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Good Governance : Theory and Practice Non-Degree Training Program for the Professional Human Resource Development Project, Phase III (PHRDP-III)   Ministry of Finance, Republic of Indonesia on Good Governance: Japanese Experience GSID, Nagoya University 1   September 2008 Prof. KIMURA, Hirotsune
Kofi Annan, former UN Secretary-General (1997-2006), has underscored that "good governance is perhaps the single most important factor in eradicating poverty and promoting development."  [1]   [1]  UN. World Governance Assessment  http:// www.odi.org.uk/wga_governance/About_WGA.html The key of economic development in developing countries is to build institutionalization in the economy, society and politics.  Douglas North,  Institutions, Institutional Change and Economic Performance  (1990), who got the Nobel Prize in the field of economics.
Dr. Nishimizu Mieko, the Vice-President of the World Bank for South Asia (1997-2003), summarized her experience as such. “ The most important lesson I learnt in the World Bank is that without good governance, we can’t promote healthy nation building.” “The bottom reason of the poverty in South Asia is bad governance in public policy and institution.”
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Population by regions and poverty reduction rate ( from UNDP MDG Report 2006 )   ,[object Object],Total      1100M ( 100% )      28%->19% (- 9% )          - 5% less   - 21.4% less. No possibility   44.6%->44.0% (- 0.6% )   310M ( 29 %)   Sub-Sahara - 11.5%   less 39 %-> 31 %(- 8% )   430M ( 40 %)   South Asia Over-attained already   33 %-> 14 %(- 19% )   270M ( 25 %)   East Asia Necessary poverty decrease  by 2015   1990 ~ 2002   Ratio of poverty decrease   Population below poverty 2001 ( % in developing countries )   Region
The Commission for Africa . 2005.  Our Common Interest: Report of the Commission for African.  p.24.   You can download this report using internet. “ One thing underlies all the difficulties caused by the interactions of Africa’s history over the past 40 years. It is the  weakness of governance and the absence of an effective state . By governance we mean the inability of  government and the public services to create the right economic, social and legal framework  which will encourage economic growth and allow poor people to participate in it. All the evidence shows that reductions in poverty do not come without economic growth. But as any gardener will testify, growth will not occur unless the right conditions are in place. “
4 levels of Governance ,[object Object],[object Object],[object Object],[object Object]
Jon Pierre & B. Guy Peters define governance as: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Definition of Governance by AusAID ,[object Object],[object Object]
KKZ indicators (Kaufmann-Kraay-Zoibo-Lobaton Indicators) (World Bank≒USA) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
1st feature: From government to governance ,[object Object],[object Object],[object Object],[object Object],[object Object]
2nd feature: Institutionalization and the importance of bureaucracy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3rd Feature: need for strong government to promote economy with  Developmental State ,[object Object],[object Object],[object Object],[object Object]
Adam Smith,  The Wealth of Nations,  (1776, Part 5)  and after ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Three Basic Development Fields in Developing Countries   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
(1)  Building Economic Infrastructure ,[object Object],Dhaka in Bangladesh: without having urban development strategy and road network, the loss of industrial efficiency and time is big.
Insufficiency of transportation system burdens people’s ordinary life Flood of people because of the shortage of buses
Insufficiency of transportation system burdens people’s ordinary life Jakarta
Finance is the blood of economy. In rural areas in developing countries, government financial system takes important role. Government local bank in India
Soil road in Cambodia ( Dry season ) 30 years of civil war had resulted in the scarcity of infrastructure. In rainy season, this road becomes muddy can’t be used and agricultural products can’t be sent to urban areas.
Lack of irrigation system in Cambodia Underground water contains minerals and not suitable for agriculture.
Rainy season of Cambodia Flood stays during rainy season and so many land (20% of the nation) is out of cultivation.
Land of Bangladesh spreads at the delta of Ganges and Brahmaputra rivers with frequent floods. Government digs canals and builds roads on the raised ground level (left).
Typical Bangladesh rural roads which are on the raised ground level using public work
Well prepared irrigation system ( Central Java )
The 2 nd  pillar of government role: social development and environmental policy Primary school  in India Lack of investment results in insufficient class rooms.  In 2002, enrollment of children between 6~14 years old was      82%.
Floating (primary) school in Cambodia Because of the low salary, teachers demand children to bring illegal thanks money to teachers. That means they teach corruption to children from the primary school.
Insufficient sanitation connects directly with higher level of infant mortality rate
Former public toilet has changed into private managed toilet. The “owner” clean the toilet and get money from users. The human waste enters directly to river . (Jakarta)
Another example of insufficient infrastructure: electric cable system is terrible: city center of Delhi, India
Delhi, which population is 16M, is very good in planting trees along major roads.  Neem tree is durable to pollution and has the function to prevent worms coming.
Selling of turtle eggs is the symbol of low level environmental protection which should be the government role. (West Kalimantan, 2000)
Illegal wood cutting from tropical forest is another   symbol of low level environmental protection which should be the government role.
3 rd  pillar of government:   Building Legal-Political Infrastructure   Supreme court in Yangon, Myanmar The building is the remains of British rule. But the content is “paying good money results in good judge.”
Policemen playing card during job hours. (India) In developing countries,  “Rule of Law” is the target everywhere. But the implementation is another big issue.
Elections are the most important pressure than any other external pressures from outside (international organizations). The general election scene in Indonesia (1999)
Elements of CSOs (Civil Society Organizations) are NGO(LSM), community organizations, religious organizations and media. (TV journalist in India)
NGOs at tsunami rehabilitation ( Trincomalee, Sri Lanka)
Community (in many cases, under the leadership of village head) is an important part of civil society.  Village head of Sri Lanka
Village government office is the integrated service center in the village. (Indonesia)
“ Chamber of Commerce and Industry (KADIN) is an important element of civil society.” A carder said to me. Chamber of Commerce and Industry at Klon Progo District, Jogjakarta. Right side is a young staff newly recruited from Faculty of Economics, UGM.
