Contents 1 Origin of the word 2 Types 2.1 Governance as process 2.2 Public governance 2.3 Private governance 2.4 Global governance 2.5 Governance Analytical Framework 2.6 Nonprofit governance 2.7 Corporate governance 2.8 Project governance 2.9 Environmental governance 2.10 Land governance 2.11 Internet governance 2.12 Information technology governance 2.13 Regulatory governance 2.14 Participatory governance 2.15 Contract governance 2.16 Multilevel governance 2.17 Metagovernance 2.18 Collaborative governance 2.19 Security sector governance 3 As a normative concept 3.1 Fair governance 3.2 Good governance 3.3 Measurement and assessment 4 See also 5 References 6 Literature 7 External links


Origin of the word[edit] This section's factual accuracy is disputed. Relevant discussion may be found on Talk:Governance. Please help to ensure that disputed statements are reliably sourced. (August 2016) (Learn how and when to remove this template message) Like government, the word governance derives, ultimately, from the Greek verb κυβερνάω [kubernáo] (meaning to steer, the metaphorical sense first being attested in Plato). Its occasional use in English to refer to the specific activity of ruling a country can be traced to early modern England, when the phrase "governance of the realm" appears in works by William Tyndale[4] and in royal correspondence between James V of Scotland and Henry VIII of England.[5] The first usage in connection with institutional structures (as distinct from individual rule) is in Charles Plummer’s The Governance of England (an 1885 translation from a 15th-century Latin work by John Fortescue, also known as The Difference between an Absolute and a Limited Monarchy). This usage of governance to refer to the arrangements of governing became orthodox including in Sidney Low’s seminal text of the same title in 1904 and among some later British constitutional historians. However, the use of the term governance in its current broader sense, encompassing the activities of a wide range of public and private institutions, acquired general currency only as recently as the 1990s, when it was re-minted by economists and political scientists and disseminated by institutions such as the UN, IMF and World Bank.[6] Since then, the term has steadily gained increasing usage.


Types[edit] Governance often refers to a particular 'level' of governance associated with a type of organization (including public governance, global governance, non-profit governance, corporate governance, and project governance), a particular 'field' of governance associated with a type of activity or outcome (including environmental governance, internet governance, and information technology governance), or a particular 'model' of governance, often derived as an empirical or normative theory (including regulatory governance, participatory governance, multilevel governance, metagovernance, and collaborative governance). Governance can also define normative or practical agendas. Normative concepts of fair governance or good governance are common among political, public sector, voluntary, and private sector organizations. Governance as process[edit] This section does not cite any sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (December 2013) (Learn how and when to remove this template message) In its most abstract sense, governance is a theoretical concept referring to the actions and processes by which stable practices and organizations arise and persist. These actions and processes may operate in formal and informal organizations of any size; and they may function for any purpose, good or evil, for profit or not. Conceiving of governance in this way, one can apply the concept to states, to corporations, to non-profits, to NGOs, to partnerships and other associations, to business relationships (especially complex outsourcing relationships),to project teams, and to any number of humans engaged in some purposeful activity. Most theories of governance as process arose out of neoclassical economics. These theories build deductive models, based on the assumptions of modern economics, to show how rational actors may come to establish and sustain formal organizations, including firms and states, and informal organizations, such as networks and practices for governing the commons. Many of these theories draw on transaction cost economics.[7] Public governance[edit] Main article: Public administration There is a distinction between the concepts of governance and politics. Politics involves processes by which a group of people (perhaps with divergent opinions or interests) reach collective decisions generally regarded as binding on the group, and enforced as common policy. Governance, on the other hand, conveys the administrative and process-oriented elements of governing rather than its antagonistic ones.[8] Such an argument continues to assume the possibility of the traditional separation between "politics" and "administration". Contemporary governance practice and theory sometimes questions this distinction, premising that both "governance" and "politics" involve aspects of power and accountability. In general terms, public governance occurs in three broad ways: Through networks involving public-private partnerships (PPP) or with the collaboration of community organisations; Through the use of market mechanisms whereby market principles of competition serve to allocate resources while operating under government regulation; Through top-down methods that primarily involve governments and the state bureaucracy. Private governance[edit] Private governance occurs when non-governmental entities, including private organizations, dispute resolution organizations, or other third party groups, make rules and/or standards which have a binding effect on the "quality of life and opportunities of the larger public." Simply put, private—not public—entities are making public policy. For example, insurance companies exert a great societal impact, largely invisible and freely accepted, that is a private form of governance in society; in turn, reinsurers, as private companies, may exert similar private governance over their underlying carriers.