The term governance originates from the Greek word ‘Kybernan,’ which signifies steering, piloting, or being in control. In straightforward terms, governance refers to “the process of making decisions and how those decisions are enacted.” According to The Concise Oxford Dictionary, it is defined as the “act or manner of governing.”. The concept of ‘governance’ is inextricably linked to the concept of ‘government’. Some experts call the governance as ‘government in action’ or an ‘action part of the government’. 

Contemporary Meaning of  Government

Government in the modern world means a machinery or an instrument of the state which wields power of the state, it includes the Executive, the Legislature and the Judiciary. Government is a political organization with the power to make and enforce laws and policies for a specific geographic area and population. Its purpose is to regulate the behaviour of its citizens, provide public goods and services, and represent the interests of the community it governs.

The terms government and governance are sometimes used interchangeably. Nonetheless, governance should be viewed as separate from government. The involvement of institutions beyond the state in management of public affairs separates ‘governance’ from the concept of government.

Origin of the Term ‘Governance’

Harlan Cleveland was the first to introduce the term ‘governance’ in the mid-1970s as a substitute for public administration. He believed that people desire “less government and more governance.” In recent years, particularly since 1989, the term governance has gained importance, particularly due to the World Bank’s redefinition of it as a new strategy for development, especially in developing nations. It described the utilization of political power to oversee national affairs. 

Meaning of Governance

The idea of governance can be better understood through various definitions presented by different organizations.

World Bank’s Definition of Governance

The world bank defines governance as “The manner in which power is exercised in the management of a country’s economic and social resources by government. Governance, in a broader sense, comprises three key dimensions: 

1. the nature of a political regime (e.g., parliamentary or presidential, military or civilian, authoritarian or democratic);
2. the ways in which authority is exercised in managing a country’s social and economic assets; and 
3. the capacity of governments to design, formulate, and implement policies, and, in general, to discharge governmental functions. The terms typically refer to the conditions within a “nation as a whole.”

Organisation for Economic Co-operation and Development Characterization of Governance

The OECD characterizes governance as “the application of political authority and the execution of control in a society concerning the management of its resources for social and economic advancement.” The OECD identifies key elements of governance as follows: 

• Legitimacy of government; 
• Accountability of political and official elements of government; 
• the ability of governments to formulate policies and provide services; 
• and the upholding of human rights and the rule of law.

United Nations Development Programme (UNDP) Definition of Governance

The UNDP describes governance as “The exercise of economic, political, and administrative authority to manage a nation’s affairs at all levels. It encompasses the intricate mechanisms, processes, and institutions through which citizens and groups express their interests, exercise their legal rights and duties, and resolve their conflicts.”

Planning Commission of India’s Perspective on Governance and Development

According to the Planning Commission of India, governance pertains to the administration of all processes that, in any society, set the environment that allows individuals to enhance their capabilities and, simultaneously, offers opportunities to realize their potential and expand the range of available choices. 

Entities and Collective Efforts in Governance

• Governance as a multi-actor paradigm: There are various entities involved in the process of governance. Apart from the formal government and its institutions, the other actors are the Non-Government Organisations (NGOs), Civil Society, Research institutes, Financial institutions, Lobbyists, Multinational Corporations, International institutions, Media, etc. All these institutions play a vital role in decision making and also influence the process of decision making.
• Governance as a collective effort: Governance involves opening up the arena of ‘government’ to multiple actors by mobilizing the collective efforts of government, private sector and the community. For example, the Pulse Polio Programme, which aims to vaccinate every child against polio. Although it is a governmental initiative, it is carried out at all levels by both public institutions and private clinics and hospitals in urban and rural settings, often with active involvement from citizens. The aim of governance is to secure the maximum good of the maximum number of people through not just government efforts, but also with the efforts of private organisations and the community.