GOOD GOVERNANCE ENSURES THE COUNTRY RUNS WELL

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.