[9] The term "public policy" should not be exclusively associated with policy that is made by government. Public policy may be created by either the private sector or the public sector. If one wishes to refer only to public policy that is made by government, the best term to use is "governmental policy," which eliminates the ambiguity regarding the agent of the policy making. Global governance[edit] Main article: Global governance Global governance is defined as "the complex of formal and informal institutions, mechanisms, relationships, and processes between and among states, markets, citizens and organizations, both inter- and non-governmental, through which collective interests on the global plane are articulated, right and obligations are established, and differences are mediated".[10] In contrast to the traditional meaning of "governance", some authors like James Rosenau have used the term "global governance" to denote the regulation of interdependent relations in the absence of an overarching political authority.[11] The best example of this is the international system or relationships between independent states. The term, however, can apply wherever a group of free equals needs to form a regular relationship. Governance Analytical Framework[edit] The Governance Analytical Framework (GAF) is a practical methodology for investigating governance processes, where various stakeholders interact and make decisions regarding collective issues, thus creating or reinforcing social norms and institutions. It is postulated that governance processes can be found in any society, and unlike other approaches, that these can be observed and analysed from a non-normative perspective. It proposes a methodology based on five main analytical units: problems, actors, norms, processes and "nodal points". These logically articulated analytical units make up a coherent methodology aimed at being used as a tool for empirical social policy research.[2][12][13] Nonprofit governance[edit] Nonprofit governance has a dual focus: achieving the organization's social mission and the ensuring the organization is viable. Both responsibilities relate to fiduciary responsibility that a board of trustees (sometimes called directors, or Board, or Management Committee—the terms are interchangeable) has with respect to the exercise of authority over the explicit actions the organization takes. Public trust and accountability is an essential aspect of organizational viability so it achieves the social mission in a way that is respected by those whom the organization serves and the society in which it is located. Corporate governance[edit] Main article: Corporate governance Corporate organizations often use the word governance to describe both: The manner in which boards or their like direct a corporation The laws and customs (rules) applying to that direction Corporate governance consists of the set of processes, customs, policies, laws and institutions affecting the way people direct, administer or control a corporation. Corporate governance also includes the relationships among the many players involved (the stakeholders) and the corporate goals. The principal players include the shareholders, management, and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large. The first documented use of the word "corporate governance" is by Richard Eells (1960, p. 108) to denote "the structure and functioning of the corporate polity". The "corporate government" concept itself is older and was already used in finance textbooks at the beginning of the 20th century (Becht, Bolton, Röell 2004). Project governance[edit] Main article: Project governance Project governance is the management framework within which project decisions are made. Environmental governance[edit] Main article: Environmental governance Land governance[edit] Land governance is concerned with issues of land ownership and tenure. It consists of the policies, processes and institutions by which decisions about the access to, use of and control over land are made, implemented and enforced; it is also about managing and reconciling competing claims on land. In developing countries, it is relevant as a tool to contribute to equitable and sustainable development, addressing the phenomenon that is known as ‘land grabbing’.[14][15] The operational dimension of land governance is land administration. Security of land tenure is considered to contribute to poverty reduction and food security, since it can enable farmers to fully participate in the economy. Without recognized property rights, it is hard for small entrepreneurs, farmers included, to obtain credit or sell their business[16] - hence the relevance of comprehensive land governance. There is constant feedback between land tenure problems and land governance. For instance, it has been argued that what is frequently called 'land grabbing', was partly made possible by the Washington Consensus-inspired liberalization of land markets in developing countries. Many land acquisition deals were perceived to have negative consequences, and this in turn led to initiatives to improve land governance in developing countries.[17] The quality of land governance depends on its practical implementation, which is known as land administration: ‘the way in which rules of land tenure are made operational’. And another factor is accountability: the degree to which citizens and stakeholder groups are consulted and can hold to account their authorities.