10th Semester: Behavioural Science

Leadership Excellence - Interpersonal

Communication and Relationship
Management
Good Governance leads to flourishing
society and nation

Submitted By:
Ashutosh Pant
Mohd. Umar
B.Tech (Civil)+MBA
2010-15

Principles for Good Governance

Governance is "the process of decision-making and the process by which decisions
are implemented (or not implemented)
Forms
Analysis of good governance can look at any of the following relationships:

between governments and markets,

between governments and citizens,
between governments and the private or voluntary sector,
between elected officials and appointed officials,
Governance is not synonymous with government. Since governance is not about

government, what is it about? Partly it is about how governments and other social
organizations interact, how they relate to citizens, and how decisions are taken in a complex
world. Thus governance is a process whereby societies or organizations make their important
decisions, determine whom they involve in the process and how they render account. Since a
process is hard to observe, the focus of the attention on the governance system or framework
upon which the process rests - that is, the agreements, procedures, conventions or policies
that define who gets power, how decisions are taken and how accountability is rendered.
The United Nations Development Program (UNDP Governance and Sustainable Human
Development, 1997) have given a set of principles. There is strong evidence that these
UNDP based principles have a claim to universal recognition.
The 5 principles are broadly classified as:
1)
2)
3)
4)
5)

Legitimacy and Voice

Direction
Performance
Accountability
Fairness

The principles are discussed in detail below:-

Out Of the five principles, Legitimacy and Voice and Fairness have the strongest claim to
universal recognition based on over a half century of UN accomplishments in the field of
human rights. The next table for example, links these two governance principles with key
clauses in the United Nations Declaration of Human Rights adopted in 1948. Since that time,
the UN has adopted eight treaties and five protocols, which together make up the body of
international human rights law.

Benefits of Good Governance

Promotes community confidence

Encourages elected members and council officers to be confident
Leads to better decisions
Helps local government meet its legislative responsibilities
Supports ethical decision making

Threats to Good Governance

Corruption
Violence

Poverty

Promoting Good Governance

The UN system promotes good governance through many avenues.
(i)

The UN Development Programme (UNDP), for example, actively support

national processes of democratic transition. In the process, it focuses on providing
policy advice and technical support and strengthening the capacity of institutions
and individuals. It engages in advocacy and communications, supports public
information campaigns, and promotes and brokers dialogue. It also facilitates
knowledge networking and the sharing of good practices.

(ii)

The International Monetary Fund (IMF) promotes good governance through its
programmes of lending and technical assistance.

Its approach to combating

corruption emphasizes prevention, through measures that strengthen governance.

The IMF encourages member countries to improve accountability by enhancing
transparency in policies, in line with internationally recognized standards and
codes. In its work with poor countries, the IMF emphasizes adequate systems for
tracking public expenditures relating to poverty reduction. In its regular
consultations with its members, the IMF also provides policy advice on
governance-related issues.

(iii)

The United Nations Democracy Fund (UNDEF), established in 2005, supports

projects that strengthen the voice of civil society, promote human rights, and
encourage the participation of all groups in democratic processes. The bulk of its
funds go to local civil society organizations, both in the transition and
consolidation phases of democratization. In these ways, it complements the UN's
work with governments to strengthen democratic governance worldwide.

(iv)

The United Nations Public Administration Network (UNPAN) was created to set
up an internet-based network to link regional and national public administration
institutions. It facilitates the exchange of information and experience, as well as

training in the area of public sector policy and management. Its long-term goal is
to build the capacity of these regional and national institutions, with the aim of
improving public administration overall.

Through such measures as these, the promotion of good governance now runs like a thread
through all UN system activities.

Case Study
Economic parameters of India

India's per capita is US$440/yr, v/s China's $990 and USA's $32,000. At the present
rate of growth the Chinese economy will be 10 times the size of India within 20 years

time.
India has 17% of the world's population, but 0.6% of the world's trade & 1.4% of the
world's GDP! 99.4% markets outside India. India must plan to become a resource

base for the world.

Poverty Line per person, as per Govt., at US$ 75/yr, (Rs. 10 / day or Rs 3650 / year)

as per World Bank, $1/day or $365/yr

Market Capitalization of 7000 Indian quoted companies at US$ 120 billion (only GE

in USA, US$ 500 billion).

India's Free Reserves are US$51 billion vs. China + Hong Kong $312 billion. 99.4%

of the world's markets are outside India.

