Good Governance module for Masters of Economic Governance programme in the OSCE Academy

1. Good Governance
OSCE, • Murod Khusanov
OSCE Bishkek Academy – 2022
osce.org

2. osce.org
Why some countries are more successful?

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Country TI Rank Economic freedom
Human
Development
Index
Democracy
Index
GDP per
Capita USD
Botswana 45 61 110 30 7,347
Zimbabwe 157 173 145 133 1,737
http://data.worldbank.org/?locations=BW-ZW
Neighbors with some differences

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Sub-Saharan African economies

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Sub-Saharan African economies, GDP per capita
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2021&locations=BW-NG-SN-ZW-ZA-KE-ZM-SD-
AO&start=1960&view=chart

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Human Development Index (HDI)

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Sub-Saharan Africa

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Sub-Saharan Africa
Kenya
South Africa
Angola
Zambia
Government’s spending on education, % of GDP

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Sub-Saharan Africa

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Botswana and OECD countries

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Press freedom ranking

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Botswana
Political status: Republic with executive president (elected at the
National assembly), latest elected in 2019
Legislature: Parliament
Judiciary: Independent court system
Economy (% of GDP): Services – 70.6%, Industry – 27.5%, Agriculture
– 1.8%
Substantive constitutional amendments: 2/3 of the Assembly
Major constitutional amendments: A national referendum
Last constitutional amendments: April 1997
Highly inclusive decision making processes

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Botswana, starting point
• Total distance of paved roads - 12 km (7,000 in 2007)
• Literacy level: Two secondary schools with 5-years full programme
(10 times more in Zimbabwe and 70 times in Uganda), while only 20
university degree holders and 90 secondary school graduates
• Economy is mainly agricultural (40% GDP)
• Life expectancy at birth 37 years (64.5 years in 2016)
• 50% of government expenditures financed from Britain

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How Tswana governance was organized

15. Some reasons of Botswana’s success
osce.org
• Pre-colonial tribal institutions that encouraged broad based
participation and placed constraints on political elites
• British colonization only had a limited effect on these pre-colonial
institutions because of the peripheral nature of Botswana to the
British Empire
• Upon independence, the most important rural interests, chiefs and
cattle owners, were politically powerful, and it was in their economic
interest to enforce property rights
• The revenues from diamonds generated enough rents for the main
political actors, increasing the opportunity cost of, and were not
causing political instability or conflict for control of this resources
• Finally, the post-independence political leaders, in particular Seretse
Khama and Quett Masire, took a number of sensible decisions.

16. What are takeaways from Botswana’s example?
osce.org
• How representative and inclusive decision making might impact
efficiency of the governance?
• What risks one could have with over surplus of natural resources
laid down on non-representative government?
• Is Democracy and its governance mechanisms overpraised?
• What are the risks of inequal distribution of wealth?

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Zimbabwe
Political status: Full Presidential Republic – Mr. Robert Mugabe is
elected in 1987, after being Prime Minister since 1980 and changing
constitution, forcefully resigned in 2017
Legislature: Parliament
Judiciary: Independent court system
Substantive constitutional amendments: 2/3 of the Assembly and
Senate
Major constitutional amendments: A national referendum
Last constitutional amendments: 25 July 2017,

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Mugabe’s Jackpot
Friday, 28 January, 2000
Zimbabwean President Robert Mugabe
has won the top prize in a lottery
organised by a partly state-owned bank.
"Master of Ceremonies Fallot Chawawa
could hardly believe his eyes when the
ticket drawn for the Z$100,000 ($2,600)
prize was handed to him and he saw His
Excellency RG Mugabe written on it,"
the bank said in a statement.
The lottery was open to all clients who
had kept Z$5,000 or more in their
accounts during December.
http://news.bbc.co.uk/2/hi/africa/621895.stm

19. What is are the main pillars of democracy?
osce.org
Executive Legislature Justice
Democracy
Society

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Roosevelt’s “court-packing” plan
• Accused Supreme Court in
slowing down implementation of
the “new deal”
• Supreme Court found some of the
initiatives of President Roosevelt
as unconstitutional despite aiming
economic recovery
• Central provision – granting the
President power to appoint an
additional Justice to the SC, up to
six, for every member of the court
over the age of 70 years and 6
months.

21. What is Governance?
osce.org
The process by which decisions are made and implemented (or not
implemented). Within government, governance is the process by which
public institutions conduct public affairs and manage public resources.
Governance is the exercise of political, economic and administrative authority
necessary to manage a nation’s affairs.
* IMF

22. What is Good Governance?
osce.org

23. Good governance refers to the management of
government in a manner that is essentially free of
abuse and corruption, and with due regard for the
rule of law*
osce.org
* IMF

24. So what are the principles of Good Governance?
osce.org
• Accountability
• Transparency
• Follows rule of law
• Responsive
• Equitable and inclusive
• Effective and efficient
• Participatory

25. Accountable Governance
osce.org
Collective responsibility of officials to preserve the public's trust in
government by delivering on policy outcomes and safeguarding
taxpayer funds

26. Transparent Governance
osce.org
Decision-making processes are clear and people could see why and
how these decisions are made, what information was used and which
legislative requirements were followed

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Discussions
Consultations
Responsive Governance
Governments should always try to serve the needs of the entire
community while balancing competing interests in a timely,
appropriate and responsive manner.

