FIJI NATIONAL UNIVERSITY

nasinu campus
ACC804: INDIVIDUAL
ASSIGNMENT 1
PATH TO GOOD GOVERNANCE: CHALLENGES AND PROSPECTS – CASE STUDY FIJI

TOPIC:

Governance among other things involves making and implementing

crucial decisions that could affect lives of individuals in a variety of way.

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 ABSTRACT:

Governance among other things, involves making and implementing crucial decisions that could
affect lives of individuals in a variety of ways .The promotion of good governance has become
one of the pillars of development policies proposed by a large majority of development aid
agencies. It is based on the view that good governance is a pre-requisite for development. In
order to promote good governance, leaders, top managers, auditors, CEO’s and others who holds
higher positions as well as individuals should maintain transparency, accountability, efficiency
and effectiveness, equity and inclusiveness, responsiveness, consensus oriented, participation
and rule of law. The main findings of this research is to identify the challenges faced and
prospects for successful good governance in Fiji for the future. The purpose of good governance
is to create a conducive climate for political and socioeconomic development and to increase the
efficiency and effectiveness of development programs in a society.

Keywords: Good governance, transparency, accountability, efficiency and effectiveness, equity

and inclusiveness, responsiveness, consensus oriented and rule of law.

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)

 INTRODUCTION

Good governance is one of the main important prerequisites for the development of a country. It
is at the heart of any successful business. Each company or organization should achieve its
objectives and drives improvement by maintaining legal and ethical standards towards its
shareholders, regulators and wider community (Randy, 2009). Good governance should be
attractive to all organizations and other leadership teams as it is considered to increase business
profitability and sustainability (Michiel, 2013). It also builds a positive reputation and a healthy
culture within an organization (Nigel, 2017). According to John Smith (2010), he defined
governance as the process of decision making which are then implemented as policy. However,
good governance is an approach to government that is committed to creating a system founded in
justice and peace that protects individual’s human rights and civil liberties.

Good governance is measured by eight factors which are; transparency, accountability,

efficiency and effectiveness, equity and inclusiveness, responsiveness, consensus oriented,
participation and rule of law. These factors are all path to good governance and needs to be
practiced by individuals, governments and organizations in order for them to make right
decisions with the most effective outcomes (ASX Corporate Governance Council, n.d.).

According to Nigel (2017), he stated that governance is important in the public sector because
they are dealing with public’s money whereby the officer has to maintain all the eight principles
of good governance. It increases trust, enhances sustainability, encourages positive behaviors,
lowers the cost of capital and minimize waster, risk, corruption and mismanagement. However,
this essay will elaborate more on the challenges and prospects of good governance in Fiji.

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)

 LITERATURE REVIEW

The concept of good governance emerged at the end of the 1980s, at a time of exceptional
political changes (Afegbua & Adejuwon, 2012). These political changes created the breeding
ground and gave way for a serious discussion on how a state has to be designed in order to
achieve (economic) development, i.e. a discussion on good governance (Soma, 2004).

In the 1989 study, the term “governance” was first used to describe the need for institutional
reform and a better and more efficient public sector in Sub-Saharan countries (Afegbua &
Adejuwon, 2012).

In recent years, a researcher (Michiel, 2013) argued that greed, fraud and lack of ethical conduct
have resulted in many financial and corporate scandals globally. Financial failures over the
recent past such as Enron, WorldCom, etc. have awaken a great interest on the need for good
governance both in public and private sectors in regard to the roles of senior civil servants,
corporate directors, CEOs and other executives, managers, accounting and audit functions, etc
(Laurence, 2000). According to Randy (2009), he stated that public as well as private
organizations worldwide are continually strengthening and benchmarking their governance
frameworks with international standards and best practices to meet stakeholder expectations on
good governance, accountability, ethical standards and corporate social responsibility.

Previous researchers argue the concept of governance as the exercise of political power to
promote the public good and the welfare of the people. They also argue that good governance is
the absence of lack of accountability in government, corruption, and political repression,
suffocation of civil society and denial of fundamental human rights (Nigel,2017, Laurence, 2000,
Manzurul, 2004). According to Laurence (2000), he argues that the purpose of good governance
is to create a conducive climate for political and socioeconomic development and to increase the
efficiency and effectiveness of development programs in a society.

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)

Discussion: Governance among other things, involves making and implementing crucial
decisions that could affect lives of individuals in a variety of ways.

The essential nature of governance is the structure of institutions and societal norms by which
authority is exercised for everyone's benefit at all levels, from local to global.