[18] The main international policy initiative to improve land governance is known as the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (VGGT),[19] endorsed by the Committee on World Food Security (CFS). Internet governance[edit] Main article: Internet governance Information technology governance[edit] Main article: Information technology governance IT governance primarily deals with connections between business focus and IT management. The goal of clear governance is to assure the investment in IT generate business value and mitigate the risks that are associated with IT projects.[20] Regulatory governance[edit] Main article: Regulatory governance Regulatory governance reflects the emergence of decentered and mutually adaptive policy regimes which rests on regulation rather than service provision or taxing and spending.[21] The term captures the tendency of policy regimes to deal with complexity with delegated system of rules. It is likely to appear in arenas and nations which are more complex, more global, more contested and more liberally democratic.[22] The term builds upon and extends the terms of the regulatory state on the one hand and governance on the other. While the term regulatory state marginalize non-state actors (NGOs and Business) in the domestic and global level, the term governance marginalizes regulation as a constitutive instrument of governance. The term regulatory governance therefore allows us to understand governance beyond the state and governance via regulation. Participatory governance[edit] Participatory governance focuses on deepening democratic engagement through the participation of citizens in the processes of governance with the state. The idea is that citizens should play a more direct roles in public decision-making or at least engage more deeply with political issues. Government officials should also be responsive to this kind of engagement. In practice, participatory governance can supplement the roles of citizens as voters or as watchdogs through more direct forms of involvement.[23] Contract governance[edit] (See also contract management.) Emerging thinking about contract governance is focusing on creating a governance structure in which the parties have a vested interest in managing what are often highly complex contractual arrangements in a more collaborative, aligned, flexible, and credible way.[24] In 1979, Nobel laureate Oliver Williamson wrote that the governance structure for a contract is the “framework within which the integrity of a transaction is decided.” Adding further that “because contracts are varied and complex, governance structures vary with the nature of the transaction.”[25] Multilevel governance[edit] Main article: Multilevel governance Metagovernance[edit] "Metagovernance" is the "governing of governing".[26] It represents the established ethical principles, or 'norms', that shape and steer the entire governing process. It is important to note that there are no clearly defined settings within which metagoverning takes place, or particular persons who are responsible for it. While some[who?] believe metagoverning to be the role of the state which is assumed to want to steer actors in a particular direction, it can "potentially be exercised by any resourceful actor"[27] who wishes to influence the governing process. Examples of this include the publishing of codes of conduct at the highest level of international government,[28] and media focus on specific issues[29] at the socio-cultural level. Despite their different sources, both seek to establish values in such a way that they become accepted 'norms'. The fact that 'norms' can be established at any level and can then be used to shape the governance process as whole, means metagovernance is part of both the input and the output of the governing system.[30] Collaborative governance[edit] See also: Collaborative governance A collaborative governance framework uses a relationship management structure, joint performance and transformation management processes and an exit management plan as controlling mechanisms to encourage the organizations to make ethical, proactive changes for the mutual benefit of all the parties.[3] Security sector governance[edit] See also: Security sector governance Security sector governance (SSG) is a subpart concept or framework of security governance that focuses specifically on decisions about security and their implementation within the security sector of a single state. SSG applies the principles of good governance to the security sector in question.[31]


As a normative concept[edit] Fair governance[edit] When discussing governance in particular organizations, the quality of governance within the organization is often compared to a standard of good governance. In the case of a business or of a non-profit organization, for example, good governance relates to consistent management, cohesive policies, guidance, processes and decision-rights for a given area of responsibility, and proper oversight and accountability. "Good governance" implies that mechanisms function in a way that allows the executives (the "agents") to respect the rights and interests of the stakeholders (the "principals"), in a spirit of democracy. Good governance[edit] Main article: Good governance Good governance is an indeterminate term used in international development literature to describe various normative accounts of how public institutions ought to conduct public affairs and manage public resources. These normative accounts are often justified on the grounds that they are thought to be conducive to economic ends, such as the eradication of poverty and successful economic development. Unsurprisingly different organizations have defined governance and good governance differently to promote different normative ends. The World Bank defines governance as: the manner in which power is exercised in the management of a country's economic and social resources for development.