Upload
rajkpandey2000
View
441
Download
0
Tags:
Embed Size (px)
Citation preview
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Issues in GovernanceIssues in Governance
Presented by Dr. M RijalPresented by Dr. M Rijal
Supported by R PandeySupported by R Pandey
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Organization of the TalkOrganization of the Talk
Common DefinitionsCommon DefinitionsDemocratic GovernanceDemocratic GovernanceThe WB IndicatorsThe WB IndicatorsHow Does Nepal Fare?How Does Nepal Fare?Global PerspectiveGlobal PerspectiveGlobal Positives & NegativesGlobal Positives & NegativesGovernance in NepalGovernance in NepalWhat Went WrongWhat Went Wrong
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Common DefinitionsCommon Definitions
UNDPUNDP
Exercise of economic, political & Exercise of economic, political & administrative authority to manage a administrative authority to manage a country’s affairs at all levelcountry’s affairs at all level
Comprises mechanisms, process & Comprises mechanisms, process & institutions through which citizens & institutions through which citizens & groups articulate their interests, exercise groups articulate their interests, exercise their legal rights, meet their obligations, & their legal rights, meet their obligations, & mediate their differencesmediate their differences
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Common Definitions, contdCommon Definitions, contd
World BankWorld BankThree aspects of governanceThree aspects of governance
Form of political regimeForm of political regimeProcess by which authority is exercised in Process by which authority is exercised in
the management of a country’s the management of a country’s economic & social resources for economic & social resources for developmentdevelopment
Capacity of governments to design, Capacity of governments to design, formulate & implement policies & formulate & implement policies & discharge functiondischarge function
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Common Definitions, contdCommon Definitions, contd
OECDOECDEncompasses the role of public authorities Encompasses the role of public authorities
in establishing the environment in which in establishing the environment in which economic operators function and in economic operators function and in determining the distribution of benefits determining the distribution of benefits as well as the nature of relationship as well as the nature of relationship between the ruler and the ruledbetween the ruler and the ruled
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Common Definitions, contdCommon Definitions, contd
Institute of Governance, OttawaInstitute of Governance, OttawaSum of the many ways individuals & Sum of the many ways individuals &
institutions, public & private, manage institutions, public & private, manage their common affairstheir common affairs
Continuing process through which Continuing process through which conflicting or diverse interests may be conflicting or diverse interests may be accommodated and co-operative action accommodated and co-operative action may be takenmay be taken
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Common Definitions, contdCommon Definitions, contd
Democratic Governance (UNDP)Democratic Governance (UNDP)Aims at building institutions & rules that Aims at building institutions & rules that
are not only efficient and fair, as well, are not only efficient and fair, as well, but also are developed through a but also are developed through a democratic process in which all people democratic process in which all people have a political voicehave a political voice
i.e., it incorporates into the notion f good i.e., it incorporates into the notion f good governance for development, democratic governance for development, democratic processes and institutions, and a processes and institutions, and a concern with the securing of political & concern with the securing of political & civil rights & freedoms as human rightscivil rights & freedoms as human rights
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Common Definitions, contdCommon Definitions, contdMahbub ul HaqMahbub ul Haq
Good Political GovernanceGood Political GovernanceStructures & processes that support the Structures & processes that support the
creation of a participatory, responsive & creation of a participatory, responsive & accountable polityaccountable polity
Good Economic GovernanceGood Economic GovernanceCompetitive, non-discriminatory & Competitive, non-discriminatory &
equitable economyequitable economy
Good Civic GovernanceGood Civic GovernanceSociety in which people are given the Society in which people are given the
ability to self-organizeability to self-organize
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Democratic Governance (UNDP)Democratic Governance (UNDP)
Human rights & political freedomHuman rights & political freedomVoice in government decisionsVoice in government decisionsAccountabilityAccountabilityInclusive & fair rulesInclusive & fair rulesGender equalityGender equalityFree from discrimination (race, ethnicity, Free from discrimination (race, ethnicity,
class, gender, etc)class, gender, etc)Needs of future generationsNeeds of future generationsResponsive economic & social policiesResponsive economic & social policiesEconomic & social policies aim at poverty Economic & social policies aim at poverty
eradication & expanding choiceseradication & expanding choices
