Economic management continued ...

Democratic good governance, in as far as sound economic management is concerned, derives its ethos from and concerns itself with critical things in the allocation and employment of scarce public resources as follows:

Fiscal discipline.

Fiscal discipline is mainly concerned with the stabilizing function of macroeconomic fundamentals wherein the capable state seeks to pursue policies that underpin balanced growth and allow for free enterprise to flourish (perfect competition as opposed to monopoly) alongside a consumer society whose welfare is maximized. In order to ensure stability, government budgets should adhere to high fiscal discipline which requires that government spending is planned and implemented in such a way that spending and taxing levels are affordable. Of the three items of the budget, fiscal discipline mostly refers to the deficit and it’s financing. High levels of borrowing to finance the budget deficit means higher debt service in future years and less spending on priority areas like poverty reduction (alleviation). High deficits may lead to spiralling (run away) inflation and therefore, comprise price level stability.

On the other hand, low levels of government spending constrain economic growth which leads to higher unemployment with great potential for national instability and insecurity.

Adherence to fiscal discipline is indicated by how much government intends to borrow and where the money should be spent on the development/capital budget where future returns are expected to exceed the interest payments. 

Because government allocates resources by spending public funds for supplying public goods and services along pre-determined priority area, it follows that in a democratic and decentralised good governance framework, this is predicated on the ABSOLUTE need for bottom-up development needs identification, programme planning and budgeting (which, on a cumulative basis should inform and constitute the national development plan).

The rationale for this is to maximize the economic and social returns to the allocation of scarce public resources to a particular policy and/or programme. The strategic allocation of resources to priority areas is, ipso facto, a core element of the government budget allocative efficiency indicator especially that, inter-alia, it seeks to answer the threshold question as to whether or not the country generates good value for its resources and therefore strategic budget allocation should result in higher degree of consistency between stated government priorities and resource allocation overtime.

This is important to note because for strategic allocations to be efficient, they have to be needs based reflecting real people issues based on a comparative analysis of priorities. Generally, the rule of thumb when making strategic allocations is to spend mostly on public goods and services which include, but are not limited to:

• National security.

• Roads, bridges.

• Schools.

• Public hospitals, clinics.

• The environment.

The rationale for this is to provide for welfare maximizing allocation efficiency such that service delivery is achieved when the country delivers key public goods and services effectively and efficiently. This implies that budget resources should be delivered to spending units in a timely, reliable and predictable manner. This is best attained through stability and sustainability of the country’s macroeconomic framework and actual budget outcomes and their consistency with official projections.

Government economic management policies should always provide for an enabling environment for private sector-led growth, job creation and income generation which entails involvement of the private sector in policy development that affects them such that this provides for the requisite framework for the public and private sectors to constitute effective development partners with effective collaboration and coordination mechanisms. It is also important that the tax system is always equitable, accountable and efficiently managed by minimizing tax evasion, curbing bribery and corruption, ensuring and enforcing transparency  and encouraging local and foreign direct investment in all sectors to provide for business development.

It is imperative that civil society organisations (CSOs) independence is guaranteed in matters of conflict prevention, management and resolution to enhance their effective contribution to ensuring promotion and application of transparency and accountability by both government and NGOs. Equally, the independent mass media (print, electronic, theatre, folklore etc.) should operate within a free and independent environment. However, the media needs to be objective, responsible and balanced in its reporting. It is also important that media reports and/or allegations of corruption, mismanagement and fraud are always promptly and thoroughly acted on and those found wanting brought to book.

The Office of the Ombudsman (Public Protector) and its operations must be independent of the executive arm of government as well as other actors and it must regularly report to the legislature.

From the forgone, it is easily discernible that democratic good governance both as a frame work and driver of and for poverty reduction and sustainable development is indeed a long term participatory development process that requires commitment, nurturing, safeguarding and up-holding.

For example, the elements of achieving mutual understanding, agreement and action constitute the participatory and consensus building processes and ethos in which participation, by both gender becomes an important pillar in ensuring democratic good governance drawing strength and legitimacy from an informed, enlightened, active and organized citizenry. Such participation is underpinned by the principle of empowerment in relation to concrete issues. For example, participation underlain by this principle can range from communities partaking in needs identification, prioritization, planning, budgeting, implementation, management, monitoring and evaluation (using both formal and informal indicators), resource mobilization and auditing to ensure accountability and transparency to choosing between service providers, community co-production i.e. direct financing of water user-groups, the way decisions are made and who exercises authority over what issues, how planning processes feed decisions through both positive a
nd negative feedback loops (integers) and how those who make decisions and implement them are held downwardly accountable. Within such a framework, there can be three alternative configurations to community empowerment and participation.

