United Nations Project Office on Governance

United Nations Department of Economic and Social Affairs

An Inventory of Government Innovations and

Good Governance in Asia

UNPOG
Seoul, 2010
UNPOG
The UN Project Office on Governance is a focal point of promoting citizen-
oriented, efficient, effective governance among United Nations Member States. Key
activities of the Office has classified into three fields: (i) Research and Policy
Development is to compile research on ongoing trends in governance at any levels,
analyze best practices in public sector and provide useful policy recommendations
on the basis of findings from research; (ii) Capacity Development is about
organizing international conferences, and workshops building capacity of designing
national policies for each UN member countries; (iii) through Advocacy and
Outreach, it distributes materials related to governance which are obtained from
research, workshop, conferences.

Note
The designations employed and the presentation of the material in this
publication do not imply the expression of any opinion whatsoever
onthe part of the Secretariat of the United Nations concerning the legal
status of any country, territory, city or area, or of its authorities, or
concerning the delimitation of its frontiers or boundaries.

The designations "developed" and "developing" economies are intended

for statistical convenience and do not necessarily imply a judgment
about the stage reached by a particular country or area in the
development process. The term "country" as used in the text of this
publication also refers, as appropriate, to territories or areas. The term
"dollar" normally refers to the United States dollar ($).

The Views expressed are those of the individual authors and do not
imply any expression of opinion on the part of the United Nations.

Good Governance Research-2

UNPOG Publication
Copyright © United Nations, 2010
All rights reserved
 Table of Contents

List of Tables and Figures

1. Introduction / Jun Young Choi 1

2. What is Governance?: Three Elements of Good Governance / Hayun Kang 6

Part I. Northeast Asia

3. Participation and Policy Innovation in Japan / Jung Ho Kim 20
4. Examining Korea’s Good Governance in Innovation Projects / Sangjoon Ka 40
5. The Preconditions for Good Governance:
Policy Innovation from Adopting Market Economy in China
/ Chang Hoon Cha 56

Part II. Central Asia

6. Governing Development and the Environment:
The Case of Mongolia / Jung Ho Kim 77
7. Good Governance under an Authoritarian Regime:
The Case of Uzbekistan / Dong Ki Sung 95
8. Nation Building and Good Governance:
The Experience of Kazakhstan / Dong Ki Sung 108

Part III. Southeast Asia

9. Government Innovation and Good Governance in Indonesia
/ Dong yoon Lee 124
10. Good Governance in Malaysia:
Searching for a Hope at the Local Level
/ Jaehyon Lee 137
11. Improving Quality of Life in Thailand:
Good Governance in Khon Kaen and Phisanulok City / Dong yoon Lee 152
12. Participatory Governance through Innovative Ideas and ICT:
The Case of Singapore / Jaehyon Lee 166
13. Conclusion: Comparative Analysis of Good Governance among 10
Asian Countries / Kihong Eom 182

Bibliography
List of Tables and Figures

< Figures >

Figure 3.1 Organizational Structure of Toyokana Agenda21
Figure 4.1 Homepage of Yeongdeungpo Gu
Figure 6.1 International Saemaul Project Conception Chart
Figure 8.1 Kurchatov City
Figure 10.1 Interaction of the State Government of Penang, SERI, Civil Society
Figure 12.1 Procedure for Selecting an Innovative Idea under the TEC
Figure 12.2 SGDI Main Page
Figure 12.3 Main Homepage of Singapore Government’s Newsletter
Figure 12.4 The Feedback Site of the Singapore Govt: Mainpage of REACH
Figure 13.1 Theoretical Framework

< Tables >

Table 4.1 Public Procurement Construction Projects: Problems and Solutions
Table 8.1 Ethnic Composition of Kazakhstan
Table 8.2 Ratio of Population between Kazakh and Non Kazakh Based on Age
Groups
Table 10.1 Decision on the Use of Funds by Sungai Siput MPR
Table 10.2 Themes of the Conference Organized by SERI
Table 12.1 World Bank Evaluation of Governments around the World
Table 12.2 Categories of the TEC Award
Table 12.3 Ideas Approved by the TEC by Category
Table 12.4 Evaluation of Singapore’s E Government
Table 13.1 Factors Leading to Good Governance
Table 13.2 The Three Elements of Good Governance and Policy Innovations
Table 13.3 Good Governance and Economic Success
1. Introduction 1

1. Introduction
Jun Young Choi
(Inha University)
(1) Purpose

This study aims for the following three objectives. First, it aims to investigate policy
innovations based on good governance in 10 Asian countries. Increasingly, the
international community and organizations such as the UN or World Bank are demanding
the establishment of good governance as a precondition for aid or assistance to developing
countries. The reasoning behind is the argument that corrupt and incompetent
governments are themselves serious obstacles to national development, and good
governance is the solution to such problems. Yet for such argument to gain credibility,
evidence that good governance is essential to national development must be available.
This research attempts to shed light on such argument, by collecting and analyzing cases
of policy innovations based on good governance; and provides analysis on whether good
governance is a contributing factor to national development.
The second objective of this study is to examine the context of specific cases of
good governance, its process and results. The particular context in which countries
attempt to implement good governance is different from country to country. There are
countries that already have entered a period of democratic consolidation while there
are those that continue to maintain authoritarian political institutions. Political elites with
a strong will to implement socio political reforms may exist in one country, but lack
in others. There are countries with underdeveloped or non existing civil society, while
in others NGOs are extremely active. Thus, good governance may appear in different
forms and patterns, depending on the individual circumstances of the country. Such
argument also points to the possibility that a successful case of good governance in
one country may not be replicated in another, due to the differences in national settings
and context. Therefore, in order to introduce or benchmark good governance that has
proven to be a success elsewhere, it is necessary to study the particular context and
conditions of the country of origin and whether such conditions are replicable in the
importing country. In short, the successful replication of good governance requires careful
study of the particularities and conditions of each case; such is the reason why this
study attempts to analyze the individual context of good governance in the selected
countries.
The third objective of this study is to examine whether general conditions of good
governance exist, and how such conditions can be replicated. Of course, as discussed
2 An Inventory of Government Innovations and Good Governance in Asia

above, the particular context and conditions of each country may be the decisive factors
behind the emergence of good governance in individual countries. Nevertheless, carrying
out comparative analysis of the particular conditions of governance in each country may
provide important insights to the general conditions of good governance. If one can
find repeated occurrences of certain conditions despite the differences of particular cases,
such conditions may be inclusive of the general conditions of good governance. Because
this study covers only 10 Asian countries, any attempt at generalization may be questioned;
yet if we can locate the common factors in the institutions of good governance in the
10 countries despite the disparate levels of political, economic and social development,
such commonalities cannot be ignored easily.

(2) Scope of Work and Methodologies

This study analyzes the 10 countries of Japan, South Korea, China, Mongolia,
Uzbekistan, Kazakhstan, Indonesia, Malaysia, Thailand, and Singapore. Japan, South
Korea, and China belong to Northeast Asia, Mongolia, Uzbekistan, and Kazakhstan to
Central Asia, and Indonesia, Malaysia, Thailand and Singapore to Southeast Asia. These
10 countries show significant differences in the political, economic, and social settings
from each other. Examining how good governance emerged in each group of countries
can be a meaningful academic exercise. From the political viewpoint, Japan and Korea
possess democratic institutions while Thailand and Indonesia have just begun
democratization; there is also a semi democracy such as Malaysia and authoritarian political
regimes such as Uzbekistan and Kazakhstan. From the viewpoint of economic
development Mongolia and Uzbekistan can be categorized as underdeveloped, while
Singapore and Japan have one of the highest levels of GNP in the world. Such differences
in the political, economic and social context allow the researcher to examine whether
the conditions for good governance are affected by the stage of national development,
or whether common conditions exist that transcend the particular circumstances of each
country.
The methodology chosen to study the 10 Asian countries are as follows. First,
regional experts selected cases of good governance at either the level of central
government or regional government, and analyzed them from the viewpoint of ‘voice
and accountability,’ ‘government effectiveness,’ and ‘transparency’ (control of corruption).
For each country, two cases of governance were selected. The detailed theoretical
discussions of the above mentioned three concepts are provided in Chapter 2.
1. Introduction 3

After selecting the cases, detailed analyses were carried out in the following manner.
First, a preliminary analysis of the political and economic history and context of the
country was provided. Second, the details of the context of the emergence of good
governance were explained. Third, analysis of whether good governance contributed to
policy innovation was provided. Finally, implications and lessons from the case were
induced.
This study also engages in comparative analysis of countries as well. First the major
characteristics of good governance and policy innovation of the 10 countries are
summarized; based on the summary, a comparative analysis of common factors and how
they contributed to the realization of good governance is carried out. In addition, the
good governance indicators provided in World Bank's Governance VII are employed
to examine the relationship between the governance indicators and GDP per capita,
a representative indicator of national development.

(3) Summary of Good Governance in Individual Countries

Before the presentations of case studies of individual countries, a theoretical

discussion of governance is provided in Chapter 2. Until now, there has been no academic
consensus over the concept of governance; hence it is important to define the meaning
of governance and the context in which the concept is employed in this study. This
study views governance in terms of the actualization of government innovation. In other
words, governance is viewed as the practical mechanism to realize policy innovations
by the government. Good governance is understood through the concepts of ‘voice and
accountability,’ ‘government effectiveness,’ and ‘transparency’ which are dealt in greater
detail in the next chapter.
In Part I, the cases of Japan, Korea and China’s governance are presented. In the
case of Japan, the environment management program of Toyonaka City and the
development plan of the Haraichi district of Ageo City are examined. The two cases
are examples of good governance at the regional/local government level, where the local
residents participated actively. In Korea, the ‘Citizen Participatory Budgeting System’ of
Buk Gu of the city of Gwangju, and the ‘Public Project Quality Management OK
Program’ of Yeongdeungpo Gu of the city of Seoul are analyzed. Both cases of good
governance were at the level of regional/local government, where the leadership of the
local political actors proved to be important. In China, governance at the local and central
government are studied. The development of the district of social community (‘Shequ’)
4 An Inventory of Government Innovations and Good Governance in Asia

and the ‘Division System of Administration Authority’ experiment by the city of Shenzen
are analyzed. In China where political participation is extremely limited, the two cases
may not fit the conditions for the analysis of good governance. But both cases provide
important implications on the impact of public participation in the policy innovation
efforts by government.
In Part II, the countries of Central Asia Mongolia, Uzbekistan and Kazakhstan
are examined. In the case of Mongolia, the Mongolian version of the Saemaul Undong
of Korea in the 1970s, and the forestation projects to combat desertification were selected.
The case studies show that the combination of appropriate assistance from international
NGOs, efforts by the people of Mongolia and Mongolian government resulted in
successful policy innovations. In the case of Uzbekistan, the establishment of the
‘Nongovernmental Nonprofit Organization Fund,’ and the collective petition from the
residents of ‘mahalla’ of the city of Tashkent were examined. Uzbekistan is probably
one of the most authoritarian regimes in this study, and hence finding elements of good
governance is extremely difficult. Yet the case studies show that although limited, the
government is making the efforts to incorporate the demands of the people, and such
efforts point to the potential for the growth of civil society. In the case of Kazakhstan,
two cases of good governance at the central level of government are examined. The
first is the transformation of the city of Kurchatov that used to be a nuclear test site;
the second is the establishment and management of the Assembly of Nations of
Kazakhstan. The two cases demonstrate the potential for good governance to emerge
in Kazakhstan, as the government incorporates the demands of the society in its efforts
to build the nation.
In Part III, the Southeast Asian countries of Indonesia, Malaysia, Thailand and
Singapore are examined. In the case of Indonesia, good governance occurred at the
level of regional government; the efforts to improve budget transparency in Bandung
City and public service improvements in the Boalemo District in Gorontalo Province
were selected for analysis. In the former case, the active participation of civic organizations
including the Bandung Institute of Governance Studies(BIGS) proved to be the main
factors behind good governance. In the latter, the leadership shown by the Mayor of
Boalemo District proved to be the key element. Good governance at the local level
is examined in Malaysia as well. The case studies concern the reform on the development
funds for the Sungai Siput region, and the innovations pursued by the Penang State
government. Malaysia has never experienced a transfer of power and has been dominated
by a single political party for a long time. It is more authoritarian than democratic,
despite the existence of democratic political institutions; examples of good governance
1. Introduction 5

were therefore difficult to find. But the efforts of reform oriented opposition political
parties that achieved power in regional governments have begun, which are well illustrated
in the case study presented.
In the case of Thailand, the participatory policy decision making of Khon Kaen
City and the waste management policy of Phisanulok City are studied. Thailand has
pursued political reforms led by a powerful central government since the economic crisis
of 1997. The strong will of the central government provided a favorable environment
for legal, institutional and political reforms, which propelled the reform efforts of the
regional governments. Thailand shows how the policy will from the center has had a
positive impact on good governance at the regional level. Finally, Singapore’s experience
in good governance is examined by studying the ‘Enterprise Challenge’ program and
the communications program utilizing ICT technology. Singapore offers interesting
insights into the conditions of good governance. Singapore emphasizes effective public
policy and the demands/complaints of the people are immediately feed backed into policy;
hence the level of government transparency and effectiveness is very high. Yet because
the people of Singapore are limited from political participation, it is difficult to find
good governance from the general point of view. As shown in the case studies, the
government of Singapore is making the attempts to allow citizen participation to improve
government transparency and effectiveness, but the continued limits imposed on political
participation remain obstacles to achieving genuine governance.
In the last chapter, in lieu of a conclusion, a comparative analysis of each country’s
experience with good governance was conducted. First, a summary of the conditions
of good governance in each country was made, and an analysis on the frequency of
occurrence of factors was carried out. The results of the analysis show that voice and
accountability are the key elements of good governance. On the other hand, this study
confirms that good governance is an essential element propelling national economic
growth, as shown in the comparative analysis of sub regions. The indicators of governance
measures provided by the World Bank are linked to the indicators of economic
development. For example, among the 10 countries, the top 5 in terms of governance
measure also ranked the top 5 in terms of economic indicators. Korea which ranked
rd th th th
3 , Malaysia 4 , Thailand 5 and Indonesia 7 according to the indicators of good
governance also showed identical rankings in terms of economic indicators. Also, in
the analysis of sub regions, Central Asia that ranked low in the governance measure
chart also showed low levels of economic development. These findings suggest an
intimate link between good governance and national economic development.
6 An Inventory of Government Innovations and Good Governance in Asia

2. What is Governance? Three Elements of Good

Governance
Hayun Kang
(Korea Information Society Development Institute)

(1) Introduction

In the last decade, ‘governance’ has come to take a central place in contemporary
debates in social science. Particularly in the developing countries setting, the concept
of governance is closely associated with the capacity of governments to successfully
implement poverty reduction and other social welfare related public policy. Various
internationally renowned reports such as the 2000 World Development Report, the 1995
”Social Summit” of Copenhagen, the OECD’s Development Assistance Committee’s
st
“Shaping the 21 Century”(1996) advise developing countries that the success of
implementing poverty reduction programs has much to do with the quality of governance
mechanisms available in the recipient country than the actual content of the aid program.
This interest in governance is reflective of the need by both policymakers and
scholars to understand recent changes in the nature of authority and power to coordinate
a society’s resources. In the advanced countries, technological developments such as the
internet and the economic and social dynamism represented by the rise of the consumer
economy have forced a reexamination of existing institutional and organizational
th
innovations of the 20 century. Previously hierarchical modes of governance represented
by institutions such as Taylorism and centralized government administration show clear
limitations in dealing with new socio economic realities. Previous notions of social
identity, authority, organization and power are changing in the so called network society,
where socio economic life is organized based on the internet (Castell M. 2000). Especially,
the government is no longer viewed as the sole actor determining a country’s
socio economic performance. Other non governmental actors have emerged, and the
st
challenge for governments in the 21 century is to find ways to share power and
coordinate the nation’s policy resources with other social actors in order to increase
the effectiveness of public policy.
Governance has become important not only in advanced countries but also in
developing countries. Historical and political developments created the background for
such interest. In the first half of the past century, the concern over governance was
2. What is Governance? Three Elements of Good Governance 7

often overlooked by donor countries (usually the West) since other more pressing political
interests justified the deployment of assistance programs to developing countries, such
as the need to support anti communist regimes as bulwark against the Soviet bloc,
promoting macro structural adjustment programs in the interest of global economic
stability, and so on (Smith 2007, 2). Thus, until the latter part of the 20th Century, the
actual input and period of development assistance was more important to policymakers
and donors while the implementation or the ability of the recipients to absorb aid took
second place. There was little effort to understand the capacity of aid recipient countries
to bring about successful policy outcomes, since the strategic political significance of aid
itself mattered. Now, the Cold War paradigm long gone, we live in times where generous
and unsupervised aid is over. Most donor countries have tightened their purse strings
with the increasing burden of taking care of their own population under times of fragile
global political economy. Furthermore, donor countries or the international organizations
they support have become keener on seeing their aid assistance to developing countries
result in concrete achievements. The recent interest in promoting good governance in
the context of developing countries must take into account this shifting mood of the
international community. There are both scholarly and practical interests in enhancing
government capacity of the developing countries so that they can help themselves better.
This study is also born from the political considerations discussed above. We seek
to understand the factors behind successful government in developing countries. This
study proposes that the ability of governments to pursue public policy goals successfully
are better understood when we analyze government capacity in the context of governance.
We examine a limited number of governance dimensions discussed in the recent social
science literature; in particular how three dimensions of governance voice and
accountability, control of corruption, government effectiveness strengthen or impede
government capacity. The study will show how the three elements enhance government
capacity when pursuing policy innovations; exploring how and why these governance
dimensions matter and the different ways in which governments deal with them allow
us to understand the foundations of successful public policy achievements.
In order to pursue such task, governance as a concept must be carefully distinguished
and examined, since different meanings and attributes have been attached to this concept
in discussions of government capacity. What does it mean? How do we identify good
governance practices? What are the conditions of good governance such that successful
public policy is achieved? What are the institutions and processes that ensure success
in governance? Ultimately, how do we empower governments so that their capacity to
realize public policy goals successfully and effectively is enhanced?
8 An Inventory of Government Innovations and Good Governance in Asia

(2) Understanding Good Governance

Governance is a widely used yet easily misunderstood concept. It is used in different

contexts and with different meanings by a variety of academic disciplines so that there
is no single coherent and legitimate theory or any general agreement as to what it aims
to explain. Nonetheless, there are some conceptual guidelines we can adhere to in the
discussions of good governance. In this study, we choose the comprehensive approach
taken by Rosenau; he argues for a governance concept designed to incorporate all
elements of rules and principles aimed at regulating human activity, and at all levels
of control, from the family unit to the international arena (Rosenau 1995, 13). However,
we exclude in this study discussions of economic governance, which are usually set in
the context of market liberalization and focused on market institutions and economic
1)
behavior. Instead, we confine the discussions of governance in the context of the
formulation and execution of policy innovations by government. And we regard
governance as the management of official and unofficial rules of the political game.
Governance, in this study, is about the rules that determine the exercise of authority,
and the management of conflicts surrounding the execution of political authority (Hyden
1999, 185).
What is clear then, good governance involves more than simply the government;
it includes the government, but acknowledges that other non governmental actors
influence the regulation of human life as well. Rhodes, for example, argues that reciprocity
and autonomy among interacting social actors in the context of social networks forms
the quintessential elements of governance (Rhodes 1997, 15). Governance includes the
idea that society is steered or piloted (Kooiman 1993; Gamble 2000) for the purpose
of realizing certain social goals and the pursuit of those goals are framed by the rules
or regulation constitutive of the society. Included also is the idea that governance refers
not only to the formal institutional arrangements but also process and interaction among
structures, such that it is dynamic with regard to configuration and objectives. As actors
change over time and across sectors, governance should be thought in terms of a “moving
picture rather than a snapshot” (Pierre and Peters 2000, 22).
Here in this study, we attempt to understand governance in the context of policy
innovations spearheaded by national governments. In other words, we seek to analyze

1) In this study we purposefully exclude discussions of governance concerning the regulation of market,
such as discussions on corporate governance and other forms of market governance. While these
discussions merit detailed exploration, to do so would stretch the concept of governance to
unmanageable levels. For a representative work in economic governance, see the industrial sector
specific discussions in Campbell et al (1991).
2. What is Governance? Three Elements of Good Governance 9

governance in terms of the capacity of governments to formulate, execute and coordinate

policy. In particular, our research is based on the need to understand governance in
st
the 21 century environment where traditional top down and centrally coordinated policy
formulation and implementation have shown clear limitations. Good governance involves
the idea that there are various means by which government interacts vis à vis society,
and that policy success is enhanced when social actors outside the government participate
meaningfully in the formulation and coordination of policy, and in the allocation of
policy resources. In particular, we view ‘voice and accountability,’ ‘government
effectiveness’ and ‘transparency’ to be one of the most important elements of good
governance and the remaining section explores these concepts in greater detail.

(3) Voice and Accountability

In the eighties and early nineties, academic studies on the so called miracle economies
of East Asia confirmed the wisdom of market oriented economic policy administered
by smart political elites. The World Bank study concluded that Korea and Taiwan
experienced economic success because governments in these countries pursued policies
that allowed the market to allocate and use the nation’s resources most effectively (World
Bank 2005). Implicit in these assessments was the belief that democratic institutions
mattered little or were marginal to economic growth since successful economic growth
depended on the right package of policy (i.e. market oriented policy) administered by
capable policy elites.2)
The truth of the matter is that Korea and Taiwan owe their economic success
to many factors that were distinctly historical and political (Woo 1991; Deyo 1987; Weiss
1997), and the replication of their success depend on more than adopting the ‘right
set of policy package.’ However, in the rush to praise the East Asian miracle, many
have neglected to examine the social and political context of economic development
in these countries. Many developing country policy elites in China, Vietnam, etc., explicitly
take Korea as their role model. For these countries ranking at the bottom level of the
global economic order, attaining economic growth in absolute terms mattered more than
anything else even at the expense of stifling democratic institutions; the experience of

2) The success of Korea and Taiwan justified the role of a strong state at the expense of pluralist
institutions. Centralized and hierarchical system governance represented by the strong state has appeal
for developing countries that want economic growth but lack the time and patience to endure
often painful policy that is necessary to foster economic growth.
10 An Inventory of Government Innovations and Good Governance in Asia

the so called East Asian miracle justifies the absence of democracy and democratic
institutions in their own countries. It is not so surprising that some scholars would soon
emerge to justify this line of thinking, pointing to the cost of maintaining pluralistic
institutions and the opportunities for rent seeking and clientelism when multiple access
points to government are possible (Chung H. Lee 1992; Campos et al 1999).
However, the Asian financial crisis was a scholarly awakening to the importance
of democratic accountability in a country’s institutions of governance. The states of
East Asia were equipped with highly capable bureaucrats, but the political leadership
was seriously deficient in accountability. Yet without accountability, political leaders could
easily sway into self seeking behavior since they did not fear public scrutiny of their
choices. The miracle economies of Asia suffered precisely because prudential institutions
failed to take root while politicization of economic policy increased with democratization
(Kang 2004).
As we enter the 21st century, there is general agreement on the link between
institutions of accountability and good governance. The United Nations Development
Program (UNDP) officially views accountability essential to alleviating poverty, and the
UN has provided technical assistance to over 70 member states with the objective of
strengthening electoral and legislative systems. The World Bank also provides various
assistance programs aimed at strengthening the capacity of national parliaments to oversee
the allocation and use of public funds, and legislate laws aimed at poverty reduction,
all of them measures aimed at improving political accountability of the leadership. An
OECD policy report similarly is of the view that a developing country’s ability to climb
out of poverty depends largely on the quality of accountability such as the confidence
of the stakeholders and the nature of participation in the economic programs (Schneider
H. 1999).
How political accountability and governance are linked merits some more discussion.
Scholars since Tocqueville have noted that a vibrant civil society composed of various
autonomous organizations is necessary for the exercise of voice to affect the
decision making of the state. Accountability involves the concept that somehow civil
society can curb the excesses of the state (Chabal 1986, 13). It is about the ability of
the people to organize and take action against the political leadership if they fail to
deliver their mandate or abuse their power for private gain. Pluralistic institutions, then,
are a vital precondition for the institutionalization of accountability (Lonsdale 1986, 130).
This involves, among many things, institutionalized methods by which the public can
choose political leaders and policy platforms, review government activities, question public
expenditures, penalize government officials that fail to function, and so on. Then, free
2. What is Governance? Three Elements of Good Governance 11

elections (electoral choice), free media and freedom of association are some of the key
dimensions of accountability. These institutions form an integral part of a country’s
civil society, and how they interact vis à vis the state apparatus determines the nature
and quality of accountability.
Free elections exert a structural constraint on political leaders to conform to their
electoral promises to the public. Through the electoral process, political leaders acquire
legitimate mandate to execute the public interest. Furthermore, the electoral process reminds
political leaders that their authority to manage the nation’s resources is subject to public
scrutiny. Depending on the type and nature of the electoral process, the pressures for
political accountability can be varied. Direct elections mean that law makers are chosen
directly by the people and therefore the accountability link of the voter and elected is
rather strong. Indirect elections systems have representatives at one level choose some
of their members to serve at another level or on the governing body. The indirect election
system appears to have a weak link between the public and the elected in terms of
accountability. But parliamentary systems are known to be able to represent various interests
and marginalized groups such as minorities, while the winner take all method of direct
election tends to leave out certain segments of the society out of the political process.
On the other hand, the indirect election system raise the question whether all interests
are equally represented, while the direct election system exhibit strong responsive ties
between elected and the voter. Clearly the evaluation of a country’s election system and
the implications for accountability should be considered in conjunction with other factors.
Freedom of association is the quintessential element of voice. It is through
participation in various civil society organizations that individuals become politically
empowered. Political elites in turn tend to be more responsive to organized interests,
since organized interests has greater visibility and contact with political leaders than
individuals or the general public. Furthermore, when individuals’ right to participate are
guaranteed, faith and confidence of domestic institutions are secured, which are critical
elements for the sustainability and success of public policy programs. Unfortunately,
it is often the case that developing countries are constrained by economic and social
factors that limit public participation in their social institutions. Information asymmetry,
the culture of elite exclusivity, low level of education etc. prevent the public to become
active participants in political life. Thus, there is the danger that association involves
only political participation by the elites for the elites, with the significant portion of
society particularly the most socially vulnerable being left out.
A free media is therefore a necessary condition to improve the quality of voice.
In modern life, individuals cannot have access to all the relevant information that may
12 An Inventory of Government Innovations and Good Governance in Asia

affect their interests. Therefore, having a healthy and independent press that is free from
political interference is a necessary condition for bridging the information asymmetry
between the public and political leaders. Through investigating and gathering of facts,
the media informs and educates the public of the decisions made by the political
leadership, enabling the public to make informed judgments on the policy choices made
by the leadership. The danger that the media may be politicized or reflect the interests
of certain segments of society over the rest exists, but the positive function of the media
far outnumbers the negative.
An important caveat is in order. While we argue that accountability is a quintessential
element of governance, it does not in itself ensure economic performance or enhance
government capacity. Clearly, our analysis needs to be complemented with analysis of
governance mechanisms at a more micro level, in particular in the functions, institutional
arrangements and procedures of the government itself. Here in this section we confined
the discussions on accountability in the broad context of state society relations; theoretical
exploration of governance at the more micro level of government will be taken up in
the last section.

(4) Transparency

Lack of transparency erodes the legitimacy of the state and government. The public
lose their trust and confidence in state institutions, which in turn negatively impact the
capacity of government to pursue social goals. In an opaque political system, there is
little incentive for both public officials and the public to abide by the rules of the game,
since the risk of illegal or unethical activities being exposed is very low. The powerful,
under the secrecy provided by obscure and informal institutions, can buy privileges and
favors that they are not entitled, while the poor have little recourse available against
the powerful who can afford the bribes to secure favorable outcomes. In such system,
instability is a constant feature of national politics, for social polarization and alienation
are the inevitable results from rampant corruption. Then the level of transparency in
government is an important barometer in evaluating the level of corruption in
government.
Lack of transparency is directly related to the rise of corruption.3) The international
aid community view corruption as the major factor that inhibits economic development.

3) In this study we use the term lack of transparency and corruption interchangeably given the many
overlaps in the concept
2. What is Governance? Three Elements of Good Governance 13

It is estimated that corruption accounts for the loss of 10 percent of GDP each year
in Latin America, and costs African economies more than $148 billion a year, which
amounts to 25 percent of Africa’s GDP (Smith 2007, 175). The poor are the most
likely to be affected by the harmful effects of corruption, since the looting of public
assets leads to discriminatory application of regulations, tax evasions, resources wasted
on wrong projects, all of them damaging the prospects for development and poverty
reduction.
Yet finding the links between transparency, corruption and good governance can
be rather difficult. A bribe can act to lubricate the wheels of incompetent bureaucracy
that is often found in developing countries. Where bureaucratic red tape is rampant,
‘lobbying’ the government can speed up lengthy bureaucratic procedures and inefficient
regulation. Because it can buy political access, interested stakeholders can affect the
decision making process more effectively, and can even produce outcomes that are more
efficient than when left to inept bureaucrats. Certain scholars have even explored the
theoretical possibility that corruption, creating auction like conditions, improve the
allocative efficiency of public resources (Khan 2000, Bardhan 1997). Others have explored
the idea that institutionalized corruption, by reducing uncertainty and raising predictability
of bureaucratic decisions, creates an environment that encourages investment and
innovation by private actors (Campos et al 1999; MacIntyre 2001).
Such arguments, however, must meet other stringent conditions in order to be proved
correct. For auction like conditions to function properly transparency is the necessary
precondition. Interested parties should have full access to information and
decision making must occur in a transparent environment. These revisionist arguments
must meet the test of historical and comparative data, and checked against other
socio economic variables that could have contributed to predictability and stability. In
countries with high levels of red tape, corruption may have an effect of enhancing
predictability and stability. But the supposed statistical relationship is not so clear;
corruption also provides officials with incentive to create more red tape and resource
scarcity, and is known to foster infighting among government agencies for access to
corrupt payments (Chibber 2002; Kang 2002). Corruption may grease the wheels of
bureaucratic red tape, but the damage caused by it is significant. The lack of transparency
also creates the incentive for discretionary regulation which will damage the confidence
and effectiveness of the entire system. The policy elites of developing countries know
quite well the value of a transparent policy environment; in various surveys policymakers
of developing countries overwhelmingly admit that corruption acts as an impediment
to development (Kaufmann 1998; Hutchcroft 1997).
14 An Inventory of Government Innovations and Good Governance in Asia

The majority of the explanations for corruption (lack of transparency) favor a

political economy perspective where the state is culprit and cause (Posner 1975; Buchanan
1980). Under an opaque policy environment, the government is free to interfere in the
economic decision making through trade restrictions, subsidies, price cartels etc., thereby
increasing the incentives for private interests to gain the necessary state approval through
illegitimate methods. Where state intervention is prevalent, interested parties will attempt
to seek special privilege or bypass cumbersome government regulation through bribery
or other forms of payment to the government officials. According to this line of thought,
if governments ease their restrictions on economic activity, then corruption will be
naturally reduced since there will be little bureaucratic powers left for officials to abuse
(Baghwati 1982; Mueller 1989). Nevertheless, the argument in favor of removal of state
intervention and bureaucratic regulation should be measured against empirical evidence.
High levels of state intervention exist in countries that are at the same highly transparent
as well, such as in Finland, Sweden and Canada.
Clearly, corruption occurs in a system where information flow is restricted and abuse
of power goes unchecked, the hallmarks of a non transparent political system. But one
should also note that it is not what the state does but how it is organized that has
implications for transparency and corruption. Popular views tend to impute corrupt
governments to cultural explanations such as clientelistic culture or communal ties, but
in reality it is the political and social structures within which the state is embedded
that create the underpinnings of corruption. As many institutional scholars point out,
a transparent policy environment based on legal and institutional frameworks works
toward lowering corruption (Rodrick 1997; North 1985). In other words, if government
agencies can be made to operate in a transparent manner, corruption can be eliminated.
How can corruption be eliminated and transparency be promoted? The strategies
are many, but this study focuses on the institutional context of developing countries.
The most general but important observation is that corruption will not disappear unless
civil society is strong enough to challenge corruption. When a society is aware of and
opposed to corruption, it is likely to be assertive in scrutinizing the political and
administrative behavior of the government and political elites. Awareness of and
opposition to corruption comes by when the public is properly educated of the disruptive
effects of corruption, and form a social consensus against it. Organizations within civil
society such as human rights groups, business associations, trade unions etc., can raise
public awareness through surveys, public campaigns, and political lobbying against
corruption. These groups can demand greater legislative controls, new anti corruption
institutions, judicial reforms, freedom of information, and reform of public procurement
2. What is Governance? Three Elements of Good Governance 15

procedures to the government. Watch dog groups and other NGOs, and a free media
can play a big role in exposing corrupt officials and illegal government schemes, locating
and identifying illicit behavior and corrupt officials. Also, business organizations and other
interest groups can practice business ethics such as refraining from bribery and agreeing
not to obtain business through bribes. The government can also do its part to improve
the enforceability of these private initiatives; for example in the energy sector of Ecuador,
the government instructed procurement officials to accept bids for public contracts only
from companies that had given a public commitment to not to engage in illicit behavior
aimed at enticing government officials (Eigen 1996).
Fighting corruption would not be effective without the appropriate institutions that
promote transparency in government. Laws and regulations prohibiting corrupt behavior,
such as public official’s ethics code or anti corruption law, should be specific about what
kind of activities consists of corruption, and the penalty imposed when found to be
in violation of the law. Routine inspection and operation of anti corruption investigations
should be a regular part of government functions; regulatory agencies should have
independent power and be accountable to the public.
Efforts to promote transparency should not be satisfied with targeting the actual
behavior of individuals. Strengthening the overall structural context of governance may
be even more important. For instance, political competition, which increases the political
risk or cost of exposure of inappropriate behavior, works as a deterrent to corruption
and improves accountability in political leaders. Yet there exists concerns that excessive
political competition may fragment the political system and undermine the legitimacy
of state institutions, making them fragile to corruption (World Bank 2000). Thus,
identifying the particular institutional and political structures most conducive to enhancing
accountability and transparency may be quite difficult.
Making government institutions transparent helps reduce corruption. Laws on the
disclosure of assets of public officials, mandating law making to be transparent and open
to public review, subjecting government decisions to judicial appeal and adjudication
procedures improve the transparency of government. The higher the level of corruption
in a society, anti corruption strategy should be focused on improving the general
governance of the society, such as the rule of law, institutional accountability and citizens’
rights of appeal. On the other hand, in countries with low levels of corruption,
anti corruption strategies can target specific behavioral aspects thus a focus on
anti corruption investigation, raising public awareness, and improving public official’s
salaries.
Nevertheless, the most important factor in the fight against corruption is the political
16 An Inventory of Government Innovations and Good Governance in Asia

will of the leadership. Having a leadership that has a well designed strategy to cope
with corruption may be extremely important, but without the political will to enforce
such program, nothing would come out of it. What is more, any effort by the political
leadership will be effective only to the extent that there is sufficient demand from the
public and the political leaders are convinced that it is in their interest to eradicate
corruption and promote transparency. Thus, an active and vibrant civil society is the
most important element to strengthen the transparency of a nation.

