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1. TYPES OF GOVERNANCE AND ITS ANALYSIS
SUBMITTED BY:
VAIBHAV KUMAR GARG
LL.M. (CRIMINAL LAW)
ROLL NO. 77

2. INTRODUCTION
• With the beginning of civilization, there arose a need for smooth administration and division of responsibilities. Since the
population started to increase, people grew concerned about their welfare and able ruling. This led to the rise of an
organizational structure which dealt with the nuances of firm ruling and governance.
• Oxford English Dictionary defined the governance as “the act or manner of governing, of exercising control or authority over
the actions of subjects; a system of regulations.
• According to The International Encyclopedia of the Social Sciences, Governance is the act of governing.
• After undergoing numerous social, political, and geological changes, human society has emerged as an organised state. For the
smooth functioning of the society and country, an engagement is required that involves laws, a set of rules, power and a correct
mindset.
• The term ‘Governance’ has primarily been used to refer to political governance, which traces back to the works of William
Tyndale and Charles Plummer. They associated this word politically while talking about the governance of England.
• Governance further refers to all manners of exercising control and authority in the allocation of resources (World Bank, 1994).
Governance issues are thus closely tied to the processes and mechanisms through which people access resources. These include
issues of property rights, social relationships and gender, as well as social capital through which people access resources.
• As per World Bank, Governance refers to all manners of exercising control and authority in the allocation of resources.
• Governance issues are thus closely tied to the processes and mechanisms through which people access resources. These include
issues of property rights, social relationships and gender, as well as social capital through which people access resources.
• To distinguish the term governance from government; “governance” is what a “government” does. It might be a geo-political
government (nation-state), a corporate government (business entity), a socio-political government (tribe, family etc.), or any
number of different kinds of government, but governance is the actual exercise of management power and policy, while
government is the instrument (usually collective) that does it.

3. • Governance refers to all aspects of the way the government fulfils its job for societal and economic development. It is a process
of governing by which all governmental, as well as non-governmental organizations, civil societies, private sectors, are involved
in the process of policymaking and the process of implementation of that policies. In simple words, The processes that lead
policymaking and its implementation can be called as governance.
• Thus, governance means the process of decision-making and the process by which decisions are implemented (or not
implemented). Further, governance can be used in several contexts such as corporate governance, international governance,
national governance and local governance etc.
GOOD GOVERNANCE
• The concept of good governance is not new. Kautilya in his treatise Arthashastra elaborated the traits of the king of a well
governed State thus: “in the happiness of his subjects lies his happiness, in their welfare his welfare, whatever pleases himself,
he does not consider as good, but whatever pleases his subjects he considers as good”. Mahatma Gandhi had propounded the
concept of ‘Su-raj’. Thus, Good governance often refers to the task of running the Government in an effective manner. It is
qualitatively and conceptual superior to a mere good government.
• Further, Good Governance is not a phenomenon which can be easily described in words; it is rather a phenomenon which can be
felt by people. Good governance does not depend only on the executive but depends on the efficient functioning of legislature,
executive, judiciary, private institutions, NGOs, as well as the co-operation of the people.
• As per World Bank Good Governance focuses on four major components, namely:
a) Legitimacy: government should have the consent of the governed
b) Accountability: ensuring transparency, being answerable for actions and media freedom);
c) Competence: effective policymaking, implementation and service delivery)
d) Respect for law and protection of human rights.

4. • Good governance aims at providing an environment in which all citizens irrespective of class, caste and gender can develop to
their full potential. In addition, good governance also aims at providing public services effectively, efficiently and equitably to
the citizens. The 4 pillars on which the edifice of good governance rests, in essence are:
a) Ethos (of service to the citizen),
b) Ethics (honesty, integrity and transparency),
c) Equity (treating all citizens alike with empathy for the weaker sections), and
d) Efficiency (speedy and effective delivery of service without harassment and using ICT increasingly)
• As per 2nd ARC, Good governance has 8 major characteristics. It is participatory, consensus oriented, accountable, transparent,
responsive, effective and efficient, equitable and inclusive and follows the rule of law. It assures that corruption is minimized,
the views of minorities are taken into account and that the voices of the most vulnerable in society are heard in decision-making.
It is also responsive to the present and future needs of society.
TYPES OF GOVERNANCE
• PARTICIPATORY OR DEMOCRATIC GOVERNANCE : Participatory or democratic governance ensures the participation
of citizens in the process of policy making and its implementation. Participation can be through election, referendum, Lands
gemeinde or local self-governance, protest, etc. Democratic governance is not just a set of rules and institutions, it refers to the
processes in which democratic institutions are functioning according democratic processes. Democratic governance beyond the
issues of institutions and forms of government. It covers the social coordination mechanisms involved in political action and
therefore relies on two assumptions. This approach to democratic governance is a proposal to rebuild the state and its relations
with society.
• GLOBAL GOVERNANCE : This refers to the complex of formal and informal institutions, mechanisms, relationships, and

