Governance and public institutions

Governance is a broad concept covering all aspects of how institutions and organisations are governed for the common good of their stakeholders.  It is also how leaders exercise power or authority for the well-being of their country’s citizens. A great deal about good governance is, therefore, about the proper management, accountability, and effective utilisation of resources. A variety of entities can govern and they are driven by many different motivations.

Private corporations and non-governmental organisations are usually governed by a small board of directors appointed by its shareholders and pursue more specific aims.  In the case of a government, the public, by the citizen’s vote, decide who should govern most aspects of public good and service delivery. The government is therefore the body responsible towards formulating and applying public policies; preserving and protecting public institutions, property and assets, including its finances; developing regulatory frameworks and promoting the rule of law for the well-being of their citizens. 

While there is no one-size-fits-all notion of best practice about the type of structure of governments, there are two main forms of governments or administrations, i.e., the Presidential and the Parliamentary form, where the central role for all forms of governments is to play a leading function in public policy development, implementation, monitoring and evaluation. In addition, the functions of the executive or the government extend to proposal of laws for parliamentary approval, administration of such laws and making decisions on how the country’s public finances and public assets are efficiently managed and protected.  

While the head of the Government is responsible for the allocation of functions between Ministers, and for the overall organisation of the government, the Cabinet, through legislation or decrees, is responsible for Government policies and the day-to-day administration of the affairs of the State in a cost-effective manner. The Government is responsible collectively to Parliament. The responsibilities of the respective ministers are many and varied, and in most countries are gazetted in separate Gazette Notifications under the Constitution.  All government departments usually fall under the purview of an individual Ministry with a Minister in charge. 

Focusing on the broadest level of the government administration, while there are differences depending on country specific characteristics, most governments broadly follow a common standard in the use of Departments or Ministries (core public sector institutions) for the conduct of national policies.  They do not often change their functions or goals, though they may strengthen them from time to time, depending on the relevance.  Whatever the design is, they must be well suited to fulfil their roles and responsibilities and must actively adapt to many challenges, including technological improvements to maintain competitive output in ensuring public service delivery.

In this regard, a strong and credible organization structure is a common denominator among the most successful models of governance. The design of the organisational structure determines how different aspects of the organisation will interact and it is the cornerstone for successful functioning of these organisations. Similarly, building adequate organisational or institutional capacity is critical for effective governance and proper functioning of these organisations, underpinning the need for long-term human resource planning.  

As noted earlier, government ministries are national institutions that are usually at the highest level in the hierarchy of the government structure.  The quality of public goods and services they can deliver ultimately hinges on the policy framework and institutional capacity of the government. A sound policy framework both at the overall government level and at the Ministry level is essential for sustainable use of limited resources. At the heart of public policy is the technical ability and skills to develop and implement these policies and human resources are, therefore, the most valuable assets of any organisation.

Many studies have shown that the quality of output in any organisation is directly correlated to investment in human resources.  Many years of specialised training (in strategic planning and other areas) and sufficient work experience are both vital to maintain institutional memory and promote institutional strength and credibility. Investment in capacity building of government institutions has been constantly rising and has been supported by both the government’s own resources and by multilateral, both in the form of grants and loans, helping build long-term systems for efficient employment and career development in the civil service.

Despite these considerations, and by undermining the long-term issues, subsequent governments in Maldives have conveniently shifted around or at times abolished parts or sections of ministries, often motivated by political consideration.  On many occasions, these long-term considerations have been sacrificed to a shorter-term emphasis on policy or government change.  These parts or sections are mainly in the form of functions, and sometimes performed by divisions within the Ministry. These changes have weakened the performance of public institutions and have invariably led to strongly destabilising and negative effects on policy development, implementation and frequently on public service delivery. 

The democratic process in decision making increasingly requires credible support systems for decision-making that are well functioning. While reforming public institutions is a complex and difficult task, both technically and politically, studies have shown that strong organisational structures (developed over many years) and governed by clear rules and legislations improve the overall performance, public confidence, and integrity of these institutions. They minimise corrupt practices, promote public and investor confidence and public sector integrity at all levels and support economic growth. 

This can be achieved only when country’s leaders are committed to the long-term needs of the nation rather than how to manage the country during a fixed term of office. Governments must carefully evaluate not only where to spend their resources but also how to spend them more effectively and in an accountable manner. Frequently changing functions and, therefore, poorly functioning public sector institutions is a major constraint to growth and long-term development.