The document discusses good governance and the mechanisms that promote it according to the World Bank and the Commission of the European Communities. The World Bank recommends three incentive mechanisms to enhance state capability: rules and restraints within the public sector, mechanisms that promote citizen voice and participation, and mechanisms that promote competition. The Commission of the European Communities identifies five principles of good governance: openness, participation, accountability, effectiveness, and coherence.

1. GOOD GOVERNANCE
Prof.Dr.Coskun Can Aktan
Dokuz Eylul University
Faculty of Economics & Management
&
Social Sciences Research Society
http://www.sobiad.org

2. GOOD GOVERNANCE AND
INSTITUTIONS
►According to the World Bank, state reform should
reinvigorate the state’s institutional capability. World Bank
recommends three basic incentive mechanisms to enhance
state capability:
►Rules and Restraints within the Public Sector: These include
the constitutional separation of powers, divisions of
responsibility among levels of government, budgeting rules
across public organizations, formal rules and oversight
arrangements within public organizations, and
organizational culture.

3. GOOD GOVERNANCE AND
INSTITUTIONS
►Mechanisms That Promote Citizen “Voice” and
Participation: These include various forms of
representative decision making and political
oversight; direct involvement by users,
nongovernmental organizations and other groups
of citizens in the design, implementation, and
monitoring of public policies; and the transparent
production and dissemination of information.

4. GOOD GOVERNANCE AND
INSTITUTIONS
►Mechanisms That Promote Competition: These include
political competition (for example, between regions or
parties); market competition among public agencies, or
between public and private providers of information, goods
and services; and internal competition within public
bureaucracies. In some cases they might mean complete
privatization of certain market-based activities. Because
introducing market competition and private participation
often involves a fundamental rethinking of the role of the
state, public sector reform and private sector development
are intimately interconnected.

6. GOOD GOVERNANCE
According to the Commission of the Eurepean
Communities, five principles underpin good
governance : openness, participation,
accountability, effectiveness and coherence.
Those concepts can be defined as follows:

7. GOOD GOVERNANCE
►Openness. The institutions should work in a more open
manner. They should use language that is accessible and
understandable for the general public. This is of particular
importance in order to improve the confidence in complex
institutions.
►Participation. The quality, relevance and effectiveness of
government policies depend on ensuring wide participation
throughout the policy chain – from conception to
implementation. Improved participation is likely create more
confidence in the end result and in the institutions which
deliver policies.

8. GOOD GOVERNANCE
►Accountability. Roles in the legislative and executive
processes need to be clearer. Each of the government
institutions must explain and take responsibility for what
it does.
►Effectiveness. Policies must be effective and timely,
delivering what is needed on the basis of clear
objectives, an evaluation of future impact and, where
available, of past experience.
►Coherence. Policies and action must be coherent and
easily understood. Coherence requires political
leadership and a strong responsibility on the part of the
institutions to ensure a consistent approach within a
complex system.