5. processes between and among nations, markets, citizens and organizations, both inter- and non-governmental, through which
collective interests on the global plane are articulated, right and obligations are established, and differences are mediated”. This is
one of the mostrelevant types of governance. The term ‘Global Governance’ was first used by Rosenau. He argues that “Global
governance is conceived to include systems of rule at all levels of the human activity-from the family to the international
organization- in which the pursuit of goals through the exercise of the control has transnational repercussions”. The idea of global
governance has its roots in the fact that today the states exist with non-state actors. Today alongside states we have the presence of
international institutions like the United Nations (UN), International Monetary Fund (IMF), the World Bank, World Trade
Organization (WTO). We also have powerful non-state actors like multinational corporations (MNC), global civil society, non-
governmental organizations (NGO).
• GOOD GOVERNANCE : Good governance is the ideal concept or normative concept. This concept is born when ethics,
values are included in the discussion of governance. Now the question is when will we call any governance as good
governance? When governance is characterized by Participation, Rule of Law, Transparency, Responsiveness, Consensus
Oriented, Equity and Inclusiveness, Effectiveness and Efficiency, Accountability then we called it good governance. Good
governance is a normative concept which describes how the public institutions ought to conduct public policy and manage
public resources. It encompasses full respect of effective participation, human rights, the rule of law, multi-actor partnerships,
and accountable processes, political pluralism, transparent and institutions, an efficient and effective public sector, legitimacy,
access to knowledge, information and education, political empowerment of people, equity, sustainability, and attitudes and
values that foster responsibility, solidarity and tolerance.
• PRIVATE GOVERNANCE : Private governance occurs when non-governmental entities, including private organizations,
dispute resolution organizations, or other third party groups, make rules and/or standards which have a binding effect on the
quality of life and opportunities of the larger public. Simply put, private not public entities are making public policy. For
example, insurance companies exert a great societal impact, largely invisible and freely accepted, that is a private form of
governance in society; in turn, reinsurers, as private companies, may exert similar private governance over their underlying
carriers. The term "public policy" should not be exclusively associated with policy that is made by government. Public policy
may be created by either the private sector or the public sector. If one wishes to refer only to public policy that is made by

6. government, the best term to use is "governmental policy," which eliminates the ambiguity regarding the agent of the policy
making.
• ENVIRONMENTAL GOVERNANCE : Environmental governance refers to all processes, rules, practices, and institutions
that contribute to the protection, management, conservation, and exploitation of biodiversity, ecosystem, and mineral resources
in their various modalities in perspective reconciling sustainable development and poverty reduction. It also refers to the
mechanisms and institutions, both formal and informal, encompassing the norms and values, behaviours and conditions around
which organizing citizens, organizations, social movements, and the various interest groups defending their differences and
exercise their rights to access and exploit natural resources. It provides explanations of ways that can be implemented in the
development of international environmental regulations, development of environmental sciences and information, and
sustainable development and implementation policies in line with national policy. It controls the management of environment
and natural resources for proper utilization of the resources and securing sustainable development.
• CORPORATE GOVERNANCE : Corporate governance relates to moral principles, values, and practices that facilitate the
balance between economic and social goals and between individual and common goals. It aims to coordinate the interests of
individuals, businesses, and society as a governance structure emphasizing the common interest as much as possible. Corporate
governance aims to:
a) Provide a regulatory framework and an environment conducive to effective economic activities;
b) Ensure that businesses are citizens in human rights, social responsibility, and environmental protection;
c) Promote the adoption of codes of ethics in business in achieving the objectives of enterprises;
d) Ensure that corporations treat all their stakeholders (shareholders, employees, suppliers, customers, etc.) in a fair and
transparent.
e) Provide for the responsibility of management and directors.
• E- GOVERNANCE : E-Governance is not only meant for introducing or using technological tools. But it also strives to bring

