Definitions

GOVERNANCE

Governance is a culture that ensures the quality of life and sustainability of this quality for all citizens1. The term refers to processes of decision-making and monitoring of implementation in institutions. Governance is:

• An institution’s decision-making for short- and long-term goals and setting a direction,
• Monitoring these decisions based on institutional values and the proposed direction.

The concept of government then means working within the scope of authority and towards a targeted direction in accordance with institutional values.

GOOD GOVERNANCE

Trust is the essence of good governance. Institutional success and benefits created by an institution are possible only when stakeholders trust in the institution. Trust is also important for access to common resources and ability to use the resources of others. A culture of good governance is shaped by the principles of consistency, responsibility, and responsiveness, accountability, fairness as well as the actions of inclusiveness, transparency, effectiveness and efficiency, and representation and participation. Once such a culture is adopted, the governing processes of an institution are marked by:

• Fair and inclusive assessment of the needs and demands of all relevant stakeholders in a way,
• Responsible, fair, and participatory resource allocation and decision-making way,
• Sharing the reasons underlying the decisions, expected outcomes, and the results after implementation with the public in such an understandable way for stakeholders that is transparent and data-driven,
• Accountability to the public for decisions, activities, and all relevant processes and outcomes,
• Measurement and evaluation of the effectiveness and efficiency of decision-making processes,
• Substantive interaction and cooperation with stakeholders,
• Openness for institutional learning and continuous improvement,
• Development of an integrated and consistent approach to institutional functioning.

PRINCIPLES OF GOOD GOVERNANCE

Consistency: Refers to consistency amongst the plans, goals, decisions, and activities over time. This principle further entails harmony and collaboration with intra-organizational stakeholders, lower- and upper-level governments, national policy documents and goals, and international vision and roadmaps. As such, consistency enables institutions to evaluate their own development, detect weaknesses, then take necessary actions for improvement, and ensure the predictability of future decisions and activities by stakeholders.

Responsibility and Responsiveness: Signifies that institutions pay attention to the interests and expectations of all stakeholders, the environment, and future generations when making decisions, allocating resources, and conducting activities. Therefore, while the principle of responsibility and responsiveness ensures meeting the needs of different social groups effectively and timely, it also achieves the sustainability of the values and benefits it generates.

Accountability: Refers to the answerability to citizens and laws for the use of public resources. It requires decision makers to provide the public with accurate and complete information on their decisions and use of resources. It is practiced through the mechanisms of checks and balances that aim at evaluating relevant activities in terms of responsiveness to citizens and compliance with laws.

Fairness and Inclusiveness: Means that needs and demands of different social groups are considered when decisions are made and implemented, and resources are utilized. Therefore, this principle ensures access to service provision by all segments of the society in accordance with their needs. Fairness and inclusiveness promote trust between citizens and their institutions.

Transparency: Refers to the availability of lucid, accurate, and complete information for all processes of decision-making, implementation, resource use, and for their effects by all stakeholders and the public. As such, transparency allows monitoring and evaluating institutions. This concept is a prerequisite for accountability and trust between citizens and institutions.

Effectiveness and Efficiency: Targets the best possible and intended outcome without wasting resources. Implementing these principles means that activities result in the expected effect, and that the predicted timeline and resource allocation are achieved.

Representation and Participation: Means that all stakeholders, particularly citizens and civil society, participate in the planning and decision-making processes in a meaningful way. This principle requires that stakeholders be informed for all processes, from agenda setting to the assessment of results, can produce an effect and contribute to the processes, and have access to all relevant information. A genuinely participatory process provides the authority with various opinions and ways that ensure effective decisions through available information, opportunities, and policy goals. Meaningful participation means that:

• All stakeholders are informed of the topic and agenda before the participatory activity,
• Participation occurs through interactive tools and symmetric flow of information between the authority and civil participants,
• Stakeholders are informed as to the kind of decisions taken, the particular preferences and underlying rationales constituting the basis of any decision making,
• Public information is released post implementation regarding the achievement of the intended outcomes, implementation,
• Participatory mechanisms regularly work throughout all the process, and opinions are voiced and considered as well as in terms of improving participation.

Meaningful participation ensures the richness of ideas, supports effective and efficient planning and resource allocation, and therefore increases the quality of decision-making.

PROCESSES

A culture of good governance can be realized through practicing the principles of good governance during different processes of governing.

Agenda Setting and Decision-Making: Refers to the processes by which a topic, need, or demand is put on the agenda of decision makers and then how relevant decisions are undertaken.

Resource Utilization: Refers to the processes that resources are created, allocated, and used in any action of governing, from agenda setting and service provision to evaluating results and goal setting for improvement.

Implementation: Refers to the processes that activities are conducted, investments made, and services provided to different social groups.

Institutional Functioning and Capacity: Refers to the processes belonging to institutional structure, capacity, and operational functions; all these are assessed and improved.

INSTITUTIONAL LEARNING CYCLE

Institutional learning means that the improvement of institutional knowledge and performance are based on practice and experience to develop institutional capacity, functioning, and goals.

Institutions can measure, compare, and utilize resources to improve their capacity and performance when they develop an integrated and data-driven approach. Through such an approach, they become resilient to changing circumstances and potential risks while the benefits incurred increase and become more inclusive.

A culture of good governance is also a part of institutional learning that can be experienced in and through three different steps of a continuous learning cycle.

Structure and Direction: Refers to structures or structural frameworks that enable practicing good governance principles. Institutions operate in accordance with the direction and goals set by these structural elements.

Deployment: Refers to the implementation of activities that practice the culture or a specific principle of good governance. Examples of the phases of deployment are the meetings of ethics commissions, the implementation of the decisions taken in the meetings, or of a service provision based on the earlier planning and decision-making steps.

Measurement and Evaluation: Refer to all kinds of activities of measurement and evaluation based on data collection, reporting, and analysis that aim at good governance and quality in all governing processes. These activities occur at any time, from goal and agenda setting to the implementation and evaluation of its effects and impact.