In several countries, to accomplish this, systematic planning has been adopted by the governments and enterprises have been set up to carry on commercial activities to earn profits. Private markets are being considered efficient as they promote competition and provide effective and prompt service to the people. Another important development that we can witness is the onslaught of the giobalisation phenomenon.
The present day economies are undergoing a significant transformation and the boundaries across nations are disappearing leading to excessive inter-connectedness. Developments, such as the collapse of Soviet Union, increasing dominance of the USA at various fronts including political, economic, and military and so on, developments in telecommunications and information technology, removal of restrictions on trade, investment, and entry of multinational corporations, are exerting pressure on the governmental functioning.
The role of the state in core areas is also being questioned due to the failure of government in tackling some priority areas. Hence, this has resulted in government, which has all along been a major provider of services, withdraw from certain areas enabling the private sector, as well as people’s initiatives in the form of civil society organisations expand their areas of operation.
ADVERTISEMENTS:
The practice of public administration, which has been hitherto dominated by the government, is giving way to a networking between government, market and collective groups of people commonly referred to as ‘civil society.’ There has been a gradual shift from a narrow view of government to a broader notion of governance.
The traditional approach of governance has relied excessively on bureaucracy with emphasis on hierarchy and adherence to rules and regulations; and with citizens as mere passive acceptors or recipients of goods and services. Governance is not governor-centric now, with power and authority moving from governors to the governed.
The task of governance has widened with many other actors coming into the field, blurring of boundaries between public and private sectors with lesser control exercised by government. The present concept of governance looks at government interacting with various segments of society and economy to arrive at mutually acceptable decisions.