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Indicators (WB Study)Indicators (WB Study)Process by which governments are selected, Process by which governments are selected,
monitored & replacedmonitored & replacedVoice & accountability, political stability & Voice & accountability, political stability &
absence of violenceabsence of violence
Ability of governments to formulate & Ability of governments to formulate & implement sound policiesimplement sound policiesGovernment effectiveness, regulatory qualityGovernment effectiveness, regulatory quality
Respect of citizens & state for the institutions Respect of citizens & state for the institutions that govern economic & social interactions that govern economic & social interactions among themamong themRule of law, control of corruptionRule of law, control of corruption
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Voice & AccountabilityVoice & Accountability
Orderly transfers of political powerOrderly transfers of political power
Political rightsPolitical rights
Vested interestsVested interests
Accountability of public officialsAccountability of public officials
Civil liberties & Human rightsCivil liberties & Human rights
Freedom of associationFreedom of association
Freedom of pressFreedom of press
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Political StabilityPolitical Stability
Armed conflictsArmed conflicts
Violent demonstrationsViolent demonstrations
Social unrest, including ethnic tensionsSocial unrest, including ethnic tensions
International tensions/ terrorist threatInternational tensions/ terrorist threat
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Governance EffectivenessGovernance Effectiveness
Quality of public service provisionQuality of public service provision
Quality of bureaucracy / institutional Quality of bureaucracy / institutional effectivenesseffectiveness
Credibility of Government’s Credibility of Government’s commitment to policiescommitment to policies
Quality of general infrastructureQuality of general infrastructure
Quality of public schoolsQuality of public schools
Public service vulnerability to political Public service vulnerability to political pressurepressure
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Regulatory QualityRegulatory Quality
Unfair competitive practicesUnfair competitive practices
Government’s attitude towards investmentGovernment’s attitude towards investment
Price controlsPrice controls
Discriminatory tariffsDiscriminatory tariffs
Excessive protectionsExcessive protections
Discriminatory taxesDiscriminatory taxes
Extent of dominance of SOEsExtent of dominance of SOEs
Regulation of foreign tradeRegulation of foreign trade
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Rule of LawRule of Law
Violent crimeViolent crimeOrganized crimeOrganized crimeFairness of judicial processFairness of judicial processEnforceability of contractsEnforceability of contractsSpeediness of judicial processSpeediness of judicial processConfiscation/expropriationConfiscation/expropriationIntellectual property rights protectionIntellectual property rights protectionPrivate property protectionPrivate property protection
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Control of CorruptionControl of Corruption
Public trust in financial honesty of Public trust in financial honesty of politicianspoliticians
Corruption among public officialsCorruption among public officials
Corruption as obstacle to businessCorruption as obstacle to business
State capture, including positions of State capture, including positions of power through patronagepower through patronage
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
How Does Nepal Fare?How Does Nepal Fare?The World Bank Study [2003]The World Bank Study [2003]
1996 1998 2000 20021996 1998 2000 2002Voice & AccountabilityVoice & Accountability 0.13 -0.01 -0.12 -0.52 0.13 -0.01 -0.12 -0.52Political stabilityPolitical stability 0.14 -0.43 -1.02 -1.63 0.14 -0.43 -1.02 -1.63Governance effectiveness -0.32 -0.94 -0.72 -0.51Governance effectiveness -0.32 -0.94 -0.72 -0.51Regulatory qualityRegulatory quality -0.24 -0.34 -0.30 -0.50 -0.24 -0.34 -0.30 -0.50Rule of lawRule of law -0.34 -0.25 -0.31 -0.50 -0.34 -0.25 -0.31 -0.50Control of corruptionControl of corruption -0.26 -0.59 -0.42 -0.30 -0.26 -0.59 -0.42 -0.30
(Scores range from -2.5 to 2.5)(Scores range from -2.5 to 2.5)
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Global Income DisparityGlobal Income Disparity
Share, in 1990, ofShare, in 1990, of
Richest 20% Poorest Richest 20% Poorest 20%20%
GDPGDP 8686 11
ExportsExports 8282 11
FDIFDI 6868 11
Telephone LinesTelephone Lines 7474 1.51.5
Internet usersInternet users 9393 0.20.2
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Forces of GlobalizationForces of Globalization
Decline in costs of 1960Decline in costs of 1960 19901990
ComputersComputers 125125 11
Telephone callsTelephone calls 15 15 11
Air transportAir transport 2 2 11
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Declining Influence of GovernmentDeclining Influence of Government
1997 1997 DataData
Total sales of General Motors Total sales of General Motors $164 B$164 B
Total GDP of ThailandTotal GDP of Thailand $154 B$154 B
Total sales of Hollywood movies Total sales of Hollywood movies $30 B$30 B
Total sales of movie TitanicTotal sales of movie Titanic $1.8 B$1.8 B
Total GDP of NepalTotal GDP of Nepal $4.8 B$4.8 B
Of 100 largest economies in the worldOf 100 largest economies in the world