7. about a change in the mindset and work culture to integrate government processes to serve the citizens better. The interaction
between a citizen and a government agency normally takes place in a government office. With emerging Information and
• Communication technologies it is possible to locate service centres closed to clients. In all the cases, public traditionally looks
for information and services addressing his or her needs and in both cases quality relevance and efficiency are of paramount
importance. The concept of e-governance can be understood in a broad sense as a kind of superstructure, which covers the use
of electronic technologies in three key areas of public action:
a) Relations between government and civil society;
b) The functioning of public authorities at all levels of planning;
c) The provision of public services.
• PUBLIC GOVERNANCE : Public Governance is simply the interaction between government and other actors of the social
sphere and the process of decision making in public policy sphere. It serves the citizens by safeguarding territorial integrity of
the state, securing individual security, rule of law, and delivery of services such as education, health, livelihood and food
security. There are three broad ways of public governance:
a) Top to bottom methods which include various tiers of government and state bureaucracy;
b) The networks involving public-private partnerships (PPP) or with the collaboration of community organisations;
c) The use of market mechanisms whereby market principles of competition serve to allocate resources while operating under
government regulation.
• LAND GOVERNANCE : Land governance is concerned with issues of land ownership and tenure. It consists of the policies,
processes and institutions by which decisions about the access to, use of and control over land are made, implemented and
enforced; it is also about managing and reconciling competing claims on land. In developing countries, it is relevant as a tool to
contribute to equitable and sustainable development, addressing the phenomenon that is known as ‘land grabbing’. The
operational dimension of land governance is land administration.

8. • PARTICIPATROTY GOVERNANCE : This refers to governance which focuses on deepening the democratic engagement
through the participation of citizens in the processes of governance with the state. It emphasizes that the citizens should play
more direct roles in public decision-making or at least engage more deeply with political issues. The my.gov.in platform is an
example of participatory governance. It is different from “collaborative governance” which uses a relationship management
structure, joint performance and transformation management processes and an exit management plan as controlling mechanisms
to encourage the organizations to make ethical, proactive changes for the mutual benefit of all the parties.
• METAGOVERNANCE : Metagovernance is the "governing of governing". It represents the established ethical principles, or
'norms', that shape and steer the entire governing process. It is important to note that there are no clearly defined settings within
which metagoverning takes place, or particular persons who are responsible for it. While some believe metagovernance to be the
role of the state which is assumed to want to steer actors in a particular direction, it can "potentially be exercised by any
resourceful actor" who wishes to influence the governing process. Examples of this include the publishing of codes of conduct
at the highest level of international government, and media focus on specific issues at the sociocultural level. Despite their
different sources, both seek to establish values in such a way that they become accepted 'norms'. The fact that 'norms' can be
established at any level and can then be used to shape the governance process as whole, means metagovernance is part of both
the input and the output of the governing system.
ADVANTAGES OF GOVERNANCE
• Encouraging positive behaviour: “Having clearly delineated policies and processes and a board of directors and executive
managers who maintain the compliance culture directly supports improved results,” writes chartered secretary Monique Legair.
It is imperative that all board members themselves participate in that culture, ensure clear lines of communication with
management and the rest of the organisation, and are immediately responsive to any evidence that part of the organisation is not
participating.
• Reducing the cost of capital: In today’s volatile environment, the implementation of good governance practices can lead to a
reduction in a company’s cost of capital. An organisation that is seen to be stable, reliable and able to mitigate potential risks

9. • will be able to borrow funds at a lower rate than those with weak corporate governance. Companies with debt or equity
investors may find that their investors pay a premium to work with a company that has a sound governance framework.
• Improving top-level decision-making : There is a strong and demonstrable link between an organisation’s governance and
rapid decision-making associated with improved performance, explains the Corporate Governance Institute in a recent
report. Moreover, a number of performance failures have been directly linked to poor governance. There is no doubt that good
governance assures rapid access to information and the good communication among stakeholders that leads to better results.
Good governance also enables rapid and accurate prioritising of actions. This can prove invaluable in enabling the organisation
to weather tough economic storms and supports the organisation’s sustainability.
• Assuring internal controls : By implementing corporate governance correctly across the organisation, the board may be certain
that an adequate and effective control environment is in effect, with the level of assurance associated with each important
component of governance. What’s more, the board or the board committee is better positioned to take action when the controls
signal non-compliance.
• Enabling better strategic planning : With more rapid access to information and good communication with management,
boards are able to formulate more successful strategies. This includes more efficient allocation of resources and capital. The
strong governance framework will further assist the board in some of the following ways – understanding the regulatory
environment governing the business; leveraging technology from a production, distribution and communications point of view;
and identifying and managing the reasonable interests of all stakeholders in the business. All these components are essential
elements of a robust strategic plan.
• Attracting talented directors : Bringing in talented non-executive directors with complementary skillsets helps to make an
overall and comprehensive assessment of the overall sustainability of the organisation, including its level of compliance with
relevant legislation. This kind of new talent is vital to the sustainability of the organisation which has to adapt to the ever-
evolving conditions of the market. For the candidate to the non-executive post, providing this kind of environment is equally
important.

