New Governance
Application to International Trade
Evaluation of New Governance
Application of New Governance to International Trade for Free Market
In today's robust world, scholars as well as the think tanks and tools of democracy and beaurcracy have been using a term "governance" or good governance rather frequently. Where governance in needed in every aspect of corporate management and public administration, it is important to understand how the very concept of governance has evolved over time. Old theory of governance has been replaced by its contemporary version which can be seen as a pre-requisite for the free trade regime especially for exporters. Where the new governance theory has a considerable impact on international trade; its effectiveness in public and private sector cannot be ignored.
Background of New Governance
Over past two decades, public and private organizations have followed a path of evolution. 'Rayner's Raiders' and the '3Es' of economy, efficiency and effectiveness shaped the current model of public administration and entrepreneurship (Rhodes, 1996). Generally speaking, governance defines a change in the role, general structure and flow of operations of a governing body which leads to the solution of social problems. Governance tends to have varied definitions and is ambiguous itself. However, generally speaking, as far as general administration is concerned, "it may be unclear whether the reference is to organizational structures, administrative processes, managerial judgment, systems of incentives and rules, administrative philosophies, or combinations of these elements" (Heinrich and Lynn, 2000, p.1). On the other hand, it can also be referred as reform in general administration. Where old and new theories of governance share a common objective: public administration; the methods and tools suggested by both the models helps in establishing a difference and distinction between both theories.
In order to gain understanding of the concept of governance, it is important have an understanding of its various definitions.
As per Lynn, Heinrich and Hill "regimes, laws, rules, judicial decisions, and administrative practices that constrain, prescribe, and enable the provision of publicly supported goals and services," holds strong interest for public administration scholars (2001, p.7). Another version of governance was given by Cleveland, "The organizations that get things done will no longer be hierarchical pyramids with most of the real control at the top. They will be systems -- interlaced webs of tension in which control is loose, power diffused, and centers of decision plural. "Decision-making" will become an increasingly intricate process of multilateral brokerage both inside and outside the organization which thinks it has the responsibility for making, or at least announcing, the decision. Because organizations will be horizontal, the way they are governed is likely to be more collegial, consensual, and consultative. The bigger the problems to be tackled, the more real power is diffused and the larger the number of persons who can exercise it -- if they work at it" (1972, p. 13).
The concept of governance has emerged from the concept of traditional government. It emphasizes on having Public Executives who can exercise duties assigned to them with the senses of welfare, equity, achievement and participation (Cleveland, 1972). The new concept of governance instead of government ensures that the Public executives or representatives are given their due freedom and they exercise this power keeping the basic principles of ethics and morality in consideration. This rather comprehensive concept of the freedom given to public administrators ensures that in a complex social and organizational structure, individuals provided with free space to perform their duties, perform on rational basis. This freedom helps the public executives to develop administrative skills and helps them develop leadership traits over time by exploiting their freedom.
Evaluation of New Governance
Over time, the distinctions between the term government and governance have become rather clear over time. Where the term government deals with exercising controls over processes, governance entails the various ways which is used by entities to manage their common affairs. These entities can be individuals or organizations of public and private nature. Where government promotes strict control which would lead to no conflicts or may suppress conflicts, the new concept of governance accommodates the diversified interest through cooperative action. Where the term 'government' is strictly related to organizations with concrete hierarchy, governance deals with formal organizations which have a sole objective of ensuring compliance, and also individuals who do the same yet in informal manner.
Where the concept of governance possesses an extensive history, major research has taken place in the last two decades in this regard. In order to evaluate the current model and its...
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