50 countries50 countries 50 MNCs50 MNCs
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Rampant Poverty & Low HDIRampant Poverty & Low HDI
Of 6 B people in the world,Of 6 B people in the world,2.8 B live on less than $2 a day2.8 B live on less than $2 a day1.2 B live on less than $1 a day1.2 B live on less than $1 a day
Under 5 mortalityUnder 5 mortalityIn rich countries 1 in 100 childrenIn rich countries 1 in 100 childrenIn poor countries 20 in 100 childrenIn poor countries 20 in 100 children
MalnourishmentMalnourishmentIn rich countries < 5%In rich countries < 5%In poor countries 50 %In poor countries 50 %
60 countries ended 1990s poorer60 countries ended 1990s poorer
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Global PoliticsGlobal Politics
Since 1980, 81 countries democratized, Since 1980, 81 countries democratized, 47 fully functioning democracies47 fully functioning democracies
37,000 INGOs in 200037,000 INGOs in 2000
Only 14% of parliamentarians women, Only 14% of parliamentarians women, 10 countries with none10 countries with none
Only 6 vetoes cast in UN security Only 6 vetoes cast in UN security council in the second half of 1990s (cf council in the second half of 1990s (cf average of 25 between 1946-1995)average of 25 between 1946-1995)
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Global PositivesGlobal Positives
Lowering of ideological tensions since Lowering of ideological tensions since the end of the Cold Warthe end of the Cold War
Emerging consensus on the need for Emerging consensus on the need for certain economic & new political certain economic & new political reformsreforms
Heightened flows of information made Heightened flows of information made possible by the ICT technology possible by the ICT technology advancesadvances
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Global Positives, contdGlobal Positives, contdExtreme povertyExtreme poverty
29% in 1990 to 23% in 199929% in 1990 to 23% in 1999In 1990s, In 1990s,
800 M people gained access to improved 800 M people gained access to improved water, & 750 to improved sanitationwater, & 750 to improved sanitation
Between 1970 & 200, Under 5 mortalityBetween 1970 & 200, Under 5 mortality96 to 56 per 1,00096 to 56 per 1,000
Primary school enrolmentPrimary school enrolment80% in 1990 to 84% in 199880% in 1990 to 84% in 1998
Death from interstate conflict down 3 times Death from interstate conflict down 3 times in 2990s from 1980sin 2990s from 1980s
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Global NegativesGlobal Negatives
Declining global ODA grossly insufficient Declining global ODA grossly insufficient to meet MDGsto meet MDGs
Nearly 3.6 M killed in wars within statesNearly 3.6 M killed in wars within states
50% more refugees & internally 50% more refugees & internally displaced in 1990sdisplaced in 1990s
Half of all civilian war casualties are Half of all civilian war casualties are childrenchildren
Estimated 300,00 child soldiers Estimated 300,00 child soldiers worldwideworldwide
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Governance in NepalGovernance in Nepal
3 General Elections & 2 Local Election3 General Elections & 2 Local Election
Strong decentralization lawStrong decentralization law
About 200,000 elected About 200,000 elected representatives in local governmentrepresentatives in local government
About 36,000 of them womenAbout 36,000 of them women
Strong growth of civil societyStrong growth of civil society
Revolution in mediaRevolution in media
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Governance in Nepal, contdGovernance in Nepal, contd
Stronger anti-corruption regimeStronger anti-corruption regimeCIAA, Corruption control actCIAA, Corruption control act
Reforms aimed at building inclusive Reforms aimed at building inclusive societysocietyNHRC, NWC, NDC, NAIPNHRC, NWC, NDC, NAIP
Initiation of devolution of basic service Initiation of devolution of basic service to LGIsto LGIs
Initiatives for public expenditure Initiatives for public expenditure priritizationpriritization
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Governance in Nepal, contdGovernance in Nepal, contd
19901990 2000 2000GDPGDP 100 100 175 175LiteracyLiteracy 40% 40% 55% 55%Life expectancyLife expectancy 40 yrs 40 yrs 62 yrs 62 yrsInfant Mortality (1,00) 102Infant Mortality (1,00) 102 64 64Child MortalityChild Mortality (1,00) 162(1,00) 162 91 91
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Governance in Nepal, contdGovernance in Nepal, contd
19891989 2000 2000
Social spendingSocial spending 2.2 times 2.2 times
RevenueRevenue 2.3 times 2.3 times
Industrial productionIndustrial production 3.3 times 3.3 times
ExportsExports 4.7 times 4.7 times
Exports to IndiaExports to India 18.7 times 18.7 times
Service exportsService exports 2.8 times 2.8 times
Tourism incomeTourism income 1.6 times 1.6 times
Forex reserveForex reserve 3.8 times 3.8 times
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
Governance in Nepal, contdGovernance in Nepal, contd
19891989 2000 2000
Energy consumptionEnergy consumption 1.4 times 1.4 times
Hydro-power generationHydro-power generation 3.0 times 3.0 times
RoadRoad 2.3 times 2.3 times
TelephonesTelephones 6.9 times 6.9 times
School enrolmentSchool enrolment 1.5 times 1.5 times
SchoolsSchools 1.6 times 1.6 times
Health centersHealth centers 4.1 times 4.1 times
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
What Went WrongWhat Went Wrong12 Governments in 13 years12 Governments in 13 years
