Introduction

• Author: Denis Benn/Kenneth O. Hall
• Profession: Michael Manley Professor of Public Affairs and Public Policy, University of the West Indies, Mona/Pro Vice Chancellor and Principal of the University of the West Indies, Mona campus
• Pages: 10-25

xGOVERNANCE IN THE AGE OF GLOBALISATION

Despite continuing debate on its ideological origins and the persistence of

a variety of definitions regarding its specific content, there is increased

recognition that the concept of good governance, broadly conceived, is an

important prerequisite for the promotion of an optimal level of development,

the guarantee of human rights and freedom, and the maintenance of social and

political stability. As a result, there has been extensive theorisation on the subject

in an attempt to further clarify its philosophical content and also to identify

suitable strategies for its effective application in practical political contexts.

In keeping with this thrust there has been a noticeable tendency in recent

years to broaden the conception of governance beyond the theoretical focus on

the role and functions of the state and to encompass instead the activities of

both state and non-state actors within the polity as well as the impact of the

dynamics of their inter-relationship in shaping the political culture. Moreover,

its subject matter has been expanded to include not only traditional political

concerns but also issues relating to economic management and social

organisation. Consequently, governance is now generally defined as “the

exercise of political, economic and administrative authority to manage a nation’s

affairs”.

It should be pointed out that the new emphasis on governance, as opposed

to government, reflects a conscious ideological thrust which is informed by

neo-liberal philosophical assumptions. In contrast to the previous focus on the

functions of the state which was a central feature of traditional political science

literature, neo-liberalism is premised on a minimalist conception of the role of

the state in the economic sphere with a corresponding emphasis on the primacy

of the private sector operating within the framework of a market-based economic

system. This conception of governance is clearly reflected in contemporary

economic and social policies sponsored by the International Monetary Fund

(IMF) and the World Bank and which, collectively, are embodied in the so-

called “Washington Consensus”. This philosophical orientation has exercised

a dominant influence on the overall conception of governance since the

beginning of the 1980s.

The new conception of governance, embodied in the neo-liberal paradigm,

provided the philosophical rationale for the growing trend towards privatisation

which has occurred in the developing countries in recent years. This resulted

when governments sought to relinquish their ownership of economic

enterprises which, prior to the 1980s, was quite a common feature of the economic

model embraced by these countries.

INTRODUCTION

xi

As part of the new dispensation, emphasis was also placed on the need to

ensure an increased role for civil society in the development process.

Consequently, with the support of bilateral donors and multilateral development

institutions, non-governmental organisations were encouraged to play a larger

role in the formulation and implementation of development strategies and

programmes, thus further limiting the role of the state in the economic sphere.

The neo-liberal theoretical framework also generated a number of related

initiatives which in essence sought to apply private sector, market-based

economic principles to the analysis of governmental systems and processes.

This approach is reflected in various forms of public choice theory initially

advanced by James Buchanan and Gordon Tullock1. Similarly, the concept of

“entrepreneurial government” popularised by Gaebler and Osborne2

represented a conscious attempt to apply private sector principles to the

functioning of the state in an effort to achieve increased efficiency in its overall

operation. Finally, new public management theories applied to public sector

reform follow in this tradition.

While the underlying principles of neo-liberalism continue to inform

contemporary approaches to governance, a number of arguments have recently

been advanced in support of a proactive role for the state in support of

development objectives. In this regard, the 1997 World Development Report by

the World Bank identified the importance of effective governance defined in

terms of increased administrative efficiency in support of overall development

goals. More recently, Joseph Stiglitz3, the well known Nobel Laureate in

Economics, has pointed to the shortcomings of an unconditional reliance of

market forces as a strategy for addressing the development problems faced by

the developing countries, given the comparatively underdeveloped nature of

the productive structures in these countries and the significant discontinuities

in information flows within these economies. He therefore identified the need

for a more active role for government with a view to ensuring more effective

policy outcomes and also in guaranteeing social equity.

Reliance on the private sector and the unerring logic of the market has also

been shaken by the financial scandals surrounding the collapse of major

corporate enterprises in the US such as Enron, World Com and Arthur Anderson,

to name but a few, and has in fact led to renewed calls in some quarters for the re-

imposition of suitable regulatory controls aimed at limiting corporate excesses

in the future.

Against the background of this ongoing debate on the requirements for

good governance, a number of specific issues at the national, regional and global

level continue to preoccupy both academic analysts and policy makers,

particularly in the context of the phenomenon of globalisation which has

impinged on the exercise of national sovereignty and has further limited the

capacity of the state.