Sovereignty, Governance, and Government Performance

EROPA

13 – 17 November 2006

Brunei Darussalam

Ebrahim Golshan, Ph.D. Institute for Management and Planning Studies

E.golshan@imps.ac.ir 2006 – 10 - 21

Sovereignty, Governance, and Government Performance Ebrahim Golshan, Ph.D. Institute for Management and Planning Studies. e.golshan@imps.ac.ir Key words: sovereignty, governance, government functions& performances Article type: theoretical Abstract

"Nothing is more applicable than a good theory" Government performance pathology and enhancement, depends on how government functions are determined. These functions, in turn, are being ascertained by what characterizes the government, which is merely and theoretically a tool for implementing the state's will. This process can be depicted out as a 'funnel of causality' model, in which everyone nests in the former one. If this chain of links and dependencies are right, any fair evaluation and appraisal of government performance will primarily be depended upon state's identity, its vision, and mission, which are being levied to the state and government accordingly, by society through constitution. It goes without saying that, state, by definition, is nothing more than mechanisms and context in which values – goods, services, and opportunities- are created and distributed among people. So the approach to government performance automatically relates to how we approach the state and its healthcare and medicates, as we do for any other phenomenon. Here, the most effective and relevant factor is governance. Governance theory explains how well or bad a government is being administered. This paper seeks to clarify that any judgement about government performance, no matter how simple or complex should be discussed from the sovereignty point of view. Sovereignty theory, with its three dimensions – unity, integrity, supremacy – characterizes the state identity, while governance theory describes ' the rules of game'. The practical massage, here, is that, criticizing government performance fairly, necessitates deconstructing sovereignty theory, in the shadow of new global arena, especially when we are concerned with developing countries. Only after doing this, we may accommodate the right combination of good governance elements in the skeleton of relations between government and citizens of the former pointed countries, as a decisive criterion for determining government functions and performances. In order to have these theoretical arguments in a more transparent and practical form, the Islamic Republic of Iran will be discussed as a case. Through the case, I'll argue that any comments on government functions and performances will be linked to concrete analysis of three distinctive levels, which are sovereignty, government, and governance.

What J. Bodin had clearly found was first, the state, as an individual will or as a many peoples' will, is a natural apparatus, second, there is a natural and logical system in the world which is supreme to

humans' will, that man must adapt his will to it." William Thomas Jones

Introduction Today, achievement in political knowledge to tackle social and political problems, formation of demanding different institutions and organizations on national and international level, and explosion of information have urged governments and their rules to be more responsive, transparent, predictable, accountable, and fair toward their citizens and other countries on the global arena. Possibilities, pressures, and expectations, alongside historical shortages and deficiencies challenge governments to trade off between diverse goals and their respective policies. In this harsh situation determining the proper functions and size of government, and thereby evaluating, apprising, and recommending reforms, is a difficult task, and calls for a subtle analysis of its relations, and missions. Looking at a case such as the Islamic Republic of Iran, one with refer to contents of its constitution, on one hand, and the current level of social and public institutions and organizations, on the other hand, can conclude that applying a theory such as good governance would be so challenging task. We will discuss some of them here, so much as to show how good governance could apply there, what challenges may occur, and finally what would be expected in future. To have a more clear insight on government and its prose and cons, I would like at first to draw attentions to some theoretical aspects of the concepts, government, and the related concept, which are state and governance; then to point to government essential growth and development; and, at last, the role of good governance as a base for government well being. In the second part, I point to some aspects of Iranian context relevant to governance. Concluding part is devoted to possible aspects of good governance in Iran. State, government, governance The three concepts of state, government, and governance, depict three aspects of peoples' social life. These should not be mutually contradictory, rather should be compatible; a feature that in a proper combination may bring about prosperity. For example, justice and fairness as prerequisites to prosperity have their special explanations in state, government, and governance. Here I would like to shed light on these concepts from a different angle of view, which relates to their impacts on government functions. State in its Latin roots, refers to a established and stable situation which first was used to describe individual status, but later was applied to institutions and political power,

