Week 8 & 9 – Governance,

Accountability & Ethics

MG214 – Principles of Public Sector Management
The University of the South Pacific
By Christian Girard
COURSE LEARNING OUTCOMES

On successful completion of this course, students should be able to:

1. Explain the changes that have taken place in the public sector;
2. Analyse critically the traditional and the NPM models and how
applicable they are to the Pacific;
3. Assess the role and functions of governments in the Pacific;
4. Apply knowledge pertinent to public sector management issues in
the Pacific;
5. Develop further presentation and research skills.
Plan

1. Governance

Good
Governance

2. Accountability 3. Ethics
Definitions of Governance
(Bovaird and Loeffler, 2016:370)

 The exercise of political power to manage a nation’s affairs. (World Bank, 1989: 60)

 Governance is the process whereby societies or organizations make important decisions,

determine whom they involve and how they render account. (Canadian Institute on
Governance, www.iog.ca)

 Public governance is how an organization works with its partners, stakeholders and
networks to influence the outcomes of public policies. (Governance International, UK,
www.govint.org)

 The pattern or structure that emerges in a socio-political system as a ‘common’ result or

outcome of the interacting intervention efforts of all involved actors. This pattern cannot be
reduced to [the outcome produced by] one actor or groups of actors in particular.
(Kooiman, 1993: 258)
What is Governance?
(UNESCAP & Citizens’ Constitutional Forum, Fiji)

 Governance can be defined as the process of decision-making and the

process by which decisions are implemented (or not implemented).
 Corporate (NB: organizational) & international, national, local levels
 Governance focuses on:
 The formal and informal actors involved in decision-making and implementing
the decisions made; and
 The formal and informal structures that have been set in place to arrive at and
implement the decision.
 Government not the sole actor, but one in a network of government and
societal actors in the policy process (e.g. citizens, civil society, media,
businesses, associations, ministries, political parties, religious organizations)
Most Definitions Show that Governance…
(Bovaird and Loeffler, 2016:372)

 Assumes a multiple stakeholder scenario, where collective problems can no longer be solved
only by public authorities but require the cooperation of other players (citizens, business,
voluntary sector, media, etc.) – and in which practices such as mediation, arbitration and self-
regulation may often be even more effective than public action;
 Recognizes the importance of both formal rules (constitutions, laws, regulations) and informal
rules (codes of ethics, customs, traditions), but assumes that negotiation between stakeholders
seeking to use their power can alter the importance of these rules in specific situations.
 No longer focuses only on market structures as steering mechanisms, as in conventional ‘New
Public Management’ approaches, but also considers hierarchies (such as bureaucracies) and
cooperative networks as potential facilitating structures in appropriate circumstances;
 Employs reasoning not only in terms of the logic of ends and means, inputs and outputs, but
recognizes that some characteristics of key social interaction processes (transparency,
integrity, inclusion, etc.) are valuable in themselves;
 Is inherently political, concerned as it is with the interplay of stakeholders seeking to exercise
power over each other in order to further their own interests – and therefore cannot be left just
to managerialist or professional decision-making elites.
Principles of Good Governance
(UNESCAP & Citizens’ Constitutional Forum, Fiji)

Effectiveness Equity &

& Efficiency Inclusiveness

Responsiveness
Rule of Law

Transparency Participation

Accountability
Good Consensus-
Governance oriented

NB: Sustainability and long-term orientation (Council of Europe & Bovaird and Loeffler, 2016)
Good Governance, Bureaucracy & TPA
(Yes, Minister)

Hacker: The three articles of Civil

Service faith: it takes longer to do
things quickly, it's more expensive to
do them cheaply and it's more
democratic to do them in secret.
Good Governance
(UNESCAP & Citizens’ Constitutional Forum, Fiji)

 Good governance in public administration is the process of making the

best possible decisions while using public resources (Henson, 2018:1862)

 Good governance assures that corruption is minimized, the views of

minorities are taken into account and that the voices of the most
vulnerable in society are heard in decision-making. It is also responsive to
the present and future needs of society.

 Good governance has to be defined as context-specific. Given that it is

impossible fully to implement all desirable governance principles at the
same time, stakeholders need to agree on strategic governance priorities.
(Governance International, UK, www.govint.org)
Public Governance: Key Aspects/Dimensions
(Bovaird and Loeffler, 2016:41-43)

 Normative – NB: debates as to what ‘should’ be and what constitutes the public interest
 Context-dependent & ‘good governance impossibility theorem’ (NB: Tradeoffs)

 NPM often ended up measuring results in terms of outputs

 Public governance focuses on outcomes for citizens and stakeholders

 Process matters: the ends do not justify the means, i.e. that the ways in which decisions are
reached – the processes by which different stakeholders interact – are seen to have a
major importance in themselves, whatever the outputs or outcomes achieved