Stagnant agricultureStagnant agriculture
grew only 1.5 times in 11 yearsgrew only 1.5 times in 11 years
Export trade benefited almost Export trade benefited almost exclusively Kathmandu valley and exclusively Kathmandu valley and few major townsfew major towns
Export trade with no significant Export trade with no significant backward or forward linkagebackward or forward linkage
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
What Went Wrong, contdWhat Went Wrong, contd
Delay in banking & financial sector Delay in banking & financial sector reform much needed with economic reform much needed with economic liberalizationliberalization
Inadequate bank supervision and the Inadequate bank supervision and the resultant in large non performing resultant in large non performing assetsassets
Organized interest groups reaping Organized interest groups reaping economic benefiting from the economic benefiting from the political patronagepolitical patronage
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
What Went Wrong, contdWhat Went Wrong, contd
Lack of transparency in political party Lack of transparency in political party financing opening room of political financing opening room of political graft & corruptiongraft & corruption
Sense of supremacy over law Sense of supremacy over law reinforcing political graft & corruptionreinforcing political graft & corruption
Continued petty corruption leading to Continued petty corruption leading to further alienation & powerlessnessfurther alienation & powerlessness
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
What Went Wrong, contdWhat Went Wrong, contd
Tendency for graft & corruption Tendency for graft & corruption reinforced byreinforced byWeak institutional capacity to combat Weak institutional capacity to combat
corruptioncorruption
Weak government fund disbursement Weak government fund disbursement procedure, & auditingprocedure, & auditing
Faulty public procurement rulesFaulty public procurement rules
Revenue leakageRevenue leakage
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
What Went Wrong, contdWhat Went Wrong, contdPolitical patronage leading to inefficiency, Political patronage leading to inefficiency,
irresponsiveness in civil serviceirresponsiveness in civil serviceLack of appropriate pay & other incentives Lack of appropriate pay & other incentives
resulting in a civil service incapable of resulting in a civil service incapable of leading economic growth & private sector leading economic growth & private sector developmentdevelopment
Bias in public expenditure towards urban & Bias in public expenditure towards urban & modern sector of the economymodern sector of the economy
Centralized political system failing to deliver Centralized political system failing to deliver services to poor, inaccessible & remote services to poor, inaccessible & remote areasareas
Lack of effective public programs to mitigate Lack of effective public programs to mitigate the adverse effects of transition toward the adverse effects of transition toward market economymarket economy
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
What Went Wrong, contdWhat Went Wrong, contdExcessive burden of recurrent expenditures, Excessive burden of recurrent expenditures,
and inefficient & wasteful SOEs and inefficient & wasteful SOEs constraining much desired public constraining much desired public investment in rural economic and social investment in rural economic and social infrastructure developmentinfrastructure development
Disproportionate share of increased social Disproportionate share of increased social sector spending to urban economy & sector spending to urban economy & richer populationricher population
Due to centralization, social sector spending Due to centralization, social sector spending could not benefit interior & backward could not benefit interior & backward regionsregions
Inability to reach out to poor, marginalized Inability to reach out to poor, marginalized and vulnerableand vulnerable
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
What Went Wrong, contdWhat Went Wrong, contd
Lack of hard budget constraint leading to Lack of hard budget constraint leading to a lack of prioritization in public a lack of prioritization in public expendituresexpenditures
Lack of resources & poor capacity of LGIsLack of resources & poor capacity of LGIs
Public expenditures onPublic expenditures onprimary vs tertiary educationprimary vs tertiary education
primary vs hospital health careprimary vs hospital health care
Rural vs urban drinking water and sanitationRural vs urban drinking water and sanitation
RK Pandey, Mobile: 98510-86884 RK Pandey, Mobile: 98510-86884
What Went Wrong, contdWhat Went Wrong, contd
Increased public awareness, expectation, Increased public awareness, expectation, not matched by economic growth, not matched by economic growth, opportunities leading to widespread opportunities leading to widespread frustration in the rural areas providing frustration in the rural areas providing breeding ground for Maoist insurgencybreeding ground for Maoist insurgency
Break down, near collapse of government in Break down, near collapse of government in rural areas outside district headquartersrural areas outside district headquarters
Existing violent conflict between pro & anti Existing violent conflict between pro & anti 2047 constitution complicated by new 2047 constitution complicated by new triangular conflicttriangular conflict