MODULE 2

CONCEPTS AND
THEORIES OF
GOVERNANCE PART II
Group Members:
Dian Elizabeth Cabagay
Ivan Bautista
Giraldene Fernandez
Lyra Nicolle Buendia
Jean Crisel Canta
 THEORIES IN GOVERNANCE
If Max Weber and Woodrow Wilson were to suddenly appear on the landscape
of modern public administration, normative theories in hand, it is likely they would
be unable to recognize the field of governance. The comprehensive, functionally
uniform, hierarchical organizations governed by strong leaders who are
democratically responsible and staffed by neutrally competent civil servants who
deliver services to citizens – to the extent they ever existed – are long gone. They have
been replaced by an ‘organizational society’ in which many important services are
provided through multi organizational programs. These programs are essentially
“interconnected clusters of firms, governments, and associations which come
together within the framework of these programs”
Governance and New Public Management (NPM) are two distinct models within public
administration that reflect a shift toward a more modern and market-oriented approach
to government.
the governance approach is seen as a “new process of governing, or a changed
condition of ordered rule; or the new method by which society is governed”
Governance refers to the development of governing styles in which boundaries between
and within public and private sectors have become blurred. The essence of governance,
and its most troublesome aspect, according to its critics, is a focus on mechanisms that
do not rest on recourse to the authority and sanctions of government.
Governance is more about the structures and mechanisms that enable effective
collaboration among diverse actors.
New Public Administration a series of innovations that – considered collectively –
embody public choice approaches, transaction-cost relationships, and
preferences for efficiency over equity. notes, the outputs of governance are not
different from those of government; it is instead a matter of a difference in
processes
NPM focuses on outcomes, emphasizing the need for public organizations to be
more results-oriented.
KEY ACTORS IN GOVERNANCE
State/Public
Sector

Bussiness
Civil Society
sector
1. The State
The state is the principal actor of government to facilitate participation and
provide an enabling environment to other elements of the society. It is a strong entity
that recognizes the significance and autonomy of the other sectors without
overwhelming them.
The state as enabler provides for the legal and regulatory framework and political
order within which firms and organizations can plan and act. It encourages citizens
to act by liberating them from the fear of military reprisals when they criticize
policies or serve marginalized groups.
The state as resource provider facilitates by providing resources to assist markets
and communities. Such resources include information, technical expertise, research
and development programs, physical infrastructure as well as grants-in-aid or
incentive schemes.
The Local Government
The Local Government is an avenue where the civil society groups
at the community level can participate meaningfully in the decision
making processes. By virtue of the powers and authority provided
in the Local Government Code of 1991, local government
formulates and defines the legal and regulatory framework. The
Local Government also maintains a political order and provides the
necessary resources such as technical expertise and infrastructure to
the various groups, most especially to those who are places at
disadvantaged position.
2. The Private or Business Sector - Corporate Governance
In governance, the private/business sector serves as the engine
of the society. It is an important collaborator in the economic
development of the community. It generates jobs and incomes
for the people in the community. It can also provide the
needed resources for the government to enable it to pursue big
and wide scale projects that are beyond the local
government’s financial capability.
3. The Civil Society
The Civil Society consists of the complex of citizens and groups outside
government working in the public arena. It is often called as CSOs- civil
society organizations and also sometimes referred to as the Third Sector.
This sector plays an important role in the facilitation and interaction
among the key players of local governance. It mobilizes the various
groups or organizations in the community to participate in planning and
decision-making process.
Third Sector organizations play a key role as they engage in programs
and deliver services in areas where government is absent or where the
private sector is not interested in.
 the Media, which provides for a flow of information between the
major players, and between the players and society at large.
However, media, even if not controlled by the state, is part of the
private sector and therefore not a dispassionate player. The relative
size and strength of each of the players varies depending on the
history, culture and politics of the countryre government is absent
or where the private sector is not interested in.
FOUR TYPES/MODES/STYLES OF
GOVERNANCE
1. Accountability
2. Participation
3. Predictability
4. Transparency
1. Accountability
Accountability is imperative to make public officials answerable for
government behavior and responsive to the entity from which they derive their
authority.
Accountability also means establishing criteria to measure the performance of
public officials, as well as oversight mechanisms to ensure that standards are
met.
2. Participation
The principle of participation derives from an acceptance that people at the
heart of development. They are not only the ultimate beneficiaries of
development but are also the agents of development. In the latter capacity,
they act through groups or associations (e.g. trade unions, chambers of
commerce, NGOs, political parties) and as individuals. (e.g through letters to
newspaper editors, participating in radio and television talk shows, voting) .
3. Predictability
Predictability refers to the existence of laws, regulations and policies to regulate
society; and their fair and consistent application.
The importance of predictability cannot be overstated since, without it, the
orderly existence of citizens and institutions would be impossible. The rule of
law encompasses both well-defined rights and duties, as well as mechanisms for
enforcing them, and settling disputes in an impartial manner. It requires the
state and its subsidiary agencies to be as much bound by and answerable to,
the legal system as are private individuals and enterprises.
4. Transparency
Transparency refers to the availability of information to the general public and
clarity about government rules, regulations and decisions. Thus, it both
complements and reinforces predictability.
The difficulty with ensuring transparency is that only the generator of
information may know about it, and may limit access to it. Hence, it maybe
useful to strengthen the citizen’s right for information with a degree of legal
enforceability, for similar reasons. Broadly restrictive laws that permit public
officials to deny information to citizens need to provide for independent review
of claims that such denial is justified in the greater public interest.
 THE DIFFERENT GOVERNANCE
APPROACH

