". (A citizen is
one who is a participant in a democracy, regardless of their legal status, whereas
the Consumer/Customer expects someone else to fix everything and leave us merely to buy the products that
embody those fixes).
 In the late 1990s, Janet and Robert Denhardt proposed digital era governance; It focuses on themes of
reintegrating government responsibilities, needs-based holism (executing duties in cursive ways), and
digitalization (exploiting the transformational capabilities of modern IT and digital storage).
Analytical Framework: Three levels of Governance
 Perspectives on Governance

Four common governance arrangements that have existed historically as well

as at present:
1. Hierarchies
2. Markets
3. Networks
4. Communities
Hierarchal Model
Weber Model
Hierarchal Model
 Market Governance Typology

Carbon Trading is a scheme where firms (or countries) buy and sell carbon permits as part of a programme to
reduce carbon emissions. Usually firms are given a certain quote to pollute a certain amount. If they wish to pollute
more than their allowance then they have to buy more permits.
Sustainability metrics and indices are measures of sustainability,
Network Governance
Community Governance
Theories/Models of Governance
Theory/Concept Details
Traditional Authority The starting point for a consideration of governance theories is the traditional idea of top
  down authority devolved in the state. Stated simply, government, as the legitimate
embodiment/picture of the general will, or the crown, or whatever the source of
authority is expected to be, is the only possible source of governance in these models.

Communitarianism Communitarianism refers to a theoretical perspective that seeks to lessen the focus on
  individual rights and increase the focus on communal responsibilities.

Institutional Theory Govt life revolves around institutions like; legislatures, executives, courts and political
  parties. The institutions determined implemented public policies.
 

Autopsies/Examine & The argument here that society and markets have developed the capacity for self-
Network Steering organization and for eluding (avoiding) any attempts on the part of government control
  them.
 
 Theories/Models of Governance
Rational-Choice Theory Macro/Micro decision making
   
Chris (2007) Two theories of governance: Stakeholder and Stewardship in context of Neo-Institutional
Theory (focuses on developing a sociological view of institutions — the way they interact and
the way they affect society). The Stakeholder theory presents moral justification for the
management of different groups who affect or are affected by an organization and these
groups priorities their needs but the criteria of prioritization is debatable. Stewardship focuses
gave importance to non-economic factors like trust to attain maximum social benefit. The
legitimacy for such organizations is vital as it may account far the nature and development of
governance arrangements that they adopt to guarantee the legitimacy. Example for
stewardship is: In American politics, an example of the stewardship theory is where a
president practices a governing style based on belief they have the duty to do whatever is
necessary in national interest.

Coase (1960) Advocated the inter-linkage of institutions, good governance and sustainable development.
This means that the institutions play a crucial role in development
Blunt (1995) Pointed out number of requisites for good governance including political legitimacy,
accountability, freedom of association and participation, legal and transparent framework,
rule of law, freedom of information and expression, sound and competent administration,
open institutions, vibrant civil society and respect for human rights.
Theories/Models of Governance
1996, Rhodes Refers that the governance has to do with self-organizing inter-organizational networks that
substitute and complement the functions of hierarchies (i.e. bureaucracies) and markets or co-exist
with them.

In Doornbos (2003) For a long time the word “governance” was not clearly defined in dictionary as usually it refers to
some corporate bodies for the boards of governors related to administration and having less focus
on management. He further pointed out that the concept of good governance was developed for
referring to the way in which; countries, provinces, cities and institutions are being governed.

Najem (2003) gave a broad view of good governance including policies for free economy and conducive
environment for market growth, transparency in decision making for socio-economic economic
uplift, encouragement to civil society and concrete measures to address global challenges like;
education, health and the environment.
Theories/Models of Governance

Arie Halachmi (2005) Distinguished between governing and governance and referred that governing has to do with
control, while governance is related with steering. The governing is state-centered while
governance assumes a polycentric (or at least a decentralized) institutional structure with the
government apparatus as only one of several actors
Roy and Tisdell (2008) Considered that the possibility for good governance depends on institutional structures and the
economic resources available for ensuring governance and the centralized governance structures
are inefficient and unproductive. decentralization has taken three structure: i) “de-
concentration” referring to transferring resources and decision making from headquarters to the
lower level, (ii) “devolution” referring to devolution of resources and power to autonomous
units of government and iii) “delegation” meaning delegation of resources and power to
organizations outside the traditional bureaucratic structures.
 

