Governance

Governance is the overall complex system or framework of processes, functions, structures, rules, laws and norms borne out of the relationships, interactions, power dynamics and communication within an organized group of individuals which not only sets the boundaries of acceptable conduct and practices of different actors of the group and controls their decision-making processes through the creation and enforcement of rules and guidelines, but also manages, allocates and mobilizes relevant resources and capacities of different members and sets the overall direction of the group in order to effectively address its specific collective needs, problems and challenges.^[1][2][3] The concept of governance can be applied to social, political or economic entities (groups of individuals engaged in some purposeful activity) such as a state and its government (public administration), a governed territory, a society, a community, a social group (like a tribe or a family), a formal or informal organization, a corporation, a non-governmental organization, a non-profit organization, a project team, a market, a network or even the global stage. Governance can also pertain to a specific sector of activities such as land, environment, health, internet, security, etc. The degree of formality in governance depends on the internal rules of a given entity and its external interactions with similar entities. As such, governance may take many forms, driven by many different motivations and with many different results.

Whereas smaller groups may rely on informal leadership structures, effective governance of a larger group typically relies on a well-functioning governing body, which is a specific group of people entrusted with the authority and responsibilities to make decisions about the rules, enforcing them and overseeing the smooth operation of the group within the broader framework of governance. The most formal type of a governing body is a government, which has the responsibility and authority to make binding decisions for a specific geopolitical system (like a country) through established rules and guidelines. A government may operate as a democracy where citizens vote on who should govern towards the goal of public good. Beyond governments, other entities can also have governing bodies. These can be legal entities or organizations recognized by a government, such as corporations, companies or non-profit organizations governed by small boards of directors pursuing more specific aims. They can also be socio-political groups including hierarchical political structures, tribes, religious subgroups, or even families. In the case of a state, governance expresses a growing awareness of the ways in which diffuse forms of power and authority can secure order even in the absence of state activity. A variety of external actors without decision-making power can influence this system of state governance. These include lobbies, think tanks, political parties, non-government organizations, community and media. It is also shaped by external factors such as globalization, social movements or technological progress.

From a normative perspective, good, effective and fair governance is a well-organized system that fairly represents stakeholders' interests and needs. It guides the formulation, implementation, and evaluation of the group's objectives, policies, and programs, ensuring smooth operation in various contexts. It fosters trust by promoting transparency, responsibility, and accountability, and employs mechanisms to resolve disputes and conflicts for greater harmony. It adapts to changing circumstances, keeping the group responsive and resilient. By delivering on its promises and creating positive outcomes, it fosters legitimacy and acceptance of the governing body, leading to rule compliance, shared responsibility, active cooperation, and ultimately, greater stability and long-term sustainability.

Most institutions of higher education offer governance as an area of study, such as the Balsillie School of International Affairs, Munk School of Global Affairs, Sciences Po Paris, Graduate Institute Geneva, Hertie School, and London School of Economics, among others. Many social scientists prefer to discuss the process of governing by using the term governance because it covers the whole range of institutions and relationships involved in it.^[4]