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What is Governance?

The term 'governance' is used to describe a range of phenomena. While some writers use it in the international context or to refer to business affairs, this note focuses on its use at the national level, as it relates to political, economic and civil institutions. At this level, four understandings of governance can be identified. These definitions differ in scope as each subsumes and expands on the previous one. Beginning narrowly and ending with a very broad definition, these are:

1. the management of public resources, or public administration

2. the activities of government or the system of governing

3. Government's interaction with civil society and citizens in general. This definition introduces actions directed towards government as well as by government. This includes the constraints and accountability mechanisms under which parliamentarians operate, and

4. The interaction of traditions, values, institutions and processes that shape society. In this definition, government is less central. While still an important player in some interactions, it may be marginal or absent in others. A similar approach views governance as the exercise of power in society.

This note uses the third definition. This is broad enough to consider most of Parliament's activities and responsibilities, but not so broad that Parliament becomes only one consideration in the multitude of factors that determine power relations in society.

Good Governance

As the above definitions emphasize, governance is concerned with the nature of interaction within and between institutions, rather than the policy objective being pursued. Hence, in Australia, it is not allied with a particular political party.

However, ideas of 'good governance' are often based on liberal principles. It is possible that the increasing use of the term reflects a growing dominance of liberal democratic values.

From a liberal democratic perspective, the following could be said to be...