(5) Government Effectiveness

As mentioned at the beginning, the current interest in governance theory derives

from the general dissatisfaction of existing statist theories. Nevertheless, this study argues
that despite the increased role of various non state actors, the state (or government)
continues to play a significant role in a country’s political economy, particularly in the
context of developing countries. The reason is quite straightforward; the state by far
has the most resources and influences at hand to impact a country’s political economy,
and thereby shapes the institutional context in which markets function. In fact, the quality
of state institutions matter greatly in a country’s development, since state agencies play
important roles in promoting economic and human development through “investing
resources, directing credit facilities, procuring goods and services, negotiating contracts,
providing public services such as water, public heath, security, and education” (Smith
2007, 226).
Therefore, developing countries with development aspirations should duly note that
an effective government is critical for the successful implementation of public policies.
The consequences of incapable government is severe; incoherent and ill managed policy,
unrealistic and wasteful budgetary expenditures, unaffordable and low quality public
services, understaffed and incompetent maintenance are some of the consequences of
an inept government. The poor who often are the most dependent on basic government
services are likely to be affected the most. Thus, the World Bank states that “an effective
state is vital for the provision of goods and services and the rules and institutions
that allow markets to flourish and people to lead healthier, happier lives (World Bank
1997, 1). In this section, we discuss some of the key elements that governments should
acquire to become effective.
First, we should note that there is an important link between political legitimacy and
effective government. A government that enjoys legitimacy is much more effective than
2. What is Governance? Three Elements of Good Governance 17

a government that is illegitimate. Because the public accepts the political leadership and
endorses the government’s policy goals, there is “greater voluntary compliance with laws
and regulation and little need for coercion, threats, fear and personal loyalties” in order
to pursue policy objectives (Brautigam 1991, 14). The public respect the procedures and
institutions of legitimate governments even if they may not respect particular actors. Thus,
it is legitimacy that lends credibility to the government’s commitment to policy objectives.
Yet legitimacy cannot be achieved without accountability. In this section, we confine
the discussions on administrative or public accountability. It should be noted that public
officials or civil servants are partisan actors to any political system, yet they are often
beyond the reach of accountability. Democracies elect politicians who in turn hire paid
officials to deliver professional advice and take necessary executive actions. Bureaucrats
or civil servants, therefore, are simply executors of the political leaderships’ policy visions,
and have little political responsibility to the people. Then, devising institutional
arrangements to enhance administrative accountability should be a top priority in any
effort to increase government administrative capacity. Such efforts should include, among
many things, proper mechanisms to account for the use of government budgets,
prevention of the misappropriation of government resources and procedures of
check and balance so that anomalies can be exposed and eliminated at an early stage.
At the same time, we need to balance this concern with the reality of most developing
countries where executive power overwhelms the legislative or judiciary domains. The
problem could lie not in the actual technical or procedural aspects of accountability
but in the weakness of political institutions that scrutinize and review the bureaucracy
(Hutchcroft 1997; Bates 1981). In most developing countries where the statist tradition
is strong, the challenge to increase administrative accountability is closely linked with
strength of democratic institutions such as the judiciary, legislative and other external
agencies and procedures that hold the executive accountable.
Second, what developing countries often lack most are not policy ideas or plans,
but the actual administrative or technical ability to implement declared policy objectives.
Public officials must acquire a certain level of administrative competence in order to
properly implement policy, and the administrative organs of the state should be coherent
in their mission and properly organized for the delivery of social services. Thus, enhancing
administrative capacity has been a long time objective of international aid organizations.
The UNDP is particularly active in assisting civil service reform in developing countries;
it has stated that administrative reform in developing countries is one of the key elements
for the realization of Millennium Development Goals (UNDP 2006). The World Bank
also supports a wide range of public sector management projects designed to increase
18 An Inventory of Government Innovations and Good Governance in Asia

efficiency in public administration and civil service reform, with a focus on improving
management capacity. Enhancing administrative capacity involves, among many things,
adequate staffing, information, logistical and technical support and procedures,
performance evaluation techniques, coordination of the different divisions of
government. Yet these elements are hard to come by in developing countries where
factors such as low pay structure, bad personnel management, social disruption or political
repression impede the development of a capable bureaucracy.
The last aspect to consider is the motivation of public officials themselves. Without
a body of public servants dedicated and motivated to serve the public interest, no public
policy can be implemented successfully. Yet nepotism in recruitment, partisan interference
in staff deployment, opaque opportunities of promotion, and low salaries discourage
competent individuals from joining a career in public service. What is more, as most
developing countries often face dynamic political and economic environments, public
servants face uncertainty over their future, for the politicization and conflict between
government and other stakeholders, lack of clear policy orientation, difficulties in
mobilization of resources, discourage career loyalty and commitment. Another
discouraging factor is the attraction of the private sector that offers better remuneration
and working conditions.
Clearly, the solution to such problem is the institutionalization of meritocracy, proper
compensation, and other incentives that motivate public officials to serve the public
interest (Weiss 1997). A meritocratic recruitment and promotion system is absolutely
necessary in order to instill professionalism in the civil service and depoliticize public
officials so that they become neutral, independent supporters of a democratic
government. Introducing performance evaluation schemes so that the contribution of
government agencies or individual public officials is accounted for and responsibility
clearly assigned are important.
This section discussed the requirements for an effective government, focusing mostly
on the institutional and technical aspects of enhancing administrative capacity.
Nevertheless, we should note that while the technical and managerial aspects of
administrative reform may be easy to duplicate, the broader economic and social context
of reform may determine the quality of administrative capacity (Evans 1995; Woo and
Loriaux 1995). For instance, political commitment by the leadership, esprit de corps
among public officials, and consensus among government agencies on public policy goals
are some of the informal and normative elements that greatly enhance a government’s
administrative capacity.
2. What is Governance? Three Elements of Good Governance 19

(6) Conclusions

This study aims to identify and analyze the factors behind good governance, thereby
assisting states that want to improve their capacity to initiate policy innovations. A limited
number of governance elements were selected and discussed in the context of developing
countries’ need for enhancing good governance. We believe that these elements are critical
to the fostering of effective governments that can formulate and implement public
policies successfully.
For such goals, we first set out the parameters of good governance. We excluded
discussions on economic governance from the scope of this study, and took a
socio political approach to the understanding of good governance. In particular, we
emphasized the institutional and procedural aspects, both formal and informal, of
governance mechanisms within and outside the state. We argued that national
governments interested in good governance should take into account the various ways
by which society interacts with government, and that policy success is ensured when
interested stakeholders are ensured genuine participation in the formulation, coordination
and allocation of policy resources.
We singled out three aspects of governance voice and accountability, control of
corruption, and effective government to be the most salient and important factors
determining good governance. Voice and accountability matters, because it instills
discipline on the state apparatus, in particular on the political elites (leaders) to conform
to their political mandates. Control of corruption is important since it has critical
implications on the legitimacy and credibility of government and government policy
actions. Finally, an effective government matters since it is the vehicle by which political
visions and social goals are translated into reality.
In our case studies we will attempt to single out and analyze the success factors
behind policy innovations undertaken by the government, and analyze policy priority
in achieving better governance. Yet it should not be forgotten that throughout this paper
we emphasize the broad socio political context within which governments operate, and
the difficulty of dissociating governance variables from the socio political environment
within which government society interaction is embedded. Good governance is
inseparable from the historical, social and political context in which government and
society operate.
20 An Inventory of Government Innovations and Good Governance in Asia

Part I. Northeast Asia

3. Participation and Policy Innovation in Japan

Jung Ho Kim
(Inha University)

(1) Introduction

th
Japan has a population of 128 million people over 378,000 ㎢, the 10 largest
nd
population in the world over the 62 land mass, but the number 2 economy in the
world. Since its defeat in World War II, Japan has succeeded in transforming its economy
into one of the most advanced country in the world. Politically, it has a long tradition
of regional autonomous government under the Bakuhan system of the Edo dynasty,
and the City Cho Mura System since 1889. But until the Act on Promotion of Regional
Government was established in 1995, the central government had a strong hold over
the management of the country, and Japan pursued the path of a central government
initiated development. Therefore it can be said that the history of regional government
in Japan is only 10 years. The long history of centralized administration resulted in
perverse authoritarianism, unilateral administration, lack of participation from local
residents and ineffective and opaque policies. Such state of affairs led to many internal
debates on how to establish genuine local autonomy and self government. In recent times,
there is increasing interest in the institutions of democratic governance and the means
of its implementation that promotes voluntary participation of local residents and
collaboration among the stakeholders.
The environment management project of Toyonaka City and development of the
Haraichi District of Ageo City are exemplary cases of successful democratic governance.
By examining the success in a country that has a short history of local governance
but is one of the most advanced economies in the world, it is hoped that Japan’s
experience provide insights and strategies for democratic governance for many developing
countries experiencing rapid economic development.
3. Participation and Policy Innovation in Japan 21

(2) Environmental Management of Toyonaka City

1) Background

Toyonaka City is located to the north of Osaka, in the Osaka fu; the population
is 390,000 within an area of 36.6㎢, according to 2006 statistics. In 1955, when the
current boundary of the city was established, the population was only 120,000. By 1970
with the hosting of World Expo and acquisition of a modern transportation infrastructure
in 1975, the city became a major urban center. With city development projects and
reorganization of the transportation infrastructure, the arable land and forest that
consisted 70% of the city became transformed into residential districts.4) The creation
of Osaka International Airport in the Northwest created new urban problems such as
noise and vibration (Sato 2004, 178).
Given the problems of increasing urbanization and rise of population and related
pollution issues, Toyonaka city pursued various project such as waste management, road,
park and sewage maintenance, urban designed based machizukuri(town building), and
other environment related policies. In the 1990s, in order to respond to the challenges
of environmental pollution and to create the basis for a self sustaining eco social system,
a series of laws were promulgated beginning with ‘the Basic Plan for the Beautification
of the City’ in 1987, ‘the Basic Plan for the Management of Environment’ in 1992,
‘Regulations for the Reduction of Waste and Waste Management’ in 1993, and ‘Guidelines
for the Protection of Environment for Development Projects of Certain Sizes’ in 1994
(Sato 2004, 178 179; Sato 2006, 169)
Despite these measures which were considered innovative when introduced in 1973,
environmental problems surpassed the city’s capacity to deal with them in mere 20 years.
Toyonaka city therefore decided to promulgate a set of laws to deal with the rising
pollution problems facing the city, beginning with ‘the Basic Ordinance on the
Environment’ in October 1995. Article 19.2 of this law determines the objectives to
be pursued, which are “the City shall engage in the necessary measure to protect the
region’s environment and preserve the earth through cooperation and mutual solidarity
between the city, residents, businesses and private organizations.”5) The guideline also
created Local Agenda 216) and the necessary institutional basis to promote the goals.

4) In 2007, about 72.4% of the city has become urbanized (Wada and Taura eds. 2007, 212).
5) http://web04.city.toyonaka.osaka.jp/reikishu/dbs/frm/hen05/0500000300_frm.htm
6) In the Global Environment Summit held in Rio De Janeiro Brazil in 1992, participants agreed
to an action plan called “Agenda 21.” However, despite the need for a collective approach to
the problems of global warming, the action plan taken up in each country was different, depending
22 An Inventory of Government Innovations and Good Governance in Asia

In May 1996, ‘the Citizens Committee on the Environment of Toyonaka’ was founded
(Sato 2006, 169).
The Citizens Committee on the Environment of Toyonaka is known as the first
partnership created at the city cho village level, between the city, residents, companies
and private organizations toward the common goals of environment protection. In
particular the establishment of Toyonaka Agenda 21 and the ‘Action Plan for Preserving
the Environment of Toyonaka’ received the prize from the Ministry of Environment
7)
in 1998, the Chairman’s prize from the Energy Conservation Center (ECCJ) in 1999,
th
the Mainichi Shinbunsha prize in 2001, the 14 Citizens Prize for the Protection of
Earth and Environment by the Fujisankei Communications Group in 2005. It is evaluated
as one of the most successful case of environmental governance (Sato 2004, 179; Sato
2006, 169 170)
The most notable characteristics of the environment management in Toyonaka city
is the ‘Basic Ordinance on the Environment’ which forms the basis of cooperation
and solidarity among the stakeholders; the city is in charge of the administrative aspects
of the basic plan, while the actual action plan (The Citizens Action Plan) is put together
by both residents and companies. Such arrangements defined each actor’s area of
responsibility and autonomy in implementing the action plans. In addition, various
institutional arrangements such as the PDCA cycle and the Citizens Committee on the
Environment of Toyonaka also played a role in augmenting the effectiveness of the
plans. Furthermore, ‘the NPO Toyonaka Citizens Committee on the Environment Agenda
21,’8) as the “sole organization that is officially recognized by Toyonaka city as partner
to the environment management program” (Sakai 2007, 94) has been instrumental in
augmenting efficiency and transparency of the environment management program of
Toyonaka city. Such factors explain the spotlight received by so called ‘Toyonaka Model’
in Japan. The relationship among the three actors in the Toyonaka model is shown in
Figure 3.1(Wada and Taura eds. 2007, 213).

on the situations of each country. Local Agenda 21 refers to the individual efforts of countries
to incorporate the particular local needs and problems, when dealing with the issues of the
environment (Inoue 2007, 180). In the case of Japan, the regional governments determine the details
of Local Agenda 21, and have the autonomy to come up with action plans on the condition of
following the general guidelines provided by the central government, which are 1) aim for sustainable
development, 2) provide specific action plans and strategies and 3) encourage the participation of
local residents (Sato 2006, 166).
7) For the activities of The Energy Conservation Center, Japan(ECCJ), refer to their website
http://www.eccj.or.jp
8) http://www5b.biglobe.ne.jp/toyonaka
3. Participation and Policy Innovation in Japan 23

<Figure 3.1> Organizational Structure of Toyokana Agenda21

2) Main Features of Innovation

As explained above, the management of the environment is based on the ‘Basic

Ordinance on the Environment’ established in October 1995. This ordinance consists
of 5 Chapters and 25 articles9) and has an action plan in accordance with the so called
PDCA cycle (“Plan Do Check & Action”) designed to administer the plan most
effectively. The ordinance provides clear and transparent principles on the role of the
local administrative authorities and the rule and procedure by which administrative actions
should be carried out. These principles also provide clear distinction and guidelines on
the role of the public sector versus the private sector and citizens.
Article 19.2 specifies that the city engage in mutual cooperation and collective action
with the private sector and residents; this provision has had a definitive impact on the

9) See http://web04.city.toyonaka.osaka.jp/reikishu/dbs/frm/hen05/0500000300 _frm.htm

24 An Inventory of Government Innovations and Good Governance in Asia

characteristic and nature of the environment management projects carried out by

Toyonaka city (Sato 2004, 179 180).
The Citizens Committee on the Environment of Toyonaka (CCET) was created
in May 1996 in order to realize the vision and objectives of the Basic Ordinance, and
the Mayor of Toyonaka city held the position of chairman. A total of 153 organizations
including private companies, education institutes, hospitals, police, farming associations,
welfare organizations, consumer associations, environment protection agencies participate
in the committee. The committee’s first task was to decide on the basic goals of Toyonaka
Agenda 21 and determine the appropriate budget. For this task, 4 divisions (life, nature,
industry and transportation) were created to examine the relevant issues of concern to
the city. What is notable is the unique manner of agenda setting of Toyonaka Agenda21.
In general, the process by which a Local Agenda 21 would be determined goes through
the procedure of first determining the objectives and then setting up a specific action
plan. But in the case of Toyonaka city, determining the goals and execution of the
goals went hand in hand. In other words, Toyonaka city pursued a “action & plan”
method. As part of this strategy, the city pursued various programs such as holding
symposiums, distributing eco life calendars, promoting the “my bag,” and encouraging
nature observation, and in March 1999 came up with the Toyonaka Agenda21. As part
of the implementation directive, the city formed ‘the Toyonaka Environment Basic
Action’ and provided 101 action plans in order for the citizens and companies to engage
in continuous efforts to prevent global warming and protect the environment (Inoue
2007, 182).
The participants in the Toyonaka Agenda 21 recognized that voluntary participation
in these projects were critical. They also realized that with more than 150 organizations
participating in the CCET, it would be difficult to discuss and come up with solutions
in a coordinated manner. A working group composed of local activists and residents
who played important roles in the review process of Toyonaka Agenda 21 emerged
to play the role of coordinator in the planning and determining of specific action plans.
In June 2002, the working group became independent of the CCET and became a private
organization called ‘Action Committee of Toyonaka Agenda21’. In 2003 it registered
as a non profit organization and changed its name to NPO Action Committee of
Toyonaka Agenda 21. This committee is in charge of carrying out the actual details
of the environment protection projects such as “project to make fuel from bamboo,”
“transforming kitchen waste into compost,” and “building environment friendly buildings”
(Inoue 2007, 183).10)

10) The projects mentioned in this study have been given simplified names in order to help the readers’
3. Participation and Policy Innovation in Japan 25

The environment management projects pursued by Toyonaka city have the following
characteristics.
First, the main actors executing the projects are the local public authorities who
are in charge of the basic environment plan of Toyonaka city, while residents and
companies are in charge of implementing the Toyonaka Agenda 21. This suggests that
while each actor possesses sufficient autonomy and independence in pursing the respective
goals, there can be significant internal conflict and dissent among the actors as well.
Toyonaka experienced just such problems.
Before setting the main objectives of Toyonaka Agenda 21, there were several
meetings with the working group on sharing ideas on the Local Agenda 21. In those
meetings, some of the participants raised the question “what is the relationship between
the administrative authority which is in charge of the basic plan and the Local Agenda
21 which is a purely private effort.” The response to this question was “administrative
authorities are executors of the plan in partnership with the residents, and transform
the action plan into reality.” The residents displayed negative views on such interpretation,
and the authorities asked the working group to make another vision and environment
policy goals that would be supported by the local residents. In the end, the authorities
were given the charge to implement the basic action plan, while the residents and
companies acquired ownership over the Local Agenda 21; all of them, however, shared
the vision and policy goals of environment management (Sato 2004, 181 182).
As seen in the debate described above, there were considerable dispute over the
roles and responsibilities related to Toyonaka Agenda 21 among the participants. The
residents clearly did not want to be under the direction of the public authorities. The
appropriate solution, then, was to create separate but mutually cooperative relationships
with one another in order to ensure the autonomy of civil society movements. This
proved to be a critical element behind the successful execution of Toyonaka city’s
environment management projects
In addition, the agenda setting process of Toyonaka Agenda 21 provided the
foundation for mutual cooperation and understanding between the authorities, residents
and companies. In the first six months to one year, there was considerable distrust among
the participants. But this distrust could be assuaged with frequent meetings and
discussions with one another. As the participants discussed ways in which “accountability
of the administrative authority,” “the attitude and participation of residents,” and “private
sector participation” can be enhanced, practical solutions and means of implementation

understanding. The actual names of the projects are distinctly Japanese, and their characteristics
are difficult to ascertain from the names alone.
26 An Inventory of Government Innovations and Good Governance in Asia

could be agreed upon. As a result in 1997, the agenda setting task of Toyonaka Agenda
21 could begin and by 1999, 101 action plans were established.
The process of agenda setting in Toyonaka Agenda 21 demonstrated the following
traits. First, it was a forum of exchange, learning and debate among the stakeholders;
second, not only planning but actual execution of plans were carried out; and third,
stakeholders could share experiences obtained from executing the plans and understand
each other better (Sato 2006, 170 171). The success of the environment management
projects in Toyonaka city was possible because each participant in the Toyonaka Agenda21
learned from their experiences and respected each other, while sharing the burdens of
responsibilities.
The environment management project of Toyonaka city was successful not only
in fostering mutual cooperation and responsible participation among the stakeholders,
but also in making possible the basis for sustainable improvement through sharing of
experiences and improving on past experiences. Each June and August, Toyonaka city
conducts evaluations of the past year’s environment management projects. In October,
it publishes a preliminary report and holds an environment forum in November where
residents and other private actors discuss past achievements and mistakes, and new project
directions are determined. In December, an environment review is conducted based on
the suggestions and ideas raised in previous meetings. In January of the following year,
the ‘Committee on Environment,’ an executive organization belonging to the authorities
publishes the year’s environment management goals and policy objectives. Finally in
March, a summary report of the previous years’ activities is officially published in an
annual report (Sato 2004, 183 184). The process just described explains the PDCA cycle
mentioned at the beginning. This institutional arrangement has contributed greatly to
raising the transparency and accountability of Toyonaka city’s environment management
projects. Of course, the main executor of these projects is the city itself. But it is also
evident that public administration is greatly improved when residents and companies
play active roles in the betterment of public policy.
Another aspect to take note is the independent nonprofit private organization that
was created. ‘The NPO Action Committee of Toyonaka Agenda 21’ traces its roots
to the working group of the ‘Committee on the Environment of Toyonaka City’. At
that time, local residents participated in the working group as individuals; the working
group played an important role in establishing the basis of the environment management
program through coordinating and handling of procedural issues with more than 150
participants in the meetings, and creating the foundations for citizen administrative
authorities private sector cooperation (Sato 2006, 170 171). Through several institutional
3. Participation and Policy Innovation in Japan 27

transformations, the working group has now become a nonprofit private organization
in charge of various implementation movements carried out in its 4 divisions (Wada
and Taura eds. 2007, 214).
‘The NPO Action Committee of Toyonaka Agenda 21’ demonstrates the necessity
of having a specialized, organized private counterpart that not only can coordinate the
views of the private sector and residents but also contribute to the effective operation
of environment management projects. In fact, ‘the NPO Action Committee of Toyonaka
Agenda 21’ receives considerable financial assistance from Toyonaka city. In 2005, the
organization’s budget depended 83% on the funds from Toyonaka city and 8% from
other projects (Sakai 2007, 95). One can point out to the potential problems of a NPO
receiving financial assistance from the public authorities; usually its independence and
autonomy are questioned in such situation. But the form of financial support provided
to ‘the NPO Action Committee of Toyonaka Agenda 21’ is very unique, in the form
of “expenses” (Sakai 2007, 95). From the viewpoint of Toyonaka city, this method allows
for the transparent spending of environment related expenses while reducing personnel
and material costs to minimum in implementing Toyonaka Agenda 21. From the
viewpoint of ‘the NPO Action Committee of Toyonaka Agenda 21’, it enables the
organization to form stable partnership with the public authorities as well as fund its
on going projects on a continuous basis.
In conclusion, the environment management project of Toyonaka Agenda21 is an
exemplary case where the institutional basis for the long run implementation of the
project was established, and the residents, public authorities and companies formed
collaborative relationships and contributed in their respective capacities. Furthermore,
discussion and learning from experience among the stakeholders was institutionalized,
which led to greater efficiency, transparency and accountability in the execution of the
environment management projects.

3) Consequences of Innovation

The environment management project pursued by Toyonaka city in the 1990s was
a policy response to the rising pollution problems from rapid industrialization and
population increase since 1970. Toyonaka Agenda21 was a model of partnership between
the public authorities, residents and private sector, and through continuous innovation
and efforts Toyonaka city transformed itself into a pro environment city.
The Basic Environment Plan of Toyonaka City’ provided the grounds for action
and planning for Toyonaka Agenda 21; it is still undergoing continuous improvements
28 An Inventory of Government Innovations and Good Governance in Asia

in response to changing socioeconomic realities. In the process, one should take note
how the autonomy of the stakeholders is protected while mutual collaboration and
cooperation are achieved. The environment management project of Toyonaka city has
reached the stage of continuity and stability. The spirit of mutual collaboration and
cooperation and self autonomy are firmly established; the environment management of
Toyonaka city is widely perceived as a success case in the Japanese academia deserving
of study and research.
In particular the details and direction of the action plan and Toyonaka Agenda
21 were carefully implemented, and resulted in the improvement of the city’s environment.
Such visible success enticed the voluntary participation from the residents and cooperation
with local NPOs in the execution of the projects.
One should take particular note of the activities of the NPO Action Committee
of Toyonaka Agenda 21. The projects pursued by this NPO have been quite successful
in the four areas of lifestyle, nature, industry and transportation. For example in the
compost project, 880,000 ton was manufactured in 2003 but by 2005, production
increased to 1 million ton; the compost was distributed to 1,222 people in 2003 to
1,619 people in 2005. Visitors to this project have also increased, from 190 people
in 2003 to 399 people in 2005 (Wada and Taura eds. 2007, 218). This demonstrates
the direct impact made by ‘the NPO Action Committee of Toyonaka Agenda 21’ in
the lives of the residents. This NPO is also an active participant to other local projects
and organizations, such as ‘the Education for Sustainable Development Toyonaka.’11) It
also holds a ‘the Toyonaka Citizen’s Environment Gallery’ each year so that more people
and businesses can learn about the importance of the environment and environment
preservation.
From the establishment of ‘the Basic Ordinance on the Environment of Toyonaka
City’ to the various environment management projects participated by residents and other
stakeholders, the example of Toyonaka city illustrates how accountability, efficiency and
transparency can facilitate the achievements of policy goals and become a model of
good governance.

4) Lessons Learned and Key Recommendations

The success of the environment management projects of Toyonaka city depended

on the interplay of several factors. First, it was evident that when stakeholders each
have their own areas of responsibility and autonomy in pursuing their objectives and

11) For greater details on EDS Toyonaka, visit http://www.geocities.jp/toyonakadake

3. Participation and Policy Innovation in Japan 29

when appropriate evaluation and review procedures are in place, the most effective results
can be achieved. From this perspective, ‘the Basic Ordinance of the Environment of
Toyonaka City’ which provided the principles of participation and cooperation, ‘the
Committee on the Environment of Toyonaka City,’ and the PDCA system in the city
proved to be effective.
Second, the Toyonaka Agenda 21 provided detailed objectives and assigned
appropriate roles to the participants for the efficient implementation of the projects.
The action plan, in which objectives were determined and implementation guidelines
were described in the minutest details helped greatly in the projects’ success.
Third, the organic cooperation between the authorities and residents was possible
because ‘the NPO Action Committee of Toyonaka Agenda 21’ which is a nonprofit
private organization traced its roots to the working group within ‘the Committee on
the Environment of Toyonaka City.’ The existence of a local NPO is vital to the long
run success of environment management.
Fourth, ‘the NPO Action Committee of Toyonaka Agenda 21’ could be effective
because it had a source of stable and continuous funding. Many NPOs have difficulties
in sustaining their movements due to financial problems; in the case of ‘the NPO Action
Committee of Toyonaka Agenda 21,’ the Toyonaka city assisted its long run survival
by being a continuous source of finance. This illustrates the positive effect that public
authorities can play in the long run viability of local nonprofit organizations.
Fifth, one should take note of the fact that considerable time was required before
the environment management project became institutionalized. The experience of
Toyonaka city shows that any programs dealing with environmental issues require
considerable time and patience, and short term planning should be dissuaded.
While Toyonaka city was successful in its environment management project, there
is no guarantee that its success can be replicated elsewhere, given the different
socioeconomic situations of each country. Thus, in order to learn from the experience
of Toyonaka city, the following strategic considerations are needed.
First, a forum should be available where the communities’ residents, public officials,
business and civic organizations meet and discuss the environmental problems facing
the community. The forum could be newly created or existing forums such as village
commune meetings can be utilized. But it is important to have a forum where
environmental issues can be discussed on a continuous basis.
Second, the forum should not be a meeting where public authorities unilaterally
issue directions to the residents and business; rather all the participants in the meeting
should share a collective sense of responsibility and engage in collaboration with one
30 An Inventory of Government Innovations and Good Governance in Asia

another to find solutions to the environment problems. It is important that participants

share the notion that environmental issues, when appropriately dealt with, can raise the
quality of living with little or relatively low costs.
Third, detailed action plans must be established after the initial period of discussion.
What is more, some kind of incentive system should be in place to entice the participation
of the residents; this point is particularly relevant for developing countries lacking public
awareness on the environment.
Fourth, when the details of the action plan are established, it is important to assign
clear responsibilities to the participants so that accountability is institutionalized. Measures
to assist the activities of NPOs and expert groups should be available as well. In many
developing countries local NPOs are either absent or weak; international organizations
can play a positive role by providing valuable assistance unavailable locally.
Fifth, there needs to be a review and evaluation program that analyzes the
achievements and shortcomings of environment projects. Such efforts are the
preconditions for further improvements or readjustment of action plans.
A successful environment management project is one where the above discussed
strategies result in the increase of voluntary participation by the local residents, and
greater accountability, efficiency and transparency in the implementation of such projects.

