Governance and Political Economy Analysis Framework

Objective: To understand different people’s and group’s conceptions of what constitutes good governance, and how this compares with the current context, as well as how governance and the specific measures or mechanisms of ‘good governance’ are experienced by different stakeholders, challenging assumptions about what produces good governance.

What is Governance?

In its broadest sense, governance is the exercise of power in the management of public affairs. Governance is the sum of the many ways individuals and institutions, public and private, manage their common affairs. Governance is a dynamic, political process through which decisions are made, conflicts are resolved, diverse interests are negotiated, and collective action is undertaken. The process can draw its authority from formal written codes that have the power to enforce compliance, as well as from informal processes based on unwritten but broadly accepted cultural norms, or from the charismatic leadership of an individual.

Core to the substance of governance is the relationship between state and citizen. Governance is not limited, however, to government. Governance characterizes the rules and institutions that manage public affairs in matters of the state, but also private business, civil-society, and the relations among them. Governance has become a prominent concern in development programs. This is due to a growing recognition that politics and political systems shape the direction and opportunities for development – poverty and insecurity are not simply a matter of inadequate resources or natural disasters but can result from unequal distributions of power, abuses of power and the systematic violation of people’s rights. Core to CARE’ understanding of poverty is the fact that one of its underlying causes is failing, weak or bad governance.

Why Analyze Governance?

A governance analytical framework should help us understand: How does governance actually work in this context? Asking the question of how governance actually works is deliberate because it draws on practical experiences and perspectives on governance rather than theoretical and normative debates on what constitutes bad or good governance. Governance analysis helps us to understand how institutions, incentives and ideas shape political action and development outcomes in the countries where we work. By grounding itself in the given context, CARE offices have the opportunity to explore how power works, who exercises it and who is excluded from decision-making.

Governance analysis can also help us understand different people’s and groups' conceptions of what constitute good governance, and how this compares with the current context. It will help us broaden our understanding of how governance and the specific measures or mechanisms of ‘good governance’ are experienced by different stakeholders, challenging assumptions about what produces good governance. Such exploration will help us develop programs (with their theories of change and strategies) based on the realities and aspirations of our impact groups.

Related Tools

View more tools related to:

Macro-level Analysis

See also, the brief on Putting Gender in Political Economy Analysis , written by Rebecca Haines and Tam O’Neil, CARE International UK.

Global Indicators: Governance

Areas of Inquiry

There are many ways to structure a governance analysis framework. This guide serves to provide a spectrum of questions organized around three key areas of inquiry:

Foundational factors,
Rules of the game and
Citizen rights, voice and mobilization

and key questions within those.

The structure and questions for analysis are a guide; thus, they can be adapted, revised, and selected according to the specific needs of the country office. The questions can also be adapted to macro, meso and micro level.

Many of these points also explore elements of social exclusion in relation to government policies, institutions and political space. For more discussion on the effects of exclusion from political participation and voice on social and economic development, see Demographics and Development Analysis.

Foundational factors

Rules of the game

Citizen’s rights, voice and mobilization

State formation

What have been the key moments of the evolution of state structures through independence?
What has been the role of women in this process?
How has/is the state’s history been/being shaped by political and economic power (internal or external)?
How has it shaped access to political and economic power for different groups (including women)?

State integrity and authority

How far do the state administrative, political and security functions extend to the entire country?
Is there a serious challenge to public authority (e.g. from armed groups, social movements, local power holders)?

State legitimacy

From where is state legitimacy derived?
Is there a sense of political community?
To what extent do the inhabitants of a country believe that they share an identity, interests and mutual obligations as ‘citizens’ of that state?

State independence

What are the main social, economic and political structures influencing politics and governance (internal and external)?
How much autonomy does the state have in shaping its own policies?
Is it particularly vulnerable to external intervention, regional instability, religious or other influences?

State structures

Map out the structure of the state, including its organizations and formal institutions (government, parliament, judiciary), indicating:
- How they relate to each other
- Mechanisms of representation/appointment
- Structures and mechanisms for check and balances
What structures are in place to ensure women’s agendas are taken into consideration (ministries, department, quota systems etc)?