In 2000, Foreign Direct Investments [FDI] into India was US$ 2.5 billion v/s. US$
105 billion into China + Hong Kong. Total FDI worldwide is US$ 1220 billion per

year.
China's Literacy Rate is nearly 100% more than of India. In China, all children attend
primary School for 9 years. For secondary education the attendance is about 89%. The

Indian Govt.'s definition of literacy is if you can sign your name! Why?
Tourist visiting China are nearly 35 times more than India i.e. 87 v/s 2.5 million.
Worldwide Tourism Industry is 7 times of I. T.! China has 10 air lines vs 3 in India.

China is building 4 lac hotel rooms per year, India has a total of 6 lac hotel rooms.
If one visits Beijing or Shanghai, everything looks "Neat & Clean". Bombay & New
Delhi look like "Garbage Dumps"

In the Sydney Olympics, India was placed practically last, in 122 countries, with 1

medal; China was 3rd with 59 medals!

China's World Trade is 7 times of India's. Can we pay for oil imports of US$16

billion/yr. when exports are US$42 billion/yr.?

Food grain production in China is about 410 million tons v/s 206 tons in India,

although the cultivable land is half.

India's share of world trade dropped from 3% in1947 to 0.6% in 2001, a negative

growth of 500% in 54 years.

Every year we have floods & droughts in certain parts of India.
India's birth rate is 300% more than China. We produce more than one Australia/yr.!
We need to provide additional 10 million jobs / yr.! China has 13 million births per yr,

India has 27 million! Life expectancy in China is 72 years vs 61 for India!

China - India comparison. Steel production is 133 million tons vs 24million. Cement
650 million tons vs 96 .Crude oil 160 million tons vs 30 Coal 1300 million tons vs
300.. TV's installed 400 million vs 75 million Telephone lines 220 million vs 27.

India: An example of Poor Governance

Examples -- to highlight poor Governance & ineffective Administration

10,000 municipal hospitals in India, but what is the quality of health services that the

people of India get?

4,000 municipalities in India, but how are our cities maintained?
30 electricity boards, but what is the quality of electricity service? In NCR we cannot
even stop 55% revenue leakage due to power thefts & losses, in spite of New Delhi

being the seat of the President, PM, Union ministers and CM of Delhi state
Quality & integrity of our regional transport officers. After so many years of

Independence, we have not even ensured that Indians should be quality drivers
Today there are only 25 million tax assesses, most of them from the organized sector.
The actual number of taxpayers is hardly 12 million. Affluence of the economy
indicates much higher numbers! Only 1.23 million declare an annual income above

Rs. 2 lakhs per year

India is the largest producer of vegetables in the world, 75 million tons per year and
fruits 53 million tons per year. About 40% of it is wasted between the farm and the

end customer, what are we doing about harnessing this wastage of Rs.50,000 cr./yr.
Fiscal deficit of Central Government at Rs. 115,000 cr. or nearly 6% of G.D.P.

Fiscal deficit of State Governments at Rs. 135,000 cr. or nearly 7% of G.D.P.

60 million tons of food grains in FCI godowns which cost Rs. 15000 cr./year to
maintain. People in extreme poverty, do not have access to this food, although nearly

10% is wasted or destroyed due to bad storage.

Cost overrun of Centre and state projects is about Rs 40,000 to 80,000 crores per year.

Reasons for India's problems - We protect some employees at any cost to the Nation

Article 311, of the Indian Constitution, unfairly protects employees of the Union and State
Governments. This needs to be abolished, as it is irrelevant and unjust, since it protects only
1.87% of Indians, who are the employees of the State & Union Government, and indirectly,
the employees of the organized private sector. There is No Fear of Loss of Job whether you
deliver or not
In India, these employees, seek and get protection for lifetime employment, even if
(1) They work or not,
(2) They are honest or corrupt,
(3) They are absent but marked present,
(4) They are efficient or inefficient,
(5) They get their work done from others (subcontract their work),
(6) Wilfully destroy public property (only the People of India are the true owners of public
property and NOT employees)
(7) take sick leave of 30 days/year year after year! It is impossible to be sick, every year,
exactly for 30 days!
(8) Restrict - retraining, redeployment and restructuring, for productivity improvement within
the same organization and
(9) Disrupt work, and damage or sabotage the fixed assets of public enterprises, in order to
pressurize managements.

Under the present system, employees of the Union & State Governments and their affiliates,
as stated above, are given lifelong employment, irrespective of their performance. This is
unfair to the people of India, most of whom are very poor.
Thus it can be concluded that Good governance is an ideal which is difficult to
achieve in its totality. Very few countries and societies have come close to achieving good
governance in its totality. However, to ensure sustainable human development, actions must
be taken to work towards this ideal with the aim of making it a reality.