Governance in developing countries: The challenge of multi-level governance


1. What is Governance?: Approaches to Defining Governance
In spite of the popularity of the governance discourse the concept remains ambiguous. Two major definitions of governance have gained currency in the rapidly growing academic and policy literature on the subject. In the most popular one, used by the World Bank and many other United Nations institutions, governance is defined as ‘ the manner in which power is exercised in the management of a country’s economic and social development’ (World Bank 1994: vii, see also United Nations Development Program 1997). Essentially, governance as conceived by these multilateral organs, emphasizes leadership--the manner in which (state) political leaders manage, use (or misuse) power --whether to promote social and economic development or to pursue agendas that undermine such goals. This was made explicit in the World Bank’s first application of the concept to Africa. Governance was regarded as the single most important if not the sole cause of Africa’s underdevelopment (World Bank 1989:60). Well-governed countries are led by regimes in which rule of law, accountability, transparency and the enjoyment of human and civil rights are allowed.

A second approach to defining governance focuses on the sharing of authority for public management between state and non-state organizations. Jan Kooimans (1993: 2) and other European researchers define socio-political forms of governing as ‘ forms in which public or private actors do not separately but in conjunction, engage in problem solving together, in combination, that is to say co-arrangements’. The school therefore views governance as forms of multi-organizational action rather than involving only state institutions.

The definition used in this paper is closer to this second school of thought. Governance is approached, as it had always been understood in the political science literature as the fundamental rules, which regulate the relationships between rulers and the ruled, the rules-in -use or constitutive choice rules, operating at deeper levels of analysis than collective and operational choice rules (Kiser & Ostrom 1982, Ostrom 1990, Hyden 1992). The legal community (Okoth Ogendo 1999) also refers to these constitutional rules as ‘ground-norms’.

Although primarily associated with the analysis of the state, governance is a generic term, which can be applied to all forms of human organization--economic, cultural, religious or military.

There are those who see in the governance debate a way of scapegoating the poor countries for the failure of development—while completely ignoring some of the problems within the international economic relations which have perpetuated old patterns of relationship between weak and strong nations. On the other hand, some see governance as providing the crucial opportunity to address issues of power inequality within national (and international) political systems which some hope may help to improve institutional quality especially in developing countries where ordinary citizens have a high distrust of governmental institutions and actually work to undermine them (Narayan et al 2000, Ekeh 1975).

One significance of approaching governance as the fundamental rules of the political game is that it facilitates the analysis of the high levels of asymmetry in the distribution of power and other resources among different power wielders in society—those at the center as against those in the periphery, between one region or locality and another and between individuals who exercise power and those that do not. For an important difference between developed and underdeveloped countries is in the concentration of power in central government agencies in the latter groups of countries as we shall see in greater detail below.

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