and now in its modern usage (from 16 century thereafter), in combination with people, as nation- state means "a group of people who have authoritatively appropriated a defined territory to themselves and have made a government which is not sub-ordinate to any external power"i. State has also been defined by Dyson as: "A framework of values in which public life forms, and applies public power to actualize those values"ii. State is a natural identity. It exists because people exist. It is not visible, until its rules or covenants are broken by the act of people or other states. The most important character of a state which has been formulated and necessitated by Machiavelli, Hobbes, and especially Bodin, is its sovereignty. Sovereignty depicts three folded of unity and integrity, supremacy of power, and ultimacy in law making of the state. State practices, in Bodin words, should be based on a natural and logical system which has supremacy over humans' will. In relation to state, two points are worth to be mentioned. First, even when sovereignty has been defined as a Divine Right and absolutely belongs to God, as in the Islamic Republic of Iran constitution (Article 56), though its exercise is upon people in the manner specified in the constitution articles. Second, some, opportunistically misuse sovereignty supremacy and call themselves "the state", such as Louis XIV. Government. Giving a definition for government is fairly more difficult than for state, because government in different societies and different periods of time, usually are different. However, in comparison to state which is virtual and opaque, government is rather feasible. As being defined, "the term 'government' is a general one used to describe both the body that has power in a given unit- whether, regional or local- and the whole constitutional system"iii. Government embodies state. It governs. It is objective, and flexible. Its reason de être is exclusively to exert state's will. This sometimes causes government and state being substituted each other. Historical observations on government development, which mostly have been done under the title of state or bureaucracy development, shows bellow tendencies: First, bureaucratization along with demystification and rationalization are general attempts in interpreting the process of history. As Jacoby argues "bureaucratic systems developed in all instances where large groups of men existed in large areas creating the need for a central agency to deal with problems". Modern all-encompassing bureaucratic organizations are the culmination of a long process of centralization and accumulation of power… Jacoby amplifies Weber's "overtowering" power of fully developed bureaucracy and states the basic problem of our times is the concept of bureaucracy and what entails by way of regulation, manipulation, and control. Mankind simultaneously demands, depends on, and deplores the apparatus of bureaucracy. Our age is characterized by forceful transformation of rational administration into the irrational exercise of power, the lack of clearly defined limits to coercion, and the increasing competence of a state which arrogates independence to itself. ... Bureaucracy is necessary and indeed inevitable on the one hand, but

dangerous and potentially usurpative on the other handiv. These are applicable to many current governments' treatments with their citizens. Second, there should be a relationship between civilization and administration, as Nash argues. The term "civilization" refers to the "achievement levels" of a society and "administration" refers to its "organizational structures and techniques." His thesis is that "civilizations have flourished and maintained themselves only as they were able to affect a satisfactory balance between cultural achievement and the development of an organizational framework for society. There should be a balance between cultural progress and administration rationality… Undue emphasis on one may undermine the very existence of a society. He exemplifies Athenians, in which undue emphasis on intellectual accomplishments and Sparta, in which concentration on administration rationality, and in both at the expense of the other, vanished both of themv. USSR is a salient case in which as some argues her weakness in managing atomic energy with over centralized and bureaucratic structure could not survive any longer. Third, the place of bureaucracy in political process, which follows its growing in differentiation and professionalization. As Eisenstadt argues, "only through the development of bureaucratic institutions could the necessary degree of societal control and regulation be achieved following the growth of differentiation and increase of "free-floating" resources. Also, bureaucratic institutionalization helped provide stabilization of relations among groups in society. The result was a considerable degree of dependency on the bureaucratic apparatus for the survival of these political systems. At the same time, the bureaucracy was in a position to achieve substantial autonomy because of its crucial role in perpetuation of the regime, and this presented possibilities for the bureaucracy to stray from the desired service orientation to the ruler and other major social groups. The resulting tendency was often for the bureaucracy to become self-oriented and displace service goal with goals of bureaucratic aggrandizement, and to escape from effective political control." He "reaches the conclusion that in these polities can be found partial and ambivalent manifestations of two tendencies which continue to offer alternatives for modern political systems either toward the growth of 'latent despotic and totalitarian power' or toward realization of 'the potentialities for fuller free participation of different social groups in the political process.'"vi I would like to conclude from the above observations that: É) government apparatus grows, because of rationality necessitates. With its growth government appropriate to itself resources more and more, and most likely spend them to serve people, less and less; and ÉÉ ) Size and function of governments should be compatible with the requirements of scientific, technological and cultural developments. So it should be more flexible, participative, accountable, and responsive. Governance, is certainly the most abstract and controversial aspect of the social life of a nation, due to two completely different aspects which governance focuses on. On the one extreme, governance depicts values and aspiration of a population, on the other one it reflects on how decisions and policies are being made, implemented, and enforced. These two together can be described as a strategy which compromises goals and the way to achieve them.

