The events that have unfolded over the past weeks have forced us to start thinking about the fundamental mechanics of our democracy and institutional quality. We are seeing various civil society groups and social partners calling for a deeper reflection on our institutional systems, checks and balances and constitution.

As President George Vella said in his speech of Republic Day, it is in fact a time that calls for deep reflection not only on what brought us to this state, but more importantly on what has to change.

The world around us has become much more complex. Issues such as climate change, migration, anti-money laundering, technology changes and economic globalisation have all shown the limitations that national governments can have in decision-making. Responses to diverse, dynamic and complex social issues require approaches involving previously uninvolved partners. This need, coupled with Malta’s strains in traditional governing and institutions, make governance imperative for the country.

Although definitions of governance vary, one can distil some main points about how governance can be conceptualised. It refers to a complex set of institutions and actors that are drawn from but also beyond government. It transcends formal institutions and rests on the importance of informal rules, norms, values and culture. It identifies and manages the power dependence in institutional relationships. Contrary to governing, governance is not merely something governors do, but comprises the totality of the inter-actions between those governing and those governed.

Governance is best defined as the whole of public as well as private interactions that are initiated to solve societal problems and create societal opportunities. It includes the formulation and application of principles guiding those interactions and care for institutions that enable them.

In governance, all kinds of governing activities take place, varying from short-term routine decisions aimed at small matters to the development of strategic plans pertaining to major issues and long-term developments.

It would be best to visual governance activities as a set of layers, with each layer encompassing and acting on the layer below.

Any governance reform in Malta needs to look at all three layers as otherwise any reform will be superficial and will not stand the test of time.

The first order of governance looks at solving problems and undertaking day-to-day management and is something what those governing would generally do. It takes place wherever people, and their organisations, interact in order to solve societal problems and create new opportunities.

The second order of governance deals with the maintenance and design of institutions necessary to solve such problems and create new opportunities. It deals with developing the capacity to undertake first order governance by providing the institutional design and set-up within which such interactions take place.

In the third order, the main normative principles and values are articulated. These guide the behaviour of first- and second-order governing. Without basic principles or values, no human relation or governing interaction can last and therefore any governance reform needs to start from addressing the values that underpin that society and how such values will underpin governance and economic activity.

All three orders of governance are needed for effective and legitimate governance, both in the short and long term.

I have had the privilege of working on a number of international governance reform assignments and we have always found that sustainable governance reforms need to include all three orders of governance.

Malta is no exception. Although there is an agreement that both a governance reform and a constitutional revamp are needed, there needs to be a much deeper reflection on what we expect from our society; what values should underpin our actions; how should our institutions be designed and maintained and how should we solve issues. This reflection needs to look at all actors not just government but must include the business community, the public sector, our educational system and us as active citizens.

This is the realm of governance. As Malta enters into a reflective state, our focus should be to build a new republic whereby governing becomes governance.

 

JP Fabri is an economist and a visiting assistant lecturer at the University of Malta.