 NB: Importance of perceptions in public sphere

Public Governance: Key Dynamics & Trends
(Bovaird and Loeffler, 2016:41-43)

 Local governance emphasizes the role of citizens (participation,

responsibility, and co-production)
 Key role of education (Bovaird and Loeffler, 2016; Henson, 2018)
 Focus on long-term sustainability
 For businesses (and organizations), making sure that the performance
indicators and incentives reinforce desired behaviors (cf. principal-
agent theory and aligning incentives)
 Globalization: are States powerless in the face of markets? (M4P)
 Internet: ‘no governance’, really? (who is involved and how +
tensions?)
Accountability: Definitions
(Triantafillou, 2017:52-56 & Hughes, 2018:156)

 One party X is obliged to produce an account to another party Y, who may

in turn impose some kind of sanction on X if the account turns out to be
unsatisfactory (Bovens et al., 2014 in Triantafillou, 2017:53)

 “Being answerable to somebody else, to be obligated to explain and justify

action and inaction – how mandates, authority, and resources have been
applied with what results, and whether outcomes meet relevant standards
and principles” (Owen, 2014:7 in Hughes, 2018:156)

 “A relationship between an actor and a forum, in which the actor has an

obligation to explain and justify his or her conduct, the forum can pose
questions and pass judgement, and the actor may face consequences”
(Bovens, 2007:450 in Hughes, 2018:156)
Accountability: History and Implications
(Triantafillou, 2017:52-56)

 From double-entry bookkeeping (cf.: debit & credit), to written and

quantifiable examinations: compare performance through indicators
 Rise of computers and internet allow for reporting almost in real-time
 Once differences in quantified performance are made visible, it leads
to new ways of assessing the quality of public services and of
delegating responsibility
 From individual performance in the 18th century to organizational
efficiency in the 20th & 21st centuries: political control… and self-
governance! (NB: UU200!)
 ‘The rise of the regulatory state’ (Majone, 1994 in Triantafillou, 2017:52):
the quest for accountability seems to lead to more government, not
less! (NB: vs. neoliberalism and NPM – measure as a means of control)
Mechanisms to ensure accountability in the
private sector (Hughes, 2018:158)
Private shareholders can trade
equity capital of the enterprise, Company competes for capital on
and fluctuations in the share price commercial terms
reflect measure of performance

Private Sector
Mechanisms

Presence of competitors means

Threats of takeover or merger, as customers will go elsewhere if they
well as insolvency are dissatisfied with the product or
service
Legalization and Democratization of
Sovereignty (Triantafillou, 2017:56-60)

 Exercise of sovereign power displaced from monarch or nobility to

democratic institutions that represent the people (cf.: “government of
the people, by the people, for the people”) – NB: indirect democracy

1. Legislative control 2. Civic control

 Overall goal: accountability for trust and credibility

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Separation of Powers in Fiji (Source: Parliament of the Republic of Fiji)

Legislative Control
(Triantafillou, 2017:56-60)

 Judiciary and independent judges (NB: balance of power)

 Judicial reviews, formal questioning of ministers, committee inquiries and government

auditors (NB: disclose information):

1. Judicial reviews, courts/judges reviewing decisions or actions made by a public body

(NB: focus on process)

2. Ministerial responsibility (minister accountable for his/her jurisdiction along the entire
hierarchy of civil servants) (NB: vs. cabinet collective responsibility)

3. Parliamentary committees comprised of government and opposition (NB: question both

politicians and civil servants)
Civic Control
(Triantafillou, 2017:56-60)

 Complaints: rights to raise

grievances and seek remedy or
consequences

 Information rights: citizens’ rights

to information & role of the media

 Public ombudsmen: impartial

investigations (mostly on
individual cases) Source:
http://anteroexternal.accueil.site/hotel/ombudsman-i.html
Transparency, Information Access and the
Media (Yes, Minister)

Sir Humphrey: Open government,

Prime Minister. Freedom of
information. We should always tell
the press freely and frankly
anything that they could easily
find out some other way.
Governmentalization of Government:
Foundations (Triantafillou, 2017:60-62)

 Since the 1980s, NPM reforms that include performance-

management systems, contracting out, public–private partnerships,
total-quality management, lean-style management, etc. that all in
various ways seek to improve value-for-money, i.e. economic
efficiency of the making of public services.
 Account giving (and quantification) so that non-specialists
(politicians, public managers, and wider public) can assess, debate
and make decisions about public services.
 Government ‘governing itself’ 1) to improve efficiency and 2) to
attend to the needs and demands of the population (responsiveness)
 Account giving as a technical answer to the problem of improving
performance in public services
Governmentalization of Government:
Opposing Trends (Triantafillou, 2017:60-62)

 Central control
 Extension of control from the minister to frontline worker not through regulations, but through
internal (non-legal) contracts, framework budgets, agreements, standards, performance targets
and benchmarking systems – calculative techniques and normalizing standards to measure
performance
 Explosion of accountability mechanisms for money and quality