In this sense, governance function in recognizing and explaining ultimate purposes of a nation and how to attain them is a decisive matter. This imposes severe limitation both on purposes or goals and tools and mechanisms to implement them. Both should be legitimate and compatible and complimentary. Governance is used in many different contexts and has many different definitions; but its common core refers to something more than government. Governance is defined in terms of rules. It "refers to the setting, application, and enforcement of rules. In governance theory, concern with both the input-side (democratic procedures) and the output-side (efficient and effective institution) can be discerned, although the latter has clearly been debated most.vii" Unlike the past, for instance, during monarchies eras, in which the monarch's will was the indicator of right and wrong, good or evil, now with separation of government, state, and governance there can be no confusion between them any longer. Governance should be approached as an effective indicator, which determines how a system despite its level, from a company, to the international relation, works. From this point of view, good governance is not merely an ethical issue and far reaching, rather very practical and accessible. "Each of the elements, and good governance itself, can be understood to be both a means and a goal of development. Assessing governance and its elements will lend insight into how development efforts are succeeding (or not succeeding) in securing choices for the people the government represents."viii Governance, generally and good governance, specially, though has been initiated by IMF and World Bank but, due to its rightfulness became widespread so much that, it is "argued that good governance [is] far from the neo-liberal image of good governance applied by World Bank or Western bilateral donors."(Mette Kjaer, 2004). Bellow the 8 major characteristics of good governance are being quoted from UN ESCAP site, in brief. Participation Participation by both men and women… Participation could be either direct or through legitimate intermediate institutions or representatives… Participation needs to be informed and organized. This means freedom of association and expression on the one hand and an organized civil society on the other hand. Rule of law Good governance requires fair legal framework that are enforced impartially. It also requires full protection of human rights, particularly those of minorities. Impartial enforcement of laws requires an independent judiciary and an impartial incorruptible police force. Transparency Transparency means that decisions taken and their enforcement are done in a manner that follows rules and regulations. It is also means that information is freely available

and directly accessible to those who will be affected by such decisions and their enforcement. It also means that enough information is provided and that it is provided in easily understandable from and media. Responsiveness Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe. Consensus oriented Good governance requires mediation of the different interests in society to reach a broad consensus in society on what is in the best interest of the whole community and how this can be achieved. It also requires a broad and long-term perspective on what is needed for sustainable human development and how to achieve the goals of such development. This can only result from an understanding of the historical, cultural and social contexts of a given society or community. Equity and inclusiveness A society well being depends on ensuring that all its members feel that they have a stake in it and do not feel excluded from the mainstream of society. This requires all groups, but particularly the most vulnerable, have opportunities to improve or maintain their well being. Effectiveness and efficiency Good governance means that process and institutions produce results that meet the needs of society while making the best use of resources at their disposal. Accountability Accountability is a key requirement of good governance. Not only governmental institutions but also the private sector and civil society organizations must be accountable to the public and to their institutional stakeholders. Who is accountable to whom varies depending on whether decisions or actions taken are internal or external to an organization or institution. In general an organization or an institution is accountable to those who will be affected by its decisions or actions. Accountability cannot be enforced without transparency and the rule of law. It should be clear that good governance is an ideal which is different to achieve in its totality. Very few countries and societies have come close to achieving good governance in its totality. However, to ensure sustainable human development, actions must be taken to work toward this ideal with the aim of making it a reality."ix Briefly, government refers to one or many person/s, and the mechanisms or programs that govern in a society in a specific period, which usually are determined by elections. State or better nation-state, refers to the whole of the political system, which comprises, people, three branches of power, and other organizations and institutions. State is rather stable and permanent. Governance refers to rules that constitute the