[32] The Worldwide Governance Indicators project of the World Bank defines governance as: the traditions and institutions by which authority in a country is exercised.[33] This considers the process by which governments are selected, monitored and replaced; the capacity of the government to effectively formulate and implement sound policies and the respect of citizens and the state of the institutions that govern economic and social interactions among them. An alternate definition sees governance as: the use of institutions, structures of authority and even collaboration to allocate resources and coordinate or control activity in society or the economy.[34] According to the United Nations Development Programme's Regional Project on Local Governance for Latin America: Governance has been defined as the rules of the political system to solve conflicts between actors and adopt decision (legality). It has also been used to describe the "proper functioning of institutions and their acceptance by the public" (legitimacy). And it has been used to invoke the efficacy of government and the achievement of consensus by democratic means (participation).[35] Measurement and assessment[edit] Since the early years of the 2000s (decade),[when?] efforts have been conducted in the research and international development community to assess and measure the quality of governance of countries all around the world. Measuring governance is inherently a controversial and somewhat political exercise. A distinction is therefore made between external assessments, peer assessments and self-assessments. Examples of external assessments are donor assessments or comparative indices produced by international non-governmental organizations. An example of a peer assessment is the African Peer Review Mechanism. Examples of self-assessments are country-led assessments that can be led by government, civil society, researchers and/or other stakeholders at the national level. One of these efforts to create an internationally comparable measure of governance and an example of an external assessment is the Worldwide Governance Indicators project, developed by members of the World Bank and the World Bank Institute. The project reports aggregate and individual indicators for more than 200 countries for six dimensions of governance: voice and accountability, political stability and lack of violence, government effectiveness, regulatory quality, rule of law, control of corruption. To complement the macro-level cross-country Worldwide Governance Indicators, the World Bank Institute developed the World Bank Governance Surveys, which are country-level governance assessment tools that operate at the micro or sub-national level and use information gathered from a country’s own citizens, business people and public sector workers to diagnose governance vulnerabilities and suggest concrete approaches for fighting corruption. A Worldwide Governance Index (WGI)[36] was developed in 2009 and is open for improvement through public participation. The following domains, in the form of indicators and composite indexes, were selected to achieve the development of the WGI: Peace and Security, Rule of Law, Human Rights and Participation, Sustainable Development, and Human Development. Additionally, in 2009 the Bertelsmann Foundation published the Sustainable Governance Indicators (SGI), which systematically measure the need for reform and the capacity for reform within the Organisation for Economic Co-operation and Development (OECD) countries. The project examines to what extent governments can identify, formulate and implement effective reforms that render a society well-equipped to meet future challenges, and ensure their future viability.[37] Section 10 of the Government Performance and Results Act (GPRA) Modernization Act requires U.S. federal agencies to publish their strategic and performance plans and reports in machine-readable format. The International Budget Partnership (IBP) launched the Open Budget Initiative in 2006 with the release of the first Open Budget Survey (OBS). The OBS is a comprehensive analysis and survey that evaluates whether central governments give the public access to budget documents and provide opportunities for public participation in the budget process. To measure the overall commitment to transparency, the IBP created Open Budget Index (OBI), which assigns a score to each country based on the results of the survey. While the OBS is released biannually, the IBP recently released a new OBS Tracker, which serves as an online tool for civil society, the media, and other actors to monitor in real time whether governments are releasing eight key budget documents. The Open Budget Index data are used by the Open Government Partnership, development aid agencies, and increasingly investors in the private sector as key indicators of governance, particularly fiscal transparency and management of public funds.[38] Examples of country-led assessments include the Indonesian Democracy Index, monitoring of the Millennium Development Goal 9 on Human Rights and Democratic Governance in Mongolia and the Gross National Happiness Index in Bhutan. Section 10 of the Government Performance and Results Act Modernization Act (GPRAMA) requires U.S. federal agencies to publish their performance plans and reports in machine-readable format, thereby providing the basis for evaluating the quality of their performance of the governance functions entrusted to them, as specified in their strategic objectives and performance indicators. Publishing performance reports openly on the Web in a standard, machine-readable format is good practice for all organizations whose plans and reports should be matters of public record.