 ‘Agentification’
 Public managers are expected to:
 assume responsibility to meet the visions and goals of the superior level;
 think constantly about how to improve the efficiency and quality of their services.
 Autonomy or instrumental discretion to meet the goals stipulated by superiors or by citizens
 Regulatory and statutory bodies: relative autonomy/independence to use a long-term
perspective and provide more efficient and innovative solutions
 Accountability Relationships
(Romzek, 2000 in Hugues, 2018:167)
Hierarchical Accountability
Relies on supervisory and organizational
directives, including rules and standard
operating procedures (SOPs), for the
standards to which employees are
answerable for their performance.
Obedience is the behavioral expectation.
TEXT
Political Accountability
This is about satisfying key external
stakeholders, such as elected officials,
clientele or other agencies. Emphasizes
accountability based on whether the
administrators have been sufficiently
responsive to the expectations of the
agency’s clients.
Legal Accountability
Emphasizes compliance with some externally
derived expectations or standards of
performance and close scrutiny and oversight as
the means by which employees are held to
answer to their performance.
Professional Accountability
Emphasizes responsibility and deference to
expertise. Performance standards are established
by professional norms, accepted protocols and
prevailing practices of one’s peer or work group.
Responding to and Mobilizing Citizens
(Triantafillou, 2017:62-66)

 Respond to citizens’ needs (cf.: NPM and consumer model)

 Performance measuring and benchmarking that systematically compare the
quality between various public providers of the same type of service
 Employment of user-satisfaction surveys

 Mobilize (resources) of citizens to tackle societal challenges (civil society &

NGOs)
 Empowerment, participation and co-production (next week!)
 NGOs involved in the co-production of public services use the vocabulary and
practices from the private sector and performance management (e.g. ‘value
for money’ and benchmarking) = way to govern NGOs at a distance
 NB: To whom are NGOs accountable?
Ethics, Good Governance, and Education
(Henson, 2018)

 Ethical Issues and Challenges in Public Administration:

 Unethical behavior and occurrences (e.g. corruption, fraud, waste, abuse)
 Decision-making, improved internal controls, and efficiencies (performance
management to improve efficiency, accuracy, communication and transparency
through management, evaluation, planning and budgeting) (NB: + External controls!)
 Ever-changing public service environment (e.g. rise of public-private partnerships)
 How is ethics education relevant to public administration and good governance
and why is it considered relevant to engage the general public?
 Safeguard and civic control, create shared culture and standards, co-production,
honest participation of citizens and reporting anomalies, etc.
 NB: Individual… and structural factors that contribute to unethical behavior and
corruption
NPM & Corruption
(Hughes, 2012:300-302 & Hughes, 2018:172-174)

 Corruption partly due to low wages in public service and weak sanctions (Hughes, 2012:298)

 According to Manion (2004), corruption can be reduced through:

1. Enforcement (fear/regulatory instruments)
2. Institutional design (interests/economic instruments)
3. Education/‘psychic costs’ of corruption (moral & ethics/suasive instruments)

 Examples given by Hughes (2012) and Manion (2004):

 Governments may move away from licences and permits and legal activities that generate
corruption (like off-track betting on horse-racing);
 Sealed competitive bids for procurement for all parts of government;
 Contracting out (NB: Assumption that corruption is not happening in the private sector).
Corruption and Management: What Do You
Think? (Hughes, 2018)

 “…self-interest is a ‘universal human motivator’ (Rose-Ackerman:1999:2). If

self-interest is universal, it should be assumed that the propensity to be
corrupt is universal too.” (Hughes, 2018:172)

 “Management systems need to be designed by assuming that public

officials will be corrupt unless the system design itself either prevents it or
raises the relative cost so high that the behaviour is less likely to occur. Most
often, it appears that corruption is quite opportunistic, resulting from
someone seeing a gap in a system from an administrative failing. If
payment systems, tendering rules, appointments of staff, budget and
accounting systems, all the ways that government bureaucracies operate,
were designed as if the staff involved in their operation would be corrupt if
the opportunity presented itself, better results could be achieved.” (Hughes,
2018:173)
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Paris, France
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Montréal, Canada

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Vienna, Austria
Underlying Worldviews, Values & Assumptions

 The structures (and infrastructures) that are put in place reflect:

 Conceptions of human nature (cf.: ethics and whether humans are good or
bad);
 What values are (embedded and) prioritized;
 How the problems/issues/challenges are understood and defined (cf.: what
causes humans to be good or bad in the case of corruption, for example).
 Reminder: how you define the problem determines the (realm of potential)
solution(s)/the scope of what will be considered a solution
 What about your own country? How are systems designed? What does it
say about the values and conceptions of human nature and social
interactions and organization that were embedded in the design of these
systems, structures, and infrastructures?
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Suva, Fiji