Democracy, Governance and Development

DEMOCRACY, GOVERNANCE
AND DEVELOPMENT
WHAT IS DEVELOPMENT?
• Is a process of economic and social transformation
which is based on complex cultural and environmental
factors and their interactions.
• Development was a process in which ‘societies’ deﬁned
as nation states pass through similar stages of
development on the road to an end state.
• Development is a multi-dimensional and multi-sectoral
process, involving social, economic and political change
aimed at improving people’s lives.
2
What is democracy
• Democracy is government of the people, by the
people and for the people ( Abraham Lincoln
• Democracy is any form of government in which
the rules of society are decided by the people
who will be bound by them (Catherine Kellogg)
• Democracy is a state in which all fully qualified
citizens vote at a regular intervals to chose,
among alternative candidates the people who
will be in charge of setting the state policies.
(Shively,W.P)
The Classical Theory of Democracy
The triple meaning:

• Democracy as source of state authority –
power of the people
• Democracy as the purpose of government
– the common good
• Democracy as a method of choosing
political leaders – by the people
The meaning of the concept
• Some scholars view democracy as having two
distinct set of concept
• It contain process and product or procedural
democracy and substantive democracy.
• Procedural democracy has to do with the
electoral system while substantive democracy is
human right to equality
• The second is the question about the most
important value of democracy is it individual right
and liberty or welfare of the community
Joseph Schumpeter, 1942:
The classical theory is too broad and vague. It is much

more practical to narrow the meaning of democracy
to the method:
“The democratic method is that institutional
arrangement for arriving at political decisions
in which individuals acquire the power to decide
by means of a competitive struggle for the people’s
vote”.*
*Joseph Schumpeter, Capitalism, Socialism, and
Democracy. New York: Harper, 1947, p.269
Democratic process/ method
democratic method has two dimension:
contestation – free and fair competition between
candidates
participation – all adult citizens have the right to vote
(Robert A. Dahl)
The use of this method requires the freedoms of:
expression, to speak publicly and publish one’s views
assembly, to gather for political purposes association,
to form political organizations
Key elements of Democracy:
1. Citizen Involvement
2. System of Representation
3. Rule of Law
4. Electoral System
5. Equality
6. Freedom, Liberty, and Rights
7. Education
8
Liberal democracy
Key elements:
• Constitutional Government
• Civil rights
• Checks and balance
• Voting
• Party competition
• Pluralism
• Civil society
• Market economy
Weaknesses
• Democratic rule can become tyranny of the
majority in situations where basic values are
not shared.
• Inability to act swiftly and decisively when
such actions are needed
• Does not reach out across national boundries.
Can we have international democracy?
A Matter of degree
• “ Democracy is a matter of degree. Some
countries are more democratic than others. But
none is perhaps very democratic, if any high
standard of democracy is applied. Mass
democracy is a difficult and hitherto largely
uncharted territory, and we should be nearer the
mark, and should have a far more convincing
slogan, if we spoke of the need, not to defend
democracy, but to create it.”
- E.H Carr, English Historian
Rhoades redefined governance as
follows: Governance refers to self-
organizing inter-organizational network
characterized by interdependence,
resource exchange, rules of the
game and significant autonomy
from the state.
UNDP (1997)
• Governance is the exercise of economic,
political, and administrative authority to
manage a country s affairs at all levels. It
comprises the mechanisms, processes, and
institutions through which citizens and groups
articulate their interests, exercise their legal
rights, meet their obligations and mediate their
differences.
World Bank
• Governance is a method through which power

is exercised in the management of a country s
political, economic, and social resources for
development
Characteristics of World Bank Concept
• 1. A shift from institution-building to state-
building. Institutions built as islands of
excellence may not survive. The whole state
needs to be strengthened
• 2.An increased emphasis on the role of the
state. The failed states need more governance.
Bank assistance was expanded to police and
army. This is in stark contrast to hollowing of
states in developed countries.
• Governance, a positive concept, became
good governance a normative concept. Six
elements in World Bank definition:
• 1. Voice and Accountability. Presence of
orderly transfer of power, freedom of
association, Press freedom, travel freedom.
Human rights, democratic accountability,
the role of opposition
• 2.Political stability. Lack of Military coup,
insurgency, terrorism, assassination, civil
unrest
• 3.Government Effectiveness. Quality of
bureaucracy, budgetary process, policy
consistency
• 4.Regulatory Quality. Regulation, foreign
investment, govt. intervention, tax
effectiveness
• 5.Rule of law. Lack of Crime, black market,
presence of quality of judiciary, quality of
police, property rights
• 6. Control of corruption. Incidence of
Corruption, anti-corruption measures and
public trust in government
Stakeholders in Governance
• The government ( Executive, legislature,
judiciary)
• Civil societies
• Political parties
• Media
• Private sectors
• Social organizations
Is good governance achievable?
• These are ideals. In real life there is no
evidence of improvement in governance
world wide.Even G-8 countries cannot do it.
• During 1996-2008, governance
deteriorated in the USA by five out of six
indicators
Decline in Governance of USA, 1996-2008
Indicator 2008 1996

Voice and accountability 1.55 1.72
Political Stability and Absence of 0.59 1.02
Violence
Government Effectiveness 1.65 2.22
Regulatory Quality 1.58 1.26
Rule of Law 1.65 1.68
Control of Corruption 1.55 1.72
Good governance versus good enough
governance
• Marilee S. Grindle talks about good enough
governance.
• The agenda of good governance is long. It is
growing. In 1997 conditions for good
governance was 45; in 2002-03, it increased to
116.
• The implementation capacity is limited
Good enough governance
• Good enough governance may be defined as
“a condition of minimally acceptable
government performance and Civil Society
engagement that does not significantly
hinder economic and political development
and that permits poverty reduction initiatives
to forward”.
• Real problem is how to prioritize.
Some tips for prioritization
• Find areas of strength from history
• Look at regional best practices
• Learn from what is working
• Pay attention to poverty alleviation
• Sequence the reforms
• Think of alternatives. Do not forget
government
UN Characteristics of Good
Governance
• Accountability
• Transparency
• Responsiveness
• Effectiveness and efficiency
• Rule of law
• Participation
• Equity and inclusiveness
• Consensus Orientation
Critique of Good Governance
□ Need contextual understanding
□ Good Governance – Neo liberal thrust + Globalization
□ Tendency to depoliticize government
□ Reduce the art of governing to an apolitical and technical exercise
□ Ambiguous definition of good governance
□ ‘Good’ in Good Governance is subjective and is subject to interpretations
□ Who defines what is good ?
□ Over emphasis on governance indicators and quantification
□ "Not everything that can be counted counts,and not everything that counts can be
counted“ -Albert Einstein
□ Good governance institutions do not guarantee automatic reduction of poverty and
sustainable development
□ Tendency to do governance without government

□ PPPs,NGOs (non-state actors) – unaccountable,invisible
Conclusion: good governance
• 1.All reforms are not needed. They are
not possible. Small changes may be very
useful. There is no universal concept.
• 2.What needs to be done, when it needs
to be done and how it needs to be done
Questions
• Discuss how limited economic resources, poor
education and other traits that debilitate an
underclass render the democratic process
undemocratic.

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DEMOCRACY, GOVERNANCE

The triple meaning:

The classical theory is too broad and vague. It is much

• Governance is a method through which power

Indicator 2008 1996

□ Tendency to do governance without government

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