Merilee Grindle (political scientist of International Development Center, Harvard University) and her group insists to start the governance strategy from the more limited notion of “good enough governance,” instead of a comprehensive development of hundreds of governance indicators   ,[object Object],[object Object],[object Object],[object Object]
Indonesia is at the low level of the 3 rd  stage.  Governance level is still low in comparison with Singapore, Malaysia and Thailand.  ,[object Object],[object Object],[object Object]
Ex: The Total Structure  of Tsunami Disaster Reduction System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The common target of Governance aid is Capacity Development ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Basics of capacity building individual level  [1]   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]

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Good governance theory and practice08

  • 1. Good Governance : Theory and Practice Non-Degree Training Program for the Professional Human Resource Development Project, Phase III (PHRDP-III) Ministry of Finance, Republic of Indonesia on Good Governance: Japanese Experience GSID, Nagoya University 1   September 2008 Prof. KIMURA, Hirotsune
  • 2. Kofi Annan, former UN Secretary-General (1997-2006), has underscored that "good governance is perhaps the single most important factor in eradicating poverty and promoting development." [1] [1] UN. World Governance Assessment http:// www.odi.org.uk/wga_governance/About_WGA.html The key of economic development in developing countries is to build institutionalization in the economy, society and politics. Douglas North, Institutions, Institutional Change and Economic Performance (1990), who got the Nobel Prize in the field of economics.
  • 3. Dr. Nishimizu Mieko, the Vice-President of the World Bank for South Asia (1997-2003), summarized her experience as such. “ The most important lesson I learnt in the World Bank is that without good governance, we can’t promote healthy nation building.” “The bottom reason of the poverty in South Asia is bad governance in public policy and institution.”
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  • 6. The Commission for Africa . 2005. Our Common Interest: Report of the Commission for African. p.24. You can download this report using internet. “ One thing underlies all the difficulties caused by the interactions of Africa’s history over the past 40 years. It is the weakness of governance and the absence of an effective state . By governance we mean the inability of government and the public services to create the right economic, social and legal framework which will encourage economic growth and allow poor people to participate in it. All the evidence shows that reductions in poverty do not come without economic growth. But as any gardener will testify, growth will not occur unless the right conditions are in place. “
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  • 17. Insufficiency of transportation system burdens people’s ordinary life Flood of people because of the shortage of buses
  • 18. Insufficiency of transportation system burdens people’s ordinary life Jakarta
  • 19. Finance is the blood of economy. In rural areas in developing countries, government financial system takes important role. Government local bank in India
  • 20. Soil road in Cambodia ( Dry season ) 30 years of civil war had resulted in the scarcity of infrastructure. In rainy season, this road becomes muddy can’t be used and agricultural products can’t be sent to urban areas.
  • 21. Lack of irrigation system in Cambodia Underground water contains minerals and not suitable for agriculture.
  • 22. Rainy season of Cambodia Flood stays during rainy season and so many land (20% of the nation) is out of cultivation.
  • 23. Land of Bangladesh spreads at the delta of Ganges and Brahmaputra rivers with frequent floods. Government digs canals and builds roads on the raised ground level (left).
  • 24. Typical Bangladesh rural roads which are on the raised ground level using public work
  • 25. Well prepared irrigation system ( Central Java )
  • 26. The 2 nd pillar of government role: social development and environmental policy Primary school in India Lack of investment results in insufficient class rooms. In 2002, enrollment of children between 6~14 years old was     82%.
  • 27. Floating (primary) school in Cambodia Because of the low salary, teachers demand children to bring illegal thanks money to teachers. That means they teach corruption to children from the primary school.
  • 28. Insufficient sanitation connects directly with higher level of infant mortality rate
  • 29. Former public toilet has changed into private managed toilet. The “owner” clean the toilet and get money from users. The human waste enters directly to river . (Jakarta)
  • 30. Another example of insufficient infrastructure: electric cable system is terrible: city center of Delhi, India
  • 31. Delhi, which population is 16M, is very good in planting trees along major roads. Neem tree is durable to pollution and has the function to prevent worms coming.
  • 32. Selling of turtle eggs is the symbol of low level environmental protection which should be the government role. (West Kalimantan, 2000)
  • 33. Illegal wood cutting from tropical forest is another symbol of low level environmental protection which should be the government role.
  • 34. 3 rd pillar of government: Building Legal-Political Infrastructure Supreme court in Yangon, Myanmar The building is the remains of British rule. But the content is “paying good money results in good judge.”
  • 35. Policemen playing card during job hours. (India) In developing countries, “Rule of Law” is the target everywhere. But the implementation is another big issue.
  • 36. Elections are the most important pressure than any other external pressures from outside (international organizations). The general election scene in Indonesia (1999)
  • 37. Elements of CSOs (Civil Society Organizations) are NGO(LSM), community organizations, religious organizations and media. (TV journalist in India)
  • 38. NGOs at tsunami rehabilitation ( Trincomalee, Sri Lanka)
  • 39. Community (in many cases, under the leadership of village head) is an important part of civil society. Village head of Sri Lanka
  • 40. Village government office is the integrated service center in the village. (Indonesia)
  • 41. “ Chamber of Commerce and Industry (KADIN) is an important element of civil society.” A carder said to me. Chamber of Commerce and Industry at Klon Progo District, Jogjakarta. Right side is a young staff newly recruited from Faculty of Economics, UGM.
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