Corporate governance refers to the system of rules, practices, and

processes by which a company is directed and controlled. It involves
balancing the interests of a company's many stakeholders, such as
shareholders, management, customers, suppliers, financiers,
government, and the community.
Key Features:
• The board of Directors is central to corporate governance and is responsible for overseeing
the company's management and ensuring that it acts in the best interest of shareholders.
• Companies are expected to be accountable to their stakeholders and transparent in their
operations, particularly in financial reporting.
• Adherence to laws, regulations, and ethical standards is essential in maintaining investor
confidence and corporate integrity.
• Effective corporate governance involves identifying and managing risks to protect the
company’s assets and stakeholders’ interests.

Examples: The practices of major corporations like Apple, Google, and Samsung, where a
clear structure for decision-making and accountability is established.
 THE DIFFERENT GOVERNANCE
APPROACH
Global governance refers to the cooperative leadership and regulation of
global issues by international organizations, states, and non-state actors. It
involves creating structures and processes that enable multiple stakeholders
to work together to manage global challenges that transcend national
borders.
Key Features:
Organizations like the United Nations, World Trade Organization, and International
Monetary Fund play crucial roles in global governance by setting norms, facilitating
cooperation, and resolving disputes.
Global governance often relies on treaties and agreements that bind states to international
standards and policies.
Governments, NGOs, multinational corporations, and civil society work together to address
issues such as climate change, human rights, and global security.
Global governance faces challenges like power imbalances, national sovereignty concerns, and
varying levels of commitment from states.

Examples: The Paris Agreement on climate change, the World Health Organization's response to
global pandemics, and the Sustainable Development Goals (SDGs) are all instances of global
governance in action.
 THE DIFFERENT GOVERNANCE
APPROACH
Good governance refers to the processes and structures that guide political
and socio-economic relationships in a manner that is accountable,
transparent, responsive, equitable, inclusive, effective, efficient, and follows
the rule of law. It is a concept used in public administration, international
development, and corporate settings.
Key Features:
Transparency: Open and accessible processes that ensure stakeholders have access to
information and can participate in decision-making.
Accountability: Leaders and public officials are held accountable for their actions and
decisions, ensuring that they serve the public interest.
Participation: Involving citizens in decision-making processes to ensure their needs and rights
are addressed.
Rule of Law: Legal frameworks are enforced impartially, and justice is accessible to all.
Efficiency and Effectiveness: Public resources are managed wisely to achieve the best possible
outcomes.

Examples: Practices of good governance can be seen in countries like Denmark and New Zealand,
where there is a strong emphasis on transparency, low levels of corruption, and inclusive decision-
making.
 THE DIFFERENT GOVERNANCE
APPROACH
Modern governance reflects the evolving practices and strategies that
organizations, governments, and institutions use to manage and oversee
their operations in an increasingly complex, interconnected, and digital
world. It emphasizes adaptability, innovation, and the integration of
technology in governance processes.
Key Features:
Leveraging technology to improve governance processes, such as e-governance platforms,
digital services, and data-driven decision-making.
Modern governance requires the ability to quickly adapt to changing circumstances, such as
shifts in public expectations, technological advancements, and global challenges.
Engaging a broader range of stakeholders, including citizens, customers, and employees, in
governance processes through digital tools and platforms.
Modern governance also focuses on sustainability and ethical practices, ensuring that decisions
are made with long-term societal and environmental impacts in mind.

Examples: The use of artificial intelligence in government services, corporate sustainability