Context.

The context of the piece must be seen against the backdrop that Africa enters the 21st Century not only faced with the challenges for striving for attaining, consolidating and sustaining democratic and decentralised good governance, but also with issues of pervasive and increasing poverty.

While both have devastating and crippling effects on particularly human beings, the economy and environment, rising to the challenges of democratic and decentralised good governance within the capable and accountable African State has taken centre stage in our convergent efforts for attaining sustainable human and economic development.

Importantly, effectively rising to the challenges of poverty requires the sustained use of democratic, decentralised good governance levers which empower individuals and collectivities to directly and/or indirectly participate in political, administrative, cultural, economic and systemic governance policy and development issues, decision making processes and programmes.

This requires the provision of adequate democratic space, in an effectively devolved manner, to municipalities and other decentralised structures in line with the fundamental principle of subsidiarity as well as enhancing the capacities of both central and decentralised authorities and institutions to partner with the private sector in the delivery of accessible, affordable and quality public goods and services.

However, formulating decentralised good governance policies and implementing, managing, sustaining and monitoring of the attendant programmes, activities, structures, systems, processes, procedures and power relationships in the capable and accountable African Sate defined here as one with the requisite enabling political and legal environments for promotion and maintenance of sustainable development and one which equally builds enabling policy and operational environments for the participation of the private and informal sectors to constitute the engines of socio-economic growth through the creation of jobs and income, is one of the most fundamental challenges in Africa today.

Recognising its demands and benefits, African leaders, at least in principle, have made it an urgent agendum for the realisation of the continent’s sustainable development priorities because it is at the very heart of sustainable human and socio-economic development. The initiative is anchored in the determination of Africans to extricate themselves and the continent from the malaise of underdevelopment characterised by grinding and pervasive poverty, unacceptably high levels of illiteracy, infant and maternal mortality rates, severe environmental degradation with decreasing productivity, rampant bribery and corruption, nepotism and marginalisation in an increasingly globalising world. Decentralised good governance augments production inputs, such as labour and capital as well as enhancing their productivity.

Importantly, decentralised good governance has a dual role and impact on growth and its distribution especially in terms of the promotion and equitable distribution of the fruits of growth, which must be coupled with policies that deliberately attack poverty; promote education, health and strengthen social safety nets. Conscious efforts must also be made to ensure the development of agriculture, protecting the environment, human resources development, capacity transformation  and formulation of appropriate population policies. This way, democratic and decentralised good governance can, and indeed, will lead to the realisation of the Millennium Development Goals (MDGs).
 
To all good intents and purposes, the capable and accountable African State with a decentralised good governance framework, both in concept and praxis entails public-private partnership (PPP) in building, strengthening and maintaining the capable and accountable state based on the need for the recognition and implementation of co-responsibility where the state provides for the enabling environments, the private and informal sectors providing for jobs and income while civil society mobilises positive and enduring community action.

The capable and accountable African State that has a decentralised good governance framework, programme and activities equally cherishes, establishes, promotes and sustains inclusiveness while guaranteeing and maintaining peace, security, national cohesiveness and solidarity – because without peace, security, national cohesiveness and solidarity, there can be no long-term development just like without good governance, there is seldom peace. The two are necessarily intertwined and co-terminus. Above all, there must be political, policy and institutional stability and a fair and consistent application of the rule of law based on due process exercised by an independent and impartial judiciary.

As a fundamental strategy for enhancing and contributing to poverty reduction and attainment of sustainable human and socio-economic development, participatory, democratic and decentralized good governance is a salient ingredient for ensuring and entrenching societal empowerment and ownership, two critical and underlying principles that strengthen local governance.

Empowerment, operationally defined here as increasing an individual’s or a group’s capability to make and express choices and transform them into desired actions with predictable outcomes, is practically based on accorded opportunities i.e. the availability of options for meaningful decisions and actions to be taken where formal as well as informal rules and institutions avail for equitable access by all and sundry and how those rules are effectively and efficiently implemented. Such a horizontal inclination presupposes existence of capability to take advantage of opportunities, which, to a large extent, is a function of or depends on the resources individuals and/or collectivities have, i.e. financial, informational, organizational, human and psychological.

