Last September, after a 15-year journey, I stepped down from my post as a board member and secretary general of a trans-European NGO registered in Brussels, whose mission statement is: “We care about good governance.” The word ‘governance’ came from the Latin verb ‘gubernare’, or, more originally, from the Greek word ‘kubernaein,’ which means ‘to steer’.
Governance refers to the manner of steering or governing, or of directing and controlling, a group of people or a state. It is attuned to the concept of democracy, and on how the government and civil society arrive at a decision in meeting their communal needs and wants.
The concept of governance is not new. It is as old as human civilisation and can be used in several contexts such as corporate governance, international governance, national governance and local governance.
It is the complex process whereby some sectors of society wield power: to legislate and communicate public policies that directly affect human and institutional exchanges as well as economic and social development. Good governance has to be pro-people and proactive; putting people at the centre of the development process.
Governance entails two processes: decision-making and implementation of the decision. In broad terms, decision-making refers to the process by which a person or group of persons, guided by sociopolitical structures, arrive at a decision involving their individual and communal needs and wants. Implementation is the process that logically follows the decision. Governance is not just decision-making because decision without implementation is self-defeating. Neither is it just implementation because there is nothing to implement without a decision or plan. Thus, the two processes necessarily go hand in hand and are fundamental in governance.
Good governance has to be pro-people- John O' Dea
Governance also involves civil society. In today’s world, governance includes three sectors: the public sector (state and institutions), the private sector (households and companies) and civil society (NGOs). The three sectors should, in theory, work hand in hand in the process of governance. This new use of the term focuses on the role of ‘networks’ in the achievement of the common good. In other words, governance is broader than government in that other sectors are included in it.
Other sectors that may play a role in decision-making or influence the decision-making process are the media, lobbyists, donors, large companies, financial institutions and criminal organisations.
Within informal government structures, ‘kitchen cabinets’, powerful business families and other informal ‘advisors’ also influence decision-making. Such informal decision-making is often the result of corrupt practices or leads to corrupt practices.
The influence of powerful business families, corporations and criminal organisations are felt more clearly in small countries like Malta. More often than not, these actors are the cause of corruption, in that legitimate government objectives are distorted by their illegal and private interests. Worse, they manipulate government officials, regulators and agencies and cause widespread, yet, organised disruption in the community.
Rich and powerful business families control the economy by controlling government officials. They bring about a controlled environment so that decisions must always favour them.
Allegedly, government officials, both local and national, may not only be influenced by organised criminal organisations but are members themselves, with the purpose of using public office and, consequently, public funds for personal aggrandisement.
Bad governance is increasingly being regarded as one of the root causes of all evil within our societies. The EU, investors and international financial institutions are increasingly basing their aid and loans on the condition that reforms that ensure ‘good governance’ and the ‘rule of law’ are implemented.
The term ‘good governance’ has become part of the national debate, especially since Malta faces a stern test by the Council of Europe’s Evaluation of Anti-Money Laundering measures, better known as Moneyval. Malta cannot risk failing this test since failure means being categorised as a ‘grey-list jurisdiction’. This would heavily impact the viability of the Maltese financial sector, trading, tourism and general services, especially as the country’s problem with correspondent banks is expected to intensify further.
Good governance has eight major characteristics. It is participatory, consensus- oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive and follows the rule of law.
It assures that corruption is minimised, the views of minorities are taken into account and that the voices of the most vulnerable in society are heard in the decision-making process. It is also responsive to the present and future needs of society.
Unfortunately, as Frank Herbert, author of the Dune series, said: “Good governance never depends upon laws but upon the personal qualities of those who govern. The machinery of government is always subordinate to the will of those who administer that machinery. The most important element of government, therefore, is the method of choosing leaders.”
In his budget speech, opposition leader Bernard Grech outlined his vision for the future based on 12 pillars. All tick the boxes for good governance.
John O’Dea is former secretary general of PRIMO Europe.