(3) The Development of the Haraichi District of Ageo City

1) Background

Ageo city is 35 km away from the capital Tokyo, southeast of the Saitama ken.
It is an area of 44.55㎢ with a population of 223,000. The city is dependent on the
agriculture sector, but since 1970 has become a suburban bed town; with the rise of
residential districts many companies have established themselves in Ageo city as well.
Thus in the last 30 years, 4 major residential districts were constructed centering on
Ageo Station, and the city’s population increased rapidly as consequence (Mori 2005,
115)
City planning in Japan is generally carried out under the principle of fairness and
nation wide application of common standards. But in 1992 with the establishment of
‘the City Planning Act,’ the notion that the opinions of local governments and residents
should be incorporated in city planning became widely accepted. In 2000, thanks to
changes in the legal and institutional framework, it became possible for local residents
3. Participation and Policy Innovation in Japan 31

to incorporate their opinions in the planning of the city.12) Such change was possible
because of the rising necessity for autonomous machizukuri(town building) measures
and policies in line with the era of decentralization of administrative authority and
political power in Japan.
In 2000, Ageo city established the city ordinance where the principles of city
planning were outlined. The ordinance defined “machizukuri(town building) is the
systematic implementation of city planning through mutual respect and cooperation
among residents, businesses and the city, where each has its own responsibilities and
13)
roles.” Such principles of city planning were realized in the planning of the Haraichi
district from 2002 to 2003. The major characteristics of the district planning can be
summarized as follows. First of all, the residents led the district planning project on
their own initiative. Ageo city provided the necessary legal, institutional and material
assistance to help the residents pursue their goals, with the objective of getting higher
residents’ satisfaction of the city. Ageo city also solved the problem of lack of expertise
and coordinated the different viewpoints of the local residents by forming an official
contract with outside experts on machizukuri consisting of local NPO, scholars and
experts who could evaluate the district planning plans. The cooperation between the
authorities, academia and private sector in the planning of Haraichi district became widely
known in Japan, and the machizukuri project received the Ministry of Transportation
prize in 2004.

2) Main Features of Innovation

The Haraichi district is located in the southeast of Ageo city. It is an area of about
10.0 ha, consisting of 12 ‘Ban’, 479 households, and 1,396 residents. The district was
first developed in March 1971, but it was a development project directed by the
government; resident led development efforts began only in 2002. The details of the
planning process14) are as follows.
In 2002, several residents of the district delivered their opinion to the city opposing
the then existing development plan, citing the harms to the environment and blocking
of views and sunlight to existing buildings. The department of city planning of Ageo

12) http://www.city.ageo.lg.jp/kakubukakukaichiran/toshiseibi/machidukurikeikaku/tanto/jorei/
suisinjyoureinoomonanaiyou/index.html
13) http://www.city.ageo.lg.jp/kakubukakukaichiran/toshiseibi/machidukurikeikaku/tanto/jorei/
suisinjyoureinoomonanaiyou/index.html
14) For this, see Mori(2005), 116 119 and for the case study on Ageo city refer to “From resident
initiation to development of district: the case of Haraichi District of Ageo city”(2005).
32 An Inventory of Government Innovations and Good Governance in Asia

city held hearings for the residents on three occasions and provided the relevant
information on the district development plans; in those hearings the city suggested to
the residents to come up with their own development plan.
Thus, the residents formed ‘the District Planning Review Committee,’ and began
reviewing the machizukuri plan of the Haraichi district. In June 2003, the first meeting
was held to collect the views of the residents. The meetings provided a forum where
the residents could examine the minute details of the machizukuri plans, such as the
width of each building, the distance from the main road to the buildings, the height
of fences and so on. The residents also visited the Nakasime Greenville district of
Ogawa cho to learn from their experiences. In July of the same year, the committed
published ‘the Review on the Planning of Haraichi District’ based on the results of
previous research.
Various actors were involved in writing up the Review. The public officials of the
department of city planning of Ageo city (in 2006 changed its name to department
of machizukuri) provided the necessary administrative, legal and material services. A
nonprofit organization ‘the City Zukuri NPO Saitama’15) contracted with Ageo city to
provide expert consulting services such as research and writing of reports on the plans,
and communicating with the review committee and its members. In addition, the students
of Shibaura Institute of Technology majoring in machizukuri provided expertise as
members of a resident support group.
The review was examined once again in the second meeting of ‘the District Planning
Review Committee,’ held in July 2003. In this meeting, the committee played a leading
role of forming consent on the plan from the residents. On August 15, a resident survey
was conducted for 10 days, and the response retrieval rate was 96.3% (distributed to
435 households, 419 collected). 95.7% of those who answered the survey agreed on
the basic objectives of the district development plan, including floor space specifications,
building to land ratio, location of walls, height of building, minimum land space, etc,
a total of 10 items. 97.9% agreed to the minimum land space specifications, and 94.4%
agreed to the floor space specifications. On items that did not receive much support
from the residents (they were required to write down why they opposed to the particular
item), the review committee reexamined them and incorporated such views in the final
plan.
After review of the plan submitted by ‘the District Planning Review Committee,’

15) ‘The City Zukuri NPO Saitama’ is an private organization registered in Saitama ken in 2002, engaging
in construction and logging projects, city planning, environment and industrial consulting as well
as providing research and support to various resident initiated social movements. For details refer
to their website http://www.ever green.ne.jp/tsukutama
3. Participation and Policy Innovation in Japan 33

Ageo city confirmed the district development plan in September. The plan was displayed
for public comments for another two weeks, and based on the opinions forwarded, the
plan was readjusted. The plan went under another two weeks of public consultation,
and at the end of the two weeks, the committee on city planning within the city
administration reviewed the plan. After this lengthy procedure, the planning of the
Haraichi district was finally confirmed officially.
There are some notable characteristics in the planning of the Haraichi district.
First, while the residents led the initiative of determining the overall plan of the
Haraichi district, the expert assistance provided by NPO groups, and the administrative
and legal services provided by Ageo city proved to be critical to the successful realization
of the plan. By respecting each other’s expertise and responsibilities, and through mutual
cooperation and debate among the residents, experts, and the city, a better district plan
could be created.
Second, by giving the residents full responsibility and autonomy to come up with
their own district development plan, and providing the necessary institutional support,
Ageo city played an important role in augmenting the transparency and effectiveness
of policy making. This was possible because of ‘the Ordinance on Machizukuri’
established in 2000. According to the ordinance, the city master plan of Ageo city should
be created through the cooperation between residents, businesses and the city. In
particular, the ordinance outlines the principles for 1) the provision of funds to assist
the activities of civic organizations, 2) the institutions and policies to realize
machizukuri(town building) and 3) sending experts and specialists16) (12 times a year)
to assist the residents so that appropriate technical advice is fully provided. In addition,
the ordinance obligates the city to form and manage a ‘Committee for the Machizukuri
of Ageo City’ consisting of 15 people representing various sectors of society; the
committee is required to write a report on the progress of the machizukuri projects.17)
The successful development of the Haraichi district was possible because of the
active participation from the residents, which was mandated by law in the city ordinance.
Ageo city made great efforts to persuade the residents on the necessity of the

16) Ageo city officially recruits machizukuri experts and companies; the applicants should have a
minimum of 3 years experience in city development and planning, reconstruction and architectural
drafting, accounting, land development, and legal consulting. Applicants who have previous
experience in machizukuri are given additional financial incentives. Refer to
http://www.city.ageo.lg.jp/kakubukakukaichiran/toshiseibi/machidukurikeikaku/oshirase/matiduku
risenmonnkaboshuu/index.html
17)
http://www.city.ageo.lg.jp/kakubukakukaichiran/toshiseibi/machidukurikeikaku/tanto/jorei/suisinj
youreinoomonanaiyou/index.html
34 An Inventory of Government Innovations and Good Governance in Asia

development plans, and instilled measures that prevented possible disputes, financial
scandals and/or resistance from the residents. The efforts of Ageo city vitalized resident
participation in local public policy, reduced unnecessary waste and redundancy in policy
making, and improved the public satisfaction on the city’s services. In short, Ageo city
succeeded in improving the efficiency of its services to the people.
Third, the role of private organizations such as NPOs and student groups were
critical in the decision making process of the Haraichi district planning. Especially for
the students, the event provided valuable opportunities to practice what they learned
at school; for the residents of Ageo city, the participation of university students in the
project solved the problems of limited human resources and time. The planning of
the Haraichi district demonstrates the importance of the cooperative relationship between
academia, city officials and the residents which had a positive impact on the effectiveness
of policy.

3) Consequences of Innovation

The planning of the Haraichi district of Ageo city shows how the initiative and
efforts of a local government that puts the interests of the residents first can result
in greater transparency and efficiency in policy making.
The Haraichi district began development since the 1970s, but until recently the
development strategy and policy came from above in top down fashion led by the
government. This was because decentralization of political and administrative authority
had not occurred in Japan until the 1990s, and the central government maintained its
control over local development. The legal basis for autonomous policy city planning
began in the 1990s, but mandating the participation of local residents and the institutions
to support them were established only by 2000. The planning of the Haraichi district
was the first major case where Ageo city implemented the policy directives that mandated
cooperation with the local residents and other stakeholders, as outlined in the city
ordinance.
The establishment of the Ordinance on Machizukuri, and the planning of Haraichi
district based on the ordinance, created remarkable results. First, the residents were in
charge of preparing and researching as part of the decision making process on planning
for the Haraichi district. The fact that around 96% of the residents were in favor of
the plan submitted by the review committee shows the trust shown by the residents
on the plan. The residents took responsibility over the plan, through discussion, building
consensus and winning over opposition to the plan; the results were unprecedented in
3. Participation and Policy Innovation in Japan 35

the entire history of Japan’s city planning. The residents demonstrated the full potential
for self rule and autonomy.
Ageo city provided the necessary public services to help the residents’ activities.
For instance, it provided all the information related to city planning and institutional
and legal consulting services, as well as providing experts to advise the residents. These
measures had the effect of reducing redundancy and waste in decision making and
supplementing the lack of expertise of residents. The basis of a cooperative model was
formed, in which the residents and the city, each in their own capacity and responsibilities,
contributed to the development of the city.
Such efforts by Ageo city were widely appreciated in Japan, and the city considers
the Haraichi district planning as its greatest policy achievement. On the website of Ageo
city, detailed information on the machizukuri(town building) and the city master
development plan are available. The Haraichi district planning project is now widely
perceived as a representative policy model for city planning. Furthermore, it has become
a model of democratic governance between the residents, private sector and the city,
to be studied by scholars in Japan.

4) Lessons Learned and Key Recommendations

The success of the Haraichi district planning of Ageo city was thanks to the
introduction of democratic city planning, possible due to the following factors.
The government’s shift to decentralization and promotion of regional autonomy
formed an important background. Not only was policy authority transferred to the local
governments, but institutional measures were set up to invite participation by residents
in the city’s policy making; such opportunities were guaranteed by law. This shows that
successful governance lies in the activation of local residents, and this principle was
supported both by the central and local governments.
Second, even if the institutional framework for resident participation exists, without
the voluntary participation of residents in the city development projects, the planning
would be conducted unilaterally by the public authorities. But in the case of the Haraichi
district, the residents actively forwarded their views to the city, which became the basis
for private public cooperation. Not only that, the residents themselves took responsibility
to adjust the details of the city plan and played a major role in forming public consensus
on the plans. Such active and responsible participation by the residents proved to be
a vital factor behind the success of the Haraichi district planning.
Especially, the residents worked hard to prevent distrust and misunderstanding
36 An Inventory of Government Innovations and Good Governance in Asia

among the residents in the process of carrying out the plan; this was possible because
of the spirit of mutual consent and collaboration developed among the stakeholders.
The Haraichi district planning shows that the residents’ participation alone is not enough
to ensure the success of city development. What was essential was the culture of
democratic debate and consensus building that developed among the residents.
Third, even if there is a strong policy will from the central government and
willingness to participate on the part of residents, it is ultimately the local government
that is in charge of implementing development plans. If Ageo city had not been eager
to incorporate the views of the local residents and provide the necessary institutional
support for their continued participation, the possibility for democratic governance and
policy making would be very low. In this regard, Ageo city deserves credit for providing
the legal and institutional framework as well as detailed action plans for the successful
implementation of city development plans. The city demonstrated open thinking and
attitude toward its role and its relationship with the local communities.
Fourth, it is important for the residents to possess the necessary expertise and
knowledge on city development in order to ensure the effectiveness of public
participation. But in reality, it is nearly impossible for residents to acquire such capacity
in short time. The assistance from expert groups is necessary; in the case of Ageo city,
local NPOs and student groups played such role. Not only did they provide expertise
and advise, but also played the role of coordinator of the various opinions forwarded
by the local residents. These groups could play such role because they succeeded in
obtaining the trust and confidence from the local residents.
The case of Haraichi district shows that three elements are necessary for the
successful implementation of city development plans. First is a local government that
is aware of the necessity of cooperation and autonomy among the stakeholders. Second
is the existence of residents possessing expert knowledge who are familiar with the culture
of democratic debate and consensus building. Last is the existence of expert groups
and civic organizations that not only provide expertise to the city and residents, but
also play the role of moderator.
If the above three elements are lacking, practical alternatives would be the city
providing the basic master plan while the residents given some power to comment or
modify the plan. Any city development plan faces the potential problems of policy
ineffectiveness, opaque public administration, public distrust of the city, and conflict
among the residents; the local public authorities should be aware that these problems
can become major obstacles to the proper implementation of development plans, and
therefore need to be addressed proactively. This means the city should stick to some
3. Participation and Policy Innovation in Japan 37

basic principles and procure outside expertise to moderate the differences of views among
the various stakeholders.
The actual policy making process of the Haraichi district took about two years.
Public policy projects initiated by the residents are bound to take some time. Thus,
there can be issues of policy efficiency in comparison to the top down approaches taken
by the government. But even in this case, such problems can be ameliorated by the
use of outside expert groups, and the political will of the local residents and government.
Another element to consider is the size of the Haraichi district and the small number
of population. However one should question whether the approach taken in the district
planning of Haraichi district with only around 480 households can be replicated in larger
districts with more population. The provision of legal and administrative services by
the city is not affected by the size of the district. But the number of people living
in the district and the actual size can be a major variable affecting the decision making
of residents. In a large district, forging consensus among the residents can be more
difficult, and residents may opt for a top down decision making approach instead of
the horizontal approach taken by the Haraichi district.
Hence, in order to replicate the experience of the Haraichi district in other countries
or regions, the following factors should be considered.
Since city planning is intimately related to the quality of life of residents, the residents
should share the notion that voluntary and active participation in the city’s policies is
necessary. Thus elements of democratic citizenship such as a culture of debate and
consensus building should be in place and maintained throughout the planning and
implementation phase of the development projects. Democratic citizens are cultivated;
hence the relevant education is required. At the same time, experts on city development,
specialized organizations and activists should be cultivated as well. Such actors play a
vital role in providing substance to development plans as well as minimizing unnecessary
trial and errors in policy making.
In countries where the institutional basis of citizen participation is not established,
it is up to the government to come up with strategic partnerships with the residents,
and build the institutional foundations for private participation in public policy. It may
be necessary for the government to educate the public or promote the benefits of
government local residents expert group partnerships, and how such collaboration results
in effective public policy.
In cases where the institutional framework for citizen participation is established
but the level of public awareness is low or expert groups are lacking, the government
can play a leading role in inducing the participation of the residents. For instance, the
38 An Inventory of Government Innovations and Good Governance in Asia

government can form partnerships with local universities or educational institutions and
conduct education and training programs designed to produce democratic citizens and
policy experts. Another strategy could be one of engaging the residents in less sensitive
and small scale projects where they learn the importance of participation; the benefits
of such strategy can be amplified by carrying out public relations campaigns that educate
the residents on examples of success in other countries.
The policy approach and strategy taken by countries may differ from one country
to another; the main reason is found in the unique circumstances that each country
faces. But every country should possess local residents who are determined to solve
the policy issues in their region through their own efforts, a government that is willing
and capable of providing the relevant assistance and support to the residents, experts
who provide the relevant knowledge and skills as well as coordinating the relationship
between the residents and public authorities. It is to the extent that these three groups
of actors take on the respective functions and share the responsibilities that the
foundations of democratic governance can be realized.

(4) Concluding Remarks

The environment management project of Toyonaka city was a remarkable

achievement and model of partnership at the local government level. Rather than adopting
the top down approach, the authorities incorporated the principles of participation,
mutual recognition and autonomy of the public officials, residents and businesses. The
project showed that assigning autonomy and responsibility to each actor and through
a democratic problem solving approach, it was possible to create alternatives to
environmental pollution problems and build self sustaining communities.
Countries have different requirements and needs depending on the particular
characteristics of the environment, and as Toyonaka city has shown, tackling the issue
of environment pollution requires considerable time and resources. Hence, applying the
experience of Toyonaka city should be approached with caution and appropriate strategies
may be necessary. Nevertheless, Toyonaka city has shown the effectiveness of collective
approaches to quality of life issues which are both a local and a universal problem.
The city development project in Haraichi district of Ageo city provides another
example of good governance. On a policy issue directly related to the lifestyle of the
people, the Haraichi district planning case showed that mutual cooperation among the
local residents, public authorities and expert groups can be much more effective than
3. Participation and Policy Innovation in Japan 39

the traditional top down government led city development projects. The collaborative
approach taken by the stakeholders from the creation to implementation of the project
resulted in greater effectiveness and transparency of the city planning project. Such
example may be found in advanced countries where a tradition of open public policy
making, decentralization of government and high level of public awareness exist. But
the success of the Haraichi district can be applied in other situations and in countries
that do not have a developed local government system; the experience showed that a
non political approach to governance among local stakeholders can be realized at relatively
low cost.
40 An Inventory of Government Innovations and Good Governance in Asia

4. Examining Korea’s Good Governance in

Innovation Projects
Sangjoon Ka
(Dankook University)

(1) Introduction

Korea has experienced one of the fastest economic growths in the last fifty years,
and its economic development model cast a significant influence on other developing
countries with similar developmental aspirations. On the other hand, Korea’s political
history is fraught with turbulence, not unlike that of many developing countries that
achieved independence since World War II. Korea went through a series of tumultuous
authoritarian regimes until 1987. However, since the inauguration of the new constitution
th
under the 6 Republic, Korea’s political development has been remarkable. We have
witnessed peaceful elections and transfer of power, which reflect Korea’s political stability
and democratic achievements.
Despite these remarkable achievements, real problems exist that deter Korea’s
political development. In particular, corruption is a pernicious disease that interferes with
political and economic development. The seriousness of corruption lies in the fact that
it results in loss of confidence in government, which in turn leads to instability and
crisis of the state, not to mention rampant government inefficiency. Given the political
and economist costs resulting from corruption and associated political instability,
corruption is an obstacle to national development. According to the Corruption
Perceptions Index by Transparency International, an anti corruption NGO, Korea rated
5.0 (40 out of 159 countries) in 2005, 5.1 (42 out of 163 countries) in 2006, and 5.1(43
out of 180 countries) in 2007. This is far below the average 7.18 rating in thirty OECD
countries. More problematic is the fact that this index has stagnated at the same level
for two consecutive years.18)
In addition, the high concentration of political, economic and social activity at the
central level of government acts as a barrier to the development of regional governments.
The era of autonomous rule in the Provinces has begun, but decentralization of power
has not yet resulted with the desired effect in Korea. Currently 75% of government
administrative activity occurs in the central government; thus with the exception of

18) http://www.transparency.org/
4. Examining Korea’s Good Governance in Innovation Projects 41

administrative activities unique to each Province, it is the central government that is

in charge of the majority of administrative functions. Despite the fact that the Provinces
have serious fiscal deficits, we have yet to see the real transfer of authority and budget
from the central government to the Provinces. Such state of affairs goes counter to
the principle of augmenting efficiency and accountability in the decision making of the
people of each Province, and ultimately to the realization of grass roots democracy.
At the same time, the bureaucratic red tape, “a peace at any price” attitude
and inertia by bureaucrats are major factors that inhibit the improvement of administrative
services to the people. Such phenomenon is reflective of the lack of democratic political
control over the bureaucracy, and that there are major problems in its responsiveness
and democratic character. Traditionally, bureaucrats were an elite group that played an
important role in policy making and implementation in Korea. Especially, prior to
democratization, politicians needed cooperation from the bureaucracy to maintain power
and thus conferred great power to bureaucrats as a group. This resulted in a tradition
of bureaucrat oriented administration (rather than public oriented administration) and
underdevelopment of administrative services to the people.
With increasing demands for reform of bureaucrats by civil society, several programs
have been adopted designed to evaluate bureaucratic performance with the purpose of
eliminating corrupt or incapable bureaucrats from office. Especially since the advent of
autonomous rule, local governments are among the most visible actors that are attempting
to improve their administrative services to their constituencies. But there is still much
to be done in this regard.
The problems introduced above are challenges facing governments that confront
issues of government inefficiency and lack of trust by the public. Any solution to this
problem, however, must involve the active participation by civil society. Particularly with
regard to problem of corruption, one of the representative areas of government failure,
it requires the active input and participation by the public in order for anti corruption
measures to take significant effect.
Oversight over public officials and decentralization of power is possible through
participation by the local residents and local governments. In the past, the central
government used to emphasize the limited capacity of local governments and thus were
reluctant to transfer budgetary and policy authority. But with thirteen years of
autonomous rule of the provinces, many changes are occurring in the local governments.
Under the leadership of elected leaders, local governments are behind major political,
social and economic reforms. In particular, they are eager to get input and participation
from the local people through innovative policy programs. Such programs aim to improve
42 An Inventory of Government Innovations and Good Governance in Asia

government transparency and augment administrative service, and have resulted in greater
democratic control over local government and public officials.
The local elections of 1991 revived regional autonomous rule that was forbidden
since 1961. But genuine autonomous rule in the Provinces began in 1995 with the
elections of local assemblymen and local government heads. The institutions of Korea’s
autonomous rule allow the people to directly participate, discuss and resolve issues that
are most relevant to their actual lives. They not only embody democratic ideals and
principles but also act as educational vehicle to learn about democracy. By enlarging
the venues of political participation and through self motivated problem solving
approaches regarding common problems, it is possible for the local residents to become
active political actors that demand a variety of administrative services.
Since direct elections by the people of their local governments and representatives
to the local assembly, the decision making process of local governments has become
more accountable and responsive to the residents’ demands. As the people raised issues
of transparency of government projects, local governments were forced to initiate reform
of administrative services and greater transparency in policy decision making. These
governments encouraged participation and input from the residents in their efforts to
improve democratic accountability, responsiveness and responsibility to the people. Such
efforts resulted in more effective government and sound policies, and the efforts by
the local governments in Korea are exemplary cases of good governance.
The reform efforts by local governments in Korea are showcase examples of good
governance, and other foreign governments may learn much from the Korean experience.
This study examines two cases, the “Citizen Participatory Budgeting System” and the
“Public Project Quality Management OK Program” which are representative examples
of good governance. Specifically, the Citizen Participatory Budgeting System of the
Buk Gu of the city of Gwangju, and the Public Project Quality Management OK Program
of Yeongdeungpo Gu of the city of Seoul are examined in this research.
The Citizen Participatory Budgeting System was first introduced in Brazil, which
spread to the rest of Latin America and Europe subsequently. Korea’s Citizen
Participatory Budgeting System has similarities with that of Brazil, but shows differences
in the manner it was introduced and implemented. The case study of the Buk Gu,
Gwangju selected in this research will show how these differences emerged. The Public
Project Quality Management OK Program has shown great success in enhancing
transparency and accountability of government by ensuring public participation in the
entire process of management; 47 organizations are currently benchmarking this model
and several local governments are considering its adoption. The research undertaken
4. Examining Korea’s Good Governance in Innovation Projects 43

in this study will show how the program was introduced and what changes were brought
about as a result.

(2) The Citizen Participatory Budgeting System of Buk Gu,

Gwangju

1) Background

Buk Gu is a lower autonomous government of the Gwangju Metropolitan City, and

consists of 26 administrative districts. It has an area of 121.75km2 which is 24.3% of
Gwangju; the population is 463,000, which is 32.6% of the population of Gwangju.
Based on 2006 statistics, 904 public officials work for Buk Gu and its fiscal independence
is 17.3%, a very low level but comparable to the level of other local governments. There
are 43 primary schools, 26 middle schools, 18 high schools and 2 universities. Given
the fact that Buk Gu comprises mostly of the city, the percentage of the workforce
in agriculture, forestry, fishery and mining is very low, while the percentage in wholesale
and retail industries is the highest followed by manufacturing and construction.
The Buk Gu office set out the catchphrase “Realizing Participatory Self Rule” and
encouraged the participation of the residents in major decision making and policy
implementation. As part of this effort, the ward looked to the citizens’ participatory
budgeting system, since it enhanced administrative transparency and fiscal democracy.
Around that time, the opaque decision making of public officials in the Buk Gu office
was blamed for budget waste and fiscally irresponsible management. In particular,
inefficiency in budget management due to politically motivated budget distribution or
pressure from interest groups was seen as a major problem (Kwack 2007). Inadequate
monitoring over the execution of budget was another issue raised in the context of
transparency. But the most serious problem was that the demands of the residents were
not reflected properly in planning the budget, and complaints about the fairness of budget
distribution led to high popular distrust over the Buk Gu.
The need for and legitimacy of public participation were discussed given the reality
that the budget for local government consisted of local taxpayer’s money. The Citizen’s
Budget Monitor Group, a local NGO that had been engaged in raising public awareness
of fiscal responsibility of local government, proposed the introduction of a citizen’s
participatory budgeting system on the National Taxpayer’s Day March 3, 2003. A member
of Citizen’s Budget Monitor Group, the Participatory Government 21 proposed to the
44 An Inventory of Government Innovations and Good Governance in Asia

local government of Gwangju to introduce a similar system proposed in Buk Gu (Kwack

2007).
The Mayor of Buk Gu, who realized the seriousness of budget misappropriation
and inefficiency, decided to introduce a citizens’ participatory budgeting system on May
2003. An education program was offered to the local council that explained the purpose
of this system, and through several rounds of debate with public officials, the Mayor
began to persuade public officials and the regional assembly. Around this time, the
Ministry of Government and Home Affairs announced the 2004 Guide to Compilation
of the Budget for Local Governments on July 2003. In this guide, the Ministry
recommended citizen’s participation in the drawing up the budget of local governments.
Such background provided fuel for the adoption of the Citizens Participatory Budgeting
System in Buk Gu.
At the same time, the Buk Gu held a public hearing to open public debate on
the adoption of the Citizens Participatory Budgeting System. After the official adoption
of the system, its actual implementation began with input from specialists and NGO.
By the time when Buk Gu officially inaugurated the Citizens Participatory Budgeting
System in 2003, it was modified and adjusted to the particular situation and needs of
Buk Gu.

2) Main Features of Innovation

Starting from 2004, Buk Gu began preparations for making the ordinance regarding
the Citizens Participatory Budgeting System. The division in charge of budget planning
came up with the initial draft, which was subsequently reviewed by the Research Group
on the Citizens Participatory Budgeting System and passed into law titled the Ordinance
on the Buk Gu Citizens Participatory Budgeting System by the Buk Gu Assembly. Soon
thereafter, the enforcement regulations were made in order to enhance public participation
and continuous implementation of the law. The existing website of Buk Gu was
remodeled to allow residents’ participation in the budget planning process. In order to
improve the efficiency of budget management, a School of Citizen Budgeting in charge
of efficient management of budget was created and operated upon the recommendation
of the Participatory Budgeting Civil Commission. Furthermore, preliminary, general and
issue specific presentations regarding the budget planning were held in order to aggregate
the views of the residents and reflect them in the budget planning process.
However, the 2004 ordinance failed to bring about genuine public participation in
the budget planning process; critics pointed out that residents’ input in the budget
4. Examining Korea’s Good Governance in Innovation Projects 45

planning process remained only at the consultation stage. Buk Gu attempted to improve
the system in 2006 through a new ordinance. In addition to the Participatory Budgeting
Civil Commission, the Regional Citizens Association for Budgeting was created and
cooperation between the residents and public officials of Buk Gu was systematically
organized. In addition to the website on budget, a chat room was also created, as well
as a portal site that facilitated public participation in the budget planning process both
off line and on line.
The process of budget planning in Buk Gu which consisted of 5 stages changed
into the current 14 stages. In the past there were only the 5 processes consisting of
1) decision to plan budget, 2) submit budget request, 3) review/adjust budget, 4) confirm
budget and 5) vote at the local Assembly. The current 14 stages consist of 1) discuss
at the regional meeting, 2) issue guidelines for budget planning (3) public debate on
the budget (4) aggregating residents’ opinion and public exhibition of the budget request
on the Buk Gu website (5) submit budget request (6) public display of budget request
(7) review/adjust budget (8) public hearing on budgetary policy (9) discuss budget
at the Assembly prior to public exhibition of budget plan (10) public debate on the
actual budget plan and exhibition of the budget plan (11) mediation committee on
the budget (12) confirm a budget bill (13) submit to Assembly for vote (14)
review of residents’ opinion.
The similarities between Korea’s Citizens Participatory Budgeting System and Brazil’s
Porto Alegre lie in the policy background and policy direction, especially in the fact
that both programs raised the level of popular participation in government decision
making and improved fiscal democracy. But while the regional government of Brazil
introduced the system in order to combat long standing corruption problems, Buk Gu
introduced the system in order to strengthen the public’s participation in autonomous
rule of local governments. Thus, while Brazil’s Porto Alegre emphasized fairness of
the budgeting system, Buk Gu was concerned more with efficiency. In other words,
while the Porto Alegre program aimed to redistribute the budget for the poorer regions
and therefore was concerned less with efficiency (Novy and Leubolt 2005), the Buk Gu
program aimed to improve budgetary efficiency by focusing on proper planning of the
budget. Also, in the case of Porte Alegre, participation from the lower class and women
were very high (Novy and Leubolt 2005); in contrast, a broad spectrum of people
participated in the Buk Gu program. In particular, since the Buk Gu program was
accessible via the internet, it enabled active and easy participation on the part of the
residents. The local government could actively utilize the internet to get the residents’
opinion and acquire information on their needs. Additionally, the process of participation
46 An Inventory of Government Innovations and Good Governance in Asia

influenced the policy making process and had a strong impact on the planning of the
budget.

3) Consequences of Innovation

The adoption of the Citizens Participatory Budgeting System brought about

significant changes in the manner of planning the budget. Information critical to planning
the budget for example, the actual budget request became publicly available in hearings
held to explain the budget. Anyone interested in the budget could look into it as
information became available on the internet. Opportunities for the people to forward
their opinions and participate in planning the budget became institutionalized by holding
public hearings and citizens’ participatory committees.
The Ministry of Government Affairs and Home Affairs views the Citizens
Participatory Budgeting System as a success that allows for the people to evaluate the
appropriateness and necessity of the budget and the anticipated results of the budget,
and improves the quality of life of the people through the most efficient distribution
of the budget (MOG, Ministry of Government Affairs and Home Affairs 2007). In
fact, the Citizens Participatory Budgeting System is successful because it allowed for
democratic control over the government’s budget by improving transparency in budget
planning, and accountability, efficiency and responsiveness over its use, ultimately
reflecting the preference and opinions of the local residents.
The efforts of Buk Gu resulted in a rewriting of the local governments’ fiscal
regulations in June 2005, as the Citizens Participatory Budgeting System was officially
incorporated by the central government. The success of Citizens Participatory Budgeting
System affected other local governments’ budget management. As many NGOs are
pressuring their local governments to adopt the Citizens Participatory Budgeting System,
it is expected to be widely adopted.

4) Lessons Learned and Key Recommendations

In retrospect, there were three major hurdles in adopting the Citizens Participatory
Budgeting System for Buk Gu. While it was true that fiscal democracy is realized via
citizens’ participation, educating the residents about the budget, and reflecting their views
in the planning of the budget was not an easy task. To resolve this problem, Buk Gu
got help from a local NGO, the Participatory Self Government 21, and operated an
educational program titled the “Resident Budget School.” The school offered education
4. Examining Korea’s Good Governance in Innovation Projects 47

to the residents and participating members of the budget committee, as well as to the
public officials that were in charge of budget planning. Since 2007, the school is operated
by the Citizens Participatory Committee on the Budget that took over the task from
Participatory Self government 21. Also, in order to encourage the public’s interest, an
online portal site titled “e Budget” was set up in April 2007 that functioned to aggregate
the opinions of the residents. A cyber community that conducted surveys and offered
various information and data to the residents proved to be effective in augmenting
collective interest and participation in the budget planning process.
The real challenge to be overcome was in the passiveness of the public officials
of Buk Gu. Giving up their exclusive authority over budget planning to the public and
sharing their powers was not easy to them. Furthermore, having the local residents
participate in the budget planning process meant more administrative work, thus the
negative attitude toward adopting the system. This was overcome thanks to the strong
political will of the Mayor who even resorted to bringing in specialists to educate the
officials about the necessity of opening up the decision making process and to bring
about a change in their attitudes. In addition, the Mayor designated a special task force
to facilitate the budget planning process and improve the administrative efficiency and
effectiveness of the Buk Gu.
In order to introduce the Citizens Participatory Budgeting System, Buk Gu needed
approval from the local assembly. However, the view of the local assembly was not
so favorable, as it regarded the decision of Buk Gu as a violation of the local assembly’s
privileged authority in reviewing the budget. To resolve this misunderstanding, the Mayor
held several open house sessions and seminars that explained that the Citizens
Participatory Budgeting System was not about determining the budget (authority over
budget approval) but about planning on the use of the budget. Buk Gu got help from
within the assembly, for several assemblymen that understood the purpose of the Citizens
Participatory Budgeting System and were in favor of adopting it led the effort to persuade
others that were skeptical about the system.
In order for the Citizens Participatory Budgeting System to take root, it is important
to overcome the above mentioned hurdles. In particular the role of the NGO and the
head of the local government is paramount; the political will and power to steer the
administrative apparatus and persuasion skills are important variables. In addition, the
residents must agree upon the necessity to adopt the system as well as possess the relevant
expertise over budget planning. In other words, political and economic rationality are
necessary factors for the successful operation of the Citizens Participatory Budgeting
System (Ahn and Lee 2007). Participation by the residents should augment the political
48 An Inventory of Government Innovations and Good Governance in Asia

rationality of the budget planning process and guarantee its economic rationality through
resolving the problems of asymmetric political power and influence.

