Need for good governance

All societies, cultures and nations need to have in place some standards of behaviour that is generally accepted by all the people across the various divides.

Good governance standards and best accepted practices are an imperative need today to remain relevant to changing political and economic realities, enacted by global powers, inclusive of the domineering role played by the international corporate sector. The influence of global institutions over the local facade of conducting business is today more pronounced than ever before, making the need for having commonality of governance standards a perquisite for international trade and investment activities.

There are many countries and companies that have in place a well-documented book of governance, but what is enshrined is not put into practice. Just as we play with the Constitution of the country, that is, use when needed and ignore its basic requirements, if there is no demand. Abuses of governance structures is more rampant in the under and developing world. In the West, too, many regulators turn a blind eye to violations, so long as the interest of the country is being served.

People’s Republic of China in a strategically designed move is reaching out to friendly countries offering them insights into their own, peculiar, yet sound principles of governance, both , those that are meant for government and those meant for the private corporate sector.

President Xi Jinping’s speeches and pronouncements have been collected since the year 2012 in a five-volume encyclopedia titled, “The Governance of China”. The publisher states therein, “these volumes have played an important role in explaining the Party’s innovative theories in inspiring people to work harder, and in presenting China to the world “.

What is governance? It is a set of principles, rules and regulations to induce best practices, that are internationally recognised, and to monitor its implementation. Global governance involves development of a framework that must encompass institutions that must coordinate the attitude and behaviour of transnational organisations, with the intent to promote and facilitate cooperation, for the alleviation of common problems/ issues ,like climate change, use of water resources, etc. It is essentially a mix of the contours of local and internationally accepted standards.

Governance standards are both a science and an art. Science because it allows for drawing up standards that are in conformity with the entire legal edifice of the judicial system; and it is an art to have the necessary respect towards its implementation and enforcement. The most difficult thing about law-making is its enforcement.

Voltaire had said, “Governments need both shepherds and butchers”. The centrality of the idea is the catchment of the theory, where promotion of good practices is encouraged and breaches are ruthlessly punished. This principle is in practice and is strictly followed by socialist China.

It is a fact that the free Western world’s economic formula has utterly and miserably failed. Capitalism as an economic model hasn’t proven to provide economic emancipation to people. The Chinese socialist economic model with its own character and practices has proven to be a resounding success. China has pulled out a total of over 800 million people from the eclipse of the encircling poverty line, and this is a massive achievement. The trickle-down effect is now visible. The economic progress of the country has brought economic relief to millions and millions of people, especially in the coastal regions. As the Chinese friends say, “Marxism with Chinese characteristics “.

Not all functions of the government, like the human body, are dignified in nature”(line borrowed from Anatole France’s Les Opinions). Politics and governance cannot remain in isolation towards each other or be exclusive to each other; these have to be unified to able to adapt a stance of achieving political and economic stability, through good business practices. Any conflict between political good governance and the legal framework structure must be addressed for removal.

Faith in governance and law is achieved through the quality of enforcement. If legal orders remain un-implementable, it is a wishful thinking to have in place a substance of good and acceptable governance standards. Having in place a good governance framework is essential but in experience the respect for law is a waning thing in many jurisdictions.

Governance with local nuances and characteristics is the need. We as a nation continue to be a bad example mix of capitalism and socialist economic model. We swing to the extremes of state ownership to private ownership. A mess of our own creation; are these white elephants that suffer seriously from ailment of bad governance?

Locally, even for the simplest of injunctions, we are faced with a dilemma. There is confusion galore on the basic fundamental of “conflict of interest”. You cannot be a policymaker and also be conducting private business. This is governance’s blasphemy, a major and serious flaw, a major fault line in our ethical standards and values.

Basic business ethics of full disclosure of say related party’s transactions are belligerently ignored. These are taken up boldly, both by the government and the private sector; the need for these to be conducted at arm’s length is totally ignored. Self-interest cannot be allowed to dominate over national interest. Individuals must compromise and sacrifice, and not the State.

Effectiveness in governance and in inculcating internationally-accepted practices requires self-governance. If we fail individually to pass the litmus test of honesty and integrity, then no matter how much we may legislate, nothing will change. The power of enforcement must be used ruthlessly. Only then can we expect to see implementation of governance standards.

Democratic conventions make it imperative for our parliamentarians to show first-hand a complete adherence to the code of good governance.

Tail piece: On the subject of benevolent despotism, Fredrick The Great had this to say: “My people and I have come to an agreement which satisfies us both. They are to say what they please, and I can do what I please”. Sounds very close to home.

Copyright Business Recorder, 2026