Professional Documents
Culture Documents
Governance
Guiding principles
for implementation
no part may be reproduced by any process through development The Australian Government believes our country has a central role to play as an
without prior written permission from the assistance advocate of good governance. This was illustrated by member countries of the
United Nations Commission on Human Rights voting almost unanimously in 2000 to
Commonwealth available from AusInfo.
11 Making Australian support an Australian-led resolution on good governance. This was a ground-
Requests and inquiries concerning
assistance work breaking resolution, heralding new international thinking on the connections
reproduction and rights should be addressed between human rights and transparent, accountable and participatory government.
to the Manager, Legislative Services, AusInfo,
Australia joins this debate on governance as a strong, stable and significant regional
GPO Box 1920, Canberra ACT 2601.
power with a long and robust liberal-democratic tradition.
This is the context that underpins our policy dialogue and our aid programs.
ISBN: 0 642 44945 7
Published by the Australian Agency for Governance issues differ from place to place, and the solutions to governance
'It is vital Australia’s
International Development (AusAID), problems must be tailored individually.
governance assistance
Canberra, activities are But although we will never have a ‘one size fits all’ solution to governance issues,
August 2000 based on a sound there are clear priority areas – outlined in this paper – where Australian
For further information about the Australian understanding development assistance can foster good governance in partner countries.
aid program, contact: of local conditions and Drawing from both Australian and international experience, we have identified some
AusAID genuine broad guiding principles for implementing the aid program’s governance activities.
GPO Box 887 ownership of reform These recognise the need for a long-term, comprehensive yet flexible approach.
Canberra ACT 2601 processes within the Furthermore, it is vital Australia’s governance assistance activities are based on a
partner country.' sound understanding of local conditions and genuine ownership of reform processes
Phone (02) 6206 4000
Fax (02) 6206 4880 within the partner country.
Internet www.ausaid.gov.au I am confident that the priorities and principles identified here will help Australia
Designed by RTM Design, Canberra implement an effective, high quality program of assistance in support of good
governance in our partner developing countries.
Cover template designed by Griffiths & Young
Set in Rotis
Printed in Australia by New Millennium Print
Alexander Downer
Minister for Foreign Affairs
August 2000
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Good Governance - Guiding principles for implementation
Good
governance
and a good
society
GOOD GOVERNANCE IDEALS FOR A GOOD SOCIETY ‘Governance’ is the exercise of power or
authority – political, economic,
POLITICAL PRINCIPLES administrative or otherwise – to manage
■ Good governance is based on the establishment of a representative and a country's resources and affairs. It
accountable form of government. comprises the mechanisms, processes and
institutions through which citizens and
■ Good governance requires a strong and pluralistic civil society, where there is
groups articulate their interests, exercise
freedom of expression and association.
their legal rights, meet their obligations
■ Good governance requires good institutions – sets of rules governing the
and mediate their differences.
actions of individuals and organisations and the negotiation of differences
between them. ‘Good governance’ means competent
■ Good governance requires the primacy of the rule of law, maintained management of a country’s resources and
through an impartial and effective legal system. affairs in a manner that is open,
■ Good governance requires a high degree of transparency and accountability transparent, accountable, equitable and
in public and corporate processes. A participatory approach to service responsive to people’s needs.
delivery is important for public services to be effective. Key elements of good governance are
outlined at left.
ECONOMIC PRINCIPLES
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Good Governance - Guiding principles for implementation
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Good Governance - Guiding principles for implementation
Priority Areas
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Good Governance - Guiding principles for implementation
Possible targets for Australian ■ helping partner governments create CENTRE FOR LEGAL REFORM IN SUPPORTING
assistance include: an efficient and equitable taxation D E M O C R ATI C INDONESIA COMMUNITY-BASED
system – one that enables government INSTITUTIONS O RG A N I SATI O N S
■ strengthening of key government AUSTRALIA IS WORKING CLOSELY
to properly fund public services and IN THE PHILIPPINES
agencies responsible for economic THE AUSTRALIAN GOVERNMENT with the Indonesian Government to
income transfers to the poor but, at the
policy, planning and public sector established the Centre for promote good governance through LIKE LEGAL SYSTEMS, CIVIL SOCIETY
same time, does not act as a barrier to
financial management, including Democratic Institutions (CDI) in measures aimed at improving organisations can provide checks and
private sector development
finance ministries, treasury departments 1998. The CDI harnesses the best of Indonesia’s legal system. The newly balances on government power and
and central banks ■ strengthening the banking sector and Australia’s democratic experience established Indonesia Legal Reform monitor social abuses. Australia’s aid
financial markets to support good governance Facility is developing functional, program contributes to a stronger
■ helping partner country governments
strengthen their trade policies and ■ improving corporate governance by initiatives in developing countries. transparent, accountable and civil society by implementing
procedures, participate in regional and helping to establish appropriate legal, competent legal institutions and innovative programs for community-
Working with Australian
global trading arrangements, and institutional and regulatory frameworks supporting measures to ensure the based organisations and national
institutions, CDI provides support
promote trade and investment implementation of the rule of law. institutions. Activities involve
■ supporting the development of micro- to developing countries through
opportunities Other law reform initiatives in undertaking capacity building with
enterprises and small/medium information exchange, training,
Indonesia include: non-government and civil society
■ promoting more clearly defined enterprises. This can be done through a placements and networking.
