In global
development, good governance (GG) is a way of measuring how public and private
institutions conduct affairs and manage resources in an ideal way. Governance
is the process of decision making and the process by which decisions are
implemented (or not implemented). Governance in this context apply to corporate,
international, national, or local governance as well as interactions between
other sectors of society.
The concept
of “good governance” thus emerges as a model to compare ineffective economies with
viable economies. The concept centers on the responsibility of government and
governing bodies to meet the needs of the masses as opposed to select the
groups in society. After the global crisis of 2008. Countries around the world
began paying more attention to governance. Most of the developed countries often
will focus the meaning of “good governance” to set of requirements that conform
to the institution’s agenda, making “good governance” imply many different things
in many different contexts.
It is important
to distinguish good governance from other concepts that looks similar, such as
development and economic growth. Instead of considering them as equal, many
researchers refer to them as features that are likely to be related in
different ways. In fact, the importance that authors give to good governance,
is due to the impact it may have on development and economic growth.
The relevance of getting good governance
comes precisely from its relationship with the development of a country and the
reduction of poverty. Setting an agenda for reaching good governance is of the
huge interest but also a complex task, which makes this author to propose
rather a “good enough governance” agenda as a starting point. In the
construction of this "simpler" agenda, the idea is to revisit
policies that have worked in the past, set priorities in a strategically way,
consider policies with greater impact in alleviating poverty and reaching
development, and look for innovative ways of implementing such policies.
The
Worldwide Governance
Indicators is a program funded by the World Bank to measure the quality of
governance of over 200 countries. It uses six dimensions of governance for
their measurements, Voice & Accountability, Political Stability and Lack of
Violence, Government Effectiveness,
Regulatory Quality, Rule of Law, and
Control of Corruption.
According to Pirzada (2019),[1] the governance
mechanism is needed to ensure that institutions have performed well, went in
the right direction, and being managed without abuse. Governance has once been
public attention when the public start to learn the financial crisis suffered
by East Asia countries and the fall of Enron and WorldCom and the global crisis
in 2008. Good governance becomes then a robust regulation model in the
financial market. The presence of good governance (GG) is absolutely required
by an institution, considering GG requires a good governance system which can
assist in building public confidence and ensure that all stakeholders are
treated equally.