The decision-making power is concentrated in the hands of top management, and decision-
making tends to be short-term orientated (Laurence, 2000). For example, the role of management
accounting plays a very crucial role as they involve in collecting, recoding, reporting financial
data from other units of organization, observe, analyze budget and suggest for any
recommendation. This involves critical thinking and forecast planning for better developments to
be done (Soma, 2004). He/she is required to make overall analysis of Company’s financial status
which are then reported to Senior management and board of directors. In regards to governance,
it is important that management accountant practice code of ethics to promote good governance
to the Company and its stakeholders.

Reading the Fiji Times News, there have been cases whereby accounts officers, senior staffs and
other financial and management staffs are terminated from work due to unethical behavior such
as misinterpretation of financial reports, fraud, lack of transparency and accountability and other
unethical behaviors performed in a workplace. Concerning governance, investors want to know
that a company uses accurate and transparent accounting methods and they want to see common
shareholders allowed to vote on important issues. They also want companies to avoid conflict of
interest in their choice of board members. Finally, they prefer not to invest in companies that
engage in illegal behavior or use political contributions to obtain favorable treatment (Laurence,
2000). However, Rule and law govern us all so it is important that we follow and respect it.

According to the World Bank, they have given six dimensions of good governance, which are;
voice and accountability, political stability and absence of violence, Government effectiveness,
Regularity Quality, Rule of law and control of corruption (Gisselquist, 2012). Some political
parties says that good governance is the cornerstone of true democracy (Nasik, 2018). They
pointed out that as we are heading towards the 2018 general election, it is important that
registered political parties should have their views ensuring open transparent and accountable
government. Government should act according to the criteria of good governance.

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)

 ANALYSIS OF THE DISCUSSION

Challenges faced in regards to good governance

 lack of community participation

 Lack of competent workforce
 Lack of understanding of good governance
 Poor management of human resource
 Poor attention of high level of government
 Lack of income and asset
 Increased in technology which change people’s character
 Lack of awareness of good governance
 Lack of education counselling
 Lack of attention of high levels of government
 Lack of Christian values
 Conflict of interest
 Becoming arrogant and boastful
 Listening to wrong advice
 Failure to groom a good successor

Prospects for successful good governance in future

 Providing awareness to community and involving stakeholders continuously

 By support of higher level government
 By involving in decision making
 By creating active & strong structure to the community and society as a whole
 Training of officers and staffs
 Looking after people’s welfare
 Observing the rule of law

The concept of good governance is all comes from a person’s mind and heart that leads to a
person’s character. A good mind leads to a good heart and as a result, it gives a character of a
person either in a positive way or in a negative way. It is believed that promoting Christian
values leads to good governance. According to the bible, there are rules, which is the Ten
Commandments that govern us to honor and respect it whereas government also implement laws
for a society to honor and respect it. However, it is important that people work together a team to
promote a better reputation and development of a society and country as a whole.

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)

 CONCLUSION

Good governance is the absence of lack of accountability in government, corruption, and

political repression, suffocation of civil society and denial of fundamental human rights It
reduces corruption in a number of ways, for instance through bribery, fraud, societal problems,
embezzlement, extortion and nepotism. It also reduces the efficiency on which an economy
depends and by increasing the cost of investment and lowers the potential return. A good leader
is someone who promotes good governance; however, people should respect the law and do what
they supposed to do. This all requires transparency, accountability, efficiency and effectiveness,
equity and inclusiveness, responsiveness, consensus oriented, participation and rule of law.

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)

References
Afegbua, S. & Adejuwon, K., 2012. The Challenges of Leadership and Governance in Africa. International
Journal of Academic Research in Business and Social Sciences, Volume 2.

ASX Corporate Governance Council, n.d. Corporate Governance Principles and Recommendations.
[Online]
Available at: https://www.asx.com.au/documents/asx-compliance/cgc-principles-and-
recommendations-3rd-edn.pdf
[Accessed 12 October 2018].

Gisselquist, R. M., 2012. Good governance as a concept, and why this matters for development policy.
s.l.:Wider Working papers, United Nations University (UNU).[Online] Available at:
www.wider.unu.edu/publication/good-governance-concept-and-why-matters-development-
policy[Accesed 12 October 2018].

Jone, D., 2017. Fiji govt. fails to meet standards of good governance. The Fiji Times.

Laurence, E., 2000. Studying Governance and Public Management: Challenges and Prospects. Journal of
Public Administration Research and Theory, April.10(2).[Online] Available at:
https://www.jstor.org/stable/3525644?seq=1#page_scan_tab_contents [Accessed 10 October 2018].