Within democratic and decentralized good governance context and framework, it must be recognized, promoted and safe guarded that empowerment takes place in relation to concrete issues. For example, within a democratic and decentralized good governance framework, empowerment can range form participation in community needs identification, prioritization, programme and/or project planning, budgeting, implementation, monitoring (using different, yet concrete sign posts, both formal and informal), resources mobilization, management and auditing to ensure accountability and transparency to choosing between service providers, community co-production i.e. direct financing of water user groups, the way decisions are made and who exercises authority on what issues, how planning processes feed decisions and how those who make decisions and implement them are held downwardly accountable. There are three alternative configurations to community empowerment and participation i.e. (i) the Moderate Weak Local Government Appro
ach, with significant but weakly integrated community participation and/or support, (ii) the Moderate,

Weak Local Government with very strong community participation and/or support and (iii) the Moderate, very strong Local Government and community participation and/or support integrated through local governments.  Each has its merits and demerits discussions of which go over and beyond the intent and scope of this piece. However, it is important to recognize and note them for they reflect the type, scope and extent of the polity and governance environments that prevail.

Correspondingly, it is important to recognize, unambiguously, that the increasing concern of the citizen-client to accessing affordable and non-interrupted equitable quality service within a democratic and decentralized good governance framework has been the catalyst in the emergence of the second wave of local government reform and decentralization processes in the last quarter of the twentieth century in which the focus shifted from a preoccupation with building institutional structures and processes to a growing concern about and demand for improvement in the nature and quality of services for which the citizen-client pays and receives. Issues around unfettered but responsible and enlightened participation in democratic good and decentralized governance processes have also been and continue to be no less significant. At the heart of responsible and enlightened participation are three fundamental things:

• Decentralised good governance is all about getting results in the field

• Getting the results which meet people’s priorities, and

• Strengthening local institutions and capacities to sustain results

These transcend the mere tinkering with and formulation of policies for increased participation of people to one of creating the requisite enabling environments for the devolution of power, authority and resources (particularly financial) to facilitate the functioning of genuine democratic and decentralized structures, systems, procedures and processes and by strengthening the capacities of local governments and grassroots organizations for quality service delivery in an equitable manner and in helping expand people’s opportunities and choices in the fight against grinding and pervasive poverty and thus, attaining sustainable human development for one and all.

The capable and accountable African State that cherishes democratic and decentralized good governance MUST, therefore, give credence, scope, resources, opportunities and democratic space to enhance and ensure enlightened and sustained participation in governance and development processes by civil society actors within an environment where national and local governance policies are congruent, complementary, mutually supportive and reinforcing.

Local Government and particularly the politicians and management at the decentralized and local levels will continue to bear major responsibility for coping with future challenges in an effective and adequate manner.

But unlike before, when only the effectiveness and service quality of administrators was measured to the more ambitious task which lies ahead in terms of determining objectives for the long-term development of our communities and to determine indicators which can guide successful political and management steering processes in a consultative, participatory and all-inclusive manner.

Given that both the concept and praxis of decentralised good governance is neither strange nor new in the African context where good governance structures, procedures, institutions, decision making processes and management systems avail at the household level and are predicated on the cardinal principles of participation, inclusiveness, consensus building, recognition of and respect for authority, among others, the following, albeit by no means exhaustive, constitute the fundamental principles and pedestals that underpin democratic and decentralised good governance. They can also constitute the yardsticks against which progress (or otherwise) towards attaining and consolidating good governance praxis can be monitored.

Empowerment – Enabling people make decisions on issues that affect their lives and communities

Subsidiarity – Central government should have a subsidiary function, performing ONLY those tasks, which cannot be performed at a more local level

Co-responsibility – All levels of government are responsible for ensuring the smooth, efficient and effective implementation and management of good governance initiatives and activities within a broad-based and transparent framework

Self-reliance – relying on ones (indigenous) ability, capability, sense of purpose and available resources before asking for and/or relying on exogenous wherewithal

Strategic partnership – creation of the requisite linkages (both vertical and horizontal) between all actors for the realization of decentralised good governance policies and programmes. This implies taking co-responsibility between all stakeholders

Connectivity – Linkages, both inter and intra institutional as well as between the citizen-client and the state particularly in areas of political representation and timely, quality, reliable, targeted, accessible and affordable services

Accountability – is a key requirement and applicable to the public and private sectors as well as CSOs. Accountability can neither be enforced nor achieved in the absence of transparency and the rule of law

Transparency – Decisions taken and their enforcement are done in a manner that strictly adhere to prevailing rules and regulations and that reliable, wholesome, factual, timely, easily understood information is freely available and directly accessible to those who will be affected by such decisions and their impartial and full enforcement

Equity/inclusiveness – a society’s well being depends on ensuring that all its members feel that they have a stake in it and do not feel excluded or marginalized from its mainstream. This requires that all groups, but particularly the most vulnerable, have opportunities to improve or maintain their well being

Responsiveness – Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe

Efficiency/effectiveness – imply that institutions and processes produce results that adequately meet the priorities of the citizen-client while making the best and cost-effective employment of scarce public resources

Participation – Participation by both men and women (including the youth) is an important pillar in ensuring and entrenching democratic and decentralised good governance and can either be direct or indirect through legitimate intermediate institutions or representatives. Participation needs to be informed and/or enlightened as well as organised, implying the need for responsible freedom of both association and expression

Consensus building – There are several stakeholders at the various levels and strata of society and democratic, decentralised good governance requires mediation of the different interests in it to reach a broad consensus on what is in the best interest of the whole community and how this or these can be achieved.