(3) Public Project Quality Management OK Program of

Yeongdeungpo Gu, Seoul

1) Background

Yeongdeungpo Gu is situated in Seoul, next to the Han River. It consists of 22

administrative wards. Within Yeongdeungpo Gu lies Yoiido, the number one political
district of Korea which houses the National Assembly as well as major media such
as the KBS, MBC, SBS, the Donga Ilbo. Also major financial institutions and the Korea
Stock Exchange, as well as the Korea Chamber of Commerce, the LG Building, 63
Building are all situated in Yoiido, which makes its nickname the “Manhattan of Seoul.”
2
The total population of Yeongdeungpo Gu is 409,000 and the area is 24.56km which
is 4.05% of the entire area of Seoul. Within Yeongdeungpo Gu, 7.76 km2 consists of
2 2
residential district, 5.48 km consists of semi industrial district, 2.76 km consists of
2
commercial district and 8.56km consist of parks and recreational (Green) districts. Thus
Yeongdeungpo Gu has a high ratio of residential and Green districts. It has a 70.2%
financial independence ratio, which is quite high compared to other local governments.
Based on 2007 statistics, 1,306 public officials work for Yeongdeungpo Gu. 9 high schools,
11 junior high schools, 23 elementary schools and 45 pre elementary schools are situated
in Yeongdeungpo Gu, and there are no universities.
Yeongdeungpo Gu’ persistent problem of corruption played a major role in the
adoption of the Public Project Quality Management OK Program. In the past,
construction disasters such as the collapse of the Sampoong Department Store, the
Seungsoo Bridge etc., resulted in deep rooted public mistrust of government procurement
construction projects19). Such construction projects were perceived to be unsafe and
unreliable to the public’s eye. What is more, the bidding and selection process revealed
major corruption problems, and such problems usually resulted in major safety disasters
in the construction process. In Yeongdeungpo Gu, the former Mayor was arrested on
corruption charges. In a nutshell, Yeongdeungpo Gu was in dire need to adopt effective
measures to prevent corruption.

19) In general, government procurement projects refer to the construction projects issued by the city,
ward, and other administrative offices.
4. Examining Korea’s Good Governance in Innovation Projects 49

In Yeongdeungpo Gu, a small group of 20 individuals in management that called

themselves “Glow of a Firefly” aimed for reform and change. In March 2005, they
organized a workshop to determine the problems facing Yeongdeungpo Gu and identify
innovation projects, as well as identify factors that may bring down Yeongdeungpo Gu
altogether. In this workshop they concluded that corrupt procurement construction
projects resulted in threat of the resident’s lives and welfare, and unnecessary or
uncomfortable facilities that do not gain the support of residents will ultimately result
in the demise of Yeongdeungpo Gu.
In order to analyze systematically the factors behind faulty procurement projects,
a survey was conducted from 620 people involved in the construction companies,
construction administrators, planning departments at the city and Gu level. The survey
concluded that the most serious problem of Yeongdeungpo Gu was in the poor
on the site administration and management of construction projects, followed by
mismanagement of quality control, inadequate data management, lack of expertise in
the public officials (MOG 2007). Also, a study that compared domestic and overseas
construction project and procurement processes were conducted in order to determine
the factors of faulty construction.

2) Main Features of Innovation

Based on the results of the study, Yeongdeungpo Gu developed a system that could
supervise the entire process of construction procurement on a real time basis by the
residents and public officials. An internet system that could manage the entire process
from the initial stage of construction to the post construction stage was developed.
The system, titled the Public Project Quality Management OK Program allowed for real
time supervision of the construction process on Yeongdeungpo Gu’s website. In May
2005, Yeongdeungpo Gu declared ‘quality management of procurement projects’ as their
main innovation goal, and proclaimed 2005 as the ‘year that ends all faulty procurement
projects.’ Yeongdeungpo Gu formed a ‘faulty procurement project prevention team’ and
began a series of quality management projects. In February 2006, the comprehensive
plan for the Public Project Quality Management OK Program was set up, which was
followed by the creation of taskforce of 23 employees that would oversee the
implementation of the program. In addition, substantial supervisions of procurement
projects were conducted through the Ward Supervisor System. The Ward Supervisor
System consists of 11 special supervisors, 22 general supervisors and 2 auditors. The
special supervisors are experts in construction while general supervisors are representative
50 An Inventory of Government Innovations and Good Governance in Asia

residents of Yeongdeungpo Gu, such as the head of a Tong (administrative district) or

a self governing commissioner. Special supervisors visit the construction sites and
determine whether the project is executed in accordance with the terms of the contract.
In June, Yeongdeungpo Gu issued regulations concerning quality management of projects,
and the Public Project Quality Management OK Program was selected as an innovative
local government project by the Ministry of Government Affairs and Home Affairs.
Yeongdeungpo Gu created a manual for efficient management of the Public
Project Quality Management OK Program by the residents. Interested residents or
stakeholder could easily learn how to use the program, and the manual detailed key
aspects of the procurement process and check points, making it easy for users of the
program to properly monitor the process of procurement construction projects.

3) Consequences of Innovation

As seen in <Figure 4.1>, residents can easily click on the “The Public Project Quality
Management OK Program” in Yeongdeungpo Gu’s website, where real time monitoring
of procurement construction projects is possible. The web cameras situated in the various
constructions sites allow for 220 times zoom and 340 degrees coverage. Thus it is possible
for anyone to watch the construction process any time anywhere without having to
personally visit the site. The Public Project Quality Management OK Program resulted
not only in greater participation of residents but also convenience in management of
the projects for the public officials since they do not have to waste any time conducting
on site inspections of all the construction sites in Yeongdeungpo Gu.

<Figure 4.1> Homepage of Yeongdeungpo Gu

4. Examining Korea’s Good Governance in Innovation Projects 51

The residents were satisfied with the Public Project Quality Management OK
Program since it was executed in conjunction with existing participatory evaluation
programs such as the ‘residents’ evaluation program’ and ‘resident auditor system.” From
the beginning of a project to the final end, it became possible for residents to participate
in the decision making and monitoring of construction projects; as a consequence,
problems associated with faulty constructions could be minimized. In particular the entire
process of selecting the construction company to finalization of construction and
post construction management was improved, thanks to quality control over each stage
(MOG 2007). For instance, the selection of a construction company was done after
a thorough performance evaluation, and with respect to the actual construction, constant
monitoring over the construction site allowed for competitive selection of construction
companies. Post quality control was possible by rewarding good companies by giving
awards as well as penalizing poor performers by issuing negative evaluation reports.

<Table 4.1> Public Procurement Construction Projects: Problems and

Solutions
solution
Problem identified
System and Manual Improve the system
On site monitoring through
Mismanagement on site Expand role of resident auditor
web camera
Poor quality control over Introduce performance evaluation
Use of Checklist
construction companies system
Set up DB, store
Submission of construction plan in
Mismanagement of data construction plan
electronic form
electronically
Supply technical and expert
Lack of expertise Develop custom made program
information
Introduce evaluation programs by
Other Post evaluation function
residents, penalty points system

Source: MOG 2007

In sum, the Public Project Quality Management OK Program solved the 4 problems
of inadequate monitoring in the construction sites, poor quality control over construction
companies, inadequate data management and lack of expertise in the public officials.
As seen in <Table 4.1>, the program increased the efficiency and effectiveness of
public procurement projects. The Public Project Quality Management OK Program
shortened the time needed for internal reporting, and simplified administrative work by
reducing the need for on site inspection. In addition, it became possible to save cost
52 An Inventory of Government Innovations and Good Governance in Asia

by minimizing personnel and management expenses. But most important, by opening

up the construction process it became possible for the public to participate in each
stage of the construction process. By preventing corruption and potentially faulty
construction, it was possible to regain the trust of the residents and shift in public
perception of procurement projects.

4) Lessons Learned and Key Recommendations

Yeongdeungpo Gu initially faced several difficulties in adopting the Public Project

Quality Management OK Program. But the dire need for such program worked in favor
of its adoption. However, the public officials in charge were understandably reluctant
about the program. They did not like the fact that their work would be opened up
to the public, and there would be additional work due to computerization of the system.
They also feared retribution from the auditing authorities as the work process became
transparent. In particular, given the complexity of construction projects, they questioned
whether it was possible to systematically understand and review the entire process.
To deal with such problems, Yeongdeungpo Gu initiated several quality control
seminars on government procurement projects and prize competitions with the aim of
spreading and sharing work related knowledge and improvement in work procedure. The
residents were encouraged to participate in the seminars and in the public hearings held
to aggregate local and expert opinions. These efforts were accompanied by
computerization of the system so that work efficiency improved. In other words, instead
of the fear of audit, the public official could expect real benefits in ex ante review
mechanisms and transparency in administration.
The Public Project Quality Management OK Program required high level of
expertise in reviewing the construction process. Thus Yeongdeungpo Gu operated the
“faulty construction prevention team” and “quality control task force for procurement
projects” and other seminars such as the “innovation forum” (MOG 2006). By acquiring
help from quality control experts, Yeongdeungpo Gu developed its own quality control
system and management manual to tackle problems that required special expertise.
In order for the proper operation of the Public Project Quality Management OK
Program it is necessary to have a sound internet infrastructure. Korea has one of the
highest internet penetration rates in the world, and internet use is prevalent both at
home and at work which enables real time monitoring. This does not mean that it is
impossible to operate this program without the internet. In countries where internet
is not widely available, actual on site inspection could be strengthened. Even where
4. Examining Korea’s Good Governance in Innovation Projects 53

internet is available one cannot rely solely on the internet to properly operate the program.
The attention and active participation by local residents is an absolute necessity for the
success of Public Project Quality Management OK Program, and this means frequent
on site visits. While general auditors and special experts are mainly in charge of on site
inspections, the participation of local residents or their representatives must be
institutionally guaranteed for the successful operation of the program.

(4) The Two Cases from the Viewpoint of Innovation and Good
Governance

The two cases of local government innovation introduced in this paper are positive
examples of innovation as described by Alberti and Bertucci(2007). This section analyzes
the two cases from the viewpoint of innovation and good governance.
In general, government innovation leads to positive results (Alberti and Bertucci
2007, 5). The positive results of innovation can be examined in the following 4
dimensions. First, by maximizing the use of resources and capacity, innovation creates
public values and promotes an open culture. Second, innovation improves trust in the
public services offered by the government and fosters legitimacy. Third, innovation in
government results in increase in pride by public officials as well as encourages a culture
of continuous innovation. Fourth, successful innovations have the positive effect of
spreading to other parts of government.
Innovation should contain three elements in practice. First, it should bring about
concrete and visible changes in the quality of life. Second, it should be the result of
positive partnership between the public sector, private sector and civil society. Lastly,
innovation should be sustainable from the economic, social and environmental aspects.20)
Good governance is found in the distinct characteristics of the government’s
accountability, transparency and effectiveness (Smith 2007). By accountability, the people
can select their preferred government, and demand accountability through the free press
and through freedom of association. Accountability is strengthened when the voice of
the people is properly reflected in policy and where democratic control over the
government is realized. Transparency is directly related to the problem of corruption.
Government power and authority should not be subscribed to private interests; instead
public interest should be the reason for its use. By opening up the decision making

20) United Nations. 1995. “Reports of the Preparatory Committee for the United Nations Conference
on Human Settlements”
54 An Inventory of Government Innovations and Good Governance in Asia

process of government and guaranteeing the participation of the people it is possible

to achieve transparency. Effectiveness is related to the quality of public service and the
legitimacy of government. When the government’s administrative capacity is strengthened
and its effectiveness is improved through positive impact of policy, effectiveness becomes
a central element of good governance.
Buk Gu’s Citizens’ Participatory Budgeting System is a representative example of
innovation and good governance. It is the concrete result of the pursuit of Buk Gu’s
motto “realization of participatory self government.” By aggregating the views of the
local residents and improving transparency in administration, corruption could be
prevented and democratic decision making was strengthened. The result was greater trust
in government. Also, as people from various backgrounds participated in this program,
consideration of equity was an integral part of fiscal management. Government
accountability was strengthened as information on budget planning became publicly
available. The Citizens’ Participatory Budgeting System is currently being adopted in other
local governments, which shows another aspect of successful innovation. Also actual
improvement in the quality of life of residents proves the practical value of its adoption.
The Citizens’ Participatory Budgeting System has become an important vehicle to improve
democracy, transparency, representation, effectiveness and accountability, and its
widespread adoption is evidence of its positive effect.
The Public Project Quality Management OK Program, by enabling the participation
of residents in the bidding, selection, planning, construction and management of public
procurement projects, prevented faulty constructions. Safety problems and corruption
could be prevented, and government accountability was strengthened since all information
was transparent and publicly available. Just like the Citizens’ Participatory Budgeting
System, the Public Project Quality Management OK Program also offers important
implications for good governance. Mismanagement of the budget could be prevented
and democratic control over public officials was strengthened because all the residents
could participate in each stage of the construction process. The system was effective
because its democratic and responsive characters were established from the beginning.
Many local governments and government departments have adopted the Public
Project Quality Management OK Program. The system’s merit lies in increased trust
in government and a shift in public attitude toward public procurement projects, which
are the practical achievements of government innovation. By improving government
transparency and openness, and offering greater information about local government to
the residents, the government is increasing the scope of information available to the
public.
4. Examining Korea’s Good Governance in Innovation Projects 55

(5) Conclusions

Korea’s experience in democratic development is examined in the process by which

the public’s views and demands are reflected into policy. Korea achieved formal
democracy but lacked development in the substantive aspects such as responsiveness
and accountability of government. However, with the adoption of autonomous rule in
the provinces, local governments have tried to widen the opportunities for popular
participation in policy decision making. These efforts won the trust of local residents
and worked in favor of public acceptance of the local government’s policies, and through
such efforts government effectiveness and efficiency could be improved.
The Citizens’ Participatory Budgeting System and the Public Project Quality
Management OK Program are representative examples of government innovation which
show that direct participation by the public strengthens the democratic management of
government. Korea is not the first country to adopt the Citizens’ Participatory Budgeting
System. But compared to Brazil which was the first to adopt this system, Korea displayed
significant differences in the background and methodology used in its adoption. The
two cases examined here offered policy directions for the Korean government that was
facing serious corruption problems. By adopting the two systems, each local government
succeeded in improving transparency and strengthening the public’s power to participate
in public policy decision making. The result was effective execution of public policy.
In the past, decision making by government was monopolized by the central
government and policy elites, while input from the public was minimal. But with the
onset of democracy and the advent of local government, politicians and bureaucrats
came to change their minds, resulting in a fundamental change in the existing policy
paradigm. What is most notable are the efforts by local governments to improve legitimacy
and democracy by encouraging public participation in policy making. These efforts are
practical examples good governance, which show the strong quality of Korea’s democracy.
It is hoped that the two cases evaluated in this paper offer policy implications for other
countries that search examples of good governance in government innovation.
56 An Inventory of Government Innovations and Good Governance in Asia

5. The Preconditions for Good Governance:

Policy Innovation from Adopting Market
Economy in China
Chang Hoon Cha
(Pusan National University)

(1) Introduction

Evaluation good governance in China may be a challenging task, since the basic
concepts of governance and the theoretical debate behind them come from the history
of democratic politics of the Western world. The elements of good governance
investigated in this project voice accountability, government effectiveness and
transparency are related to the institutions of national political systems and institutional
adaptations to the requirements of policy innovations of such political economy. Despite
these difficulties, it is possible to find out the impact of policy innovations in developing
countries like China from a general or universal perspective; nevertheless we should keep
in mind the realities that limit the development of democratic politics in China.
China is a large country covering most of Eurasia, and shares borders with 14
countries including Russia. The population is currently about 1.33 billion; there are 55
ethnic minorities that consist 8.5% of the population. In terms of administrative structure,
there are 13 Provinces, 5 autonomous regions, and 4 municipalities. There are 8 registered
political parties, but in reality the communist party is the only party dominating the
political system; there is no opposition party. For centuries China stood as a leading
civilization, outpacing the rest of the world in the arts and sciences, but in the 19th
and early 20th centuries, the country was beset by civil unrest, major famines, military
defeats, and foreign occupation. After World War II, the Communists under Mao Zedong
established an autocratic socialist system that, while ensuring China's sovereignty, imposed
strict controls over everyday life and cost the lives of tens of millions of people. After
1978, Mao’s successor Deng Xiaoping and other leaders focused on market oriented
economic development and by 2000 output had quadrupled. For much of the population,
living standards have improved dramatically and the room for personal choice has
expanded, yet political controls remain tight.
Since adopting market oriented reform in 1978, China grew at an average rate of
10% a year, and the GDP grew 10 times since then. In 2007, China possessed 1.5
5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 57

trillion US dollars in foreign reserves, and 75 billion US dollars in overseas investment,

rising to the position of number two economy in the world in terms of purchasing
power after the United States. In order to continue its current level of economic growth,
China must create 10 million new jobs each year, solve the perennial problems of
corruption of public officials and economic crime, as well as deal with the rising social
and environmental problems of rapid economic development. The past 30 years of
market oriented reform has resulted in extreme asymmetries in regional development,
class polarization, and multitude socio economic problems. This is the reason why China’s
4th generation leaders under Hu Jintao are pursuing equitable development and social
peace; hence ‘Harmonious Society’ (Hexie society) is the country’s most important policy
objective.
The Chinese leadership is searching for various ways to tackle the above mentioned
difficulties. When a new policy is suggested, it is applied experimentally in a certain
region; when the results of the experiment get favorable reviews and approval from
the central government, then it is applied nationwide. Thus, policy introduction and
implementation in China takes a considerable amount of time, and any evaluation and
analysis of Chinese policy innovation should be conducted under a longer time horizon
than the cases in other countries.
The first case analyzed in this study is the development of ‘Shequ’ (district of social
community) in the cities. With the introduction of market economy and urbanization,
the existing socialist unit of control, the ‘danwei ‘(work unit) became weakened. The
Chinese government attempted to revive this system in the 1990s but at the same time
introduced measures to expand the self autonomy of civilians in Chinese cities. Shequ
is representative of the relationship between the civil society and the state in China,
and provide insights to the changing power dynamics between the Chinese government
and urban citizens. Thus, this study aims to examine how the policy of Shequ and the
ensuing participation of the residents in the development of Shequ impacted governance
in China.
The second case analyzed is the Xingzheng sanfenzhi (Division system of
administration authority) which was carried out from November 2001 for 24 months
in the city of Shenzhen. Shenzhen tried to emulate the model of administration in
England and Hong Kong. It divided the city administration into 3 functions: policy
making, policy execution and policy evaluation. This effort to improve government
efficiency and curb corruption became only a half success, for the complete
implementation of the model was deferred indefinitely. While not a success case, the
failure of Xingzheng sanfenzhi demonstrates ironically the conditions for successful policy
58 An Inventory of Government Innovations and Good Governance in Asia

innovation. This study examines the policy content of the Xingzheng sanfenzhi and
investigates the reasons behind the difficulty of implementing fundamental policy
innovations in China. This exercise is hoped to bring out important lessons for other
countries.

(2) The Development of Shequ and Governance of the City

1) Background

Shequ is a spatial unit in the urban cities in China. Beginning in the 1990s, the
Chinese government introduced the concept of ‘community’ from the West, and began
to build Shequ in the cities. Large residential districts (juminqu) or small residential
districts (xiaoqu) were designated into a single administrative unit under the principle
of autonomous self government. Under the jurisdiction of a sub district office
(jiedaobanshichu) in the city, a self governing residents’ committee would be formed in
a particular spatial unit; this unit would be different from the existing administrative
unit, based more on the concept of urban space. Thus Shequ means an urban space
(unit) administered by the residents’ committee and sub district office (jiedaobanshichu),
for the purpose of improving the unit’s resources and service management and promote
community spirit under the principle of self government. The introduction of this policy
can be traced to the beginning of market oriented reform that started in 1978 and the
consequent results of economic developments in China, which are explained in the
following.
First, cities grew rapidly. The Chinese government pursued urbanization as the engine
of economic growth; by increasing the ratio of urban centers and transforming the
existing districts (digaishi) or prefectures (xiangaishi) into cities, it was hoped that the
th
cities would become the focal point of regional development. In the 5 population census
conducted in 2000, the ratio of urbanization in China had reached 36.2% which is twice
the figure prior to 1978. It is expected that by 2050 the urban population will reach
551 million, and the urbanization ratio to hit 70% (SCMP, 17 October, 2003).
Second, with the introduction of market economy, the danwei (work unit) which
is the unit of production under the socialist economy became dissolved. Danwei is
popularly understood as ‘company’ or ‘work’ in China, but actually it has a historical
meaning. Under the socialist economy danwei was the basic unit of social life, covering
all areas from economic production, social welfare and other public services. The socialist
5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 59

economy’s main characteristic was economic planning under the framework of common
ownership between people’s commune in the rural areas, state owned enterprises and
local collective companies. In other words, under the framework of common ownership,
the danwei functioned as a production unit as well as a family unit. In the danwei,
the worker was guaranteed life long employment, stable payment of income, opportunities
for cultural enrichment and education; furthermore, political control over the worker
was also conducted at the level of danwei. The danwei therefore functioned to link
the individual to the collective group, and ultimately to the state, as well as create a
relationship of dependency of the individual to the state. It was a ‘mini society’ where
not only government administrative functions and services were implemented, but
political, social and economic control was exercised. However, with market oriented
economic reforms and the rise of entrepreneurs, private companies, and people who
lost their jobs from state owned companies or who migrated to urban cities, the danwei
ceased to function properly. With an increasing number of people beyond the control
of danwei, the Chinese government faced the challenge of creating a new policy that
could accommodate the phenomenon of urbanization.
Third, in the early 1980s, the Chinese government established the ‘Organizational
Rules for Sub Street Office’ in order to deal with the rising urban social problems
associated with reform; the ordinance would be implemented by the sub street office
(jiedaobanshichu) and residents’ committee (juminweiyuanhui). Sub street office
(jiedaobanshichu) is an organization representing the government, and providing first rate
government services in areas such as social security and welfare, public security, economy,
labor, environment and so on. However, it failed to accommodate the interests and
demands of the residents, and ended up functioning similar to a district which is one
of the smallest administrative units in the city. Thus, for most residents, sub street office
(jiedaobanshichu) was a government organization that collected public fines and taxes.
The residents’ committee, in principle a self organized group, but in reality was dominated
by the sub street office (jiedaobanshichu) and subject to government monitoring and
audit. Thus, residents’ committees could not function as originally intended. Urbanization
created many problems in the city such as environment pollution, traffic congestion,
sewage and security issues, and the complaints by residents became greater over time.
It became not unusual to see people coming to the public authorities to forward their
complaints or to launch civil law suits against the city (Kim, 2004: 452 5).
Fourth, the growth of the housing market and supply of residential homes in the
1990s worsened the state’s control over society. The urban population escaped the control
of the state, which was impossible under the danwei system. In short, the residential
60 An Inventory of Government Innovations and Good Governance in Asia

environment, in the past under the powerful hierarchical social control exercised through
work, became privatized. Such change meant the existing paradigm of “state= danwei”
no longer worked. Thus, in residential districts not under state control, people began
to exercise private rights over their homes (usually apartments). This was a new
phenomenon not yet experienced by the state.
In the end, the changes brought by market oriented reform resulted in the dissolution
of the danwei and loss of state control over the urban population by the state. The
residents committee became nothing more than representatives of sub street office
(jiedaobanshichu), and the provision of public services that is responsive to the needs
of the residents became difficult. In this process, collusion and corruption problems
occurred, further weakening the state’s control and administrative power. It is in this
background that the Chinese government initiated the building of “Shequ,” with the
objective of realizing self government by residents as well as strengthening the state’s
political legitimacy through a new channel of society state relations. As the new urban
administrative management unit, the building of Shequ began from the 1990s.

2) Main Features of Innovation

a. Building of Shequ
Beginning with preparations from 1991 to 1993 and after a period of
experimentation in Shanghai in 1996 1997, the Chinese government began to build Shequ
nationwide starting from 1998 (Dang, 2000). ‘Department of basic political power and
community construction’ was created by the Ministry of Civil Affairs under the State
Council; this organization became in charge of the building and management of Shequ.
In 1999 experimental Shequ construction areas were chosen, and in 2002, a total of
148 districts in 27 cities were chosen as experimental sites for Shequ construction. The
size of Shequ depended on the city or the district, but most consisted of 1000 to 1500
residential units.

b. The Organization and Functions of Shequ

A Shequ operates with 4 working committees, and each has the following functions.
City Management Committee: Sanitization, Construction, Environment
Protection, Extermination, and Planting Trees for the City.
Shequ Development Committee: Childbirth and Maternity, Job Creation, Food
and Census Management and other Social Welfare Services.
Social Security Committee: Security and Legal and Administrative Services in
5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 61

the Shequ.
Financial Economic Committee: Review the Budget and Spending.
Under the above mentioned system, the Shequ acquired various policy rights
that belonged to the ward, and the residents’ representative in the Shequ acquired
the rights to determine important policies granted by the laws and regulations.

The Shequ also acquired the legal rights to the use of the residential units, and
thus could have whatever income generated from the management of these houses. All
rights associated with the operation and management of the various facilities for cultural
and social uses, especially the rights to manage water, electricity, coal and telephones
became under the jurisdiction of the Shequ (Read 2000). The Shequ is an unusual
city administrative unit not found in other countries. It is a response to urbanization
and the dissolution of the danwei, and reflects the shift in the government’s previous
function as unilateral manager of the city. Through this change, the government aims
to share the burden of public management with the Shequ and improve policy efficiency
and transparency by encouraging participation from the residents.

c. Construction of a Shequ
As new Shequ were constructed, the existing residents committee became
marginalized or absorbed into the residents’ committee in the Shequ. In short, changing
power dynamics began with the creation of a new organization in the Shequ. This
phenomenon was not uniform in all the Shequ; in fact depending on the ways in which
the Shequ was created, the manifestations of power dynamics were different. In this
study we examine the case of Shanghai and Beijing.

Case of Shanghai
th
On January 15, 1997 The 10 Standing Committee of People’s Congress passed
the law on ‘sub street office (jiedaobanshichu) in Shanghai, institutionalizing the system
of Shequ management. In the district of Luwan, Wuliqiao street, the district of Hongkou,
Zhapulu street meaningful experiments in self government began. A Shequ residents’
representative consisting of 7 9 members was newly created in order to monitor and
audit the activities of the residents’ committee. In addition, institutions self government
such as the negotiation of work in the Shequ, audit committee (consisting of 25 people),
installation of a suggestion box, and resident meeting center were established. As a result
of these innovations, there were 253 cases of suggestions from the residents, and a
total of 4000 visits were made to the meeting center in 1998 alone. In order to coordinate
62 An Inventory of Government Innovations and Good Governance in Asia

the increasing participation of the residents, Shanghai created the Shequ Management
Commission as a half government, half private organization. The people’s organizations,
companies, local representatives, the local government, and sub street office
(jiedaobanshichu) became its members. The Shequ Management Commission held regular
meetings where various issues related to the development of Shequ were discussed and
development policies were created and monitored. In addition to the above mentioned
policy rights transferred to the Shequ, Shanghai also transferred the rights with regards
to the building private homes, execution of building plans, environment and sanitary
management, collective management of resident’s land, preliminary management of green
projects, monitoring of distribution companies, etc., to the Shequ (Zhu 1999: 181 194).

Case of Beijing
In contrast to Shanghai, Beijing chose to expand the existing residents’ committee
into the residents’ committee of the Shequ. The residents’ committee of the Shequ
elected its leader through elections by the residents, and holds 1 2 meetings each year.
Beijing transferred the policy rights of 5 areas environment, sanitation, real estate
management, city administration, and forestry; in 1997 empowered the Shequ to collect
individual home rental fees, bicycle number plate fee, personal business management
fee which increased the financial base of the Shequ. In certain wards, the wages of
the employees of Shequ were paid by the ward budget in order to help the financial
situations of the Shequ (Yan 2002, 52 56).
As seen in the cases of Beijing and Shanghai, the Chinese government attempted
to increase the participation of urban residents in the city’s affairs through the Shequ.
By solving issues through resident government collaboration and implementing public
projects together, the Chinese government attempted to transform the existing urban
policies. In other words, by inviting non government actors in the decision makings by
the Shequ, the Chinese government tried to redistribute its administrative powers to the
urban residents, with the objective of improving the effectiveness and transparency of
urban policies. The provisions that prohibit the city’s subordinate organization from
interfering in the Shequ’s budget and expenses, ensuring that the Shequ Management
Commission does not create policies that waste the Shequ’s funds or interfere in the
autonomous activities of the residents’ committee are such illustrative examples.

3) Consequences of Innovation

The results of the development of Shequ are greater opportunities to participate

5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 63

in the affairs of government and create participatory organizations. This new institutional
innovation can prevent unilateral administrative actions of government, and perhaps
resolve the perennial problems of collusion. Shequ may work toward improving the
administrative capacity of the government as well as prevent corruption through the
creation of political space where individuals can participate in the affairs of government.
The Shequ, in conjunction with the movement for private ownership, is providing the
grounds for new civic minded political movements in China.

a. Development of Self government by Residents

With the development of Shequ, a new decision making structure was created that
directly incorporated the opinions and interests of the residents. Such decision making
structures, however, showed differences depending on the region where the Shequ was
constructed. The names of the residents’ committee ranged from “negotiating committee
of the Shequ,” “general representative of the Shequ,” and so on; the authorities
transferred to these organizations ranged from policy making power, appointment of
personnel to determining the budget. These rights were given by state, and expanded
the rights of self government of the residents of Shequ (Li, 2003: 68 71). Such expanded
rights also meant the reduction of administrative power by the sub street office
(jiedaobanshichu) in the everyday operation of the Shequ.
For more substantial evaluation, we need to include further cases, in particular the
cases of Shenyang, Wuhan and Qingdao where self government by the residents was
more noticeable compared to the case of Shanghai where some government intervention
and control was evident (Zhang, 2004). This study focused on providing a general picture
of the changing governance brought about by the introduction of Shequ; more time
will be needed for genuine self government in the Shequ.

The Yuezhu Commission

Along with the development of Shequ was the creation of civic organizations by
the Shequ residents; among them the most independent and active organization is the
Yuezhu Commission. Yuezhu used to mean entrepreneurs (getigongshang) but now
means residents that have ownership of their houses. With the development of the market
economy came the private ownership of homes, and with increasing urbanization the
number of people owning homes increased. The Yuezhu embraced the concept of private
ownership of homes and are very active in protecting their legal rights as residents and
of their private property. The Yuezhu Commission can be considered the most
representative self governed civic organization since the dissolution of the danwei system
64 An Inventory of Government Innovations and Good Governance in Asia

in China. Many of them are highly educated and are of upper middle class in economic
status, with the power to mobilize politically and economically. As they possess the
capacity to deal with unfair policies and infringement of rights by public officials in
the lower administrative units, the members of the Yuezhu Commission has the political
awareness and potential to become political citizens as they continue their movement
to protect private property.

b. Expanding Participation of Residents: Elections in the Shequ

Elections of the Residents’ Committee

In China, traditionally elections of the village (cun) received academic interest. But
by 2000, the elections in Shequ began to be studied more extensively. The Shequ elections
demonstrate the positive potentials of direct voting, secret ballot, competitive elections,
and expansion of voter choice. Such changes worked positively to strengthen the political
autonomy of the Shequ. The elections in Shequ are divided into two types. First, the
elections of the residents’ committee is mostly done via indirect elections, but in the
major cities such as Beijing, direct elections and multiple candidates appeared (Renmin
th
Ribao 14 November, 2003). According to one research, in the 11 Shequ residents’
committee elections in which direct elections were held, 40% of non Party members
were elected (Derleth and Koldyk 2004, 757). Such examples demonstrate the changing
transformation of the residents’ committee of the Shequ from government proxy to
genuine representatives of the residents.