Bo Rothstein and Jan While discussing the quality of governance considered effectiveness and efficiency as the most
Teorell (2008) important aspects of the governance.
i) the degree of successful policy implementation—effectiveness—and ii) the amount of
government output delivered relative to input—efficiency.
Esade and Francisco Longo QoG requires the application of a range of criteria which includes: (a) extent to which policies
(2008) are persistent, (b) adaptability of the policies in accordance with the circumstantial changes, (c)
degree of coherence and coordination of policies and actions among the actors who participate
in their design and implementation, (d) quality of implementation and enforcement, (e) degree
to which policies pursue the best public interest, and (f) the extent of efficiency that which
policies reveal an allocation of limited resources that ensures maximum returns.
Theories/Models of Governance

Jan Kooiman (1996) Gave three theories on governance under various concepts as follows: i) for the World Bank and the
developmental literature, the governance concept is the essence of enlightening its traditional
technical capacity-building scope to a base in which there is room for civil society and its
participation, ii) the second concept is that using governance to develop an extensive theory of
social-political interaction, the basic argument is that since modern societies are diverse, dynamic
and complex, the problems associated with those societies have peculiar characteristics and their
solutions. The traditional problem solving approaches ignore the diversity and can not cope up with
dynamics and complexity and iii) governance serves as a comprehensive concept in the
development of problem-oriented Public Service Management (PSM) theories that are open-minded
with respect to inclusion of pluralistic societal forces.
 

The international donor (i) the form of political regime: (ii) the process and methods by which authority is exercised and
agencies consider (iii) the capacity of governments to design, formulate, and implement policies and perform
governance in context with functions. Viewed governance more broadly and asserted nature for Good governance is
good governance. characterized by predictable, open, enlightened and transparent policymaking through specialized
bureaucracy.
UNDP, the governance (a) Devolution (b) Strengthening institutions, and (c) Enhancing socio-economic development.
assistance in Pakistan Strong, credible and effective governing institutions those have the ownership of the society posses
required three interventions: the capability to deliver in accordance their mandate are essential pursue sustainable socio-
economic development
 Governance and New Public Management
Governance refers to the development of governing styles in which boundaries between and within public and private
sectors have become blurred. The essence of governance is its focus on mechanisms hence may be regarded as a new set
of managerial tools. It is also about more than achieving greater efficiency in the production of public services. New
Public management is a broad and very complex term used to describe the wave of public sector reforms through-
out the world since the 1980s. The main hypothesis in the NPM-reform wave is that more market orientation in the
public sector will lead to greater cost-efficiency for governments, without having negative side effects on other
objectives and considerations.

NPM, identified several ways in which public organizations differ from the private sector: 
• degree of market exposure—reliance on appropriations/assumptions
• legal, formal constraints—courts, legislature, hierarchy
• subject to political influences
• coerciveness—many state activities unavoidable, monopolistic
• breadth of impact
• subject to public scrutiny
•  complexity of objectives, evaluation and decision criteria
•  authority relations and the role of managers
• organizational performance
•  incentives and incentive structures
• personal characteristics of employees

 Peters and Pierre agree, saying that governance is about process, while NPM is about outcomes
 Governance Systems:
Actors, Capacities and Accountability
Citizens/Firms

Political Actors & Institutions

• Political Parties
• Competition, transparency

Executive-Central Govt
Civil Society
Check &
Citizens/Firms

Citizens/Firms
& Private
Balance
Sector
Institutions Cross-cutting Control Agencies
• Civil Society
• Parliament (Finance, HR)
Watchdogs
• Judiciary • Media
• Oversight • Business
institutions
Associations
Service Delivery & Regulatory
Agencies

Subnational Govt &

Communities Outcomes:
Services,
Regulations,
Citizens/Firms
Corruption
Governance Systems:
When Accountability Breaks Down
Citizens/Firms
State
Political Actors & Institutions Capture
• Political Parties
• Competition, transparency

Executive-Central Govt

Check & PatronageCivil Society

Citizens/Firms

Citizens/Firms
& Private
Balance
& Sector
Institutions Cross-cutting Control Agencies
• Parliament (Finance, HR) nepotism Watchdogs
• Civil Society
• Judiciary • Media
• Oversight • Business
institutions
Associations
administrativ Service Delivery & Regulatory
Agencies
e corruption

Subnational Govt &

Communities Outcomes:
Services,
Regulations,
Citizens/Firms
Corruption
 E-Governance
 The word “electronic” in the term e-governance implies technology driven governance. E-governance is the
application of information and communication technology (ICT) for delivering government services,
exchange of information communication transactions, integration of various stand-alone systems and services
between government-to-citizens (G2C),government-to business (G2B), government-to-government (G2G)
as well as back office processes and interactions within the entire government framework.
 Through e-governance, government services will be made available to citizens in a convenient, efficient and
transparent manner. The three main target groups that can be distinguished in governance concepts are
government, citizens and businesses/interest groups. In e-governance there are no distinct boundaries.
 Generally four basic models are available – government to customer (citizen), government to employees,
government to government and government to business.
 Difference between e-government and e-governance