initiatives, and the growing importance of cybersecurity in governance frameworks.
 FACTORS PUSHING FOR
GOVERNANCE
The International Monetary Fund (IMF) identified several factors/processes
pushing for governance, good governance, in particular.
These are:
1. The Quest for Growth & Development
2. The Environmental Movement
3. Globalization
4. Consolidation
1. The Quest for Growth & Development
This is the key factor pushing for governance. Since the Industrial
Revolution, the market had the principle role in growth, with the state
needed only to nurture the climate that would allow it to grow. However,
the quarter century after World War II swung the pendulum to the state.
The inability of economic gains to produce acceptable levels or
redistribution, poverty reduction and political freedoms woke up civil
society. But they could criticize government and set up alternative
delivery systems but could not provide nationwide coverage. Similarly,
they decried the private sweatshops but could not set up the industries to
take their place.
[Link] Environmental Movement
The concept of development has changed from the exclusive focus on economic
growth of the 1950s to the inclusion of distributional goals like the reduction of
poverty and inequality during the UN Development Decades, to the current battle cry
for “sustainable human development”. Although SHD as a term is espoused primarily
by the United Nations, its incorporation of concerns for people and nature not only
for the present but also for later generations is now widely accepted by state, market
and civil society worldwide. The Environmental Movement (a term that sometimes
includes the conservation and green movements) is a diverse scientific, social, and
political movement. In general terms, environmentalists advocate the sustainable
management of resources, and the restoration and protection of the natural
environment through changes in public policy and individual behavior. In its
recognition of humanity as a participant in (not enemy of) ecosystems, the movement
is centered on ecological and human health.
3. Globalization
The transformation from command to market-oriented economies, the emergence of democratic political
regimes in the former Soviet Union, the rapid development and global proliferation of new technologies,
the pervasive spread of telecommunications systems, the growing importance of knowledge-based
industries and skills and the continuing integration of the world economy through trade and investment -
all these have created the foundation for a new age of sustainable human development. But all carry risks
as well. Is it to be a breakthrough or a breakdown? The trend towards globalization deserves special
attention. It is manifest in the growth of regional blocs that cooperate in such areas as trade and legal
frameworks, in the power of intergovernmental bodies such as the World Trade Organization and in the
spread of transnational corporations.

Economic "globalization" is a historical process, the result of human innovation and technological
progress. It refers to the increasing integration of economies around the world, particularly through trade
and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge
(technology) across international borders
 4. Consolidation
Another force pressing for governance is the need to consolidate peace in war torn
nations. This issue is rarely recognized as among the processes pushing for
governance. However, this unique perspective was brought to the force
dramatically by Hage Geingob, Prime Minister of Namibia, in his remarks to the
World Cog. Countries that have undergone a civil war, secession movements or the
creation of a new state out of the break-up of national territories have a specially
strong imperative to get everyone involved in the process of building a nation or
affecting a national reconciliation.
 ISSUES AND CHALLENGES IN
GOVERNANCE
1. Policy Issues, Concerns, and Challenges
The policy-making process is heavily influenced by historical precedents and institutional
mechanisms defined in the Constitution. The bicameral legislative structure and the
executive branch, led by the President, play crucial roles in this process. However, the
effectiveness of these policies is often hindered by the lack of coordination, consensus-
building, and stakeholder involvement.
Access to timely and correct information about public policies also precludes overall
efficiency, effectiveness, and productivity. Those who are affected may sometimes be
unaware of or improperly informed about their rights, duties, and responsibilities
provided for in relevant policies.
2. Problems in the Bureaucracy
Bureaucracy is a distinctive arrangement used by human beings to organize their activities.
Bureaucracy is as “an institutional method for applying general rules to specific cases, thereby
making the actions of government fair and predictable”
there are two problems in a bureaucratic type of government: inefficiency and arbitrariness.
Bureaucracies are often characterized by complex rules, procedures, and hierarchical
structures that can lead to slow decision-making processes. The excessive paperwork, multiple
layers of approval, and rigid adherence to procedures can result in delays, reducing the
efficiency of government operations.
Arbitrariness is often exacerbated by a lack of transparency and accountability within the
bureaucratic system. When decisions are made behind closed doors without clear criteria or
oversight, it can lead to favoritism, discrimination, or corruption.
3. Corruption
Corruption damages the development process in many ways. It undermines social confidence
in the willingness and capacity of public institutions to fulfill their obligations to the people
and it reinforces existing power relationships that are themselves typically part of the
development problem.
The Government has recently introduced affirmative actions toward addressing this problem
such as the passage of the Procurement Act, the implementation of lifestyle check among
government officials, and the reactivation of the Inter-Agency Anti-Corruption Committee
(IAGCC) to synchronize the various anti-corruption initiatives of the national government.
Despite these efforts, large scale and petty corruption is pervasive throughout various levels of
the Philippine government.
4. Issue on Public Fiscal Management
Another issue on good governance is on public fiscal management. Prior to
government reform programmes, there were weaknesses and constraints in fiscal
management, especially in the budgeting process. Some of these constraints are still
lingering.
Recognizing the impact that the fiscal condition has on macroeconomic stability,
the government should continue to give priority to raising revenues and improving
the efficiency of the bureaucracy so that more and better quality public service can
be delivered.
5. Deficiencies in the Political and Electoral System
The modernization of the electoral system in the country today is an attempt to
enhance public confidence in election outcomes and address traditional election
anomalies such as cheating, intimidation and bribery.
The government has initiated concrete efforts to institutionalize electoral reforms
through the passage of laws on Election Modernization, Party-List System and the
Absentee Voting for Overseas Filipinos. A democratic and effective political and
electoral system is important to ensure that a development agenda, primarily
addressing the needs of poor and disadvantaged, is promoted and sustained beyond
administrations
THANK YOU!