Elections of Yuezhu Commission

Another example of the increasing political autonomy and citizen participation is
the elections of Yuezhu Commissions. These elections show some differences from the
elections of residents’ committee discussed above. There are two types of elections.
In the first case, the candidate is openly introduced and then voting is carried out; in
the second case, the representative committee reviews the applicants’ credentials and
then voting is carried out. There is the possibility of political intervention by the sub street
office (jiedaobanshichu) in the elections of the Yuezhu Commission (e.g. reviewing of
applicants’ credentials etc) but overall the Yuezhu Commission is developing into an
politically independent civic organization actively participated by its members.

c. Promoting the Development of Political Citizenship: The Movement for

Private Ownership of Property
5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 65

The development of Shequ and the growth of political awareness among the urban
residents of China are intimately related. As mentioned earlier, the Shequ was created
as the new medium of state society communications and control, a replacement to the
previous unit of socio economic control (danwei) which was dissolved with the adoption
of market oriented economic reforms. Unintended however, the Shequ ended up inciting
a new social movement that challenged the traditional administrative interventions and
the intrusions of residents’ rights. The residents of Shequ responded most vigorously
to the issue of private ownership of property. This was because of the phenomenon
of rapid urbanization and the growth of the market for residential homes. Along with
this phenomenon, the residential homes market and home management services (Wuye)
transformed into service markets, which was a break from the administrative management
by the state. However, only the surface of this service market was changed while the
human resources and the organizations based on the danwei system remained. In
particular, the home management companies continued to replicate the traditional policies
applied to the danwei of the past, providing low quality services, and other inconveniences
in the communal facilities of the Shequ, which were severe infringements to the rights
of the residents.
The movement to protect private property by the Yuezhu manifested in 3 directions.
The first approach was to launch administrative or law suits against the government.
To sue the government, the Yuezhu would either sue collectively or individually with
the assistance from lawyers. In the Chaoyang district (qu) of Beijing, more than 2000
disputes were registered in 2005, a rise of 57% from 2001 (Tomba 2005, 935). Actual
visits to government organizations to complain, or sending complaint letters (Xingfang)
also increased. The second approach was in mobilizing political and social resources
such as contacting the political elites, or sending information to the news media. The
members of Yuezhu also used the internet as a means of collective action, as well as
to aggregate the views of the residents. To publicize their case, they would actively contact
the media as well. The third approach was in staging public demonstrations, street
marches, sit ins, and other such collective actions This kind of collective action rose
in the 2000s, and the movement of Yuezhu can be added to the social demonstrations
led by farmers, workers and the Falun Gong (Tanner 2004).

From the movement of private property to the National People’s Congress (NPC)
Shenzhen is a city where the Yuezhu and the home management company first
appeared; it is an area heavily influenced by people who migrated from Hong Kong
(Read 2003, 52). The ‘Zhenyejingzhou’ area of Shenzhen was the first to cancel the
66 An Inventory of Government Innovations and Good Governance in Asia

contract with an existing home management company that was providing low quality
services. Chu Jiajian, who led the movement for private ownership of homes in
Zhenyejingzhou was the chief member of the area’s Yuezhu; Chu ran for local election
for People’s Congress in the Shenzhen. In 2003 in Beijing and Shenzhen, a new law
was introduced that allowed individuals to run for elections on their won (without
nomination from the local NPC) and many activists that were involved in the movement
for private ownership of homes such as Chu ran for election (Lee 2008, 77 80).

d. Legislating the Relevant Regulations in the Shequ

As the activities of self government increased in the Shequ and the movement to
protect private ownership of homes expanded, the government responded by establishing
the necessary legal and institutional frameworks. With the growth of the movement to
protect private properties in Beijing, Shenzhen, and Shanghai, the State Council in 2003
proclaimed the ‘Ordinance on the Management of Building Facilities”. The ordinance
states that only individuals who have home ownership have the right to hold the home
ownership congregation under the guidance of the land and home administrative
authorities.

e. Improving the Quality of Resident Administration:

Improving Government Efficiency
As the officials of Shequ, representatives of the residents’ committee and Yuezhu
participated in the affairs of the Shequ, the quality of self government by the residents
improved greatly. Sub street office (jiedaobanshichu) recruited personnel for the building
and management of the Shequ; the applicants were of university level education. Even
in the organizations formed within the Shequ by the residents, people with strong
civic minded awareness and of high education participated. Especially the elections
process worked toward the selection of high caliber individuals who would be responsible
for of the affairs of the Shequ. The influx of highly educated and high quality human
resources in the Shequ point to greater capacity of self government and administrative
efficiency.

f. Transparency (Control of Corruption)

It is not easy to find cases of improved transparency with the rise of the Shequ
in China. We can only acquire information through newspapers or broadcasting, or other
public media. In fact one may even argue that the development of the Shequ as little
relationship with the issue of corruption. However, with greater public participation in
5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 67

the administration of the city, the existing corrupt practices were revealed and measures
to improve transparency were introduced. For example, when construction companies
or home management service companies were found to infringe on the rights of the
residents, the residents would engage in collective action against the government or the
public authorities. Such efforts have had a noticeable impact on improving transparency
in the development of the city, and curbing the unilateral and opaque administrative
policies by the public authorities.

4) Lessons Learned and Key Recommendations

The transformations in the urban cities due to the introduction of Shequ are not
found in other developing countries. For the Shequ is a product of particular
circumstances experienced by China in adopting market oriented economic reform and
liberalization. The Shequ’s impact on Chinese society required long term observation
and analysis. Nevertheless, there are several implications that can be drawn from the
perspective of state society relations in China.

Relationship between the growth of autonomous interest groups, greater political

participation and improved notion of citizenship
Relationship between greater political participation, improved capacity of public
policy and transparency
Improving transparency through the use of media and civic movements

As mentioned before, the development of Shequ was originally intended to apply

a new form of socio economic control and improve self government of urban residents.
But the results had unintended consequences, even to the rise of a social movement
on the protection of private property (ownership of homes). By introducing the Shequ,
the state reconstructed the channel of communications between government and urban
residents, but in the process expanded the opportunities for public participation through
residents’ committees and the Yuezhu. The movement to protect private ownership of
homes and the movements’ leaders running for elections in the National People’s
Congress show the potential for good governance in the Shequ. Nevertheless, elements
of state intervention in the affairs of the Shequ still exist, for instance in the
administration of the sub street office, in the personal composition of the residents’
committees, and in budgetary management of the Shequ. Such limitations are expected
to be improved as more changes are realized in Chinese society in the future. The above
68 An Inventory of Government Innovations and Good Governance in Asia

discussed limitations shown in the development of Shequ ironically provide important

strategic pointers for other countries.
Measures to improve the autonomy of urban residents should consider aspects
such as the composition of personnel, budgetary independence, etc
A service based approach to the interest groups in the urban setting is better,
instead of trying to control them
The marketization of public services improves the public awareness of urban
citizens and promotes social rights movements.
An ex ante legal framework is necessary to protect the rights of urban residents
rather than an ex post approach.

5) Concluding Remarks

The development of Shequ that began in the 1990s was designed to resolve the
issues of the community through self government by the urban citizens. The Shequ was
an attempt to replace the previous unit of socio economic control by the danwei that
was dissolved with the adoption of market oriented reforms and disappearance of the
socialist mode of economic life. The expansion of self government, ironically led to
increased public awareness of the residents and to a social movement to protect private
property. What was once a change in the government’s urban policy ended up promoting
a new form of socio political movement; such phenomenon is explained by the changes
in the socialist economy as market oriented reforms were adopted in China. In this
process, the government instituted the legal framework for the management of Shequ,
and the previous institutional set up of central government district (qu) government
sub street office faced a new momentum for change. In the end, increasing the
participation of the urban residents actually led to improved effectiveness of government
capacity. Of course, such change has only begun in the urban areas of China; whether
this will expand to the rest of the country remains to be seen.

(3) The Policy Innovation of Administration Division

(Xingzheng sanfenzhi) in Shenzhen

1) Background

In November 2001 the State Commission Office for Public Sector Reform of the
5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 69

State Council selected 5 cities including Shenzhen of the Guangdong province as

experimental cities for administrative reform. Policy authorities were divided into
policymaking, policy execution and policy evaluation, where the government department
possess the relevant three authorities while engaging in cooperation and control with
other government departments. This new policy called Xingzheng sanfenzhi was
introduced as China’s response to the institutions of division of powers found in the
West. In the 1980s, Shenzhen with other cities such as Xiamen, Zhuhai were one of
the first areas designated as special economic zones, and policy experiments in export led
industrialization were carried out. In order to assist the economic development of
Shenzhen, the central government conferred lawmaking power, expanded fiscal autonomy
and autonomous economic policymaking power to Shenzhen (Ge 1999). The adoption
of market institutions, diversification of private ownership rights, market opening and
decentralization were the key elements of the reform liberalization policy pursued by
China; hence appropriate administrative institutions and management innovations to
support the reform were necessary. At that time, various administrative reform
experiments were carried out in Shenzhen. Examples of such reforms are the
strengthening of government budget review by the local People’s Congress in the mid
1990s and reforming the administrative licensing system in the late 1990s.
For China to realize its administrative reform objectives such as separation of
government and enterprises, reducing government intervention in society, improving
administrative efficiency, preventing corruption and expanding public services,
streamlining the organization of the government and reducing the number of public
officials are not enough. A fundamental reform of the institutions and procedures of
the government is necessary. They include, among other things, expanding the autonomy
and rights of individuals and companies, reducing excessive government authority and
streamlining administrative procedures and institutions. The current administrative system
in China exhibits severe problems despite reform efforts of the past 20 years. The main
reasons were in the monopolization of policymaking, policy execution and policy
evaluation powers by each government department. Such problems formed the
background of the Xingzheng sanfenzhi, which is briefly explained below.

weak government, strong ministry (ruozhengfu, qiangbumen)

With decentralization of China’s reform policy, all the policy authority in the hands
of the city government were transferred to the relevant departments, and each department
came to exercise greater authority in policy making and execution. As policy making,
policy execution and policy evaluation was controlled at the level of the department,
70 An Inventory of Government Innovations and Good Governance in Asia

each department ended up implementing policies that was in their interests. In other
words, each department pursued policies for their own private interests rather than for
public policy objectives.

Problems of Corruption in the Process of Administration

As each department monopolized policy power, it became difficult to audit or review
the departments, resulting in perennial corruption problems. As the public officials in
department monopolized important policy making, problems of transparency, fairness
and expertise occurred as well.

Problems of Efficiency in Policy Execution

Currently the policy making institutions in the Chinese (local and central) government
is extremely large in contrast to the institutions in charge of policy execution. But in
reality more than 80% of administrative functions are related to policy execution. Thus
organizational government structure was fundamentally ineffective in terms of policy
execution (Bian 2005, 18 19).

2) Main Features of Innovation

a. Execution of the Xingzheng sanfenzhi

Following the directives of the central government, Shenzhen began preparing for
the introduction of the Xingzheng sanfenzhi in November 2001. A group to lead the
reform, which included the Mayor, was created titled the “Leading Small Group for
the Deepening the Administrative Reform and Public Administration System.” The plan
was to implement the Xingzheng sanfenzhi experimentally during the first quarter of
2002, and based on the experiences come up with a general execution plan in the third
quarter of the year. In addition, to learn from the experiences of advanced countries,
a research group was sent to study the administrative reforms in England, the US, Hong
Kong, and Singapore (Zhang 2003). The innovation plan under the Xingzheng sanfenzhi
was as follows.

Dividing the policy authority of the government into 3 areas: policy, execution,
evaluation/inspection.
Reclassify and reassign the functions of government according to a broader
category of functions, and set up department in charge of policymaking in each
department. In the policy making department, an organization in charge of policy
5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 71

consultation and policy experts shall be established.

Each department shall establish several departments in charge of policy execution.
Thus, the government will be reorganized into small number of policy making
departments and large number of policy execution departments.
An organization in charge of evaluation/inspection shall be established under
the Mayor; this organization shall include the existing accounting and inspection
organizations.

The Xingzheng sanfenzhi was modeled after England and Hong Kong. In 2002
and 2003, Shenzhen began experimentally applied the Xingzheng sanfenzhi to the city’s
transportation department and city planning and management department. The
experiment on the transportation department was as follows

The administrative functions of the city transportation department was divided

into the city transportation department and the district (qu) transportation
department. The qu transportation department eliminated the then existing
overlapping administrative departments.
6 teams were established under the city transportation department (transportation
of passengers, transportation of cargo, management of harbor, management of
electric train service, management of taxis, inspection/administration of
transportation) and an emergency coordinating center for public transportation
was established. The 6 teams were in charge of policy execution ranging from
licensing related functions, management of transportation market, and inspection
of violation of traffic law.
4 teams overall management team, plan making team, policy writing team,
inspection and control team were newly created as policy making divisions.
The city inspection department acquired the administrative and inspection
functions of the transportation department and the 6 teams.

b. Criticisms of the Xingzheng sanfenzhi

As the Xingzheng sanfenzhi was implemented, various criticisms against this policy
experiment were raised (Wang and Feng 2005). First, it was argued that governments
often change the content of policy during the process of its execution. However the
policy executions departments under the Xingzheng sanfenzhi do not have policy making
rights, hence there is no flexibility to modify policies to accommodate changing
circumstances. Second, as the authority for policy making and policy execution are divided
72 An Inventory of Government Innovations and Good Governance in Asia

under the Xingzheng sanfenzhi, many pointed to the problems of policy coordination.
Under the current system, coordination among city government departments are carried
out by the Mayor/vice mayor etc., but under the Xingzheng sanfenzhi there is no
administrative body that plays the role of policy coordinator. Third, since it is difficult
to determine whether policy failure is due to policy making or policy execution, many
pointed to the difficulty of assigning responsibility for policy failures. Fourth, it was
argued that the inspection department could not function properly under the Xingzheng
sanfenzhi.
As the implementation of Xingzheng sanfenzhi continued, criticisms against the
experiment grew stronger, and policy makers soon lost the grounds to continue the
policy experiment. At the same time the final plan of the Xingzheng sanfenzhi took
longer to establish than expected. Also, departments that faced reduction in policy
authority or changes in organizational structure under the Xingzheng sanfenzhi
complained strongly against the plan.

3) Consequences of Innovation

th
a. The 7 Administrative Reform of Shenzhen
Internal evaluation documents on the city transportation department and the 6 teams
are unavailable for analysis. The experiment of Xingzheng sanfenzhi that began in
November 2001 lasted 2 years and 4 months until March 2004 with the announcement
th
of the 7 Administrative Reform Plan. What was remarkable in the final plan was a
fundamentally different position from the initial plan on Xingzheng sanfenzhi. In the
final plan, the idea of dividing the administrative power into 3 areas disappeared. Instead,
th
the 7 Administrative Reform Plan of Shenzhen contained some other elements which
can be considered innovative, which are explained below.

The plan expanded the consulting and policymaking functions of the government
by inviting greater participation from society. This is expected to improve
government accountability and public participation in policy innovations.
A new consultation forum between government departments was established
in order to strengthen the overall policy coordination and improve efficiency
in policy making and execution.
In order to strengthen the inspection over government administration, a
consultation forum participated by the inspection department, accounting body,
provincial assembly to establish inspection strategy regarding the government’s
5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 73

policies was created. In addition, a parallel expert consultation forum was created
in which civic organizations and experts participated. These institutional
innovations are expected to curb corruption in the process of policy execution
(Zhou 2004).

th
While the Xingzheng sanfenzhi was not implemented under the 7 Reform Plan,
some departments of the Shenzhen government, such as the public construction
department, engaged in the separation of policy making and policy execution.

b. Causes behind the Deferral of Xingzheng sanfenzhi

The reason why the Xingzheng sanfenzhi was not fully implemented can be explained
by the following factors.

The conflict between the Xingzheng sanfenzhi and the existing legal and
administrative system in China
Loss of policy will by the central government
Resistance within Shenzhen government on the Xingzheng sanfenzhi
Culture (or ideology) based resistance against the Xingzheng sanfenzhi as it is
viewed as a western model of reform
The inconsistencies in the roles of government and national congress under
the constitution

c. Results of the Xingzheng sanfenzhi

th
At the 10 National People’s Congress in March 2003, Prime Minister Zhu Rongji
gave a report on the government’s achievements; in this report, the Xingzheng sanfenzhi
was not discussed in the section on administrative reform. Rather, Zhu emphasized the
need for reform of the public administration system and public administration based
th
on laws. This is a shift from the speech by Jiang Zemin in the 16 Communist Party
Convention in November 2002. Why the central government shifted its position can
be inferred as discussed below.

While there was some internal resistance to the Xingzheng sanfenzhi, the more
fundamental reason lay in the absence of confidence on the part of the political
leadership. The Xingzheng sanfenzhi is a western model and hence may irritate the public
sentiment. But more important, it appears that China’s leaders seemed to think that the
Xingzheng sanfenzhi does not fit with the existing legal and administrative frameworks,
74 An Inventory of Government Innovations and Good Governance in Asia

and therefore its introduction is too early (Cho, 2008). Especially, according to the
constitution, the national assembly is in charge of legislation and policy making and
oversight over the government. The government is the executor of the policy decisions
of the national assembly, while at the same time subject to its inspection. Since Xingzheng
sanfenzhi divides the overall policy making and policy evaluation functions, it creates
a situation that is a violation of the constitution.

4) Lessons Learned and Key Recommendations

In China political reform means administrative reform; since the introduction of

market oriented reforms and liberalization, administrative reforms in the central
government was implemented as well. The administrative reforms included separation
of executive power and political power by the Party (Dangzheng fenli), the transfer of
authority of the central government to the provinces and the private sector (Dangqi
fenli), and streamlining the central government and reorganization of government
institutions. With the deepening of economic development and integration of the
Chinese economy to the world economy, appropriate administrative reforms are also
necessary. Such reforms should go beyond simple reorganization of government or shift
in personnel, but a transformation of the existing administrative paradigm. The Xingzheng
sanfenzhi was an experiment in administrative reform and its limited success provide
important implications regarding China’s administrative reforms.

Efforts to meet the world wide trend of administrative reform due to marketization,
deregulation, and decentralization in China
Need for a new administrative and legal system that supports administrative
reforms
Need for accompanying political reforms to assist the administrative reforms’
objectives of improving transparency and efficiency in government

While the Xingzheng sanfenzhi could have improved transparency and efficiency
in Shenzhen, its full implementation was deferred indefinitely. Since this case of policy
innovation is incomplete, it would be impossible to replicate Shenzhen’s experience in
other countries seeking administrative reform. Nevertheless, some important questions
can be derived from Shenzhen’s experience.

How should resistance from public officials on the administrative reforms be dealt
5. The Preconditions for Good Governance: Policy Innovation from Adopting Market Economy in China 75

with?
How can the central government or political leadership have confidence or
political will to implement reforms?
A fundamental and deep administrative reform is invariably linked to political
reforms
Transparency and accountability issues can be solved only through greater public
participation. What approach is the best to encourage public participation and
improve accountability?

The fact that the limited success of the Xingzheng sanfenzhi was due to the lack
of political will by the leadership has important implications. It is highly likely that
consideration of the Xingzheng sanfenzhi was carried out among the political elites,
and public input in the discussions was excluded. Thus this case shows how policy
innovation without meaningful participation by the people fails to produce results, and
that political participation by the people is a fundamental element of good governance.
In other words, a mature civil society is a necessary precondition for the establishment
of good governance. Because China has still a single party dominated political system
and civil society is at an infant stage, it would be difficult for governance based on
public participation to emerge in China. Nevertheless, the experiment in the Xingzheng
sanfenzhi showed important insights on the relationship between good governance, policy
innovation and participation from the people.

5) Concluding Remarks

Beginning in November 2001 and for the next 2 years and 4 months, an experiment
in administrative reform called the Xingzheng sanfenzhi was carried out in Shenzhen.
This experiment contained major administrative reforms but was eventually discontinued.
The Xingzheng sanfenzhi was based on the concept of separation of powers in a
democratic state; the 3 areas of policy making, policy execution and policy evaluation
would be separated, and check and balance among the departments through coordination
and consensus would ensure policy efficiency. Shenzhen implemented the Xingzheng
sanfenzhi in some of its departments, and tried to benchmark the experience of foreign
countries.
But this policy innovation conflicted with the existing administrative system in China,
and its full implementation was deferred indefinitely. The Xingzheng sanfenzhi was
considered an innovative plan to improve government transparency and efficiency, and
76 An Inventory of Government Innovations and Good Governance in Asia

curb corruption. However the implementation of this plan was deferred not only in
Shenzhen but nationwide. This study points to conflicts with the existing administrative
system, lack of policy will by the political leadership, and resistance from public officials
as the causes of failure. The failure of Xingzheng sanfenzhi, however, provides important
implications on the relationship between politics and administration in China. A deepening
of administrative reform is invariably linked to broad and fundamental political reforms,
and impossible without meaningful political participation by the people.
6. Governing Development and the Environment: The Case of Mongolia 77

Part II. Central Asia

6. Governing Development and the Environment:

The Case of Mongolia
Jung Ho Kim
(Inha University)

(1) Introduction

The entire territory of Mongolia is 1,560,000㎢, the second largest inland nation
after Kazakhstan in Asia. Mongolia has a relatively small population of 2.6 million; 38%
of the people live in the capital Ulaanbaatar, and the GDP per capita in 2005 was USD
2,175(ranking 138 in the world). Mongolia achieved independence from China in 1924,
but remained a satellite country under the political influence of the ex Soviet Union
for a long time. In 1992, elections were held for the first time and multiple political
parties were acknowledged; the transition from a socialist system to a market based
capitalist economy began.21) Since then, thanks to its large land mass and abundant natural
resources, exchanges with the external world have been active with continuous foreign
investment and travel into the country. The country has become liberalized, but with
liberalization came several challenges such as environment pollution, quality of life issues
of the people, and augmenting the country’s competitiveness. The government of
Mongolia has met these challenges by establishing, for example, the “Long Term National
Development Plan” that emphasizes the participation of the people, partnership among
the stakeholders, and transparency and accountability of government. Such efforts have
resulted in notable achievements, and deserve encouragement and praise.
The government programs evaluated in this study are fine examples of how the
policy will of the government of Mongolia can be positively realized. This study examines
two very successful programs: the New Village Movement and the Forestation Project
to Combat Desertification. The programs demonstrate the efforts by Mongolia to
overcome its difficulties, and provide lessons for other developing countries facing similar
developmental challenges. The two programs are still underway and therefore proper
evaluation cannot be easy; but the success achieved so far gives many expectations for
continuous success into the future.

21) Refer to http://ko.wikipedia.org/wiki/%EB%AA%BD%EA%B3%A8

78 An Inventory of Government Innovations and Good Governance in Asia

(2) Governance in the Saemaul Undong (New Village Movement)

1) Background

Originally, the Saemaul Undong was a movement that began in Korea in the 1970s
to develop economically backward regions. Under the motto “Hard Work, Self Reliance
and Cooperation,” the movement aimed to improve the material welfare of the people.
In particular the movement targeted economically backward areas of the country. The
Saemaul Undong was a great success and as a model of rural development it is widely
adopted in other third world countries.22)
Mongolia launched its own efforts at development by benchmarking the Saemaul
Undong. On November 2004, four people organized on their own initiative the Mongolia
Saemaul Undong Center (MSUC). The center is registered as a NGO, and has 12 district
offices and 1,837 members.23) In only 4 years since its formation, the MSUC has emerged
as a major player in the development of local economies through projects that improved
the living environment and provided income generating opportunities, and in raising
public awareness of the importance of participation in local issues. MSUC got material
help and assistance from the Korea Saemaul Undong Center (KSUC), the birthplace
of the movement in Korea. In particular, the assistance provided to MSUC aimed to
ensure that not only the developmental experience in Korea was transferred to Mongolia,
but also a strict post management and evaluation program, so that Mongolians themselves
could maintain the momentum of the movement on their own. In addition, the central
government of Mongolia and the local government cooperated for the successful
implementation of the Saemaul Undong, which show the potential of this movement
to become a success nation wide.
The MSUC is a good case to study the relationship between the government and
the participants in the project, and the potential for augmenting accountability,
transparency and efficiency of the government. In addition, the collaborative partnership
between the two NGOs the MSUC and the KSUC show the potential for democratic
governance in developing countries where the level of public awareness is low and
resources are limited; the assistance or collaboration from NGOs in other countries or
international organization may be of great help in countries pursuing regional

22) For analysis of Korea’s Saemaul Undong and its application in Southeast Asian countries, see
Lee Chang Soo, 1992; Kim Nam Shun, 1999; So Jin Kwang, 2007a; So Jin Kwang 2007b.
23) Refer to the list of achievements of Saemaul Undong leaders abroad, made by the Korea Saemaul
Undong Center (internal document).
6. Governing Development and the Environment: The Case of Mongolia 79

development.

2) Main Features of Innovation

The Saemaul Undong in Mongolia that began in 2004 has spread to 12 locations
at the current time of writing. While the time of formation and stage of implementation
may differ from location to location, they are all formed by Mongolians under the
leadership of the MSUC (Chairman: Kolkei Marina). Each MSUC has collaborative
relationships with the KSUC in Korea. Also, the MSUC plays a major role in coordinating
the voluntary participation between the local residents and companies, and administrative
support between the central and local governments. Through these efforts the Saemaul
Undong in Mongolia is based on the organic partnership between residents (companies),
government and overseas partnership organizations.
The Saemaul Undong in Mongolia is based on the conceptual principles outlined
by the KSUC and its three step development program. As shown in figure 1, the
‘International Saemaul Project Conception Chart,’ outlines the objectives of the movement
and the relationships between each project, based on the experience of the Korea’s own
Saemaul Undong (Korea Saemaul Undong Center 2008, 32). The three step development
program is designed and tailored to the particular situation facing Mongolia.
The three step development program is as follows. The first step is the creation
of an environment where residents acquire interest and desire participation in the project.
At this stage, projects such as paving the village roads, digging a communal well and
other projects related to the improvement of the daily lives of the people are carried
out under the ‘New Village Project.’ In the second stage, the residents acquire the capacity
to pursue projects through voluntary efforts. At this stage, fostering an environment
of trust and confidence, and promoting self motivated projects become important goals.
In the second stage under the ‘Rich Village Project,’ the village communal hall is built,
old kitchens and fences are repaired, and income generating projects such as brick making
factories are built. In the third stage, the basis for self sustenance is created so that
the Saemaul Undong can be carried out continuously into the future. Major projects
for the village such as building common facilities, rebuilding water and drainage systems
and other improvements in the life of the village are carried out. Examples of projects
at this stage are the creation of a local specialties market and a village cooperative under
the ‘Welfare Village Project’ (Korea Saemaul Undong Center 2007, 28).
The Saemaul Undong of Mongolia was carried out with the strong support from
the movement’s predecessors in Korea, the KSUC. KSUC played a major role in educating
80 An Inventory of Government Innovations and Good Governance in Asia

Mongolians to become the movement’s leaders, so that the three step development
strategy could be effectively carried out. In the Nalaikh district where the MSUC was
first established in 2004 and in the Uvs district which started the movement in 2006,
the first and second stages of the development program are being implemented. In
Zuunkharaa in the Selenge region which was a latecomer to the Saemaul Undong
movement, the first stage of the program is underway. While there are differences from
region to region, one can witness the voluntary participation and partnership among
local residents and administrators in the projects. This shows that the Saemaul Undong
in Mongolia is being pursued in bottom up fashion, where all the stakeholders of the
region participate in the projects. They are good examples of the democratic management
of regional development programs.
In May 2007, Mongolians on their own initiative opened a conference to take stock
of the results of the existing MSUC programs. Also, a leadership camp was held for
leaders of the Saemaul Undong, in order to encourage their work and provide greater
incentive for participation. In the leadership camp, a variety of participants including
politicians, the minister of labor, state governor, mayor of local districts and affiliate
personnel of the KSUC, and the general public came together to discuss Mongolia’s
experience with the Saemaul Undong and possible improvements in the projects. A
meeting with the President of Mongolia and the Chairman of the Financial Committee
of the National Assembly was held thereafter24); the event demonstrated the national
interest in the Saemaul Undong as strategy for economic and social development.

24) http://www.saemaul.com/newspaper/news_img/news/250 08.PDF

6. Governing Development and the Environment: The Case of Mongolia 81

<Figure 6.1> International Saemaul Project Conception Chart

82 An Inventory of Government Innovations and Good Governance in Asia

The major characteristics, process and content of the Saemaul Undong in Mongolia
can be analyzed as follows. First, Mongolians themselves were aware of the need for
a socio economic development project, and initiated the Saemaul Undong on their own
initiative. This is a major background factor that explains the voluntary participation
in the movement by the Mongol people. As mentioned above, the Saemaul Undong
movement in Mongolia began when Kolkei Marina, who visited Korea in November
2004 and learned the Korean language, formed the MSUC with 4 colleagues who shared
her vision. Since then, the MSUC formed 12 district offices in only 4 years, and became
an influential NGO with membership totaling 1,837 people. More than half the members
are women, and professionals such as regional public officials, businessmen, doctors and
lawyers are active members. For example, the 10 members of the board of directors
in MSUC consist of the Vice mayor, the Ward Mayor of Ulaanbaatar, Chief Accountant
of a construction company, official of the Ministry of Law, President of an architecture
firm, a gynecologist, and engineer. In Zuunkharaa in the Selenge region, the 6 board
of directors consist of an electrical engineer, a lawyer, two forestry engineers, an
agriculture expert and a public official (Korea Saemaul Undong Center 2007, 49&56).
Given the low level of public awareness and interest in Mongolia, the active participation
of highly educated professionals in the Saemaul Undong is very desirable. What is more,
as local public officials and businessmen are involved, it becomes easier to form
partnerships with the regional public and private counterparts. The human network thus
created plays an important role in facilitating the Saemaul Undong by fostering mutual
cooperation; the foundations of democratic governance are thus established
The activities of the MSUC also show some distinct characteristics. There are some
differences from region to region, but overall, the village innovation projects pursued
by the MSUC have been quite successful. Some of the income generating projects has
had some initial difficulties, but the overall assessment by the local residents is positive.
The MSUC is playing a vital role not only as an individual NGO but also as a major
leader of society.
Second, even though the Saemaul Undong was carried out by the voluntary initiative
by the MSUC, the movement had inherent limitations. Without the relevant resources,
technology and experience, the movement could not be sustained for the long run. It
is here that the KSUC and the people involved in assisting Mongolia played a critical
role. The KSUC provided personal and material assistance to the MSUC. But the help
went beyond simple assistance; recognizing that the success of the Saemaul Undong
depended on a cadre of local leaders, KSUC and the counterpart district offices educated
Mongolian leaders and local residents about the objectives and strategic goals of the
6. Governing Development and the Environment: The Case of Mongolia 83

Saemaul Undong. These education programs are directed at not only the leaders of the
Saemaul Undong in Mongolia but also the local public officials.
Another point to note is that when the experts from Korea come to provide
assistance to a particular district office of the MSUC, it is done through an official
cooperation contract with the local public administrative office. Such arrangement is
necessary because assistance from local public officials is critical to the success of these
development projects. It is only when the public officials recognize the importance and
necessity for a local development strategy that the Saemaul Undong can impact the welfare
of the residents in a positive manner. The strategy adopted in Mongolia has proven
to be effective, as local public officials are actively participating in the movement.
There is an important working principle behind the assistance provided by the
KSUC. According to Mr. Hwang Chang young, who is the Director of International
Cooperation of KSUC, “assistance is provided with the objective of helping the people
of Mongolia to become self reliant as quickly as possible.”25) Under this principle, when
the KSUC provides financial assistance, the local residents in Mongolia are also required
to match the funds with their own resources. If the residents do not have any financial
ability, they are required to contribute by proving labor or other means of participation
in the project. In the case of income generating projects, the initial investment funds
provided are collected back after a while, and then subsequently re invested in other
projects. In short, the focus of the assistance is in constructing the basis for material
and spiritual self reliance. Given the above mentioned principles of the Saemaul Undong,
one may question whether the movement in Mongolia is sustainable in the long run,
since the Saemaul Undong should be ultimately pursued by the people of Mongolia
themselves. The essence of a democratic Saemaul Undong movement is in the voluntary
participation, mutual cooperation and accountability among the participants.
Third, the Saemaul Undong projects in Mongolia undergo continuous evaluation
and assessment of the impact on local development, with the objective of improving
the efficiency of the projects. In the leadership camp mentioned above, the debate
was not only about the success of the movement but also about finding out shortcomings
that needed to be corrected or improved. Many reported the lack of cooperation and
the low level of awareness from the local public officials and residents as major problems.
The reports produced by the SMUC also point to the lack of awareness and participation
from the local residents, and sabotage from public officials; thus, although the overall
assessment is positive, there remain considerable challenges in each region.26) In all, the

25) Interview with Mr. Hwang Chang young, Director of International Cooperation of the Korea
Saemaul Undong Center(August 19, 2008).
84 An Inventory of Government Innovations and Good Governance in Asia

evaluation and assessment of Saemaul Undong projects contributed greatly to the efficient
and stable operation of the projects.