bases of all what government and other components of a society do. Governance is being incarnated in nation-state. Iran governance legacy and present situation Today Iranians, with gigantic legacy tradition of state building, bureaucracy, and public administration, which its origin goes back to 6000 B.C.x, experience a new political system which is known as the Islamic Republic of Iran. This system is the result of 1979 revolution. In order to have a clear image of the present characters of State, government, and governance in Iran, it is necessary to put one step back in time, which is about 100 years ago, when modern state, bureaucracy, and public administration formed. In the last century, before the Islamic revolution, Iran has experienced amongst many events, two big ones. The first was "the Constitution Revolution of 1905-1911, [which] abolished the absolutist monarchy in Iran and established for the first time a constitutional system with a parliamentary legislature and independent judiciary. It gave hopes for democracy and administrative development in twentieth century Iran, but the movement failed badly as Britain and Russia continued their interference in Iranian domestic affairs."xi The second was the Oil Industry Nationalization Movement. This movement " was an attempt to revitalize Iranian political and economic independence from foreign influence, but the successful military coup d'état by the American CIA killed that opportunity and installed in Iran the notorious dictatorship of the shah, who lacked any major legitimacy. Several antiregims and popular movements, including the religious movement of the 1960s led by Ayatollah Khomeini, were suppressed and the Pahlavi [the Shah] autocracy established a highly centralized 'bureaucratic state ' that was administratively corrupted, managerially inefficient, and politically repressive. But its centralized bureaucracy penetrated all of rural Iran and established for the first time firm control of the state over all the population… While subservient to the Shah, the bureaucracy played a formidable role in the bureaucratic state. It was a powerful institution of dependency through which the economic, social, technological, and cultural dependence on the West was promoted and maintained. The major beneficiaries of this system were the Shah's regime and military, economic, political, and bureaucratic elites, as well as their Western partners."xii Iran's situation, from the point of our discussion here, at the threshold of the Islamic revolution, according to the above facts and to parallel findings of other analyses, can be depicted in bellow statements; In relation to nation-state:

1) Iran has never been a colony of any Western power directly subject to foreign controlxiii, whilst it was vulnerable to foreign invasions as had happened before.

2) There were always some internal segments or strata of population, or even ethnic groups and minorities that welcome foreigners supremacy, so as did some aristocratic and upper layers of elites in the past.

In relation to government and bureaucracy: 1) Iran's government and bureaucracy were identified with the institution of

monarchy.

2) Iran has never experienced an institutional bureaucracy neither a colonial, nor a self-developed and an indigenous one. As James Bill described, the regime was ortho-traditional and the emphasis was on system preservation.xiv

In relation to governance: 1) In Iran, "political power was highly centralized in the person of the Shah and

the total political elites consisted of a very small group.xv" Discouraging widespread popular participation in political affairs.

2) The governmental structure was fragmented and unwieldy. The bureaucracy even after installing a merit system in 1966 ran counter to Iranian values and norms, so it had either unfortunate effects or become inoperativexvi.

The 1979 Islamic Revolution, by resorting to Islam and attaining all embracing people's support, especially after successful abolishing the monarchy despotic system, find itself in a position that can overcome any obstacle that might confront in maintaining people's right in future. This was clearly depicted in the revolution exclamation which was: "independence, freedom, the Islamic Republic". However, Islamic regime, due to its challenging functions- to overcome continuous threat of being suppressed by coup d'étatxvii, and to achieve socio-economic development- has defined highly authoritative and centralized, whilst the constitution is filled with articles that recognize the people's right to enjoy their civil rights. Approaching the I.R.I. from the government and governance points of view shows that, the government functions are enormous and complicated, from all large-scale industries (article 44), to very detailed tasks of daily life of the population(article 43). Its organizations, activities, and all processes of policy and decision making are under the rigorous scrutiny and control of political institution. Besides, many cardinal functions directly defined among leader's functions and authorities, such as: determining the general policies, supervising over the performance of the system general policies, and so on (article 110). As article 4 stipulates:" all laws and regulations including civil, criminal, financial, economic, administrative, cultural, military, political or otherwise, shall be based on Islamic principles. This article shall apply generally on all the articles of the constitution and other laws and regulations. It shall be decided by the jurisprudents of the Guardian Council whether or not such laws and regulations confirm to this article." In this way, all policy, administration, and judiciary processes are interwoven and merged in religious process. In relation to governance, so as relate to sovereignty, article 56 stipulates:" God Almighty has absolute sovereignty over the world and Man and He has made Man the master of his own social destiny. No one can divest Man of this divine right or apply it the service of interest of a particular individual or group. The Nation shall exercise this God-given right in the manner set forth in the following articles." And article 6 stipulates:" In the Islamic Republic of Iran the affairs of the state shall be managed by relying on public opinion, through the elections such as the election of the president, representatives of the Islamic Consultative Assembly, members of councils and the like, or through referendum in cases set forth in other articles of this law." So

