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B. THE CONCEPTUAL FRAMEWORK
1. The Concepts of Democracy, Good Governance, and the Rule of Law
By Kateryna Pishchikova (Scuola Superiore Sant’Anna)
It is important to highlight that while being distinct policy terms, in their substance and content the concepts
of democracy, good governance, and the rule of law show considerable overlap. Moreover, at times one may
subsume others as sub-categories, as for example, the rule of law that can be seen as one of the specific
objectives of good governance. The specific clustering of these issues also depends on individual donor
preferences. For example, the USAID makes no distinction between democracy and good governance and
talks about “democratic governance”, the World Bank uses predominantly the term “good governance”,
whereas the EU institutions have a more mixed approach.
In general, the terms governance and good governance are increasingly being used in development
literature and practice. Bad governance is being regarded as one of the root causes of all evil within our
societies. Major donors and international financial institutions are increasingly basing their aid and loans on
the condition that reforms that ensure "good governance" are undertaken (UN ESCAP, 2009). Overall, there
is a general consensus among all donors that there are good pragmatic reasons for promoting these
approaches because the EU and other major donors want to know that funding is being used effectively.
This rationale is well captured in the following passage from an address by the former World Bank
President. Good governance is
what helps governments function effectively and achieve economic progress. […] It is
essentially the combination of transparent and accountable institutions, strong skills and
competence, and a fundamental willingness to do the right thing. Those are the things that
enable a government to deliver services to its people efficiently. An independent judiciary, a
free press, and a vibrant civil society are important components of good governance. They
balance the power of governments, and they hold them accountable for delivering better
services, creating jobs, and improving living standards (Wolfowitz, 2006).
Historically, democracy promotion appeared on most donors’ agendas after the end of Cold War that
marked a rise of new ideology and the emergence of new practices in global politics. The recent focus on
good governance and the rule of law in post-conflict reconstruction as well as in development aid is the next
step in this (by now global) process (please see Section 2 of Chapter C for a more detailed overview). While
there is a considerable overlap between programs that deal with democracy and those that promote good
governance, in policy terms the two concepts operate in a different manner. Roughly, the distinction between
the two can be made in the following way.
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