3) Consequences of Innovation

There are considerable challenges for the Saemaul Undong to take root as a
nation wide development program in Mongolia. Given the large land mass and the
underdeveloped state of regions, the socio economic basis for such movement is not
very strong. Yet it is also a fact that the movement pursued by the MSUC in cooperation
with the local public officials and the KSUC had positive results. For instance, many
projects such as the building of communal wells, food aid and ger(house) for the
lower income families and free medical service assistance were quite successful. In addition
to these projects, the paving of dirt roads, constructing village halls, medical centers
and libraries have greatly improved the livelihood of the people. In particular, one should
take note that these projects were pursued with the assistance of the KSUC and its
affiliates. For example, in the Nalaikh region, the paving of dirt roads and pedestrian
roads was carried out with the assistance form the Gyeonggi do Saemaul Undong Center
of Korea and the financial support of the Nalaikh district office. Also in the Sukhbaatar
region, the road pavement project was carried out with the assistance of the Gumi City
Saemaul Undong Center of Korea and the Provincial government which installed the
lighting facilities. In the Gachuurt region, the local medical center and reconstruction
projects were carried out with funds raised voluntarily by the 200 residents and the
financial assistance from the Jungseon Saemaul Undong Center of Korea. In Zuunkharaa
in the Selenge region, the road construction project is carried out by the local government,
members of the local MSUC, and the Yeongdeungpo gu Saemaul Undong Center of
Korea. Another example is the forestation project in the Dornod region; the local MSUC,
government and residents have collectively raised money and installed lighting facilities
and planted trees (Korea Saemaul Undong Center 2007, 40 49)
These examples show that the Saemaul Undong in Mongolia is pursued through
the voluntary efforts of the residents, and not through unilateral external assistance or
aid. Mongolia shows that participation and accountability of the residents are critical
elements for the success of development projects.
Another aspect to examine is the income generating projects that has brought about
improvements in the livelihood of residents. In the Nalaikh region, various projects such
as green house cultivation, animal farms and wool manufacturing factories are carried

26) For details, refer to Korea Saemaul Undong Center(2007), 35 39.

6. Governing Development and the Environment: The Case of Mongolia 85

out with the technical assistance from the Gyeonggi do Saemaul Undong Center of Korea.
In the city of Ulaangom, the farm animal breeding project is carried out with assistance
from the Chuncheon City Saemaul Undong Center of Korea. In all these projects, the
residents are rewarded for their investment through official contracts formed with the
local Saemaul Undong Center. Such arrangements have proven to be effective in
encouraging the residents to work hard and contribute to the local economy. Furthermore,
financial assistance such as loans programs is provided to the residents in conjunction
with these projects. These efforts have had the positive result of creating jobs for the
residents and improved income in the region’s households the essential goals of the
Saemaul Undong (Korea Saemaul Undong Center 2007, 40 49)
The above cases illustrate the importance of voluntary participation and mutual
cooperation among the stakeholders of the development projects, and how the success
of these projects instills a can do spirit among the residents. All together, these
achievements form the foundations for a continuous and self reliant Saemaul Undong
in Mongolia. At the MSUC leadership camp, the Mayor of Mandal in the Selenge region
offered his views on the achievements made by the MSUC.

“When we first started the project on building roads in our village, we followed
the guidelines in the book. It was a big success. I was the first person to dig the grounds,
and the residents have followed my lead very well. Construction of the roads was a
long time wish of our village. Many politicians promised us new roads, but they all failed
to keep their words. So we decided to do it on our own. The Saemaul Undong was
a big influence in our decision. The local government, companies and residents are
working together on this project. I have been a businessman for 14 years, and a Mayor
for 3 years now. I would like to tell others of the success we have had in implementing
the Saemaul Undong project. I have been praised by the President for the success of
our road construction project. We are all surprised at how our collective efforts resulted
in such great success. I believe our region will become the most economically advanced
region in Mongolia in the future. The book on the Saemaul Undong was inspirational;
we have cultivated unwanted land and transformed it into a village park. We were
surprised with the results; the success of our efforts has inspired the residents to become
more active participants in the movement” (Korea Saemaul Undong Center 2007, 38)

The above commentary illustrates the positive directions of the Saemaul Undong
movement in Mongolia. While there are regional differences, the results of the movement
can be characterized as greater confidence and attention on the part of the stakeholders
86 An Inventory of Government Innovations and Good Governance in Asia

of the projects and a tradition of cooperation between residents, public officials and
companies. It has been only 4 years since the beginning of the Saemaul Undong in
Mongolia, but the potential for the movement to provide the foundations of democratic
governance in Mongolia appears bright.

4) Lessons Learned and Key Recommendations

The Saemaul Undong in Mongolia shows how a developing country lacking political,
social and economic infrastructures can engage in developmental projects through
democratic governance measures.
The experience of Mongolia shows that the success of Saemaul Undong is dependent
on local civic organizations that perceive the necessity of development projects. This
is particularly relevant for countries where the capacity of central and local governments
is limited; the existence of local civic organizations provides the foundation for the
continuous execution of development projects. In the case of Korea, the initiative of
the Saemaul Undong came from the central government, and the movement went through
much trial and error until the people began to embrace the movement and participated
voluntarily. In other words, the success of the Saemaul Undong in Korea became possible
only after the people took full ownership of the movement. On the other hand, the
local civic organization (e.g. MSUC) played a major role in leading the residents to
participate in the Saemaul Undong in Mongolia. Mongolia’s experience shows that the
leadership provided by local organizations that share the same language, ethnicity and
culture with the local communities can be very effective, and such leadership is a necessary
component for the Saemaul Undong to spread to the entire country.
The assistance from outside organizations is also very important in order for local
development projects to reach their full potentials. Countries like Mongolia lack the
financial resources and experience to carry out the development projects continuously.
Then, outside assistance such as those provided by the KSUC in Korea can be a critical
variable behind the long run success of these projects. But as mentioned earlier, such
outside assistance must be limited to the enhancement of autonomy and self reliance
capacity of the Saemaul Undong. Assistance may be provided free of charge in the
beginning, but with time must be provided in exchange for indigenous efforts to establish
self reliance. The local residents, public officials and Saemaul Undong leaders should
be subject to strict assessment and evaluation, based on the principles of pre and post
assessments of the viability of projects and financial self sustenance. If external
organizations participate in the projects, it is important to forge official relationships
6. Governing Development and the Environment: The Case of Mongolia 87

between the local administrative authorities and other stakeholders of the project in order
to clearly define the roles and duties of each participant in the project. In most developing
countries, collaborative relationships are often formed based on informal or personal
relationships, which can be negative factors as they may damage the stability and
continuity of the development projects.
Finally, it is important to make sure that the local Saemaul Undong ceases to depend
on outside assistance once it reaches a certain level of success. The basic principle of
the Saemaul Undong is “to live well on one’s own.” The local residents must bear the
responsibility and appropriate obligations, as well as forge collaborative relationships with
one another in order to sustain the movement on their own. This is achieved only in
limited areas so far in Mongolia; but the prospects for long term success look very
good, given the stage by stage development strategies pursued in each project. The above
aspect cannot be overemphasized for other countries that want to apply Mongolia’s
success to their own situations.

(3) Governance in the Forestation Project to Combat

Desertification

1) Background

Desertification refers to the natural phenomenon where draught, deforestation,

environmental pollution interact complexly, changing arable land into a desert. Generally,
the acceleration of desertification is evident in the manner where greenery such as trees
and shrubs disappear, and the temperature of the earth surface decreases and the amount
of rainfall drops. According to the United Nations Convention to Combat Desertification
(UNCCD), the earth’s surface experiencing desertification totals a third of the entire
surface. Each year approximately 60,000㎢ around the world (3,500㎢ in Northeast Asia)
is undergoing desertification. This situation is particularly severe in Mongolia. According
to a 2006 research by the Desertification Research Institute of Mongolia, about 50%
of Mongol territory is experiencing desertification, and 90% of such lands are experiencing
extreme desertification; particularly alarming is the speed of desertification in Mongolia
compared to other countries.27) Desertification in Mongolia is due to both natural and
human causes. Natural causes are the rising temperatures and increasing dryness and

27) Due to desertification, 683 rivers and 760 lakes and ponds, and 1,483 streams have dried up; around
75% of the total plant population have disappeared (Citizen’s Info & Media Center 2008b, 6).
88 An Inventory of Government Innovations and Good Governance in Asia

wind, lack of water supplies, multiplication of harmful insects and undernourished lands.
Human causes are overgrazing, exploitation of mining and logging, rapid increase of
industrial activities and the population, traffic induced problems, fire hazards and so on
(Je 2008, 3 4).
Desertification in Mongolia is affecting the lifestyle of the Mongol people. The
reduction of arable and grazing land is affecting the economic basis of the people,
propelling them to head for the city. The rapid increase of urban population is creating
associated social problems; especially the increasing frequency of sand wind affects the
health of both human and animal populations. The problems of sand wind is crossing
national borders and becoming an international natural disaster. Research findings that
about 50% of the sand wind occurring in Northeast Asia comes from the Gobi desert
demonstrate the severe impact of desertification in Mongolia (Citizen’s Info & Media
Center 2008a, 129). Thus, the consequences of desertification in Mongolia are both a
local and international problem.
Efforts to deal with the desertification problems began in the 1990s. The government
of Mongolia established the legal and institutional basis as well as a three step execution
strategy as part of the national development plan. The national development plan includes
projects such as research on desertification, management of dry areas, forestation projects
and greenbelt management, and pavement of roads. The government of Mongolia has
formed various partnerships with international bodies such as the UNCCD, GEF, UNDP,
UNEP, UNESCO, JICA, KOICA, DANIDA, GTC, ESCAP, ADB, World Bank through
which financial and technical assistance are obtained. Also partnership with companies,
and NGOs within and outside the country are encouraged as well (Citizen’s Info &
Media Center 2008a, 132 151). Nevertheless, the reality is that the problems facing
Mongolia require massive funds, efforts and time. Especially the project to combat
desertification requires continuous and collective efforts on the part of both the central
and local governments, and local residents. The basis for such approach is not yet fully
established in Mongolia.
However, in the Baganuur region and Bayanuur region situated near the capital
city Ulaanbaatar, a positive approach to the governance of the environment is currently
being carried out with the support of international NGOs, the central and local
governments, local NGOs and residents. With the assistance of Green Asia Network,
a NGO based in Korea28), the local governments of Baganuur and Bayanuur, local NGOs
such as My Club and GNC Mongolia, and residents are participating in forestation
projects to combat desertification. This project has a success rate of 90% of surviving

28) For the activities of Green Asia Network, refer to their website http//www.simin.org
6. Governing Development and the Environment: The Case of Mongolia 89

trees (the average survival rate of trees is only 40% in Mongolia); hence the forest of
Baganuur received the ‘best park’ award from the city of Ulaanbaatar (Je 2008, 9). The
forestation project carried out in Baganuur and Bayanuur illustrate how developing
countries that lack the experience and resources can deal with environmental issues, and
how international NGOs can play a positive role in the establishment of the
government people NGO cooperation model of governance.

2) Main Features of Innovation

Baganuur belongs to the administrative district of the city of Ulaanbaatar, and has
a population of 24,000. It is mainly a mining area with associated soil and air pollution
problems. Starting from 2003, forestation projects began in Baganuur in order to combat
pollution and sand wind problems. As an extremely dry area suffering from lack of
rainfall, Bayanuur has made efforts to combat the depletion of soil through planting
trees since 2007 (Citizen’s Info & Media Center 2008b, 10 13).
The forestation projects in these two areas began with the initiative of a NGO
based in Korea, the Green Asia Network. This organization is a purely private
organization that implemented forestation projects in Mongolia since 2000, beginning
with planting 500 trees in children’s facility and apartment complex in the city of
Ulaanbaatar. Green Asia Network initially had some difficulties getting the forestation
project off ground, but soon transformed Baganuur and Bayanuur by planting 37,000
trees and 43,000 trees respectively; the organization also conducted a tree seedling project
of 370,000 seedlings, whose survival rate reached a remarkable 90% rate (Je 2008, 7 9)
The forestation project pursued by Green Asia Network has several objectives, which
include the following: creating jobs for the residents, establishing income generating
cultivation projects, cultural exchanges, transforming the attitudes of the local residents
and education. Through creating new jobs and income, the regional economy can be
vitalized, and through education and transformation of attitudes, social unity becomes
possible (Je 2008, 7). The forestation project was initiated by Green Asia Network, but
without the support and participation of other stakeholders of the region the central
and local governments, local NGOs and residents the project would not have been
successful.
First, the government of Mongolia, as part of its national development plan, assisted
the forestation project legally and administratively. The main government ministry in
charge of prevention of desertification is the Ministry of Environment. The Ministry
of Environment provides the necessary information and administrative assistance as well
90 An Inventory of Government Innovations and Good Governance in Asia

as plays the role of coordinator between the international NGOs and local counterparts.
In the forestation project of Bayanuur, the Ministry signed a contract with Green Asia
Network, certifying the project as an official government sponsored program. In the
greenbelt project, the Ministry as the main sponsor provides information related to the
project and induces the cooperation of local cooperatives. In the case of Bayanuur, the
Chief of the National Greenbelt Project signed the land lease agreement as representative
of the government of Mongolia. In addition, the Satellite Research Institute of the
University of Mongolia, the Geo Life Science Institute, and other government sponsored
research institutes provide information and consulting services to the project. The Satellite
Research Institute provides satellite information on the region’s desertification patterns,
environmental changes and related data. The Geo Life Science Institute provides
information on the causes of the desertification, location of water, plant type appropriate
for the forestation projects (Je 2008, 16 17). The assistance provided by the government
of Mongolia has been effective in the success of anti desertification projects as well as
augmenting government accountability of forestation programs.
The role of local governments is important as well. In Baganuur and Bayanuur,
the respective local governments played a leading role promoting the forestation projects
as the legal counterparts to land lease agreements. Also these local governments provided
anti desertification information on the region, educated the residents about the projects,
and provided on site administrative assistance. For example, since 2003, the local
government of Baganuur has committed around 10,000 US dollars of its budget to provide
water and saw dust for the seedlings to endure the cold winter season. In addition,
when planting begins in May, the government of Baganuur instructs its subsidiary
divisions to assist in the digging as well as coordinates student volunteer visits to the
projects. A local company is given charge for the daily management of the projects;
payments for the labor costs are provided by the Green Asia Network. The district
ward of Baganuur reports the overall management status to the Green Asia Network
office each month, and the NGO visits the site each year to check the project’s progress
(Je 2008, 17 18).
The forestation project in Bayanuur that began in 2007 has also shown impressive
results, and the local government played an important role in its success. Bayanuur not
only pursued the project in collaboration with Green Asia Network, but also received
assistance from the Ministry of Environment; 200 trees were distributed to each
household for caretaking in exchange for giving residents the rights to use the land
and communal wells inside the forestation site so that they can cultivate potatoes and
other cash generating produce. The residents were given tree seedlings and in 2 3 years
6. Governing Development and the Environment: The Case of Mongolia 91

each tree would be purchased back for 2,000 Tugrik per tree. Such incentives have been
very effective getting the participation of local residents in the anti desertification projects
(Citizen’s Info & Media Center 2008a, 169). The above efforts show the importance
of cooperation between local governments and international NGOs in inducing the
voluntary participation of residents in development projects.
Local NGOs also played significant roles. The club organized by university students,
‘My Club,’ played such role. My Club was first organized by Prof. Serdaram of the
National Technical University of Mongolia in 2007. The club promotes the planting
of trees, providing education on the environment and other assistance to low income
families. My Club and Green Asia Network together formed a three day volunteer
program in May and in June 2008 to plant trees in the Baganuur forest regions; the
project was participated by 100 university students and 5 professors. In July 2008, the
club sent 5 university students as volunteer teachers to a summer camp for elementary
students in Bayanuur (Je 2008, 19).
The governance of the environment in Mongolia shows the significant achievements
made through the collaboration between local and international actors where each actor
is given clear responsibilities and roles. The actors involved were not only focused on
the successful plantation of trees, but also in educating the residents and inducing their
continuous participation in the projects, with the ultimate objective of creating the basis
of self reliance. The forestation projects underway in Baganuur and Bayanuur are
representative examples of a model of collaborative governance.

3) Consequences of Innovation

The forestation projects in Baganuur and Bayanuur are still underway; each year
trees are being planted and new forestation areas are created and seedling greenhouses
are managed. The funds to continue the tree planting projects are supplied by Green
Asia Network which receives financial support form other NGOs and also the Korean
private sector. The management of the forestation projects is carried out by the local
government with the close cooperation with Green Asia Network. These efforts have
resulted in remarkable achievements; where the average survival rate of trees is only
40%, the trees managed under this program have a survival rate of 90% and above.
Such achievements led to the forestation area of Baganuur to be selected as the best
park by the city of Ulaanbaatar in 2006, and the representative of Green Asia Network
Mr. Oh Ki Chul became the first foreigner to receive the Environmental Leader Award
from the government of Mongolia in 2008.29)
92 An Inventory of Government Innovations and Good Governance in Asia

The case of Baganuur and Bayanuur show the importance of establishing continuity
and self reliance through proper strategy and planning. For example, by hiring local
management personnel and educating local residents to manage the projects, jobs are
being created; the various education programs and exchanges between the local residents
and students are also enhancing the long term viability of the projects.30) The assistance
from overseas organization and the shift in attitude of residents on Mongolia’s
environmental pollution problems also form an important part of the strategy.
The success of the forestation projects to combat desertification in Baganuur and
Bayanuur receive the attention both domestically and internationally for its potential for
sustainable environmental governance. The international NGOs, the central and local
governments, the local NGOs and residents each have its own role and functions, and
contributed toward an effective model of environmental governance.

4) Lessons Learned and Key Recommendations

The success of forestation projects in Baganuur and Bayanuur in Mongolia show

how developing countries that lack the financial and technical resources as well as public
awareness can approach the issue of environmental pollution and bring about successful
developmental projects. For the forestation projects to achieve similar successes as in
Baganuur and Bayanuur, some strategic considerations are necessary.
First, the role of international organizations or NGO that has the vision and capacity
to solve the issues of desertification should be available. Forestation projects usually
take at least 10 years and in countries like Mongolia may take more. Having a long term
strategy and the resources necessary to promote the strategy is critical to the success
of forestation projects; the innovative leadership provided by international organizations
is therefore a necessary pre condition.
Second, the developing country itself should provide the legal and institutional basis
for the successful implementation of forestation projects. The government should be
supportive of the international assistance provided by external NGOs or international
organizations. For instance, the government can, by signing land lease contracts, augment
the accountability and public trust in the forestation projects.

29)
http://kr.news.yahoo.com/service/news/shellview.htm?linkid=18&articleid=2008052117551387840
&newssetid=1329
30)
http://www.simin.org/board/brdContent.asp?threadnum=637600&nowpage=3&brdcod=10&cbos
chcate=&txtschtext=&cboschord=&menutyp=data
6. Governing Development and the Environment: The Case of Mongolia 93

Third, in order for forestation projects to become successful a cooperative

partnership between stakeholders should be established. The international organization
can be in charge of providing policy direction and financial and technical assistance;
the execution and management of the project should be carried out by the local
government or related public organizations, or local NGOs. For example, the provision
of matching funds or guaranteeing local participation by the government plays an
important role in ensuring continuity to the projects.
Fourth, in order for anti desertification projects to be truly successful, such projects
must be linked with local efforts to solve poverty, create jobs, and generate income,
improving the lives of the residents. In the end, unless the local residents take ownership
of the projects on their own, no forestation project can be sustainable for the long
run. In other words, the success of the forestation projects is deeply related to the attitude
of the people toward the environment. Thus, it is important to develop various
governance models and apply them to each local’s particular needs. Furthermore, such
efforts should be carried out in conjunction with education programs on the environment
targeting the region’s youth, so that efforts to preserve the environment can be continued
into the future.

(4) Concluding Remarks

The Saemaul Undong in Mongolia is an unusual case of democratic governance

in a low income developing country. The movement received assistance from the Korea
Saemaul Undong Center and its affiliate organization, but the Mongolian Saemaul Undong
is notable in that the local residents organized and carried out the movement on their
own initiative and efforts. The collaboration between the residents, local government
and companies is notable as well; the elements of good governance accountability,
transparency, and efficiency are found in this model.
The successful replication of the Saemaul Undong in Mongolia can be explained
in terms of the apolitical and economy centered nature of the movement. In countries
like Mongolia with authoritarian governments and lacking democratic institutions, the
Saemaul Undong was easily accepted because of its apolitical characteristics. However,
the Saemaul Undong movement in Mongolia ultimately contributed to the growth of
democracy through activation of the local civil society. The residents participated in the
projects and engaged in debates with the local public authorities on issues of local
development, which will likely contribute to the development of democracy. It is hoped
94 An Inventory of Government Innovations and Good Governance in Asia

that the Saemaul Undong contribute to not only local economic development but also
to the building of democracy in developing countries.
The forestation projects to combat desertification in Baganuur and Bayanuur also
show the direction for overcoming the environmental pollution issues in Mongolia. The
desertification phenomenon in Mongolia is not only a local problem but an international
problem affecting the entire earth. This issue requires not only the collaboration among
local actors but also with international organizations such as Korea’s Green Asia Network.
The attention and assistance from the international community, the efforts of the
government of Mongolia, the residents and local NGOs are critical to the long run
success of anti desertification efforts. The forestation projects in Baganuur and Bayanuur
demonstrate the potential for democratic environmental governance to become firmly
established in Mongolia. It is hoped that these efforts spread not only within Mongolia
but also internationally to other developing countries facing similar environmental
challenges.
7. Good Governance under an Authoritarian Regime: The Case of Uzbekistan 95

7. Good Governance under an Authoritarian Regime:

The Case of Uzbekistan
Dong Ki Sung
(Pusan University of Foreign Studies)

(1) Introduction

Uzbekistan belonged to the ex Soviet Union, and on September 1, 1991 announced

its political independence to the world. Following independence, Uzbekistan made the
shift to a capitalist democracy, and established the necessary legal and institutional
frameworks. But Uzbekistan did not adopt the Western model of democracy in its entirety,
but instead adopted it to fit the needs of the particular situation facing the country.
At the time of independence, Uzbekistan was facing Afghanistan dominated by the
Islamic fundamentalists Taliban, and national security was its most important priority
while achieving rapid economic development was another challenge. Uzbekistan chose
authoritarian developmentalism as the solution to these challenges. Historically, the
country was dominated by the Communist Party so the transition to the new political
environment under authoritarianism was rather smooth. According to the analysis of
Steven Levitsky, President Islom Karimov is pursuing “non competitively authoritarianism”
(Steven and Lucan 2002, 51 65).
It is therefore quite difficult to find cases of good governance given the political
and economic environment of Uzbekistan. The people have limited contact with the
authoritarian government and its officials, and even if popular input into policy is possible,
the opaque management of the government makes it next to impossible to analyze the
process of policy execution. What is more, non governmental actors that can represent
the interests of the people and put political pressure on the Uzbek government are
small in number and their impact has been minimal.
Nevertheless, there are incidences of good governance in the country, and this can
be explained in terms of the unique historical and cultural environment of Uzbekistan.
In this study, we analyze the “Nongovernmental Nonprofit Organizations Support Fund”
and the collective petition launched by the people of the ‘Yangi Kamolon mahalla.’ In
the first case, the example of good governance is found in how the government relaxed
its control over NGOs and formed the basis of mutual cooperation. The second case
looks at the collective petition raised to the Uzbek government by the residents of a
96 An Inventory of Government Innovations and Good Governance in Asia

‘mahalla,’ a nongovernmental administrative organization. The two cases are rare examples
of governance in an authoritarian country pursuing developmentalism; the study points
to the unique historical and cultural factors as explanatory factors.

(2) The Formation of the Nongovernmental Nonprofit

Organizations Support Fund by the Uzbek Government

1) Background

Just as the NGOs in the western world trace their roots to Christian activism, the
NGOs in Uzbekistan at the time of independence had links with the Islamic world.
But with the rising Islamic fundamentalism represented by the Taliban posing fundamental
threats to the national security of Uzbekistan, NGOs with pro Islamic orientations were
forcefully dissolved.31) In such environment even apolitical NGOs had difficulties of
operation in Uzbekistan. As this situation continued, the Uzbek government faced the
following problems.
First, lack of expertise in policy making became evident. The national assembly
of Uzbekistan, the ‘Oliy Majlis,’ had difficulties coming up with laws and regulations
in the areas of medical services, education, environment that are related to the welfare
of the people due to lack of specialized expertise. In the period of regime transition,
the policies related to medical services, education and environment necessitated
approaches that were different from the command and control approach of the Soviet
era. But with the national assembly members mostly from the Communist Party, and
given their lack of policy expertise, coming up with the necessary legal and institutional
alternatives became very difficult. For instance in education, Uzbekistan’s Soviet style
education system clashed with Western style education system, creating problems of
mutual accreditation. Institutional amelioration required the input from education
specialists and the actual opinions of the people, but they were absent in the legislation
process which ended up creating confusion to the students and foreign students who
had come to Uzbekistan.32)
Second, communication problems with the international society occurred.

31) On the phenomenon of Islam in Central Asia, refer to Olcott, Martha Bril. 1995. “Islam and
Fundamentalism in Independent Central Asia.” Yasscov Ro’i (eds.) Muslim Eurasia: Conflicting
Legacies. London: Franc Cass.
32) For example, it was only in 1999 that the Western style MA (Master of Arts) degree program
was introduced.
7. Good Governance under an Authoritarian Regime: The Case of Uzbekistan 97

The pollution problems of the Aral Sea could not be dealt with by the efforts
of Uzbekistan alone. Because the source of the pollution originated from the ex Soviet
Union era, accountability issues were serious. But even more serious was the lack of
funds to deal with the clean up. Fortunately, the international community and environment
NGOs responded to the problems and tried to assist Uzbekistan. However the Uzbek
government did not possess the knowhow to contact with the above organizations. A
partner was required to deal with the legal and institutional issues on behalf of the
Uzbek government. As is well known, many countries approach the issue of environment
pollution through the collaboration with international organizations and accommodating
the policy alternatives suggested by local NGOs. But as local NGOs were prohibited
from operation in Uzbekistan, it was difficult to come up with policies that reflected
the opinions of the people and meeting their real life needs.
In short, the Uzbek government faced problems of acquiring policy expertise in
the areas of medical service, education and environment, as well as coming up with
institutional channels of collaboration with the external world.

2) Main Features of Innovation

Given the challenges facing Uzbekistan, the government established the following
legal framework for the operation of NGOs and other civic organizations. This
framework took 2 to 5 years to set up, beginning in 1992.33)

a. The Legal Basis for Public Associations

Constitution
Article 3: Citizens of Republic of Uzbekistan have the right to get associated into trade
unions, political parties and other public associations, participate in mass movements. No
one can infringe rights, freedoms and dignity of persons constituting oppositional minority
in political parties, public associations, mass movements and also representative bodies of
power
Article 10: No public association, movement can act on behalf of people of Uzbekistan
Article 15: Public associations and citizens act in accordance with the Constitution and laws
Article 30: Public associations are obliged to provide citizens with a possibility to get
familiarized with documents, decisions and other materials impacting their rights and
interests
Article 44: Everyone is guaranteed the right to appeal the illegal actions of public
associations to the court

33) Legislationline. Http://www.legislationline.org/?tid=220&jid=56&less=false (accessed on August 10,

2008)
98 An Inventory of Government Innovations and Good Governance in Asia

Article 56: Public associations in the Republic of Uzbekistan are acknowledged organizations
of veterans and youth, creative unions, mass movements and other associations of citizens,
registered in accordance with the order prescribed by the law
Article 58: The state ensures observation of rights and lawful interests of public
associations and creates equal legal possibilities for their participation in public life
Laws
The Law “On Non State Non Commercial Organizations”
The Law “On Public Associations in the Republic of Uzbekistan”
Orders/Decisions
The Resolution of the Cabinet of Ministers of the Republic of Uzbekistan “On Ordering
the Registration of Charters of Public Associations in the Republic of Uzbekistan”
The Rules for Consideration of Applications to Registration the Charters of Public
Associations Acting on the Territory of the Republic of Uzbekistan

b. Legal Definition of NGO

Uzbekistan expanded the concept of NGO to include non state non commercial
organization, promulgating the Law on Non State Non Commercial Organizations on
April 14, 1999.

c. Laws on the Establishment of NGOs

The laws on the establishment of NGO were codified in Articles 75 and 76 in
the Civil Code, Article 8 in the Law on Public Associations in the Republic of Uzbekistan,
and Article 12 in the Law on Non State Non Commercial Organizations. The main
content is the requirement for the minimum number of people for its legal establishment
set at 5 persons, and government registration requirement.

d. Area of Operation by NGOs

The laws defining the areas of operation by NGOs were codified in Article 76
in the Civil Code, and in Articles 13 and 15 of the ‘Law on Non State Non Commercial
Organizations.’ The main areas of operation are limited to charity, society, culture, and
education.

e. Preventing NGO without government registration

Article 56 of the Constitution and Article 40 of the Civil Code, and Articles 216,
and 216(1) of the Criminal Code prevents NGOs from operating without government
registration.
7. Good Governance under an Authoritarian Regime: The Case of Uzbekistan 99

f. Government Support for NGOs

On January 3, 2007 the Uzbek government promulgated the ‘Law on Guarantees
of Activity of Nongovernmental Nonprofit Organizations’ which states that the
government will provide subsidies to NGOs that assist the government’s public policy
and promotes the maintenance of social order etc.
The above mentioned laws have the following implications in Uzbekistan.

a. Legal Control over the NGOs

By requiring all the NGOs to register with the government, the Uzbek government
acquired the basis for controlling them legally.

b. Providing Support to NGOs with Anti Government Orientations

The Uzbek government promised support to NGOs that provide policy expertise,
even to those that have anti government orientations. This measure is expected to
publicize the Uzbek government’s policies toward NGOs to the international community.

c. Foundations for Good Governance

Since the above mentioned legal framework is established through the voluntary
initiative of the Uzbek government to promote the expertise of the private sector, it
can be said that the democratic basis for the interaction of people NGO government
in policy making and implementation is established.