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Participatory and Inclusive Governance
Citizens are involved and consulted in decision-making. Anyone
affected by or interested in a decision should have the opportunity to
participate in the process for making that decision.

29. Effective and efficient Governance
osce.org
Governments should implement decisions and follow processes that
make the best use of the available people, resources and time to
ensure the best possible results for their community.

30. Governance follows Rule of Law
osce.org
Decisions are consistent with relevant legislation or common law and
are within the powers of council.

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Separation of powers
Checks and balances (rights of mutual control and influence) make sure that
the three powers interact in an equitable and balanced way. The separation
of powers is an essential element of the Rule of Law.
The system of separation
of powers divides the tasks
of the state into three
branches: legislative,
executive and judicial.
These tasks are assigned
to different institutions in
such a way that each of
them can check the others

32. E-governments – as a tool for better accountability and
transparency and data driven decision making
osce.org
https://www.canada.ca/ https://www.data.gov/
https://www.boston.gov/
https://data.mos.ru/

33. New era – new means of communication?
osce.org

34. Land reforms in Zimbabwe, background
osce.org
• Unequal distribution of lands to white farmers in early colonial times
• Formal attempts by colonial government to improve situation did not
address the problems, but triggered anger and occurrence of
nationalist movements
• 73.8% of the most fertile land was owned by white citizens, who
made 4% of total population
• Overpopulation in Tribal Trust Lands (TTLs)
• Under population in “white lands” and consequently land could not
be used to its fullest potential

35. Land reforms in Zimbabwe, Lancaster House
Agreement
osce.org
• UK and US governments financed redistribution of lands
• The first phase of the programme was regarded as unsuccessful
• Lack of financial resources added by massive drought caused that
the government could no longer afford to sustain the programme
• Lack of trained and initiative personnel in the government to handle
the process

36. Land reforms in Zimbabwe, Compulsory acquisition
osce.org
• Zimbabwean Land Acquisition Act empowered the government to
forcibly acquire any land, though with compensation paid
• Occupation of lands by political-elite and consequently disproportion
of lands acquired by indigenous population further led to donor
countries’ withdrew from the programme
• Further ruling party’s central committee was given overriding powers
to delegate on property rights (superseding courts and executive
government)
• White farmers were still opposing, creating legal cases against
compulsory acquisition

37. Land reforms in Zimbabwe, Fast-track land reform
osce.org
• New constitution that empowers the state for acquisition without
compensation failed the referendum
• ZNLWVA organized march on white farmlands
• The march was done often violently and in first wave of farm
invasions, a total of 110,000 km2 of lands were seized
• Legal cases against those seizures were not successful
• Further constitutional amendment passed in 2005 deprived original
landowners of the right to challenge expropriation in court
• The new peasants largely failed to secure loans from commercial
banks because they did not have title over the land and lack
experience in commercial farming, nor assets to provide alternative
collateral for any borrowed money

38. Land reforms in Zimbabwe, Outcomes
osce.org
• Mass “exodus” of white farmers and their replacement by
indigenous population led to immediate drop in production due to
lack of experience and knowledge on commercial farming
• International community imposed sanctions on Zimbabwe (but also
due to other repressions)
• Fleeing of intellectual and wealthy population (white Zimbabweans
diminished to 0,2% from 4,8%)
• Many ingenious population who were employed by white farmers
left unemployed
• Drop in production caused extreme drop in export and mass
starvation and famine
• About 45% of the population is now considered malnourished

39. … and finally
osce.org
Hyperinflation is extremely
rapid or out of control inflation.
There is no precise numerical
indication of hyperinflation.
Hyperinflation is a situation
where the price increases are
so out of control that the
concept of inflation is
meaningless.
Year Rates
1980 7%
1985 10%
1991 48%
1999 56.9%
2003 598.75%
2004 132.75%
2005 585.84%
2006 1,281.11%
2007 66,212.3%
2008 Mid-Nov. 79,600,000,000%

40. Land reforms in Zimbabwe
osce.org
• What are the problems the government tried to address?
• What was missing in decision making processes while declaring
and implementation process?
• What particularities of Zimbabwean society were not considered?
• Were there any political challenges that the government was facing?
• What alternative solution and implementation mechanisms and how
would you propose and how would you approach the situation
differently?