Governance is the process of interactions through the
laws,
norms,
power or
language of an organized society over a
social system (
family,
tribe,
formal
Formal, formality, informal or informality imply the complying with, or not complying with, some set of requirements (forms, in Ancient Greek). They may refer to:
Dress code and events
* Formal wear, attire for formal events
* Semi-formal attire ...
or
informal organization, a
territory or across territories). It is done by the
government of a
state, by a
market, or by a
network. It is the
decision-making
In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be ...
among the actors involved in a collective problem that leads to the creation, reinforcement, or reproduction of
social norm
Social norms are shared standards of acceptance, acceptable behavior by groups. Social norms can both be informal understandings that govern the behavior of members of a society, as well as be codified into wikt:rule, rules and laws. Social normat ...
s and
institution
Institutions are humanly devised structures of rules and norms that shape and constrain individual behavior. All definitions of institutions generally entail that there is a level of persistence and continuity. Laws, rules, social conventions a ...
s".
[
]
In lay terms, it could be described as the political processes that exist in and between formal institutions.
A variety of entities (known generically as governing bodies) can govern. The most formal is a government, a body whose sole responsibility and authority is to make binding decisions in a given
geopolitical system (such as a
state) by establishing
laws. Other types of governing include an organization (such as a
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
recognized as a legal entity by a government), a socio-political group (
chiefdom, tribe,
gang, family,
religious denomination, etc.), or another, informal
group of people. In
business
Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...
and
outsourcing
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...
relationships,
Governance Frameworks are built into
relational contracts that foster long-term collaboration and innovation.
Governance is the way rules, norms and actions are structured, sustained, regulated and held
accountable. The degree of formality depends on the internal rules of a given
organization and, externally, with its
business partners. As such, governance may take many forms, driven by many different motivations and with many different results. For instance, a government may operate as a
democracy
Democracy (From grc, δημοκρατία, dēmokratía, ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which people, the people have the authority to deliberate and decide legislation ("direct democracy"), or to choo ...
where citizens vote on who should govern and the
public good Public good may refer to:
* Public good (economics), an economic good that is both non-excludable and non-rivalrous
* The common good, outcomes that are beneficial for all or most members of a community
See also
* Digital public goods
Digital pu ...
is the goal, while a
non-profit organization or a
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
may be governed by a small
board of directors
A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit orga ...
and pursue more specific aims.
In addition, a variety of external actors without decision-making power can influence the process of governing. These include
lobbies,
think tanks,
political parties
A political party is an organization that coordinates candidates to compete in a particular country's elections. It is common for the members of a party to hold similar ideas about politics, and parties may promote specific ideological or pol ...
,
non-government organizations, community and
media.
Most institutions of higher education offer governance as an area of study, such as the
Balsillie School of International Affairs,
Munk School of Global Affairs,
Sciences Po Paris
, motto_lang = fr
, mottoeng = Roots of the Future
, type = Public research university''Grande école''
, established =
, founder = Émile Boutmy
, accreditation ...
,
Graduate Institute Geneva
The Graduate Institute of International and Development Studies, or the Geneva Graduate Institute (french: Institut de hautes études internationales et du développement), abbreviated IHEID, is a government-accredited postgraduate institution ...
,
Hertie School, and
London School of Economics, among others.
Origin of the word
Like ''government'', the word ''governance'' derives, ultimately, from the Greek verb ''kubernaein''
'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["When the king's grace came first to the right of the crown, and unto the governance of the realm young and unexpert..." ] and in royal correspondence from
James V of Scotland to
Henry VIII of England. The first usage in connection with institutional structures (as distinct from individual rule) appears in Charles Plummer's ''The Governance of England'' (an 1885 translation from a 15th-century Latin manuscript 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
Sir Sidney James Mark Low (22 January 1857 – 14 January 1932) was a British journalist, historian, and essayist.
Biography
Low was born to Jewish parents Therese (née Schacherl; 1835–1887) and Maximillian Loewe (1830–1900), who emigrated ...
'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, the
IMF
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
and the
World Bank.
Since then, the term has gained increasing usage.
Types
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
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
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
s, to
non-profits, to
NGOs, to partnerships and other associations, to business relationships (especially complex
outsourcing
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...
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.