3) Consequences of Innovation

As a newly independent state, Uzbekistan required reforms in various areas. In the

beginning the Uzbek government attempted reforms in policy making and execution
on its own, via the unilateral initiative of government ministries. But as regime transition
deepened, greater expertise in legislation and problem solving was necessary. In particular,
the appropriate legal framework and education policy to adjust to the transition to market
economy was important. Yet these were the very issue areas that reform was most lacking.
The answer to the problem was the creation of the ‘Nongovernmental Nonprofit
Organizations Support Fund’ which formed the basis for mutual collaboration between
the government and NGOs.
The NGOs in Uzbekistan had to establish themselves legally in line with government
specifications, forming organizations in the areas of charity, society, culture and education
as required by law. But with lagging economic growth and slowing of foreign investment
100 An Inventory of Government Innovations and Good Governance in Asia

into the country, funds that flowed to the NGOs slowed down, creating financial
difficulties. Against this background the government provided the legal grounds for
assisting private sector experts through the 'Law on Guarantees of Activity of
Nongovernmental Nonprofit Organizations.' This law was mutually beneficial for both
the Uzbek government and the NGOs.
The national assembly Oliy Majlis also provided the institutional framework for
mutual cooperation among specialized NGOs in the areas of education, environment
and culture. This format of collaboration was eventually applied in other sections of
the government, and a variety of NGOs formed collaborative relations with the
government; many could obtain the financial assistance from the government through
competitive review. The NGOs that received such benefits were linked to efforts to
improve medical services and education. In short, the NGOs determined to be of
assistance to the country's development were provided financial support in return for
their cooperation (Douglas 2006).
The NGOs that are leaders in private sector government cooperation and receiving
financial support from the Uzbek government are as follows.34) Most of them have
expertise in the above mentioned areas of education, environment, and medical service.
Area of Science and Technology: “Oydin Hayot”
Area of Child Education: “Kelajak Ovozi”
Area of Pollution: “Logos”
Area of Legislation: “Legal Issues Study Center”
The active cooperation between NGOs and the government results in direct
incorporation of the needs of the people in the policies of the government. As the
expertise and policy suggestions from the NGOs are reflected in the process of policy
making, budget and finance, it appears that some level of transparency is also achieved.
Of course, further evaluation requires direct contact with the public officials and relevant
NGOs, but visible improvements in the lives of the people provide indirect evidence.

4) Lessons Learned and Key Recommendations

The NGOs in Uzbekistan possess a top down hierarchical structure; it functions

mostly to relay the policy initiatives of the government to the people rather than
functioning as a communications channel that forward the demands and needs of the
people to the government. Whether such structure can be considered good governance

34) Turabekova, Shahnoza. 08. 02. 2008. Uzbekistan Today. Http://www.ut.uz/eng/opinion/jointly

_to_strong_civil_ society.mgr (accessed on August 10, 2008)
7. Good Governance under an Authoritarian Regime: The Case of Uzbekistan 101

requires consideration of the unique political environment of authoritarianism in

Uzbekistan. In fact, the ‘Law on Guarantees of Activity of Nongovernmental Nonprofit
Organizations’ provides grounds for the following concerns.

a. NGOs that are noncritical of the government

NGOs that receive funding from the government can be restricted from criticizing
the government. And as the Uzbek government fundamentally prohibits anti government
NGOs, it is premature to expect the NGOs in Uzbekistan to operate like those in the
West. Especially since the Uzbek government defined NGOs as “non state
non commercial organization (NNО))” this problem is evident. Thus, any academic
evaluation of governance in the activities of Uzbek NGOs should focus on their
participation in the policy making of the government.

b. Maintenance and strengthening of developmental authoritarianism

NGOs under the control of the government may become tools for legitimizing
the ruling regime’s hold on power by providing justifications to developmental
authoritarianism. But here also, instead of associating the establishment of NGOs and
the maintenance of authoritarianism, one should focus on the potential for the
development of anti government NGOs with the rising level of quality of life.

5) Concluding Remarks

Currently, the Uzbek government employs a stick and carrot approach to controlling
the NGOs. Such approach is based on the need to preempt the anti government activities
of Islamic fundamentalists. Such environment, however, creates restrictions on the
establishment and operation of NGOs. Nevertheless, the Uzbek government has
established the legal and institutional basis for allowing NGOs that can help the
government improve the lives of the people in the areas of education, environment
and medical services. The international community is aware of the oppressive measures
by the Uzbek government against the nonregistered anti government NGOs, but appears
to know little about the government support measures for NGOs discussed in this study.
Thus the international community considers the NGOs receiving government support
as government patronized organizations to be distrusted. But as discussed above, the
NGOs receiving government support were selected because of the lack of expertise
within the government; the Oliy Majlis also needed their input for their legislation
activities. Furthermore, given the strong interest of the Uzbek government on education
102 An Inventory of Government Innovations and Good Governance in Asia

as a strategy for economic development, the government is dependent on the assistance

of NGOs that function as intermediary between the international organizations donor
countries and the Uzbek government. In summary, the ‘Nongovernmental Nonprofit
Organizations Support Fund’ can be evaluated as a case of good governance from the
perspective of communication between the government and private sector, effective
implementation of public policy, and transparency in cooperation among stakeholders.

(3) Mahalla and Collective Action Suits by the People: The

Case of Mahalla “Yangi Kamolon”

1) Background

‘Mahalla’ is a concept of local community originating from the agricultural society

in Central Asia (Eric 2002). The records on the origins of mahalla are not available,
th
but since the word appears in 11 century records the history of mahalla goes back
a long time. Some point out that mahalla is based on the Islamic community in the
Middle East, but mahalla is not a single purpose organization based on religion, ethnicity
or class; in fact it is a community organization that includes all the above elements.
The tradition of mahalla continues today.
Because the mahalla is a nongovernment local community organization, it has
organizational and functional characteristics that are different from those of a
government. The head of the community is called the “oqsoqol,” who is elected by
the residents. In general the term oqsoqol means ‘white moustache,” and an elderly person
of wide respect and knowledge is elected. In addition to the oqsoqol, there are the
mahalla citizen’s assemblies, under which exist the mahalla committee, educational advisor,
welfare commission, women’s committee, audit committee, and administrative committee.
Policies important to the community are decided in the “kengash” meeting. Its major
functions are supporting wedding and funerals of the residents, education (on tradition
and manners), medical services, social welfare services (supporting the poor) and finally
the execution of communal projects.
The mahalla underwent changes with the introduction of the Soviet system in
Uzbekistan. They became absorbed into the collective farm system under Stalin, called
the kolkhoz policy. However, the incorporation of the mahalla into the collective farm
system had unintended results; given the clan based tradition of the Uzbek society, local
factions multiplied (Kathleen 2002, 137 152). In the end the Soviet regime acknowledged
7. Good Governance under an Authoritarian Regime: The Case of Uzbekistan 103

the existence of the mahalla and incorporated them in the policy making. The head
of the mahalla, oqsoqol, is in charge of selecting the members without interference
from the government. But the Soviet regime encouraged local communist parties to elect
the oqsoqol of each mahalla, and through this method tried to control them; in return,
the traditional functions of the mahalla were acknowledged. After the collapse of the
Soviet Union and subsequent independence, the Uzbek government utilized the mahalla
as policy tool of recovering national identity. The efforts of the government began with
the president issuing on September 12, 1992 an order on the “Creation of the Mahalla
Foundation.” The mahalla became officially recognized as Government Organized NGO
(GONGO). In 1993, the law titled ‘Law on Institutions of Self Government of Citizens’
became official. In order to obtain information and monitor the mahalla, the government
supports the issuing of the newspaper “Mahalla Gazetasi” (www.mahalla.uz).
Thus, the mahalla maintained its current organizational form as a GONGO thanks
to the new laws, but in reality it is controlled by the Uzbek government. Especially,
through the Law on Institutions of Self Government of Citizens, the government
provides financial assistance to the mahalla, such as paying for the oqsoqol’s wages. The
government monitors the meetings in the mahalla as their records are kept by the local
public authorities, and has the right to fire oqsoqol who fail to gain resident support.
Normally, the existence of the mahalla and the services it provides to the local
community are targets of removal under an authoritarian regime pursuing economic
developmentalism, since such institution hampers the central government’s control and
political authority. However, in Uzbekistan, the government is looking to expand the
role of the mahalla. This effort should be traced to the unique historical and cultural
environment of Uzbekistan. In search for a new model of national identity, the Uzbek
government sought to transform the mahalla by eliminating its traditional elements but
expanding the functions that could be linked to government organizations. As a GONGO,
the mahalla are now viewed as components of the regional self government system.
The mahalla can be evaluated from the perspective of good governance, despite the
elements of government intervention and control. In fact, the collective action by the
people in the Yangi Kamolon mahalla which was a major event in the political history
of Uzbekistan demonstrates the potential for good governance.

2) Main Features of Innovation

The collective action taken by the residents of a mahalla to replace the leadership,
which impacted the local government (Hokimiyat) is an exemplary case of good
104 An Inventory of Government Innovations and Good Governance in Asia

governance; the standards for evaluation are explained below.35)

The event happened on September 2005, in the city of Tashkent, capital of
Uzbekistan. The collective action came from the 3,400 residents of “Massiv Byesh agoch,
Dom 2A” forming the “Yangi Kamolon” mahalla.36) The residents submitted a petition
to the Tashkent Hokimiyat (city government) and sued Sadyikov K. Yu. who was oqsoqol
for the past 6 years on charges of embezzlement of public coffers and deception.
Sadyikov exploited his powers and embezzled a total of $7000 US dollars, and rented
out property belonging to the mahalla as his own. He was also accused of engaging
in various deceptions against the residents of the mahalla. However, the city government
of Tashkent took no action despite the petitions raised by the residents.
Under the current authoritarian political structure of Uzbekistan, it is extremely
difficult to sue or criticize a senior or supervisor in the government. This is due to
the complex links through family, region and school ties, which has bred corruption
and collusion.37) It is susptected that the Tashkent city government authorities deliberately
ignored the behavior of the oqsoqol in exchange for bribes or favors. The possibility
is highly given the fact that the power to fire an oqsoqol resides in the Hokimiyat
(Do’stjonov, T. and Hasanov, S. 2004).
The residents of Yangi Kamolon visited the control auditing management in the
local mahalla committee and requested that the relationship between the Tashkent
Hokimiyat and the said oqsoqol be investigated. However, their requests were not
answered.
It is in this situation that a NGO intervened. The Initiative Group of Independent
Human Rights Activists (IGNPU) met with residents of the Yangi Kamolon, and after
an investigation on the facts requested the Tashkent government to engage in official
investigation to find the truth of the facts.38) In the end the Tashkent government attented
the mahalla meeting and engaged in official investigation of the fact, and the oqsoqol
Sadyikov K. Yu was fired by the Hokimiyat upon the demands from the residents.

35) For the relationship between the mahalla and NGO, see Masaru, Suda. 2006. “The Politics of
Civil Society, Mahalla and NGOs: Uzbekistan.” Osamu, Ieda and Tomohiko, Uyama (eds.)
Reconstruction and Interaction of Slavic Eurasia and Its Neighboring Worlds. Slavic Eurasian
Studies. No. 10, pp. 335 370.
36) StentralAziya. Http://www.centrasia.ru/newsA.php?st=1127440080 (accessed on
August 10, 2008)
37) The people of Uzbekistan explain their society’s characteristics by the following phrase” tanish
va bilish” which means “those I have said hello and those I have not said hello.”
38) After the Violence in Andijan, this NGO went through political difficulties such as its members
being arrested by the Uzbek government, but it is still officially active in Uzbek society.
7. Good Governance under an Authoritarian Regime: The Case of Uzbekistan 105

3) Consequences of Innovation

The above mentioned case is an example of corruption that links the Hokimiyat
which is a local government organization that functions as inspector/auditor and the
mahalla which are subordinate organizations. The residents raised the issue of corruption
to the relevant Hokimiyat and mahalla committee but did not get any favorable response;
it is only when a NGO intervened that the investigations began. The oqsoqol charged
of corrupt behavior was ultimately fired, but the chain of corruption was not completely
revealed. Nevertheless, the case points to some potential for the spread of good
governance in Uzbekistan.

a. Collective petition by the residents

This case shows how the views and opinions of the residents of mahalla reached
the government directly. While the mahalla is a GONGO, the head of the mahalla is
subject to the review and audit of the local government. That the firing of the oqsoqol
was done by a government organization shows the potential for collective petition to
work properly in Uzbekistan.

b. Role of NGOs
The IGNPU, an anti government oriented organization, showed the potential for
NGOs to impact public policy. Also the Uzbek government recognized the positive
functions played by NGOs in the monitoring of corruption.

c. Credibility and Trust in Government

While the chain of corruption was not completely eliminated, the government
demonstrated its credibility and trust by reacting to the requests of the residents and
NGO. In addition to the cases discussed above, the mahalla are engaged in various
projects administered by the 'Educational Advisor,' 'Welfare commission,' 'Women’s
committee’ and 'Audit committee.' These groups are intimately linked to the counterpart
organizations in the government, and functions as the channel of communication between
the residents and government. After the firing of the oqsoqol, Yangi Kamolon is active
in the construction of communal facilities such as schools and the student union building
in collaboration with the government. These examples show the potential for the mahalla
to become institutions of good governance.
106 An Inventory of Government Innovations and Good Governance in Asia

4) Lessons Learned and Key Recommendations

The incident that happened in the Yangi Kamolon shows that despite the functions
of self government inherent in the mahalla, the institutional structure imposed by the
government created difficulty for the residents. A local government institution Hokimiyat
has the rights to fire oqsoqol instead of the mahalla; thus even when the residents
of the mahalla wanted to fire their oqsoqol, they had to request to the government.
Such structure, under an authoritarian regime period created room for corruption, which
prevented the residents to have their preferences reflected in government policy.
Nevertheless, this case provides some implications for consideration.

a. Self rule by residents provided by traditional institutions

The members of the mahalla sought to revive the traditional rights of self rule
in the mahalla despite the authoritarian political environment. It was a combination of
the legal institutions, assistance from a NGO and the political will to self government
of the residents that resulted in the firing of a corrupt oqsoqol. But one should emphasize
the importance of the tradition of self government and efforts by the residents to revive
their traditional institution, which proved to be decisive in their successful petition. Had
such tradition not existed, would the collective petition by the residents be even possible
given the current political environment of Uzbekistan?

b. Encouragement from the political sector

The political authorities of Uzbekistan are interested in eliminating corruption and
collusion, but the existing laws cannot curb the tradition of “tanish va bilish.” This
is one of the important reasons why the Uzbek government has not dissolved the mahalla.
Since every person in Uzbekistan belongs to a mahalla, the government hopes that
corruption issues can be handled autonomously within the collective community. The
case of Yangi Kamolon is hoped to impact positively the mahallas of other regions.

5) Concluding Remarks

The mahalla in Uzbekistan is a historical and symbolic institution that represents

the nation’s culture and identity. Under the Soviet rule, the mahalla were disbanded
because the authorities viewed it as an instrument of national solidarity and an obstacle
to the Sovietization of the country. The mahalla survived the political oppression,
however, and under the independent Uzbekistan, became officially acknowledged and
7. Good Governance under an Authoritarian Regime: The Case of Uzbekistan 107

under control of the government for the purpose of maintaining national and cultural
identity. As local self governments are not yet introduced in Uzbekistan, the mahalla
functions like one, despite it being a nongovernmental organization. The head of the
mahalla is elected by the residents, and members of the mahalla participate in public
projects. However, the relationship between the government and the mahalla is a
hierarchical relationship, raising concerns as to whether the interests of the residents
of the mahalla are fully reflected and implemented in policy making and execution. The
president of Uzbekistan has once mentioned that “every Uzbek is from a mahalla,”
but if the Uzbek government views the mahalla as a policy tool to advance the policy
objectives of the government, the potential of the mahalla will never be fully realized.
So far there are various cases of cooperation between the mahalla and the government
in the areas of environment, education and medical services. The cooperation between
the residents of the mahalla, the government and NGOs shows the potential for good
governance in Uzbekistan.
108 An Inventory of Government Innovations and Good Governance in Asia

8. Nation Building and Good Governance:

The Experience of Kazakhstan
Dong Ki Sung
(Pusan University of Foreign Studies)

(1) Introduction

Kazakhstan is considered a country that has achieved rapid economic development

thanks to its rich oil reserves in the Caspian Sea. But in the political arena, Kazakhstan
is not so fortunate. Similar to Uzbekistan, Kazakhstan has installed the relevant legal
and institutional frameworks to cope with regime transformation, but maintains an
authoritarian regime based on the justifications of national security and economic
developmentalism. The people are unhappy with the ruling regime, but have voted for
the ruling party in the expectations for continued economic growth, and are criticized
for strengthening authoritarian rule and institutions. The president Nursultan Nazarbaev,
has won the presidential elections 3 consecutive times, and has now the foundations
for rule for life. The country has succeeded in establishing “authoritarianism without
competition.”
There are 120 ethnic groups in Kazakhstan. 40% of the population are either Russian
or Russian speaking, forming a large political presence in the country. Also, as the country
neighbors Russia, its foreign and domestic policies tend to have Russia in mind. It is
only by 1997 that the Kazakh people went beyond the 50% threshold; for such reasons,
Russia remains the common language in this country.
While Kazakhstan is an authoritarian country, the multi ethnic and multi cultural
environment is expected to bring forth a variety of voices by the people. But because
there is no effective opposition government and the ruling elites maintain authoritarian
rule, it is difficult to find elements of good governance. Kazakhstan also controls its
NGOs heavily, and civil society therefore is rather underdeveloped.
Nevertheless, it is possible to find elements of good governance in Kazakhstan,
and we should look into the unique historical and social environment of the country.
In this study, we analyze the changes in the city of Kurchatov, a well known nuclear
experiment center. Next, we analyze the Assembly of Nations of Kazakhstan. In the
first case, as nuclear experimentation became forbidden after independence, Kurchatov
faced the challenge of getting rid of its reputation as the city of nuclear waste disposal
8. Nation Building and Good Governance:The Experience of Kazakhstan 109

and rebuild the city. In this process the roles of local residents and NGO were notable.
In the second case, the Assembly of Nations demonstrated a model of cooperation
among ethnic minorities and government.

(2) Transformations of Kurchatov

1) Background

The tragic history of Kurchatov is briefly explained here.39) Situated in the northeast
of Kazakhstan and near the borders facing China, Kurchatov was the major center of
the nuclear experiment test site (The Semipalatinsk Test Site (STS)) during the Soviet
Union under Stalin.
In 1947 the Soviet Union in preparations for the “Soviet atomic bomb project”
searched for an appropriate location for experimentation, and the 18,000 km² area
including Kurchatov was selected. A total of 456 nuclear tests were conducted from
1949 to 1989; on August 29, 1991 nuclear testing was officially terminated.
The name of the city, Kurchatov, originates from the name of the famous nuclear
scientist Igor Kurchatov (1903 1960). Kurchatov was a secret military city, where scientists
and public officials associated with the nuclear experiments lived; the general public was
forbidden to reside in the city.
On February 12, 1989 nuclear experiment was carried out at the Semipalatinsk Test
Site but radiation leakage occurred. This event became the focal point for the creation
of the first anti nuclear movement in the Soviet Union, the “Nevada Semipalatinsk.”
This organization consisted of thousands of citizens and demanded the immediate shut
down of all the nuclear facilities in the Semipalatinsk region. With the collapse of the
Soviet Union, this anti nuclear movement received support from the international
community and became a world famous anti nuclear NGO.

39) NTI. 09. 2005. Http://www.nti.org/e_research/profiles/Kazakhstan/Nuclear/facilities_ semipalatinsk.

html (accessed on August 10, 2008)
110 An Inventory of Government Innovations and Good Governance in Asia

<Figure 8.1> Kurchatov City

As Kazakhstan gained independence from the Soviet Union, it automatically became

a nuclear power. The West led by the United States, induced Kazakhstan and Ukraine
to disarm their nuclear facilities. The Nevada Semipalatinsk also demanded that the
Kazakhstan government disarm the nuclear facilities, and on August 29, 1991, President
Nursultan Nazarbaev issued the “Presidential Order on the Semipalatinsk ground closure.”
Since then Nevada Semipalatinsk has become a world renowned anti nuclear NGO that
is active to this day.
In 1991 with the closure of the Semipalatinsk test site, the city entered into a phase
of decline. The soviet army that was stationed was recalled, and all the facilities associated
with nuclear experimentation were destroyed. In 1990 around 20,000 residents lived in
Kurchatov; after the presidential order and the ensuing destruction of the city, people
left to live elsewhere. With the failure of economic reform in Kazakhstan, Kurchatov
could no longer rely on the support from the government. The Kurchatov became to
be known as the abandoned city. It is in this context that the residents of Kurchatov
and the NGO Nevada Semipalatinsk requested a reconstruction of the city and attempted
to enlist the aid from international organizations.

2) Main Features of Innovation

Kurchatov was always exposed to the danger of radiation when it functioned as

the center of nuclear testing under the ex Soviet Union. But with the help of
Nevada Semipalatinsk and the official nuclear disarmament of the Kazakhstan
government, the city faced a new environment. The problem, however, was that the
new environment posed greater challenges to the city. Most of the existing building
and facilities were contaminated and therefore had to be destroyed; yet assistance from
8. Nation Building and Good Governance:The Experience of Kazakhstan 111

the government did not come any more after the mass demolition of buildings. Literally,
Kurchatov had become an abandoned city.
But with the development of oil reserves in the Caspian sea the financial stability
of Kazakhstan improved, which has formed a positive environment for the rebuilding
the Kurchatov. The government has promised to transform the nuclear test sites into
a park, and the project is currently underway. This policy innovation was pursued in
the following manner.
On January 13, 1994 V. Vasilenko(chief of the council of experts for issues of
social ecology) of the Nevada Semipalatinsk criticized strongly the joint
announcement between the Russia and Kazakhstan that the Semipalatinsk will be
used by the two countries. He argued that the negotiation between the two
countries ignored the interests and opinions of the local residents (Vasilenko, V.
and Zelenyy 1994, 13).
On March 30, 1994 President Nursultan Nazarbaev of Kazakhstan expressed his
view that there no longer will be any nuclear testing in the Semipalatinsk. He
also promised that the research facilities in the area will be remodeled to become
the mecca of nuclear physics and space science in the future. He asked for the
assistance of the international community.40)
On May 1994 Russia and Kazakhstan agreed to the dismantling of nuclear facilities
in the Semipalatinsk.
Beginning in 1995 the underground and ground facilities related to nuclear testing
in the Semipalatinsk were dismantled or destroyed.
On October 3, 1995 the US Department of Defense and the Ministry of Science
of Kazakhstan signed on a mutual agreement to remove the nuclear facilities.41)
On August 20, 1996 the Presidential Order on “Additional Measures to Ensure
the Functioning of the National Nuclear Center of the Republic of Kazakhstan,
and Nuclear and Radiation Safety at Its Facilities” took effect.
On August 29, 1996 a roundtable between the Nevada Semipalatinsk, the
Kazakhstani Ministry of Science Academy of Sciences), a NGO of nuclear
physicists against nuclear war was conducted, confirming their support once again
for the “Presidential Order on Semipalatinsk ground closure” announced on
August 28, 1991. And in the roundtable conference Nevada Semipalatinsk asked
for international aid on the redevelopment of the nuclear sites and compensation

40) Interfax. 31. 03. 1994. “Nazarbaev Rules Out Testing At Semipalatinsk.”
41) Office of the Assistant Secretary of Defense News Release. 1995. “US Kazakhstan Agreement
to Seal Up World's Largest Nuclear Test Tunnel Complex”, No, 536 95, pp. 1.
112 An Inventory of Government Innovations and Good Governance in Asia

for the people in the region. The President of the Kazakhstani Academy of
Medical Sciences announced in response that a charity fund to assist the region’s
residents will be set up.42)
Public awareness on the suffering of the residents spread as Nevada Semipalatinsk
pursued its activities of requesting aid to the government of Kazakhstan and other
countries. As news that Kazakhstan and Russia were planning to use the facilities again
for nuclear testing became known to the external world, many NGOs including the
US began applying pressure against the proposal. The West also came up with the idea
of funding the cost of nuclear waste removal, adding to the pressure. In the end, President
Nazarbaev reconfirmed the closure of the nuclear facilities as decreed in the August
28, 1991 “Presidential Order on Semipalatinsk ground closure,” and announced official
plans for the region’s redevelopment.
This study examined how NGOs, the government and the international society
collaborated to reach the common objective of the disposal of nuclear facilities in the
Semipalatinsk. Because the nuclear issue is a collective problem of the world, the NGOs
and international community moved quickly to deal with it. Most of all the determination
of the government of Kazakhstan to disarm the nuclear facilities was an important
factor. Soon, the redevelopment plan of the nuclear experiment sites spread to the
international community.

3) Consequences of Innovation

Policy innovation became more detailed and spread further as it went through the
following processes.
On November 16, 1998 the UN general council called on the international
community to look at the problems facing the Semipalatinsk.
On December 14, 1998 the government of Kazakhstan announced that it would
need 43 million US dollars for the redevelopment of the nuclear testing site.
The areas for assistance were divided into 5 categories: environment (7.8 million
US dollars), health (24 million US dollars), economy (6.6 million US dollars),
humanitarian aid (3.3 million US dollars), cost of expert assistance (1.3 million
US dollars).43)
On September 7, 1999 in an international conference held in Tokyo, Japan, the

42) M. A. Aliev. 29. 08. 1996. “Poligon 29 avgusta. Vse sdelat dlya lyudey i Zemli.” Kazakhstanskaya
pravda.
43) Daughtry, Ewell Emily. 19. 02. 1999. CNS NIS Representative Office Weekly Report.
8. Nation Building and Good Governance:The Experience of Kazakhstan 113

international organizations World Bank, UNESCO, WHO, FAO, EBRD, EU,

OSCE and NATO, as well as NGOs came together to hold discussions on possible
ways to assist the reconstruction of the Semipalatinsk. The Japanese government
promised to the UNDP 1 million US dollars for the reconstruction of the
Semipalatinsk (Kyodo, 07. 09. 1999).
On July 29, 2000, the last remaining nuclear facilities were removed.
th
On August 2001, the government of Kazakhstan hosted a 10 year memorial
conference on the closure of the Semipalatinsk. President Nazarbaev announced
that approximately 1 billion US dollars would be required to restore the soil of
the region. The government has already received 20 million US dollars for the
restoration of soil in 2001.
On November 27, 2002 the UN initiated 38 projects for the reconstruction of
the Semipalatinsk (Kazakhstan Today, 27. 11. 2002).
On February 6, 2003 Kurchatov opened the Radiation Monitoring Laboratory
which not only monitors radiation levels in the region but also engages in research
on radiation treatment and ecology.
On February 12, 2003 a group of experts and scientist called the Special
Coordination Group (SCG) under the IAEA proposed a comprehensive
development plan for the Semipalatinsk region, and asked for assistance from
the international community (Interfax, 03. 03. 2003).
The spread of innovation measures depend on the availability of financial support.
In the case of Kazakhstan, the oil resources in the Caspian Sea provided the country
with the resources to tackle the project of the reconstruction of the Semipalatinsk. Of
course, whether the aid from the international community was used in an objective and
transparent manner is important as well. However, the government of Kazakhstan has
not released any official data on this issue, but when we examine the amount of
investment made to the region, indirect evaluation can be possible.
The government of Kazakhstan announced in 2007 a redevelopment project
targeting the cities near the nuclear testing sites of the Semipalatinsk (Namazkulova,
K. 2007). Among them, Kurchatov was selected for the project titled “Creation of
Technology Park,” whose objective was as described below.
Development of modern infrastructure for manufacturing application of new
technologies
Provision of high tech developments promotion ahead to a market
Solution of existing socio economic problems of the Kurchatov city.
The facilities needed to realize the above objectives are a reactor complex, industrial
114 An Inventory of Government Innovations and Good Governance in Asia

accelerator, gamma radiation facility, among other things.

4) Lessons Learned and Key Recommendations

The reconstruction of the abandoned city of Kurchatov began in 2 stages. The

first stage was the prohibition of nuclear testing and disposal of radioactive matter. The
second stage was the reconstruction of the city itself. The 2 stages went in conjunction
with the economic development of Kazakhstan. The details are explained below.

a. 2000 early stage after independence

In this stage full blown economic development had not yet started and Kazakhstan
was a newly independent country in the eyes of the international society. The people
of Semipalatinsk and the NGO Nevada Semipalatinsk demanded to the international
community such as the US, and to the government of Kazakhstan on the absolute
removal of the nuclear testing facilities. Kazakhstan accepted those demands of the
international society, but in order to tackle the problem, required the financial assistance
from abroad since it lacked the economic capacity to mobilize funds. The response to
the nuclear issue by Kazakhstan was passive, in response to the demands of the
international society in which it had just become a member.

b. 2001 current
With the soaring oil prices, Kazakhstan achieved rapid economic growth, and soon
became a Post BRICs economy. The reconstruction of the Semipalatinsk region emerged
at this stage. Having had some experience as a transitional state and possessing of greater
financial capacity, the government of Kazakhstan responded actively to the nuclear issue.
The government incorporated the demands from the residents of Kurchatov and the
Nevada Semipalatinsk regarding the reconstruction of the city. The shift in the attitude
of the government can be explained first in terms of the need to establish an international
reputation as a Post BRICs economy, which is hoped to vitalize the development of
secondary and tertiary industries in Kazakhstan.
Kazakhstan maintains an open position to the external world while maintaining strict
internal controls befitting its nature as an authoritarian regime. Similar to Uzbekistan,
it maintains strong controls over the activities of NGOs and civic organization, but
at the same time maintains collaborative relations with the private sector and the
international community in regards issues such as the environment.
8. Nation Building and Good Governance:The Experience of Kazakhstan 115

5) Concluding Remarks

The case of Kurchatov demonstrates how good governance emerges from the active
incorporation by the government of the demands of its citizens and collaboration from
the international community. As a newly independent country, Kazakhstan was in need
of various policies that would help the country regain its identity and help achieve
economic development. The nuclear testing and removal of nuclear weapons, and
radioactive poisoning issues raised by the Semipalatinsk required the government to step
in and take charge. But under a transitional period, the government lacked the financial
resources to tackle the issues on its own. Initially Kazakhstan attempted to get
governmental assistance from Russia and the US. Russia wanted to continue the nuclear
experimenting in Semipalatinsk, but NGOs such as Nevada Semipalatinsk resisted strongly
and Russia eventually gave up on the idea. On the other hand the US focused on the
removal of nuclear facilities for fear that the continued existence of the facilities will
create crisis of the international community. Kazakhstan as a new entrant to the
international community wanted to remove the nuclear facilities and large scale removal
of nuclear weapons and facilities are completed. However, there remains the challenge
of reconstructing the cities that were destroyed as a result of the removal of nuclear
facilities. In this stage, Kazakhstan could engage in the rebuilding of the cities thanks
to the cooperation from international organization and also from the earnings from the
oil development in the Caspian Sea. Recent announcements on the reconstruction plans
demonstrate this shift. This case shows how government private sector cooperation is
possible even in the area of environment. The reconstruction of Kurchatov conducted
through the cooperation between NGOs, residents and the government shows the
potential for good governance in this country.

(3) The Assembly of Nations of Kazakhstan (ANK)

1) Background

Kazakhstan is a multi ethnic multi cultural nation consisting of around 100 ethnic
groups, and such environment has been a major variable in the country’s development
and national security. As the existing ethnic group ratio shifted with independence, the
rise of the Kazakhs in contrast to the diminishing number of Russians and the ensuing
ethnic conflict is a major issue impacting the nation’s stability.
116 An Inventory of Government Innovations and Good Governance in Asia

<Table 8.1> Ethnic Composition of Kazakhstan

(%)
Nationality 1897 1911 1926 1939 1959 1970 1979 1989 1999 2006
Kazakh 73.9 60.8 59.5 38.0 30.0 32.6 36.0 39.7 53.4 59.2
Russian 12.8 27.0 18.0 40.2 42.7 42.4 40.8 37.4 29.9 25.6
Ukrainian * * 12.4 10.8 8.2 7.2 6.1 5.4 3.7 2.9
German 0.7 1.5 7.1 6.6 6.1 5.8 2.4 1.4
Tatar 1.1 1.1 0.7 1.6 1.5 2.2 2.1 2.0 1.7 1.5
Uzbek 1.3 1.1 3.2 1.7 1.1 1.7 1.8 2.0 2.5 2.9
Belarusian * * 0.5 1.2 1.5 1.2 1.1 0.8
Uighur 0.6 0.9 1.0 1.1 1.4 1.5
Korean 0.8 0.6 0.6 0.6 0.7

Source : Agency on Statistics of the Republic of Kazakhstan. “Demographic situation in the

Republic of Kazakhstan in 2006”
Http://www.stat.kz/index.php?lang=rus&uin=1176791556&chapter=1176791809
* For 1897 and 1911 "Russians" include all Slavs.