See also[edit] Agency cost Anarchism Collaborative governance Corporate governance Contract management Ecclesiastical polity International healthcare accreditation Internet governance Global governance Governmentality Open-source governance Participatory democracy Policy Governance Principal–agent problem Public choice theory Public management and New public management Rule According to Higher Law Sarbanes-Oxley Simulation Governance Seat of local government Social innovation Sociocracy SOA governance Statism Strategy Markup Language (StratML), particularly Part 2, Performance Plans and Reports


References[edit] ^ Bevir, Mark (2013). Governance: A very short introduction. Oxford, UK: Oxford University Press.  ^ a b Hufty, Marc (2011). "Investigating Policy Processes: The Governance Analytical Framework (GAF). In: Wiesmann, U., Hurni, H., et al. eds. Research for Sustainable Development: Foundations, Experiences, and Perspectives". Bern: Geographica Bernensia: 403–24.  ^ a b Vitasek, Kate; et al. (2011). The Vested Outsourcing Manual (1st ed.). New York: Palgrave Macmillan. ISBN 0230112684.  ^ "When the king's grace came first to the right of the crown, and unto the governance of the realm young and unexpert..." William Tyndale; John Frith (1831). The works of Tyndale. Ebenezer Palmer. p. 452.  ^ "We have put all our confidence, has als actyflie with ye help of our derrest Modir takin on Ws ye governance of our Realme": "Letter of James V to Henry VIII". State Papers: King Henry the Eighth; Part IV. Murray. 1836. p. 95.  ^ Étymologie du terme "gouvernance", document prepared by the European Commission. ^ Williamson, Oliver E. (1979) "Transaction-Cost Economics: The Governance of Contractual Relations," Journal of Law and Economics: Vol. 22: No. 2, Article 3|accessible at: http://chicagounbound.uchicago.edu/jle/vol22/iss2/3 ^ Offe, Claus, (2009) Governance: An “Empty Signifier”? Constellations, 16: 550–62. doi:10.1111/j.1467-8675.2009.00570.x ^ Marcos Antonio Mendoza, "Reinsurance as Governance: Governmental Risk Management Pools as a Case Study in the Governance Role Played by Reinsurance Institutions", 21 Conn. Ins. L.J. 53, 68–70 (2014) http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2573253 ^ Thakur, Ramesh; Van Langenhove, Luk (2006). "Enhancing Global Governance through Regional Integration". Global Governance. 12 (3 July, September): 233–40.  ^ James N. Rosenau, "Toward an Ontology for Global Governance", in Martin Hewson and Thomas Sinclair, eds., Approaches to Global Governance Theory, SUNY Press, Albany, 1999. ^ Hufty, Marc (2011). "Governance: Exploring four approaches and their relevance to research. In: Wiesmann, U., Hurni, H., et al. editors. Research for Sustainable Development: Foundations, Experiences, and Perspectives". Bern: Geographica Bernensia: 165–183.  ^ Spear, Cornforth & Aiken, 2009. The governance challenges of social enterprises: Evidence from a UK empirical study. Annals of Public and Cooperative Economics, 89(2): 247–73. ^ Focus on Land in Africa (http://www.focusonland.com/property-rights-issues/land-governance-and-law-1/) ^ Policy Paper: Good Land Governance. Global Land Tool Network, no date. ^ De Soto, Hernando. The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books. 2000 ^ Mayke Kaag and Annelies Zoomers: The global land grab: beyond the hype, Zed Books, 2014 ^ Mayke Kaag and Annelies Zoomers, op. cit. ^ VGGT ^ Smallwood, Deb (March 2009). "IT Governance: A Simple Model". Tech Decision CIO Insights.  ^ David Levi-Faur, "Regulation & Regulatory Governance", in David Levi-Faur, Handbook on the Politics of Regulation, Edward Elgar, Cheltenham, 2011, pp. 1–20. ^ Braithwaite, John, Cary Coglianese, and David Levi‐Faur. "Can regulation and governance make a difference?." Regulation & Governance 1.1 (2007): 1–7. ^ 'Triumph, Deficit or Contestation? Deepening the 'Deepening Democracy' Debate' Institute of Development Studies (IDS) Working Paper 264 July 2006. ^ Unpacking Outsourcing Governance: How to Build a Sound Governance Structure to Drive Insight Versus Oversight|[1]|2015|Vested Way|accessed 17 August 2016 ^ Williamson, Oliver E. (1979) "Transaction-Cost Economics: The Governance of Contractual Relations," Journal of Law and Economics: Vol. 22: No. 2, Article 3|accessible at: http://chicagounbound.uchicago.edu/jle/vol22/iss2/3 ^ Kooiman, J. Governing as Governance. Sage publications 2003. p. 170. ^ Sorensen, E. Metagovernance: The Changing Role of Politicians in Processes of Democratic Governance. American Review of Public Administration. Volume 36 2006, pp. 98–114 (p. 103). ^ Onyango, P & Jentoft, S. Assessing Poverty in small-scale fisheries in Lake Victoria, Tanzania.Fish and Fisheries. Volume 11 2010, pp. 250–63 (p. 258). ^ Evans, J. Environmental Governance. Routledge 2012. p. 40. ^ Kooiman, J. Governing as Governance. Sage publications 2003. p. 171. ^ Security Sector Governance. SSR Backgrounder Series. Geneva: Geneva Centre for the Democratic Control of Armed Forces (DCAF). 2015.  ^ World Bank, Managing Development – The Governance Dimension, 1991, Washington D.C., p. 1 ^ A Decade of Measuring the Quality of Governance. ^ Bell, Stephen, 2002. Economic Governance and Institutional Dynamics, Oxford University Press, Melbourne, Australia. ^ This is a very widely cited definition, as in Applebaugh, J. (rapporteur), "Governance Working Group", power-point presentation, National Defense University and ISAF, 2010, slide 22. ^ "World Governance Index 2009 Report". World Governance. Archived from the original on 4 October 2011. Retrieved 3 February 2013.  ^ Empter, Stefan; Janning, Josef (2009). "Sustainable Governance Indicators 2009 – An Introduction". In Stiftung, Bertelsmann. Policy Performance and Executive Capacity in the OECD. Gütersloh: Verlag Bertelsmann Stiftung.  ^ Castro, Michael, 12 September 2013, Open Budgets Key to Open Government: Next Steps for OGP Countries, retrieved 2 December 2014


Literature[edit] "Manifesto for Smarter Intervention in Complex Systems", by Mark Fell, Carré & Strauss. 2013. Becht, Marco, Patrick Bolton, Ailsa Röell, "Corporate Governance and Control" (October 2002; updated August 2004). ECGI – Finance Working Paper No. 02/2002. Asie Dwise (2011), Corporate Governance: An Informative Glimpse, International Journal of Governance. 1(2): 206–14 Eells, R.S.F. (1960), The Meaning of Modern Business: An Introduction to the Philosophy of Large Corporate Enterprise (Columbia University Press, NY). Heritier, P. & Silvestri P. (Eds.), Good government, Governance, Human complexity. Luigi Einaudi's legacy and contemporary societies, Leo Olschki, Firenze, 2012. Senn, Marcell. Sovereignty – Some critical Remarks on the Genealogy of Governance In: Journal on European History of Law, London: STS Science Centre, Vol. 1, No. 2, pp. 9–13, ISSN 2042-6402. Türke, Ralf-Eckhard: Governance – Systemic Foundation and Framework (Contributions to Management Science, Physica of Springer, September 2008).


External links[edit] Look up governance in Wiktionary, the free dictionary. Sustainable Governance Indicators, Bertelsmann Stiftung Journal of Politics & Governance eGovernance & Governance News Retrieved from "https://en.wikipedia.org/w/index.php?title=Governance&oldid=822028481" Categories: AccountabilityPolitical philosophyPolitical science terminologyGovernanceHidden categories: Accuracy disputes from August 2016All accuracy disputesArticles needing additional references from December 2013All articles needing additional referencesAll articles with specifically marked weasel-worded phrasesArticles with specifically marked weasel-worded phrases from January 2012All articles with vague or ambiguous timeVague or ambiguous time from January 2012Pages using div col with deprecated parameters


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