Public governance
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. 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
Accountability, in terms of ethics and governance, is equated with answerability, blameworthiness, liability, and the expectation of account-giving. As in an aspect of governance, it has been central to discussions related to problems in the publ ...
.
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
The term bureaucracy () refers to a body of non-elected governing officials as well as to an administrative policy-making group. Historically, a bureaucracy was a government administration managed by departments staffed with non-elected offi ...
.
Private governance
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. 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
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". In contrast to the traditional meaning of "governance", some authors like
James Rosenau
James N. Rosenau (November 25, 1924 – September 9, 2011) was an American political scientist and international affairs scholar. He served as president of the International Studies Association from 1984 to 1985.
Life
His scholarship and teaching ...
have used the term "global governance" to denote the regulation of interdependent relations in the absence of an overarching political authority. 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
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
Social policy is a plan or action of government or institutional agencies which aim to improve or reform society.
Some professionals and universities consider social policy a subset of public policy, while other practitioners characterize soci ...
research.
Nonprofit governance
Nonprofit governance has a dual focus: achieving the organization's social mission and 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
Corporate organizations often use the word ''governance'' to describe both:
# The manner in which
board
Board or Boards may refer to:
Flat surface
* Lumber, or other rigid material, milled or sawn flat
** Plank (wood)
** Cutting board
** Sounding board, of a musical instrument
* Cardboard (paper product)
* Paperboard
* Fiberboard
** Hardboard, a ty ...
s 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 an organization. Corporate governance also includes the relationships between people within an organization, (the
stakeholders) and the corporate
goals. The principal players include the
shareholder
A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...
s,
management, and the
board of directors
A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit orga ...
. 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
Project governance is the management framework within which project decisions are made and outcomes of a project are realized. Its role is to provide a repeatable and robust system through which an organization can manage its capital investments—project governance handles tasks such as outlining the relationships between all groups involved and describing the flow of information to all
stakeholders.
Environmental governance
Governance in an environmental context may refer to:
* a concept in
political ecology which promotes
environmental policy
Environmental policy is the commitment of an organization or government to the laws, regulations, and other policy mechanisms concerning environmental issues. These issues generally include air and water pollution, waste management, ecosystem mana ...
that advocates for
sustainable
Specific definitions of sustainability are difficult to agree on and have varied in the literature and over time. The concept of sustainability can be used to guide decisions at the global, national, and individual levels (e.g. sustainable livin ...
human activity (i.e. that governance should be based upon environmental principles).
* the processes of decision-making involved in the control and management of the environment and
natural resources. The
International Union for Conservation of Nature (IUCN), define environmental governance as the "multi-level interactions (i.e., local, national, international/global) among, but not limited to, three main actors, i.e., state,
market, and civil society, which interact with one another, whether in formal and informal ways; in formulating and implementing policies in response to environment-related demands and inputs from the society; bound by rules, procedures, processes, and widely accepted behavior; possessing characteristics of '
good governance'; for the purpose of attaining environmentally-
sustainable development
Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The des ...
."
Land governance
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
Land grabbing is the contentious issue of large-scale land acquisitions: the buying or leasing of large pieces of land by domestic and transnational companies, governments, and individuals.
While used broadly throughout history, land grabbing as ...
’. The operational dimension of land governance is
land administration Land administration is the way in which the rules of land tenure are applied and made operational. Land administration, whether formal or informal, comprises an extensive range of systems and processes to administer. The processes of land administra ...
.
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 – 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
Land grabbing is the contentious issue of large-scale land acquisitions: the buying or leasing of large pieces of land by domestic and transnational companies, governments, and individuals.
While used broadly throughout history, land grabbing as ...
', was partly made possible by the
Washington Consensus
The Washington Consensus is a set of ten economic policy prescriptions considered to constitute the "standard" reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the International Monet ...
-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.
[Mayke Kaag and Annelies Zoomers]
The global land grab: beyond the hype
Zed Books, 2014
The quality of land governance depends on its practical implementation, which is known as
land administration Land administration is the way in which the rules of land tenure are applied and made operational. Land administration, whether formal or informal, comprises an extensive range of systems and processes to administer. The processes of land administra ...
: ‘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.
[
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), endorsed by the ]Committee on World Food Security {{Primarysources, date=October 2010
The Committee on World Food Security (CFS) was established in 1974 as an intergovernmental body to serve as a forum in the United Nations System for review and follow-up of policies concerning world food securit ...