State capacity and effectiveness

How is central and local government organized and resourced?
Once made, are decisions implemented?
Where are the key bottlenecks in the system?

Revenue mobilization and distribution

What is the revenue base of the country?
Who’s responsible for collection?
How is it distributed?
Is it equally distributed amongst men and women, different ethnic and religious groups, different regions etc?
Who is bringing key resources?
What’s the role of big business?
What is the role of aid?

Political system

How is the political space organized?
How would you characterize the nature of the political system and the state (e.g. democratizing, competitive, patrimonial, clientelistic etc.)? How ‘developmental’ is that system?
What is the nature and extent of political debate and competition?
Are there opposition political parties?
What is the ruling party legitimacy?
Are parties working together? How are parties organized (along socio-economic programs and agendas or ethnic, tribal, religious, regional lines)?
What are the interests and incentives facing different groups in society (and particularly political elites)?
How these generate particular policy outcomes that may encourage or hinder development?
What were the key moments in past history that have influenced those systems?
How are poor and marginalized, including women, represented?

Decision-making processes and actors

Where are decisions about critical resources and development priorities made?
Who makes those decisions?
What are their roles, responsibilities and incentives?
Whose interests are served, and whose are excluded?
What factors enable/prevent the poor and marginalized, including women, to influence decision-making?

Regulatory framework

What are the key formal (e.g. constitutional set-up, electoral rules, major policies and laws) and informal institutions (e.g. social norms and expectation, nature and strength of patronage networks) that define how and which development priorities are set and critical resources allocated?
How do they affect gender norms and relationships?

Informal institutions

Are dominant social norms, values and ideas, including religion, shaping political behavior and public policy? How?
Do they favor or create disadvantages to the poor and marginalized, including women?
Are informal institutions complementary, accommodating, substituting or subverting formal institutions?

Spaces to negotiate

Are there state and political mechanisms/forums/spaces to ensure citizens’ voices are heard and to respond to their demands?
Who participates in, and who is excluded from, such spaces?
Does poor and marginalized, including women, participate meaningfully in such spaces?

Corruption

To what extent is influence of business and other sectional interests over public policy subject to formal/official rules and procedures?
What are the different practical norms, which are generally defined as corruption, that affect/guide public action and behavior?
What is the role of such practices?
What positive and negative impact do these practices have in the lives of the poor and marginalized?

Transparency and accountability

Are priorities of the national and regional governments’ public policies clearly communicated to the citizens?
Does government provide the citizens with accessible and understandable information?
How effective are control and oversight mechanisms in holding the government accountable for its use of public funds?

Citizenship and rights

To what extent are people actually citizens?
What are the constitutional rights and obligations of citizens?
Does it apply to all groups in society (and women in particular)?
How do people access/claim these rights and entitlements?
What are the bottlenecks or limiting factors of people achieving these rights?

Political space

To what extent is there freedom of movement, expression, association and assembly?
How free are voluntary associations, activist organizations and the media to operate under the law and independently from government?
What opportunities – and spaces – exist for poorer groups, women and other people to exercise their citizenship and demand their rights?

Mobilization strategies

What are the means, if any, for the poor to influence decision that affect their lives?
What strategies the poor and marginalized use/ have used to act collectively to solve their problems/pursue their interests?
What are the social and political practices of the poor to access and contest political processes (and women in particular)?

Civil society

What civil society organizations/ networks/coalition exist?
How powerful are they (including organizations and coalitions representing the poor and women)?
What are their agendas/interests and how de they link with other actors (e.g. private sector and political parties)?
How interlinked/divided are they?
What are their legitimacy and constituency?
What are their modes of engagement with government (collaboration, neutrality, adversarial)?

Resources

B Suyama and B Bode, with M Drinkwater, E Nyingi, S O'Meally and B Thapa (2010). Governance and Political Economy Analysis. From: Situational Analysis for Program Design: methods guidance for macro, meso and micro levels. CARE: East and Central Africa Regional Management Unit.