Due to varying economic thoughts, there is no single definition of good governance. In common usage, governance is a working process of a government. According to the UN, good governance is consensus oriented, participatory, follows the rule of law, effective, efficient, accountable, transparent, responsive, equitable and inclusive.
Bad governance is a critical constraint to economic development. The issues of governance are deep seated and carry multi-faceted factors. The broad parameters originating upheavals in the country are over-population, poverty both in relative and absolute terms, corruption, ‘centralization syndrome’, political interference, financial indiscipline, inequitable administration of justice, discarded style of governance, low public and private sectors investment on education and other sectors of development. Given the hosts of problems, sound initiatives are required in creating good institutions.
Decentralisation is a powerful weapon to fight with the problem of governance and overcome regional disparaties. As real democracy has not yet taken the roots in the political spectrum, the problem of centralization still persists, which is creating a weaker system of check and balance at the local levels and leading to red-tapism. To overcome the problem, there must be a high degree of autonomy to the district governments to pool their resources and plan policies and programme through a consultative process. The system of local government following the bottom-up approach was introduced in the country from time to time, but due to lack of political sagacity, it was overturned to its original centralized mode, after wasting billions of public funds to serve the interests of elities.
The public Institutions can work efficiently when their authorities and responsibilities are clearly defined and no institution is allowed to interfere into the affairs of other institution. Nevertheless, employees should be continuously trained and motivated to upgrade the institutional efficiency.