(CFS).
Landscape governance
Landscape
A landscape is the visible features of an area of land, its landforms, and how they integrate with natural or man-made features, often considered in terms of their aesthetic appeal.''New Oxford American Dictionary''. A landscape includes the ...
governance roughly refers to the rules, processes and institutions according to which decisions regarding the protection, management and planning of the landscape are made. Landscape governance differs from country to country according to the national context (e.g., political system, organization of public administration, economy, culture etc). Generally, landscape governance could be described asboth an empirical observation and a normative idea based on the principles of place-based multi-stakeholder dialogue, negotiation and spatial decision-making, and aims to achieve environmental, economic and social objectives simultaneously.
The current discourse about landscape governance calls for participatory and inclusive processes, that take into account the local realities (i.e. biophysical, cultural, social parameters), and the local needs and concerns of the multiple landscape agents; and effectively deal with cases of conflicting interests, ensuring the democratic and just treatment of the landscape.
The introduction of holistic approaches to landscape governance is the focus of the evolving interdisciplinary landscape research. Such an approach is the conceptualization of landscape as a commons. The discussion about commons-based landscape governance puts forward the need for open technologies (i.e. accessible, under creative commons licenses
A Creative Commons (CC) license is one of several public copyright licenses that enable the free distribution of an otherwise copyrighted "work".A "work" is any creative material made by a person. A painting, a graphic, a book, a song/lyrics ...
, open-source
Open source is source code that is made freely available for possible modification and redistribution. Products include permission to use the source code, design documents, or content of the product. The open-source model is a decentralized sof ...
) that can facilitate public access to landscape data (e.g., maps/satellite images for the study and monitoring of landscape change) and the distributed participation in the decision making, mapping and planning (e.g. open platforms).
Health governance
According to the WHO, "governance in the health sector refers to a wide range of steering and rule-making related functions carried out by governments/decisions makers as they seek to achieve national health policy objectives that are conducive to universal health coverage." A national health policy is a complex and dynamic process, which changes from State to State according to the political, historical and socio-economic situation prevailing in the country. Mainly it seeks to strengthen the health system
Health, according to the World Health Organization, is "a state of complete physical, mental and social well-being and not merely the absence of disease and infirmity".World Health Organization. (2006)''Constitution of the World Health Organiza ...
, making sure that they are capable of meeting the health needs of targeted populations.
More broadly, health governance requires a synergistic set of policies, many of which reside in sectors other than health as well as governors beyond the national governments, which must be supported by structures and mechanisms that enable collaboration. For instance, in the European context, it was developed a health policy framework calle
Health 2020
as a result of the collaboration between State members in the region. It gives policy-makers a vision, a strategic path and a set of priorities to improve health, guaranteeing that it is more equitable and sustainable.
In the 21st Century, global trends (e.g., changing population demographics and epidemiology, widening social inequalities, and a context of financial uncertainty) have influenced health system priorities and subsequently the setting of the health governance function. These trends have resulted in the emergence of joint actions of all stakeholders to achieve seminal changes in 21st-century societies. It is also important to consider that people have witnessed a global shift from traditional and reactive healthcare to proactive care, mainly enabled by investment in advanced technologies. Recent artificial Intelligence (AI) and Machine learning have made possible the automation as well as the standardisation of many processes in healthcare
Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health profe ...
, which have also brought to light challenges to the existing governance structures. One of these challenges concerns the ownership of health data.
Internet governance
Internet governance was defined by the World Summit on the Information Society as "the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet." Internet governance deals with how much influence each sector of society should have on the development of the Internet, such as to what extent the state should be able to censor it, and how issues on the Internet, such as cyber-bullying and criminal behavior should be approached.
Information technology governance
IT governance primarily deals with connections between business focus and IT management. The goal of clear governance is to assure that investment in IT generates business value and mitigates the risks that are associated with IT projects.
Blockchain governance
Blockchain
A blockchain is a type of distributed ledger technology (DLT) that consists of growing lists of records, called ''blocks'', that are securely linked together using cryptography. Each block contains a cryptographic hash of the previous block, a ...
s offer a novel way to enforce agreements and achieve cooperation and coordination. The main technical features of blockchains support transparency and traceability of records, information immutability and reliability, and autonomous enforcement of agreements. As such, blockcha