10. ADVANTAGES OF GOVERNANCE IN CORPORATE SECTOR
• Efficiency: Good governance ensures consistency. A company needs to make sure that governance is repeatable – from the top
of the corporation, trickling all the way down. As a result, overall productivity and efficiency are boosted.
• Error visibility: Transparency and visibility are the priority for an organization once they adopt good governance. Influential
board directors must be able to quickly identify errors and possible ways of improvement to boost the organization. With good
governance, equity should be enforced, allowing for different board members to openly communicate and share opinions,
experiences, and methods to enhance the organization. By focusing on transparency and visibility, the corporation allows for a
more significant minimization of error.
• Operations run smoother: By ensuring good governance, all board members can communicate and work together in unity. In
addition, good governance ensures that boardroom members reach a consensus before a decision is implemented. This leaves
more time for other, more pressing discussions to be had. As a result, it allows for operations to run smoother.
• Builds reputation: Practicing good governance naturally builds a company’s reputation. The output of good governance means
putting the right products and services out onto the market. In doing so, the organisation experiences an escalation of business
performance and the possibility of market domination.
• Clarity: Organisations with a well put in place governance practice are able to tackle issues much more effortlessly. With a
clearly formed mission, vision and core values, employees and stakeholders can easily align with the organisation’s fundamental
culture.
• Financial sustainability: Good governance ensures a drastic reduction of any sort of safety, performance, or legal issues that
may arise and affect the organisation. By practicing good governance, the corporate body is able to focus on more of the
organisation’s progressive needs rather than wasting on unnecessary expenses. By having financial sustainability, it also means
that stakeholders are ensured of their own financial stability.
• Stronger external environment response: The modern market is an ever-changing entity that needs to be diligently studied.

11. Strong leadership, commitment, resources and responsibility is needed from the board in order to effectively understand the
external environment. Establishing good governance practices allows appropriate response patterns for Boards to quickly identify
changes and adapt strategies.
CHALLENGES TO GOVERNANCE
• The reasons for Governments not being citizen centric can be attributed to the attitude and work of some government servants,
the deficiencies in existing institutional structures and also to some citizens. While the laws made by the Legislature may be
sound and relevant, very often they are not properly implemented by government functionaries. The system often suffers from
problems of excessive centralization and policies and action plans are far removed from the needs of the citizens, results in a
mismatch between what is required and what is being provided. Inadequate capacity building of personnel who are to implement
the laws also results in policies and laws not being implemented properly. Further, lack of awareness about rights and duties and
callous approach to compliance to laws on the part of some of the citizens also create barriers to good governance.
• There is a growing concern that the Civil Services and administration in general, have become wooden, inflexible, self-
perpetuating and inward looking. Consequently, their attitude is one of indifference and insensitivity to the needs of citizens
coupled with the enormous asymmetry in the wielding of power at all levels which has further aggravated the situation end
result. The officers perceive themselves as dispensing favours to citizens rather than serving them and given the abject poverty,
illiteracy, etc. a culture of exaggerated deference to authority has become the norm.
• A common reason usually cited for inefficiency in governance is the inability within the system to hold the Civil Services
accountable for their actions. Seldom are disciplinary proceedings initiated against delinquent government servants and
imposition of penalties is even more rare. It is primarily because at most levels authority is divorced from accountability leading
to a system of realistic and plausible alibis. Cumbersome disciplinary procedures have added to the general apathy towards
discipline in Government. Moreover, the safeguards provided to civil servants, which were well intentioned have often been
misused. Another reason for lack of accountability is that performance evaluation systems within government have not been

12. effectively structured, complacency that the system breeds has resulted in employees adopting an apathetic or lackadaisical attitude
towards citizens and their grievances.
• Bureaucracies the world over are expected to adhere to rules and procedures which are of course important for good
governance. However, at times these rules and procedures are ab-initio ill-conceived and cumbersome and therefore, do not
serve their purpose. Also, government servants sometimes become overly pre-occupied with rules and procedures and view
these as an end in themselves.
• Low levels of Awareness of the rights and duties prevent citizens from holding erring government servants to account. Similarly,
low levels of compliance of Rules by the citizens also acts as an impediment to good governance; when citizens do not adhere to
their duties they infringe on the freedom and rights of other citizens. Thus, awareness of rights and adherence to duties are two
sides of the same coin. A vigilant citizenry, fully aware of its rights as well its duties is perhaps the best way to ensure that
officials as well as other citizens, discharge their duties effectively and honestly.
• There is a large body of laws in the country, each legislated with different objective – maintaining public order and safety,
maintaining sanitation and hygiene, protecting rights of citizens, giving special protection to the vulnerable sections etc.
Effective implementation of these laws creates an environment which would improve the welfare of all citizens and at the same
time, encourage each citizen to contribute his best towards the development of society. On the other hand, weak implementation
can cause a great deal of hardship to citizens and even erode the faith of the citizenry in the government machinery.
• In the Indian Context, The central challenge before good governance relates to social development. In his famous ‘tryst with
destiny’ speech on 14 August 1947, Jawaharlal Nehru articulated this challenge as ‘the ending of poverty and ignorance and
disease and inequality of opportunities’. Good governance must aim at expansion in social opportunities and removal of poverty.
In short, good governance, as I perceive it, means securing justice, empowerment, employment and efficient delivery of
services.