Linus, U., 2015. Democracy and Good Governance in Nigeria: Challenges and Prospects. Global Journal
fo Social Science Research, 15(3).[Online] Available at: https://globaljournals.org/GJHSS_Volume15/1-
Democracy-and-Good-Governance.pdf [Accessed 11 October 2018].

Manzurul, A., 2004. Accounting for economic development in the context of post-colonialism: the Fijian
experience. Critical Perspectives on Accounting, 15(1), pp. 135-157.[Online] Available at:
https://www.sciencedirect.com/science/article/pii/S1045235403000066 [Accessed 12 October 2018]

Michiel, D., 2013. The Challenge of Good Governance. The Public Sector Innovation Journal,
18(1).[Online] Available at:
https://www.researchgate.net/publication/271823062_The_Challenges_of_Good_Governance_Account
ability_of_Governmental_Agencies_and_Development_in_Nigeria [Accessed 12 October 2018]

Nasik, S., 2018. ‘Good governance is the cornerstone of true democracy’. The Fiji Times.

Nigel, P., 2017. Why good governance is important to the public sector. B2B magazine, Issue 128.

Rafia, M., 2009. E-Governance for Improved Public Service Delivery in Fiji. Service Science &
Management, 3(12).

Raghuvar, D., 2009. E-Governance to Cut Corruption in Public Service Delivery: A Case Study of Fiji.
International Journal of Public Administration, 32(5).[Online] Available at:
https://www.tandfonline.com/doi/abs/10.1080/01900690902799482[Accessed 10 October 2018]

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)

Randy, P., 2009. The Future of Rule of Law: Challenges and Prospects for the Field. Hague Journal on the
Rule of Law, 1(1), pp. 5-14.[Online] Available at:
https://www.researchgate.net/publication/228128313_The_Future_of_Rule_of_Law_Challenges_and_P
rospects_for_the_Field [Accessed 10 October 2018].

Soma, P., 2004. Corruption - The challenge to good governance: A South African perspective.
International Journal of Public Sector Management, 7(17).[Online] Available at:
https://www.researchgate.net/publication/243464082_Corruption_-
_The_challenge_to_good_governance_A_South_African_perspective[ Accessed 10 October 2018].

Sub- Saharan Africa, 1989. From Crisis to Sustainable Growth. In: A Long term Perspective Study.
Washington: The World Bank.[Online] Available at:
http://documents.worldbank.org/curated/en/498241468742846138/From-crisis-to-sustainable-growth-
sub-Saharan-Africa-a-long-term-perspective-study [Accessed 10 October 2018].

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)

 APPENDICES

THE FIJI TIMES (ARTICLE 1)

‘Good governance is the cornerstone of

true democracy’
NASIK SWAMI
15 September, 2018, 2:30 am

National Federation Party vice-president Seini Nabou speaking during the political parties panel discussion and public forum.
She is flanked by former prime ministers Mahendra Chaudhry and Laisenia Qarase. Picture: JOVESA NAISUA/FILE

GOOD governance is the cornerstone of true democracy, some political parties say.

As we head towards the 2018 General Election, we asked the seven registered political parties on
their views on their views on ensuring an open, transparent and accountable government.

The National Federation Party (NFP), Social Democratic Liberal Party (SODELPA), Fiji Labour
Party, Unity Fiji party and the Freedom Alliance Party believe Fiji’s governance system lacks
transparency and accountability.

The FijiFirst party and the HOPE party did not respond to the question when this edition went to
press last night.

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)

NFP leader Professor Biman Prasad said the first thing needed for an open government was an
open mind. “Government is not a series of publicity stunts designed to make government
ministers look good. It is service,” he said.

SODELPA leader Sitiveni Rabuka said the party was concerned about the current state of play
and approach used by the FijiFirst government, in managing the country.

“There is no doubt that there is so much dissatisfaction and fear among our citizens due to the
lack transparency and accountability in government operations,” Mr Rabuka claimed.

Fiji Labour Party parliamentary leader Aman Ravindra-Singh said in a democracy, government
must be held answerable to the people.

“To ensure this proper checks and balances are put in place to see that the policies and actions of
the government are in line with established rules and regulations, and that information is openly
available to the people,” Mr Ravindra-Singh said.

Unity Fiji Party leader Savenaca Narube said good governance was the cornerstone of true
democracy.

“Unity Fiji believes that being elected by the people, government, in turn, must be transparent
and accountable to the people,” Mr Narube said.

ACC804: INDIVIDUAL ASSIGNMENT TRIMESTER 3-2018 2018005394 (ELIZABETH TEATU)