 Both the terms are treated to be the same, however, there is some difference between
the two. "E-government" is the use of the ICTs in public administration -
combined with organizational change and new skills - to improve public
services and democratic processes and to strengthen support to public.
 E-governance is the future, many countries are looking forward to for
a corruption-free government. E-government is one-way communication
protocol whereas e-governance is two-way communication protocol. The essence
of e-governance is to reach the beneficiary and ensure that the services intended
to reach the desired individual has been met with. There should be an auto-
response to support the essence of e-governance, whereby the Government
realizes the efficacy of its governance. E-governance is by the governed, for the
governed and of the governed.
 E-Government

Dependent Variable Independent

variable
Culture Public Satisfaction

Technology

Process
 Good Governance

The notion of good governance first appeared in a 1989 World Bank Report on Africa,
which defines it as the “exercise of political power to manage nations’ affairs.
Good governance includes features: an efficient public service; an independent judicial
system and legal framework to enforce contracts; 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
(maintain social order), and a free press
Managerial approach described in Governance and Development which treats good
governance as “synonymous with sound development management. (World Bank)
 Good governance is defined as “the manner in which power is exercised in the
management of a country’s economic and social resources for development”. (Asian
Development Bank)
 Good Governance can be seen as the exercise of economic, political and administrative
authority effectively to manage a country’s affairs at all levels. (UNDP)
Good Governance Framework
Good Governance in Public Sector
 Measures to evaluate the state of Governance

Five major measures to evaluate the state of governance:

 The extent of deprivation
 The representative nature of institutions
 The level of decentralization of governing bodies
 The realization of fundamental and basic rights
 The protection of security of life and liberty
 World Bank Governance Indicators (WGI) is a more refined form of assessment criteria. It measures the
governance of any country on the basis of voice and accountability, political stability and absence of violence,
government effectiveness, regulatory quality, rule of law and control of corruption.
Worldwide Governance Indicators
 World Governance Indicators
World Governance Indicators
Country Ranking
Voice and Political Government Regulatory Rule Control of Average
Accountability Stability & Effectiveness Quality of law Corruption
Absence
of
Violence
Bangladesh 35.1 7.5 16.7 23.3 27.8 16.7 21.1
Bhutan 29.4 71.2 64.8 13.8 59.4 75.2 52.3
India 60.2 13.2 54.3 44.3 55.7 46.7 45.7
Maldives 44.1 39.2 42.4 37.1 52.8 29.5 40.8
Nepal 30.8 5.2 18.1 23.8 17.9 25.2 20.1
Pakistan 20.9 0.5 19 33.3 19.3 13.3 17.7
Sri Lanka 32.2 11.8 49 43.3 53.3 44.8 39

ource: World Governance Indicators (WGI), 2009

 South Asian Countries Statistics
over one-fifth of the world population
437 million people living below one dollar a day and 80 per cent of the population survives below two dollar a day.
South Asia has shown a little progress; the literacy rate has increased from 47 per cent to 58 per cent. Currently, 212
million people are without access to safe water and the number of people without access to basic sanitation has even
increased from 830 million to 897 million
South Asia still has the highest proportion of malnourished children in the world
Human Development Commission (HDC) Report, South Asia is one of the most poorly governed regions of the
world, with the exclusion of a voiceless majority, unstable political regimes and poor economic management. The
system of governance has become unresponsive and irrelevant.
 Contd…….
Pakistan
 Pakistan GDP per capita for 2019 was 1185.5O US Dollars which is expected to reach $1,1130 US Dollars at the end of
2020 and Almost 55 percent of Pakistanis are earning less than $2 a day .
 There are only 22 persons in our country who have billions of wealth and reserves. The rest are spending struggling lives
while many of them are facing hunger and poverty.
 Half the adult population is still illiterate; 76 per cent of the female adult population is illiterate.
 percentage of the rural poor has increased to 35.9 from 31 per cent.
 15.5 million people have no access to safe water.
 41 per cent (72 million) of the total population is without access to sanitation.
 6.5 million children are out of school (second highest in world ranking)
 9 million (38 per cent) children under the age of 5 are malnourished.
 85 thousand people are with HIV/AIDS.
 The share of females in the labour force is 26.5 per cent.
 Islamic Governance System in Pursuance of Hazrat Ali Letter to
Governor of Egypt

Hazrat Ali's Famous Epistle To Malik Ashtar, Governor of Egypt the sailent features of letter are following:
 The richest treasure-Good Deed
 The common Man
 The counselors
 The different classes of People
 The Army
 The real guidance
 Chief Judge
 Subordinate Judiciary
 Revenue Administration
 Clerical Establishment
 Trade and Industry
 The Poor
 Open Conferences
 Communion/unity with God
 Aloofness not desirable
 Assessments Questions

 In the case of current Socio-Economic condition of Pakistan, which Governance Model is

more appropriate and how the good governance Practices can be implemented to run various
system in Pakistan?
 For Good Governance Systems ,when Accountability breaks down occur? elaborate with valid
example.
 How E- Governance can progressively shift the situation during the current condition in
Pakistan?