organisations, developing national
property rights through legal and variety of means – for example, by ■ Training commercial court judges
CDI oversees a number of human rights institutions,
administrative reforms helping government create an Australia has assisted the recently
governance activities, including: supporting electoral processes,
appropriate regulatory environment, by established commercial court by supporting media and
DEMOCRACY FOR INDONESIA developing business skills and ■ workshops for parliamentarians providing training for its judges and communications development,
knowledge, and by promoting improved ■ orientation for new judges officials. Australia also arranged for and providing assistance in post-
INDONESIA’S GENERAL ELECTION IN 1999 was the first fully free election access to financial services and other ■ non-government organisation an expert from Insolvency Trustee conflict situations.
since 1955. It is a landmark in the nation’s history. business services leadership courses Service Australia to provide training
One example of Australia supporting
The Australian Government provided a 25-strong team of election observers ■ improving delivery of basic services ■ media courses for journalists for Indonesian bankruptcy receivers.
capacity building for community-
and a $15 million electoral assistance package to help ensure a free, fair and such as health, education, water and ■ support for Ombudsmen ■ Strengthening the judicial system based organisations is the
credible election. sanitation, through the public and ■ anti-corruption courses.
Indonesian judges are receiving Philippines Australia Community
private sectors
The Australian observers visited more than 120 polling stations and assisted CDI focuses on four key sectors: training in Australia through a Assistance Program (PACAP). PACAP
Indonesian election monitors in their job of explaining the complex polling ■ strengthening the rule of law and specialised academic course and is a program of direct assistance to
■ the parliamentary process
process and monitoring voting. improving legal systems, including attachment to Australian courts. non-government organisations
■ the judicial process
central regulatory bodies The activity also includes Australian (NGOs) or people's organisations in
Australia’s assistance included funding for the Australian Electoral Commission, ■ the media
judges delivering short courses to the Philippines. PACAP’s aim is to
which helped its Indonesian counterparts ensure the election was a success. ■ promoting respect for human rights,
■ civil society. raise the living standards of poor and
and strengthening democratic Indonesian judges at Indonesia’s
A priority for Australia was to help strengthen Indonesia’s domestic monitoring marginalised Filipinos through
processes, civil representation and Supreme Court Training Centre.
capability. Australia also helped educate voters on the polling day, with a key funding community based self-help
participation, and ■ Specialised training
message being the secrecy of the vote. projects as well as strengthening the
■ improving public administration Australia is training Indonesian capacity of these organisations to
The significance of the elections for Indonesia and for our whole region
generally – a competent and effective officials in a variety of areas related carry out community development
cannot be stressed enough. The elections paved the way for Indonesia for the
public sector is needed to implement to good governance, including: activities. It also establishes an
first time in more than a generation to be governed by a democratically
reforms effectively and to ensure ■ intellectual property rights effective working relationship
elected government.
efficient delivery of public services. ■ human rights between local NGOs and the
Australia is heartened by the commitment of the Indonesian people to exercise
■ environmental law and aid program.
their democratic rights in a peaceful way.
enforcement
■ district and provincial planning
■ international trade policy practice.
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Good Governance - Guiding principles for implementation
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Good Governance - Guiding principles for implementation
Expert advisers
STRENGTHENING ACCOUNTABILITY In an area as sensitive and important as
IN THE PRIVATE SECTOR governance, it is important to use high-
level, very experienced senior advisers
THE NEED FOR GOOD GOVERNANCE is not limited to the public sector.
who are the best in their field.
Sound management practices in the private sector are equally crucial to a
nation’s development. Australia supports a number of programs aimed at Flexibility
improving the effectiveness, efficiency, accountability and transparency in the
A flexible approach is needed. The means
private sector.
for reaching identified objectives, and
These programs often involve courses for directors of public companies, even the objectives themselves, may need
statutory authorities, management committees and chief executive officers. to be modified or adapted quickly to
Courses cover corporate governance, general business knowledge, and financial changing circumstances.
and corporate management issues. Some of the topics include:
Balance
■ the law and directors
■ conflict of interest and ethics Australian principles and values need to
■ duty of care and due diligence be balanced carefully with partner country
■ the role of stakeholders
circumstances and needs.
■ following paper and audit trails
Inclusiveness
■ monitoring financial and non-financial performance
It is important to involve the private
■ board effectiveness, and
sector, the community sector and the
■ statutory duties.
general public in governance initiatives.
The main benefit of these initiatives are continuing improvement in the A substantial proportion of Australia’s
management capacity of private sector enterprises, especially in the areas of efforts to improve governance will be
financial skills, company direction and compliance with company laws. The aimed at reforming government policy
ultimate outcome is to facilitate private sector development. and practice – because the role of
government is a crucial one – but it is
important not to neglect the other sectors
of society.
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Good Governance
Guiding principles for implementation