Why the concern with

Governance now?

Global Perspective
 Background

• In 90s UN, IMF & WB initiated large-scale

campaign promoting ‘good governance,
• Economic and Social Research Council (ESRC)
launched extensive on Local Governance
• EU focused research based on Governance Theory;
local, regional, national and transnational
• Governance through Public-Private
 Is it a conscious change?

• Not a changing fad among the social scientists

• Rather a reflection of the changing condition of
the states;
• State politics
• Changing values and norms of the society
• States exchange with changing environment;
political, climate, trade
• Emerging Civil Society
 And the reasons are………

• Financial Crisis of the state

• The ideological shift towards the market
• Globalization
• Failure of the state
• Emergence of new public management
• Social change and increasing complexities
• New sources of governance
 Financial Crisis of the State

• The decline in the state capabilities especially in

its financial resources during 80s and 90s
• During 60s the economic condition of the
western states was better than that of 80s & 90s
• In 60s, Western European govts have stable
economic growth.
• But in the late 70s even British had to come to a
negotiation with IMF
• In 90s states were accumulating deficit budget
and increasing debts.
• Growth rate slowed down
• Debt for Education or Defense
• Degrading value of money (Japan in 90s)
• Emergence of private sector
 The Ideological shifts towards market

• Shifts from Collectivism towards individualism

• Socialism, Welfare state to capitalism
• States role to market
• Nationalization to denationalization
 Globalization
• It is a catchword for all types of international
imposition on national sovereignty, be they
political or economic, bilateral or multilateral,
• Driven by the market itself.
• Private investment accumulated
• Re-shuffling of the Tax
 Failure of the State

• The states somehow had failed to live up to the

expectations put upon it.
• From users point of view
• Party’s promise to tax cuts.
• Increasing unemployment
• Inability to handle oversized bureaucracy
• Increasing dependence on private sector
• Internal problem and emergence of terrorists
 New Public Management
• A managerial revolution in public service production
and delivery
• Market based reform of the public service
• Counter to the conventional bureaucracy
• Forget the organized culture
• It will be run the same way private organizations do.
• Hire if lack of internal expertise
• Fire if assignee is proved unproductive
• Emphasis on performance and evaluation
 Social Change and increasing complexities
• Enhanced Participation
• Gender Issues
• Environmental Protection
• These are very complex things especially the
first two; dealing with the transformation of
values, culture, social structure in some countries
 New Sources of Governance

• UN, EU, WTO, IMF are the developments in

the post world war period.
• Have propelled social scientists to look more
conceptually at how regional and international
institutions relate to states.
• Much of this analysis is cast in terms of
governance, or multi-level governance