Good Governance Ensures Accountability

Governance is the extension of governmental affairs and includes private and non-profit sectors. When all these sectors and their agencies are rule-based and follow integrity, there is good governance which can be defined as the effective, accountable, transparent and equitable management of public resources and affairs. It emphasises the importance of making decisions in a way that reflects the needs, interests, and rights of all actors affected by the matter or decision. Good governance ensures that state actors exercise their powers in the best interest of society while promoting transparency, accountability, inclusivity, participation, and the rule of law.

There are some key principles of good governance. They are accountability, transparency, participation, rule of law, responsiveness, inclusiveness, effectiveness and efficiency. Considering these principles, good governance is vital for building trust in institutions, promoting sustainable development, and ensuring social stability and justice in the country. Every forward-looking society and country aspires for good governance. It has been argued that the difference between lasting progress and short-lived hype is determined by the extent of good governance in any society. Good governance transforms ambitious ideas into concrete realities. While poor governance talks, good governance delivers. When governance is good, businesses, governments, and institutions thrive and national development takes prominence. When it’s weak, chaos follows and thereby development is delayed or distracted.

Non-profit organisations

Governance also plays a crucial role in non-profit organisations. Around 300 INGOs and 50 thousand NGOs are operating in Nepal. Many of them start their operations with good intentions but fail due to poor oversight. Frequent reports show that without transparency, funds are mismanaged, and public trust is eroded in these organisations. Strong governance in this sector ensures that resources are used efficiently and that organisations stay true to their mission. With the likely USAID cut, many NGOs are going to be affected and will have to deliver more and better results in the promotion of good governance in the country.

With the operationalisation of the federal system for the last nearly 10 years, good governance is equally crucial at the provincial and local levels. Even in local communities, governance matters. Children learn from there in terms of the services they and their families receive. Local governments with well-managed public services can provide better infrastructure and ensure higher quality of life. When governance is weak, communities suffer from mismanagement of public funds and other resources, delayed projects, and neglected public needs. This is exactly what is happening with the User Committees in Nepal. They get public resources but possess low capacity and ethical standards. Although democracy has been delivering a lot towards ensuring good governance, the pace is too slow, often distracted, unfair and inequitable.

A radical change benefitting all is the expectation of the people. Without good governance, change becomes fragile and unsustainable. Game-changing national projects in almost all areas are having poor performance. Delays are increasing costs. In some irrigation projects, the planned irrigation land is turned into residential areas. There appears to be weak socio-economic analysis during the project design phase. There are also frequent changes in project personnel, poor oversight and reckless decision-making during the implementation phase.

Similar problems exist in government policies due to unstable government. A leader may push for reforms, but without clear systems, dedicated party workers and bureaucracy, those reforms don’t last. Look at the ongoing debates over education reform in the country. Free and compulsory education with the presence of private education providers is itself a contested area. Jurisdiction of federal, provincial and local government in education has not been settled yet. Consequently, the test of good governance has not reached the general public. This is where structured governance makes some significant differences. A strong system ensures that change isn’t just a temporary fix but a long-term improvement in terms of policy stability. It creates mechanisms to track progress, correct mistakes, and maintain consistency even when leadership shifts.

History is filled with examples of what happens when governance is bad. Lack of industrialisation, massive unemployment, cooperative fraud, and low investment are just a few consequences of governance failure. It must be realised that weak governance allows greed to go unchecked, leading to widespread economic damage. One of the biggest casualties of poor governance is the loss of public trust. When people lose faith in institutions, it takes years to rebuild confidence. Evidence shows that trust in government has declined worldwide due to corruption, inefficiency, and broken promises. When governance is weak, public frustration grows, leading to protests and political instability. In this situation, we need to effectuate governance operations rather than suppress the protests. The alternative to democracy is reformed democracy.

Credibility

Democracy brings good governance and good governance builds credibility. It ensures transparency, accountability, equality, the rule of law and fairness. Scandinavian countries consistently rank high in global governance indexes because of their strong institutions. Citizens trust their governments because decision-making is transparent, corruption is low, and policies remain consistent regardless of leadership changes. People are at the center of politics and administration.

In contrast, countries with weak governance, such as Nepal, face ongoing crises. Political instability, economic struggles such as poverty and unemployment, and human rights violations often stem from bad governance. With the emergence of an interconnected world, governance now extends beyond individual governments, corporations and non-profit sectors. Global issues like climate change, terrorism, human trafficking, migration, cybersecurity, and public health require coordinated efforts. Weak governance in one country can have profound worldwide consequences. This creates external pressure for good governance. Nepal must ensure good governance in all sectors in the days ahead. The demand for stronger governance is growing both internally and externally. This is because of the fact that national development is impossible in the absence of good governance. 

(The author is a development analyst.)