Good governance - the fair and transparent management of a country’s resources and institutions - has become a key objective for European Union (EU) development assistance. Without practices that lead to good governance, donors are less willing to provide aid and for this reason the EU is supporting developing country programmes that focus on governance issues.

Good governance is mainly promoted through strengthening the government institutions, rules and regulations. This is usually measured in terms of equality of opportunity, democratic processes, the fight against corruption, peace-building and conflict prevention. Research by the New Academy of Business, UK (now known as the Association of Sustainability Practitioners), looks at the programmes of eight EU member states, as well as the activities of other donors such as the African Development Bank to identify ways to improve approaches to good governance.

EU development assistance on governance issues runs across six major programme areas: human rights, democratisation, the rule of law, civil society building, public administration and decentralisation. Denmark, Spain, Netherlands and Sweden link governance programmes to all these areas. Programmes supported by the UK, Belgium and France also have links to most of these areas.

Governance is more of a process that takes place between people with a wide range of values, than just a system of administrative control. The role of non-state bodies in the governance process is becoming important. Countries such as Belgium and Sweden tend to cooperate more with non-governmental organisations (NGOs), while others such as Denmark and the Netherlands work both with NGOs and private sector organisations.

The research found that:

• A high level of agreement exists between donors on the concept of good governance which provides a strong basis for their cooperation.
• Successful programmes tend to be inclusive and follow integrated, sector-wide and country-wide strategies.
• There is widespread support for national government led good governance processes, rather than a donor-controlled approach.
• Although the European Commission (EC) could potentially become the central point for information and coordination on governance, most member states have not developed a standard approach or set of indicators for the monitoring and evaluation of governance programmes.
• Donors select countries for governance support on the basis of their own political agendas, as well as on historical, cultural and economic links with those countries.

The good governance approach increases the participation of disadvantaged people in decision-making, creating greater equality in development assistance. To build on recent successes, the approach must be seen as an emerging process that is essential for achieving the Millennium Development Goals.

The report suggests that:

• Donors should increase cooperation and information sharing in the field.
• The EC must show commitment to the principles of good governance in its own work; develop a systematic approach to stakeholder involvement; participate in governance related conferences; and use examples of EC practice in advocacy work.
• Any EC coordination role would need to be led by delegates from partner countries.
• The EC can also play a coordinating role for Country Strategy Paper review processes.
• The Governance Experts Group of the EC member states should continue as the body that develops monitoring and evaluation systems and indicators.
• Donors should reward countries who improve their governance records and social policies, while still giving support to countries where further work is needed.

Source(s):
‘Member State and Other Donor Approaches to Good Governance in Development Cooperation’, New Academy of Business, by Sue Barrett, Eva Hansen and David F Murphy, June 2003 Full document.
Final Report. Member State and Other Donor Approaches to Good Governance in Development Cooperation Full document.
Further details about this research project 'Good Governance, Private Dialogue and Sound Democratic Structures in Countries in Development' Full document.

Funded by: UK Department for International Development (DFID) as part of the European Community’s Poverty Reduction Effectiveness Programme (EC-PREP)

id21 Research Highlight: 5 July 2006

Further Information:
Association of Sustainability Practitioners
The Create Centre
Smeaton Road
Bristol BS1 6XN
UK

Tel: +44 (0)117 903 1081
Contact the contributor: info@asp-online.org

Association of Sustainability Practitioners,UK

Other related links:
'Coordination amongst donors required to tackle corruption'

'Making European aid democratic'

'Understanding cross-sector partnerships for development'

Resources on Aid Harmonisation from the Development Gateway

Topic Guide on Aid from the Governance and Social Development Resource Centre