Governance: a pillar of PARPAII

1. Governance: a pillar of PARPAII Charlotte McClain-Nhlapo Senior Operations Officer World Bank 26thFebruary, 2010

2. Defining Governance. • The traditions and institutions by which authority in a country is exercised” – Kaufman et al The way “ … power is exercised through a country’s economic, political, and social institutions.” – the World Bank’s PRSP Handbook. • "the exercise of economic, political, and administrative authority to manage a country’s affairs at all levels and the means by which states promote social cohesion and integration, and ensure the well-being of their populations’. (UNDP)

3. It seeks to: • Embrace all methods used to distribute power and manage public resources, & the organizations that shape government & the execution of policy. • Encompass the mechanisms, processes & institutions, through which citizens & groups articulate their interests, exercise their legal rights, meet their obligations & resolve their differences.

4. Good Governance ~ therefore • Depends on public participation to ensure that political, social & economic priorities are based on a broad societal consensus & that the poorest & most vulnerable populations can directly influence political decision making, particularly with respect to the allocation of development resources. • It also is effective and equitable, & promotes the rule of law & the transparency of institutions, officials, & transactions.

5. Good governance & MDGs • Good governance is needed to achieve the MDGs & eradicate extreme poverty. • Achieving the MDGs is not simply about money. • It is about removing physical, legal, financial, socio-cultural and political barriers to basic services for all, in particular for the poor and disadvantaged groups.

6. It can be measured… • The quality of governance may be measured according to a set of nine principles: • Inclusiveness and equity: the principle that no one can be excluded from the process of development on the basis of gender, race, religion etc. 2. Participation: the opportunity for people affected by the decision to influence the process of decision-making directly or indirectly.

7. Nine principles (cont) 3.Transparency: the degree to which the rules, standards and procedures for decision-making are open, clear, verifiable and predictable. 4. Efficiency: a measure of how economically resources are used to produce the intended results. 5.Effectiveness: a measure of the extent to which the intervention achieves its objectives. 6. Subsidiarity: the principle that decision-making takes place at the level most appropriate for the issue (usually the lowest level possible).

8. Principles (cont) 7. Adherence to the rule of law: the principle that every member of a society, even a ruler, must follow the law. 8. Accountability: the responsibility of a decisionmaker to explain and justify the decisions it made and implemented, and the results these produced. 9. Sustainability: The likelihood that the positive effects of an intervention will persist for an extended period after the intervention as such ends.

9. What can it achieve? • Good governance ensures that the poor and other disadvantaged groups are included in decision-making about providing services that affect their lives & about the objectives of the resulting policies & programmes. • The inclusion & involvement of the poor empowers them to become agents of their own development & to participate in other relevant areas. • The adoption of a rights-based approach to development by governments can help to ensure inclusiveness and equity.

11. Good Governance fosters… • the acquisition of new capacities, • the establishment of new institutions, • the promotion of new ways of working within existing organizations • the formulation of new rules for interaction. • the adoption of inclusive nondiscriminatory values & norms & the distribution of power between social groups, so that none is marginalized & loses the right to speak and be heard.

12. Good Governance in brief.. • Refers to a high quality of processes by which decisions affecting public affairs are reached and implemented. • Ensures that all, including the poor & other disadvantaged groups, are included & have the means: • to influence the direction of development in particular as far as it affects their lives, • to make contributions to development & have these recognized, (c) to share in the benefits of development & improve their lives & livelihoods. (d)to ensure that all people have adequate access to basic services.

13. Thank You Email: cmcclainnhlapo@worldbank.org