The “Good Governance” Concept Revisited

• DOI: 10.1177/0002716205282847
• Published date: 01 January 2006
• Date: 01 January 2006
• Subject Matter: Articles

10.1177/0002716205282847 603JanuaryTHE ANNALS OF THE AMERICAN ACADEMYTHE “GOOD GOVERNANCE” CONCEPT REVISITED

The term “good governance” is unsettled in its meaning.

Through the 1980s and 1990s,donor countries and insti-

tutions trended to make aid conditional upon reforms in

the recipient country, which was found largely ineffec-

tive in encouraging real policy changes. More recently,

donors, such as the International Monetary Fund, the

World Bank, and the United States, are increasingly

insisting upon performance and good governance as a

prerequisite for aid, a practice called “selectivity.”This is

a means of requiring a recipient state to demonstrate the

seriousness of its commitment to economic and social

reforms. There are no objective standards for determin-

ing good governance: some aspects include political sta-

bility,the rule of law, control of corruption, and account-

ability. High levels of poverty and weak governance are

linked, making selectivity difficult to implement. For

reforms to succeed, domestic support, ownership, and

commitment are crucial, as are the recipient’s cultural

context and history.

Keywords: good governance; aid; conditionality; rule

of law; accountability; cultural context;

International Monetary Fund; WorldBank

“Good governance,” a term that came into

vogue in the 1990s with the World Bank

leading the charge, has assumed the status of a

mantra for donor agencies as well as donor

countries for conditioning aid upon the perfor-

mance of the recipient government. This is

ANNALS, AAPSS, 603, January 2006 269

Ved P. Nanda is the Thompson G. Marsh Professor of

Law and director of the International Legal Studies Pro-

gram at the University of Denver Sturm College of Law.

He has served as the U.S. delegate to the World Federa-

tion of the United Nations Associations, Geneva, and as

vice chair of its Executive Council. He is a member of the

advisory council of the United States Institute of Human

Rights and serves on the Board of Directorsof the United

Nations Association of the United States of America. He

also serves as an elected member of the American Law

Institute and as a council member-at-large for the Amer-

ican Bar Association Section of International Law and

Practice. Widely published in law journals and national

magazines, he has authored or coauthored more than

twenty books and more than 150 chapters and majorlaw

review articles.

DOI: 10.1177/0002716205282847

The “Good

Governance”

Concept

Revisited

By

VED P. NANDA