Consensus building requires a broad and long term perspective on what is needed for sustainable socio-economic and human development which can best result from a clear understanding of the historical, cultural and social contexts of a given society and/or community, in particular the decision making processes and mechanisms to arrive at consensus.

Democratic representation – means representing the majority of people based on outcomes of just, free, fair, transparent, credible, reliable and democratic electioneering and elections, a fair reporting and declaration mechanism and acceptance of the results thereto.

Respect for the Rule of Law and due process and observance of Fundamental Human Rights are central planks of and for democratic and decentralised good governance that require very little, if any, explanation at all. Suffice to say that, in many cases, they are largely found wanting in many African countries.

Conclusion

It has now inarguably come to the fore that the main pre-requisite for enhancement of democratic and decentralised good governance for Mother Africa is the creation, nurturing, entrenchment and sustenance of the capable state which is credible, transparent and downwardly accountable to the people. It is equally true that this can be best, if not ONLY done through periodic renewal of the political leadership via all-inclusive, credible, transparent, open, free, fair, multi-party and multi-candidate system of electioneering and elections conducted, supervised and managed by an impartial, reliable and independent national electoral institution constitutionally mandated to do so.

Inversely, it has equally been demonstrated and recognised that, in most part, unrest, civil strife, internally displaced persons (IDPS), refugees, sabotage and the worst-case scenarios of political murders, assassinations, fratricidal wars and genocide that currently plague Africa have, inter-alia, have been caused by or are due to non-transparent and non-credible elections. There is empirical evidence that countries that do not demonstrate all-inclusive, open, free, fair and transparent electoral processes and elections risk running a higher propensity for governmental fragility and collapse making them grow slower than those that do demonstrate such.

A quick and objective introspection of Africa’s political, economic and overall development situation today would, invariably, reveal a dire and imperative need for articulation of democratic and decentralised good governance policies and implementation of programmes that tackle the crippling and pervasive poverty that is such a burden that growth and development are seriously impeded, promote better health, education and agriculture. Needless to say that provision of the requisite enabling environment for enlightened citizenry empowerment, engagement and participation cannot be over-emphasized in and for all of these. The need for liberalisation and deepening of the political and democratic spaces, promotion of human rights and the strict observance of and respect for and commitment to the rule of law based on due process must unfold unfettered.

Democratic, participatory and decentralised good governance is all about creating and sustaining a state that is embedded in the public will, relying on legitimacy, exemplified, as already advanced, via political representation as evidenced by multi-party and multi-candidate system of electioneering and elections through veritable democratic processes that are transparent, downwardly accountable, credible and reliable with strong institutions promoting the public interest.

A democratic and decentralised polity that fosters and is anchored on mainstreaming harmonious national development on a sustainable basis on the one hand, and on the other, fostering the maintenance of national security, stability, peace, solidarity and cohesiveness, conditions that are generally accepted as both necessary and sufficient for political stability, economic growth and prosperity can only be attained by the capable African State. To this end, a veritable and indeed key challenge for African Governments and civil society is to transform and sustain the capacity and accountability of state institutions. These will range from strengthening national parliaments, audit offices, Offices of the Ombudsman to curbing bribery and corruption, deepening legal and judicial reforms and processes to protect the citizenry and their properties, rights and ensuring the impartiality and independence of the judiciary and courts. The public sector must also be transformed to engage in enhancing the provision of affo
rdable and accessible public goods and services underpinned by a positive change in mindsets and mentality of both service providers and consumers. The need for fostering a responsible media cannot be over-emphasized.

Enlightened and sustained participation of civil society and citizenry in ensuring the creation of capable states in Africa remains a foremost challenge and must be tackled head on if we are to meet the laudable objectives of the MDGs and thus extricate ourselves from abject poverty, ignorance, the threat of HIV/AIDS, premature deaths, want and despair.

My formula for Democratic Good Governance (DGG):

DGG is f (cds + vcs + ips) over t where:

DGG means democratic good governance.

cds means capable democratic state.

vcs means vigorous civil society,

t means time. and

ips means innovative private sector (QED).

End