13. • The Criminalization of the political process and the unholy nexus between politicians, civil servants, and business houses are
having a baneful influence on public policy formulation and governance. Political class as such is losing respect.
• The Indian State is facing a serious challenge to its authority from lawless elements. The jehadi terrorism in Jammu & Kashmir
and its ad hoc but frequent spread to other parts of India, the insurgency in the North-East, and rapidly expanding base of
naxalite movement in mainland India constitute grave challenge to democratic governance. Fortunately, one sees national
consensus against jehadi terrorism and it is for the Indian State to deal firmly with this menace. Insurgency in India’s North-East
is largely confined now to Nagaland, Manipur and Assam and these are being tackled by democratically elected state
governments with full support from the Centre. Of late, one sees a political resolve to deal with naxalites as well. Dialogue
process alone would provide the final answer but in every eventuality the State has to be continually firm in order that it
discharges its basic responsibility of protecting life and property of its citizens.
• The high level of corruption in India has been widely perceived as a major obstacle in improving the quality of governance.
While human greed is obviously a driver of corruption, it is the structural incentives and poor enforcement system to punish the
corrupt that have contributed to the rising curve of graft in India. The complex and non- transparent system of command and
control, monopoly of the government as a service provider, underdeveloped legal framework, lack of information and weak
notion of citizens’ rights have provided incentives for corruption in India.
• A conscious program for strengthening of public awareness and also empowering the existing anti-corruption agencies would be
required. The statutory right to information has been one of the most significant reforms in public administration. The Right to
Information Act provides a strong national framework within which public awareness programs could take place. Corruption
takes place within a frame. Accordingly, basic reforms in file management, government rules and regulations, provision of
public expenditure review could provide the concerned citizens the relevant knowledge to hold service providers accountable.
This would ensure that the resources that belong to people are used in the right way.

14. CONCLUSION
• Good governance is almost always associated with clarity of decision-making rights. Everyone knows who, or which body, has
responsibility for making which decisions. Corporate purpose, direction and priorities are widely known. This creates an
effective framework within which authority can be delegated and decisions consistent with that framework can be made
throughout the organisation. People at all levels know what is to be achieved and what situations and circumstances are to be
avoided. Part of an effective corporate governance system is a feedback loop that evaluates performance and ensures that what
is off track can be redirected.
• When decision-making rights are not clear, however, conflict and declining organisational performance are not far away. It is
seldom the case that smooth running operations can occur for long in the absence of good governance.
• Adopting good governance practices allows Boards to act in the organisation's best interest of the organisation. It should start at
the very top of a corporation’s authority levels and trickle downwards. Adopting good governance ensures business
sustainability and profitability as well as helps build a reputable image and healthy culture. Although it might take some effort to
establish good governance, the benefits are worth the investment.
• Women are key to good governance. Their increasing representation in democratic institutions have provided stability to Indian
polity. Women can bring constructive, creative and sustainable solutions to the table. Women participation in economic
programmes needs to be augmented for in women we get expendable providers, educators, caretakers and leaders.
• Innovations are taking place in the government, in the market and in the civil society. Social and political processes are getting
increasingly interlinked changing the character of the elites in the countryside. In the process the high caste elites of 1950’s has
increasingly yielded space to intermediate caste landholders and businessmen and also holders of administrative and political
offices. The nature and content of good governance would undergo changes in tune with rising expectations and fresh demands
of the people. Democratic governance would expect and secure from its leadership to be alive to such aspirations and to
continually tune institutions of polity to be effective instruments of citizens’ welfare.
• In conclusion, good governance is an ideal which is difficult to achieve in its totality. Very few countries and societies have
come close to achieving good governance in its totality. However, sustainable human development actions must be taken to
work towards this ideal with the aim of making it a reality.