sovereignty indeed is at disposal of government and the final power is delegated to the public. Briefly, the I.R.I. is a fused system, in which all components depend on each other and being directed according to the interpretations which the leader, religious men in Guardian Council, and Expediency Council, give from Islamic rules. The most important point relevant to the governance in Iran is that, people support play a crucial role; though this have been mostly through election, but in future, after installing people councils in local, provincial, and inter-provincial councils (subject to articles 100 to 106), it is expected to be exerted through decentralized processes. Current situation in Iran shows that state and government are fairly consolidated, Of course, it doesn't mean that public and government organizations work well enough. Whilst people and local organizations, in playing their roles in social and national arena are also comparatively naive and weak. So that recent leader's ordinance, in July 2006, for revision in article 44 for transforming government role from 'rowing to steering', privatization, empowering private and cooperative sectors, in order to subtle preparation to join international trade processes, due to public administrators self-serving behaviors, and arrogant organizations in public sector, till now has failed. Some other deficiencies have roots in discoordinations, shortages improper laws and regulations, public administrators' reluctance to relinquish their supervisory functions, and so onxviii. Good governance and government in Iran Good governance as an ideal process of applying the 8 major characteristics in the decision and policy making processes and implementing them, prerequisite special institutional and structural contexts, along with stable social and political situation. The role of the state (governments) in attaining this situation is decisive. For example, in the developed countries like England where "the state is still a central actor in policy process", implementing good governance has its own difficulties, and networks [which play a big role in good governance] are generally highly dependent on the state for their contribution."xix So applying good governance in a developing country like Iran it would be much more difficult. The historical experiences of the most countries show that at least in special periods they have to exert authoritative power to ensure minimum conditions for achieving development. As Mette Kjaer argues," the successful countries do not have the same kind of political regimes. Some of them have been authoritative, others democracies. What they do have in common are fairly strong state with ability to direct development initiatives, and a particular kin of state- society relation that is conducive to economic development."xx To bear in mind the different situations in different countries, it seems that good governance application, just like forming bureaucracies and applying the theory of separation of power in nation building, needs to be different. For example in Iran, it might start from behaviors, specially in public sector, or empowering and encouraging people to reorganize local traditional community relations and managing them with new styles in order to build new organizations, which can work together to build

networks. Of course this demands many sophisticated action researches, and case studies. So, only though this process, government functions and performances might be truly extracted. Conclusion Government functions and performance have always been controversial. Much of them relate to its status in the polity system, and its underlying political philosophy and theories, whilst government, by itself, has its own intrinsic development trends, such as proliferation, being arrogant, and even flexible, and obedient to the political system. Extracting full capacity of government as an efficient and effective means of implementation of public policy requires analyzing the state, and its prerequisites. The state, as an identity, comprises, people, territory, and their belongings, including government; but only the latter can be managed by policies and rules. Once rulers' will, later bureaucratic rules directed governments, both had their respective results and consequences; but now, the theory of good governance, which brings all the beneficiaries to the arena, may regulate the functions and performances of the governments in line with all embracing social development. The purpose of this paper is to analyze the state and the government relationship from the governance point of view. The Islamic republic of Iran is addressed here, as a case. The case of Iran shows that, how historical events, affects on the state, the government, and applying good governance. The panacea may be a strong but healthy government.

Refrences i - Mohammad Alikhani, Constitution Law, Dastan Pub. Tehran, Iran, 1996, (in Farsi). ii - Andrew Vincent, Theories of the State, Oxford, Basil Blackwell, 1987. iii- David Robertson, The penguin Dictionary of Politics, Penguin Books, London, 1985. iv - Ferrel Heady, "Public Administration, A Comparative Perspective", Marcel Dekker, Inc. New York, 2001. v - Ibid, p.152. vi - Ibid, pp.155, 156. vii - Anne Mette Kjaer, Governance, key concepts, Polity Press, Cambridge, UK, 2004. viii - http;//www.acdi-cida.gc.ca/CIDAWEB/acdicida.nsf/En/EMA-2181378-PAN. ix - http;//www.unescap.org/huset/gg/governance.htm. x - For more details on the subject look at: Ali Farazmand "State tradition and public administration in Iran: Ancient and Contemporary Perspectives" an essay in: Ali Farazmand, "Handbook of Comparative and Development Public Administration", Marcel Dekker, Inc. New York, 2001. xi - Ibid. p.547 xii - Ibid. xiii - Ferrel Heady, Ibid. xiv - Ibid. xv - Ibid. xvi - Ibid.

xvii - It is worth mentioning that both two past national movements – the Constitution Revolution and the Oil Industry Nationalization Movement were overthrown by coup d'états in 1920 and 1953. xviii - Dr. Hamid Reza Haji Babaii, (MP), interview with Hodjat Kermani, Hamshahri (daily paper), Serial No. 41070,2006-10-11; also, The Report on Development Program in the Administrative System (in Iran), published by the Management and Planning Organization, 2002, (both in Farsi). xix - http://www.diba.es/agenda/curs_xbmq_smit xx - Anne Mette Kjaer, Ibid. p 123