As can be seen in the table, there are only 7 ethnic groups that are more than
1% of the entire population. The real problem, however, is the ratio of the Kazakh
people to the entire population. In 1997, the majority of the population consisted of
Russians of Slavic origins, but since then the Kazakh people have become the majority.
The main reason lies in the mass migrations that occurred with the breakup of the
Soviet Union. As a result, while the Kazakh people are the main ethnic group of the
country, it has a weak political base. This is in contrast to Uzbekistan where 80% of
the population consist of the Uzbek people, which allow the country to pursue
nationalistic policies. Such situation is reflected in the language policy of the country.
At the beginning of independence, the Kazakh was designated as the official language
in the constitution; but given the wide use of Russian among the other ethnic groups,
Russian was selected as the national language as well.44) In addition, the geographical
proximity to Russia and Russia’s emerging presence in the world economy has impacted
the ethnic politics of Kazakhstan.
In the Kazakhstan region, a variety of tribes of Turkic origin and Slavic communities
existed in the beginning. But with the forceful migration policy conducted under Stalin,
people of German, Caucasian origins from the West, and Soviet Koreans of the East
settled in Kazakhstan, creating a complex social environment.

44) On the language policy in Kazakhstan, see Fierman, William. 1998. “Language and Identity in
Kazakhstan: Formulations in Policy Documents, 1987 1997.” Communist and Post Communist
Studies, Vol, 30. No, 2. pp. 171 186.
8. Nation Building and Good Governance:The Experience of Kazakhstan 117

Since these ethnic groups possessed their own language, religion and cultural
practices, the direction of the government’s ethnic policy would have had a direct impact
on the fate of these groups and on social stability. In the past, the Soviet Union ignored
the multi ethnic, multi cultural origins of the people and forced all the ethnic groups
to learn Russian as the official language, and banned the use of traditional languages.45)
Through the policy of forceful sovietization, the ruling regime deliberately ignored the
cultural traditions and practices of each ethnic group. At that time the oppressive nature
of the ruling regime prevented the minority ethnic groups from resisting the state, but
with the end of the Soviet system, long festering problems emerged to the surface.
Interestingly, the newly created independent countries, while fully aware of the past
problems of unilateral nationalistic policy pursued by the Soviet Union, enacted
nationalistic ethnic policies in their respective countries. Uzbekistan is a major example
of this kind. The Uzbek which was considered one of the lowly languages became the
national language replacing the widely used Russian. Ethnic minorities that used Russian
ended up facing difficulties in promotion at work and all other sorts of discrimination.
But because the Uzbek people forms the majority of the population, other ethnic groups
dared not react strongly to this change.
Kazakhstan also attempted a strong nationalistic ethnic policy based on the support
of the Kazakh people. But various social problems emerged and national stability was
threatened. As the Russians, Jews and Germans that played leading roles in their respective
fields returned to their home countries, the country faced a severe drop of qualified
human resources. Most of all, since more than 50% of the population spoke Russian
as their language of communication, resistance to the Kazakh language was severe.
Resistance was particularly fierce since the Kazakh people consisted less than the majority
at the time of independence (Rober and Jeff 1995, 1 24).
The nationalistic policy pursued by the government of Kazakhstan was met with
resistance by other ethnic minorities. The most visible was the mass migration back
to the home countries. This was a clear loss to the country. The government attempted
to educate the ethnic minorities the Kazakh language, but lack of education materials
and financial resources resulted in failure; the ethnic minorities showed indifference to
the government’s language education programs. Given the reality that even 25 to 40
% of the Kazakh people did not speak the language, many experts criticized the
government’s language policy as too early and too fast (William 1998, 175).
With 1995 as a turning point, the government of Kazakhstan shifted the policy

45) For Stalin’s language policy, refer to Ornstein, Jacob. 1959. “Soviet Language Policy: Theory and
Practice.” The Slavic and East European Journal, Vol. 3, No. 1, pp. 1 24.
118 An Inventory of Government Innovations and Good Governance in Asia

to one of appeasement of ethnic minorities. In 1995, in the new constitution Russian

became the official language to be used side by side with the Kazakh.46) In order to
appease the Russians that live in large numbers in the northern areas of Kazakhstan,
the existing capital city Almaty was moved to Astana, which was situated further north.47)
The shift in Kazakhstan’s ethnic policy was evident in the change in language policy,
and this resulted in stemming the mass migration by ethnic minorities. A variety of
policies designed to improve the relationship between the mainstream Kazakh people
and other ethnic minorities were carried out, and the most effective policy was the
establishment of the Assembly of Nations of Kazakhstan (ANK).

2) Main Features of Innovation

The government of Kazakhstan viewed that the key to national development and
social stability lay in the harmonious relationship between the mainstream Kazakh people
and the ethnic minorities. There was therefore the need for a common space or forum
where various ethnic groups communicated with one another through cultural exchanges,
among other things. This formed the background behind the formation of the ANK.
st
President Nazarbaev announced on the 1 Ethnic Forum held in 1992 that
Kazakhstan should aim for new public institutions that are based on multi ethnic groups.
On March 1, 1995, the president announced the “Presidential Order on the Creation
of the Assembly of Nations of Kazakhstan.” Since then, on August 10, 1999 President
Nazarbaev became the chairman of ANK. In 2002 he explained the strategic vision
of ANK and the policies pursued so far:
The government of Kazakhstan has provided equality to all the ethnic groups
in the country.
The government of Kazakhstan has assisted the linguistic and cultural development
of the ethnic groups in the country.
ANK is itself an example of policy innovation. The chairman is the President of
Kazakhstan, and the 2 positions of vice chairman are filled with one Kazakh person
and one ethnic minority. The membership of 324 people consists of representative from
ethnic groups in the country; most of them are either heads of cultural associations
or entrepreneurs. In short, the ANK provides a forum for private sector government

46) Constitution of the Republic of Kazakhstan. Article 7. 1995.

47) Policy analysts view the move of the capital city from Almaty to Astana from the following
viewpoints. First, the risk of earthquake in the Almaty region; Second, the geographical location
of Almaty which is situated in the far southeast; Third the demands for separation from the Russians
living in the north. Most experts think that the third explanation is the most plausible one.
8. Nation Building and Good Governance:The Experience of Kazakhstan 119

collaboration, where ethnic minorities are guaranteed participation; projects pursued by

the ANK are based on the interests of the ethnic minorities.
The creation of ANK was a response to the needs of social stability and national
development in a country of multiple ethnic groups. Thanks to this shift in government
policy the ethnic groups could be ensured of their safety, and the task of establishing
national identity became much easier. The Kazakh people also found a forum of
communicating with the other ethnic groups; as the ANK encompassed the various ethnic
groups, potential ethnic conflicts could be prevented by communicating with ethnic
groups or responding to potential problems at the early stage.

3) Consequences of Innovation

Understanding the expansion of policy innovation lies in examining the details of

the innovation. The ANK has various programs currently underway; a look at its website
(http://www.assembly.kz) shows some major projects, which are categorized in the
following.
Sharing of ideas: National idea, Forum of cultures and confessions, E library,
Research centre on interethnic relations problems
Financial support: Fond ANK
Sharing of information: Magazine "Dostyk"
Education of technology, information and language: MultiCenter
Sharing events: Festivals Contests Concerts, Jubilees

These projects must be participated by the government, NGO, and the various ethnic
groups. Especially on sharing of ideas, the above mentioned actors’ participation is
required. For projects necessitating financial support, it is provided by the government,
or a NGO through a fund. Sharing of language, culture is carried out for the objective
of mutual communication and harmony among the ethnic groups. Information on these
projects is all available in the magazine "Dostyk." The ANK is also actively assisting
language education for various ethnic groups; in May 2008, the language center “Lingbo”
was opened thanks to the financial support from the government and the assistance
of the language commission of the Ministry of Culture. People can come to the Lingbo
and learn the Kazakh, Russian and English languages free of charge.
120 An Inventory of Government Innovations and Good Governance in Asia

4) Lessons Learned and Key Recommendations

The government of Kazakhstan tried to respond to the demands of ethnic minorities

through the establishment of the ANK. This policy innovation appears to be quite
successful; for example in the major cities most street signs are written in both Kazakh
and Russian, which can be considered as a policy that has taken into consideration the
needs of ethnic minorities. The problem, however, is the tendency of the government
to revert to nationalistic policies similar to those of Uzbekistan.

a. The possibility of reversing back to Kazakh as the national language

In the Kazakh constitution Article 7.1, it is stated that “The state language of the
Republic of Kazakhstan shall be the Kazak language.” This provision suggests that
Kazakh will one day become the national language. The language services offered by
the above mentioned Lingbo can be understood as deliberate efforts to teach the
non Kazakh ethnic groups the Kazakh language.

b. The growth of the population of Kazakh people

The increasing number of the Kazakh population is viewed with great anticipation
by the government. In particular the declining ratio of ethnic minorities in contrast to
the rise of the Kazakh among the younger age group is viewed as a positive signal.

<Table 8.2> Ratio of Population between Kazakh and Non Kazakh Based
on Age Groups*
age/ethnicity Kazakh Russian
09 66.1 19.5
10 19 58.4 26.6
20 29 58.1 26.7

Source: A. N. Alekseenko. 2001. Pervaya perepisi nasereniya v Kazakhstane: nekotorie itogi i ostenki
// Migrastiya v SNG i Baltin: cheres razlichiya problem k obshemu informastionnomu
proctranctvu. Moskva. Adamant. S. 96. 1991 statistics.

The declining ratio of Russians is due to the low birth rate of Russians in contrast
to the high birth rate of the Kazakh people. In the next 20 years, it is expected that
the majority of the population will consist of the Kazakh people. The concern exists
for the potential rise of nationalism and its negative effect on social harmony.
The creation of the ANK so far has been positive, and has helped close the gap
between ethnic minorities and the Kazakh people. But with the shifting population ratio
8. Nation Building and Good Governance:The Experience of Kazakhstan 121

in favor of the Kazakh people, it is questionable whether the ANK will continue to
function in a positive manner. In the case of Uzbekistan, its policies aimed for ethnic
minorities ceased be active as the Uzbek people formed the majority of the population;
instances of discrimination is not uncommon which cannot be stopped by the actions
of government alone. Whether the ANK will continue its positive function of fostering
harmony among ethnic groups remains to be seen.

5) Concluding Remarks

The establishment of the ANK was a response to the challenges of the multiethnic
society of Kazakhstan. Ethnic rivalry posed a serious threat to national development;
in particular the resistance from the Russians, a significant ethnic minority group in
Kazakhstan, forced the government to adjust its nationalistic policy. This policy
adjustment was necessary since the mainstream Kazakh people totaled less than 50%
of the population prior to 1997. In order to promote national integration, the government
had to choose a policy of communication and conciliation with the various ethnic groups
in the country. Such policy continues today without much resistance from the ethnic
minorities, although some instances of discrimination against non Kazakh people are
reported in recent times. The policy of national integration by the government of
Kazakhstan was possible because thanks to the financial resources made available by
the oil development in the Caspian Sea. Now, with the population of the Kazakh people
surpassed the majority, and the ratio of Russians is diminishing, particularly among the
30 years and below age group. This fact provides concern that ethnic nationalism may
reappear in Kazakhstan in the future. The establishment of the ANK and the creation
of projects such as Lingbo have worked toward preventing ethnic conflict in Kazakhstan.
Future policies should develop from the experiences of the ANK where both the
government and private sector recognized ethnic conflicts as a national problem and
responded proactively. The experiences of the ANK show the potential and direction
for good governance in Kazakhstan.

(4) Conclusion

Going through a period of regime transition, Uzbekistan and Kazakhstan faced major
challenges due to the multi ethnic composition of their societies, threat of Islamic
fundamentalism, regional factions based on clans, and lack of experts and leaders to develop
122 An Inventory of Government Innovations and Good Governance in Asia

the economy. What is more, the political leadership leading the regime transition came
from the old elite group of the former Communist Party. The strategy each country chose
to realize national stability and economic growth was authoritarian developmentalism.
At the beginning, the leadership tried to achieve social stability by repressing the
opposition, promoting ethnic nationalism based on the majority ethnic groups, and
prohibiting Islamic political activity; efforts were made to introduce appropriate legislation
and institutional frameworks to promote national development. However, the nationalistic
policy pursued by these two countries turned into a policy of ethnic discrimination,
and restricted the activities of NGOs and other civic organizations. New legislations
and institutions failed to be implemented properly due to the lack of expertise in the
government. Lagging economic reforms and rampant corruption created a financial crisis
as well, becoming a serious drag on national development. Yet the politically oppressed
opposition party and NGOs could not function properly as a check against the ruling
regime; only the international community and international NGOs could voice their
opinions and provide policy advice. The possibility of good governance to emerge from
such setting seemed impossible, but the following factors made it possible.

a. The need to maintain tradition and national identity

Mahalla was a nongovernmental administrative organization with a long history in
the region. From the point of view of the ruling regime, it posed a threat to the
government. However the government of Uzbekistan instead promoted the mahalla as
an instrument to develop Uzbek national identity. As discussed above, the mahalla became
officially registered to the government so that local governments could control them.
At the same time, the demands of the residents through their communal meeting kengash
were incorporated, and the government supported the various projects initiated by the
mahalla committee. Most of the projects concerned the non political areas of education,
sanitation and environment. While it is difficult to evaluate the degree of transparency
in the implementation of the projects, at least the government actively incorporated the
demands of the residents which improved the efficiency of policy execution. The mahalla
provided an important forum for the government to interact with the people and reflect
their demands into policy.

b. The need for development in non political areas

Both Uzbekistan and Kazakhstan are most afraid of the politicization of their
respective civil societies. But if civic organizations are engaged in non political activities
such as education, environment, medical services and social welfare, the governments
8. Nation Building and Good Governance:The Experience of Kazakhstan 123

are tolerant of their presence. Especially when the government lacks the relevant expertise,
it is willing to cooperate with the appropriate NGO to improve its policy decisions.
This kind of relationship proved to be very effective as the financial situation of these
countries became stabilized and attention and assistance from the international community
and NGOs increased. The creation of the Nongovernmental Nonprofit Organizations
Support Fund and the transformation of Kurchatov provide good examples in this regard.

c. The need to maintain social stability

Uzbekistan and Kazakhstan both possess multi ethnic and multi cultural
environments, and ethnic issues are viewed as a major variable affecting national
development and social stability. Thus a variety of support programs targeting the ethnic
minorities have been created, through which we can observe the elements of governance
in these two countries. In the case of Kazakhstan, the Assembly of Nations of
Kazakhstan (ANK) provides a good example.
In short, the mechanisms of good governance ironically emerged from the policy
needs of the government. As the two countries share the common characteristics of
authoritarian political systems, it is highly likely that governance will emerge in areas that
are non political and which the government lacks expertise. This particular
political economic environment forms the background of good governance in Central Asia.

d. Availability of financial resources for economic development

In the case of Kazakhstan, the development of oil reserves in the Caspian Sea
provided the government with a continued source of funds to pursue national
development projects. This situation has positive implications for the reduction of
corruption. It is therefore expected that cases of good governance will multiply in
Uzbekistan as well, as the country achieves financial stability through economic growth.

f. Support from the non political actors

The authoritarian developmentalism pursued in Uzbekistan and Kazakhstan makes
it difficult for democracy to develop despite the institutional innovations that are currently
being implemented. There will continue to be NGOs that attempt to change the political
environment of the two countries, and the ruling regimes are expected to react to these
demands by repression. However, it is also likely that the leadership accept the demands
of NGOs on non political issues, as this case study demonstrates. An increasing number
of NGOs and civic organizations are becoming active in the fields of educations, medical
services, environment and social welfare; the achievements in good governance in these
areas have had the positive impact of improving the national image in these countries.
124 An Inventory of Government Innovations and Good Governance in Asia

Part III. Southeast Asia

9. Government Innovation and Good Governance in

Indonesia
Dong Yoon Lee
(Silla University)

(1) Introduction

Indonesia is an archipelago situated between the Indian Ocean and the Pacific Ocean.
To its north lies Malaysia and Papua New Guinea is located to the east. Australia is
the nearest country to the south. The entire territory of Indonesia is about 1,919,440
sq km (land 1,826,440 sq km, water 93,000 sq km). Currently Indonesia has
approximately 23,750,000 people consisting 40.6% Javanese, 15% Sundanese, 3.3%
Madurese, 3% Chinese and 300 other ethnic minorities. Islam consist 86.1% of the
population, while Protestants consist 5.7% and Roman Catholics consist 3%. The national
language is Bahasa Indonesia. Agriculture consists 43.4% of the Indonesian economy,
followed by 38.7% in services, and 18% in manufacturing according to 2004 statistics.
Per capita GDP is around $3,700.1)
Given the traditional ethnic diversity and cultural composition of the country,
Indonesia has one of the most centralized political system and administrative structure
in the world. The high concentration of policy making authority and administrative
structure at the central level of government, in addition to severe financial dependence,
created weak and incapable governments at the regional or local level. The Indonesian
government’s strong resistance to decentralization of power was occasioned by the revolt
in 1957 led by the PRRI (Pemerintah Revolusioner Republik Indonesia) in South Sulawesi and
West Sumatra (Bunte 2004, 385). Since achieving power by the reverse coup in 1965,
Soeharto maintained a powerful and oppressive political rule by mobilizing both the
bureaucracy and the military; the so called New Order (orde baru) continued until
democratization arrived in 1998 (Schiller 1990).
However, with the economic crisis in 1997 and subsequent ouster of Soeharto in
1998, efforts to bring about democracy resulted in an explosion of demands for political

1) CIA World Fackbook. Http://www.cia.gov/library/publications/the world factbook/

index.html (accessed on September 3, 2008).
9. Government Innovation and Good Governance in Indonesia 125

participation in both the national and local/regional governments. Under the reform
(reformasi), political reform and restructuring of government was pursued (Antlov 2005,
234 7). Indonesia began to pursue a set of policies aimed at reforming the government
and administrative services, as well as decentralization policies designed to promote
political autonomy in regional governments. In 1999 Indonesia promulgated Law
No.22/1999 on Decentralization and Regional Autonomy and Law No. 25/1999 on Fiscal
Balance Between Central and Regional Government (Legowo 2003, 65; Turner and Podger
2003, 23 7; Brodjonegoro 2003, 283).
The democracy movement of 1998 and subsequent consolidation of Indonesian
democracy went hand in hand with efforts at decentralization of power and reform
in public service and administration in regional governments (Synnerstrom 2007, 160).
Following the above mentioned measures, the central government in 1999 promulgated
a new constitution, laying the foundations for good governance (Legowo 2003, 71). In
2003, the legal basis for fiscal responsibility and accountability of regional governments
were established in the Law No. 17/2003 on State Finance, and in 2004 the Regional
Regulation No. 6/2004 on Public Service in Governance was created in order to improve
public service and transparency in government (Leisher and Nachuk 2006, 5).
These reforms efforts led to regional governments in Indonesia to form
organizational structures that would accommodate the particular needs of the local polity
and the public, and to engage in efforts to improve accountability and transparency of
public service. Regional governments also came to acquire the necessary authority and
policy discretion in augmenting policy innovation and expertise of public officials (Erawan
2007, 58). As part of the innovation efforts to strengthen the capacity and quality of
public officials of the regional governments, a variety of programs were conducted; in
particular, reform efforts to improve public services targeted at the local public or
residents, were pursued (Brodjonegoro 2003, 296).
This study aims to analyze the movement to improve budget transparency in the
Bandung City in West Java, and the movement to improve public service in the Boalemo
District in Gorontalo Province as examples of government innovation and good
governance in Indonesia. The movement to improve budget transparency in Bandung
City was organized by the local NGO which resulted in increased transparency and public
availability of the budget of regional governments, which in turn had the effect of
preventing corruption (Kuznezov, Ginting and Kelik 2005). In the Boalemo District,
the efforts to improve public service is viewed by many experts to be an exemplary
case where greater public participation in the planning, execution and decision making
on the city budget resulted in accountability and responsibility of public service as well
126 An Inventory of Government Innovations and Good Governance in Asia

as improved transparency in the procurement practices of regional government (Gaduh,

Yunarti, and Cahyaningrum 2005).

(2) Case Study 1: Improving of Budget Transparency in

Bandung City

1) Background

Bandung City is situated in the highlands of West Java, near the capital city Jakarta.
It is mainly Sundanese in cultural composition, and is the hub of education and research
as well as industrial activity where firms exporting textile and garment are heavily
concentrated. However, agriculture is the main form of economic life in the outskirts
of Bandung City where 25 million people engage in farming. Around 7% of the
population is considered to be in the extremely poor category (Kuznezov, Ginting and
Kelik 2005, 2).
On the other hand, 32 years of centralized political rule under Soeharto had created
severe and persistent nepotism and corruption among politicians and bureaucrats in
Indonesia.2) Corruption destroyed the legitimacy and authority of the government.
Indonesia’s political life is characterized by the three words Kolupsi, Kolusi, and Nepotisme
(KKN) which refer to collusion, corruption and nepotism; the government’s effectiveness
and accountability is seriously damaged due to the above factors. Efforts to eliminate
corruption in public circles began with democratization in 1998, and in 1999 Law
No.28/1999 on Eliminating KKN (Kolupsi, Kolusi, Nepotisme) was created. Susilo Bambang
Yudhoyono, who took power in 2004 has been highly committed to the elimination
of corruption by strengthening the authority of the Commission for the Eradication
of Corruption (KPK: Komisi Pemberantasan Korupsi), as well as issuing various decrees
and anti corruption action plans such as the Presidential Decree No. 5/2004 on
Anti Corruption and National Plan for Prevention of Corruption (RAN PK: Rencana Aksi
Nasional Pemberantasan Korupsi).
3)
Against this background, the Bandung Institute of Governance Studies (BIGS)

2) Indonesia’s Corruption Index (CI) in 2008 was 2.3 which is a ranking of 143 out
of the 180 countries surveyed by Transparency International. Http://
transparency.org (accessed on August 15, 2008).
3) BIGS is an independent non governmental organization that was created in 1999 by
students of the Department of Developmental Studies of Bandung Institute of
Technology with the aim of improving the public service of regional governments.
Since 2003, the movement is focused on improving transparency of the budget
9. Government Innovation and Good Governance in Indonesia 127

has been a major social actor promoting good governance. Since 2003 BIGS is active
in promoting transparency of the government budget of Bandung City. BIGS distributed
information regarding the budget through various media such as posters, books, journals
to the local public, and led the effort to improve transparency in the planning, execution
and evaluation of the city budget by educating politicians, NGO activists and journalists
and the public about proper evaluation and use of the Bandung City budget.

2) Main Features of Innovation

BIGS was at the forefront of the citizens’ movement to promote good governance
and accountability of the Bandung City, particularly by focusing their movement’s efforts
on improving transparency in the management and distribution of the city budget. In
order to realize their objectives, the information asymmetry between the general public,
the city local assembly (DPRP: Dewan Perwakilan Rakyat Paerat), public officials in charge
of budget and other officials had to be resolved so that transparent planning and
execution of the budget could be realized. Thus BIGS’ greatest effort was to lead a
citizen’s movement demanding public monitoring and assessment of the budget.
Prior to the movement led by BIGS, only the skeletons of the Bandung City budget
were revealed to the public in the form of an abbreviated report, and planning and
allocation of the city budget went through nominal procedures.4) In such environment,
the sub districts of the city would lobby fiercely in order to obtain developmental funds;
the disproportionate allocation of the city budget was often the cause of discontent
and anger of local residents.
In 2003, BIG wrote a report detailing the overall budget plan and plan category
by collecting information from various sources. It distributed the report to public officials,
NGO activists and the public.5) BIGS detailed each category of the city budget from
1997 to 2002, and asked for information to the city on some categories which were
suspect, thereby demanding transparency in budget planning and execution. Also, BIGS

(Kuznezov, Ginting and Kelik 2005, 2).

4) In principle, the Bandung City budget was formed by the city officials, and sent
to the regional parliament (DPRD) where representatives of the 26 subdistricts
(kecamatan) would review and vote on it. In the initial budget planning the local
residents could participate in the development planning meetings (Musyawarah
Perencanaan Pembangunan) held at the district level, but the actual power to
influence the budget lay in the hands of the Mayor ((Kuznezov, Ginting and Kelik
2005, 2).
5) In the annual budget posters produced and distributed by BICS, contact information
on the relevant public official and division of Bandung City as well as the details
of the budget were given. .
128 An Inventory of Government Innovations and Good Governance in Asia

issued a bi monthly journal Bujet (‘budget’ in Sundanese) that reported suspected budget
mismanagement, encouraging the local public’s interest on this issue.
Leaders of BIGS also appeared in local radio talk shows asking for public support
and interest in the movement, and conducted educational seminars for the local politicians,
NGO activists, journalists and students on information surrounding the budget and how
to evaluate the budget (Kuznezov, Ginting and Kelik 2005, 5). Since planning and
execution of the budget required technical knowledge and expertise, it was difficult for
the average citizen to become involved, but BIGS would bring in accounting specialists
that could help the public understand the structure of the budget, and educate them
in an easy to understand format the relevant methodologies to use in evaluating the
budget.
In the end, the movement led by BIGS resulted in greater understanding of the
Bandung City public on the importance of evaluating and monitoring the budget, and
the need for transparency in the planning and execution of the budget. The local assembly
of Bandung City (DPRD: Dewan Perwakilan Rakyat Paerat) also recognized the growing
public awareness on the budget issue, and strengthened supervision over the city’s budget
planning and execution. With greater scrutiny by the public and local assembly over
the city budget, public officials of Bandung City tried to address the imbalance of the
budget as well as minimizing unnecessary expenses. It was possible to save unnecessary
expenses in the budget,6) and the Developmental Planning Meeting which used to be
mere formality became the official venue through which the opinions of the local public
were collected. From 2005, information on the planning of the budget and fiscal
background became available to the public, and greater efforts were made to incorporate
the views of the residents through public debate.

3) Consequences of Innovation

The BIGS’ movement to demand accountability in the planning and execution of

the Bandung City budget is a fine example of how a non governmental organization
can lead a citizens’ awareness movement and impact the local politicians and public
officials. Against the background where a series of legislation targeted at improving
transparency of public service and prevention of corruption was promulgated by the
central government, the movement led by BIGS that increased public awareness and

6) For instance, unnecessary travel expenditures were reduced by 10%, and ‘cooperation cost’ that
could not be accounted for were eliminated; costs were minimized by eliminating ‘meals cost’ and
‘photocopy cost’ (Kuznezov, Ginting and Kelik 2005, 6).
9. Government Innovation and Good Governance in Indonesia 129

interest over the management of the budget in a regional government received widespread
attention. In fact, the movement by BIGS is significant in that it reclaimed the
fundamental right of citizens to have access to information on what the government
does. Thanks to the public availability of information on the city budget, the average
citizen could understand how his taxes were actually used, and the local residents came
to have an increased awareness on the importance of transparent budget management.
From the perspective of government effectiveness, BIGS’ movement fostered efforts
to improve efficiency in the execution of the budget such as getting rid of redundant
categories and eliminating wasteful spending. Especially in the past, the budget was
planned and executed without proper scrutiny of the regional parliament; with increased
public attention and interest on the budget issue, it became difficult to not consider
cost efficiency and effectiveness concerns. Furthermore, even during the process of
executing the budget, information on the public official or policy maker in charge was
publicly revealed so that interested parties could get in touch with the government. These
efforts all resulted in greater efficiency of public policy.
In terms of transparency, the movement led by BIGS contributed directly and
indirectly on the planning and execution of the city budget given the public pressure
demanding access to information and review of the budget; this had the effect of blocking
the channels of corruption from its roots (Leisher and Nachuk 2006, 5). Public officials
had to exert greater effort to manage the budget in a transparent manner, since even
the most detailed information became available to the public. Even if there were
incentives to engage in corruption, the public scrutiny by BIGS, other NGOs, the general
public, the local media and politicians acted as a major deterrent, preventing corruption
from taking place.

4) Lessons Learned and Key Recommendations

In general, corruption occurs where information on policy making by the

government is restricted and proper check and balance mechanism on the use of political
power is unavailable. Corruption is likely to occur in authoritarian regimes that exhibits
the above mentioned traits. Transparent management of the government budget is viewed
by many as a fundamental remedy to the issue of augmenting good governance and
government effectiveness (Kim 2007, 6). In other words, the proper solution to the
prevention of corruption is in ensuring public participation and review over the
management of the budget, which is the only way to ensure transparency and
accountability in government. In this regard, the movement led by BIGS increased the
130 An Inventory of Government Innovations and Good Governance in Asia

level of public attention and participation on the planning and execution of the city
budget, resulting in greater accountability and effectiveness.
Nevertheless, the movement to improve transparency of the budget by BIGS showed
some limitations, particularly with respect to the long term sustainability of civil society
movements. The first thing to be noted is the lack of cooperation between BIGS, local
NGOs and the Bandung City. In the early stages of the movement, it is perhaps necessary
to have an adversarial stance against the government, but from the long term perspective
it is important to foster a cooperative relationship between the Bandung City government
and BIGS and other NGOs, since NGOs and local district representatives must play
an important role in meeting with government officials, sharing information about
particular needs of the local society that should be reflected in the budget. It is desirable
for some kind of institutionalized relationship to develop so that regular meetings between
public officials and interested parties can take place.
On the other hand, the movement led by BIGS was mainly an elitist movement
participated by intellectuals, experts and students. The movement failed to incorporate
the people who would be most affected by the city budget: the poorest segments of
the people of Bandung City. The urban poor who are the most affected by the city’s
tax policies and public services can be considered the largest interest group, and therefore
should have access to government channels; yet their participation was fundamentally
limited owing to the nature of the movement itself. The movement was primarily a
middle class movement and it failed to incorporate the poor and lower class people who
would be the direct beneficiaries of an improved and better managed budget.
The BIGS movement was focused primarily on preventing corruption and increasing
transparency of the budget. Thus efforts to improve the effectiveness of budget execution
took second place. But it is important to pursue both goals in the long run. Thus it
would be desirable to develop a policy execution monitoring system that would enhance
the effectiveness of policy alongside with ensuring transparency of the budget. Of course,
the movement led by BIGS is still in the early stage and therefore requires systematic
implementation in both the short term and long term. But the movement’s impact would
surely be strengthened if both goals could be pursued simultaneously from the beginning.

5) Concluding Remarks

The movement to improve the transparency of the Bandung City budget led by
BIGS succeeded in securing public attention and scrutiny over the details of the city
budget and its execution by revealing information on the department and personnel in
9. Government Innovation and Good Governance in Indonesia 131

charge of executing the budget. The city was forced to use proper judgment and caution
in planning and execution of the budget since NGOs such as BIGS, local residents
and the local assembly became active watchdogs. Thus it was possible to eliminate wasteful
and redundant spending of the budget and improve not only transparency but
accountability and effectiveness in the management of the budget. The movement by
BIGS also had the added effect of curbing corruption since channels of corruption
were blocked from the roots.
Nevertheless, the movement by BIGS is still in the early stage, and is mostly led
by the middle class, intellectuals and students. The participation by the general public
and social groups most affected by the city budget should be strengthened, and
institutional innovations for such objectives are much warranted. Also, the movement
should make greater efforts to enlist the participation of the poorest segment of the
city that are the most affected but has the least capability to forward their views to
the city government. In addition, in order to augment the effectiveness of the movement
by BIGS, a policy execution monitoring system alongside with greater transparency of
the budget would be recommended.

(3) Case Study 2: Improvement of Public Service in Boalemo

District

1) Background

Boalemo district in the Gorontalo province is small city newly designated by the
central government in 1999, consisting of 106,440 residents, and the new district
government was settled by splitting Boalemo into two cities, Boalemo and Pohuwato
in 2000. The residents of Boalemo are ethnically and culturally of Gorontalo origin,
therefore share homogenous cultural background. Most of the residents including the
old cannot speak the Indonesian language (Bahasa Indonesia). Boalemo is a relatively
poor city; 3/4 of the people engage in agriculture or fishing, and the average GNP
per individual is only US$ 276(2003 figures). 96% of the population is muslim, and
the Islamic culture play an important social role in the secular society. (Gaduh, Yunarti,
and Cahyaningrum 2005, 2).
Since 2002, the government of Boalemo pursued reform of public services by
focusing on improving the work related capacity and accountability of public officials
(Leisher and Nachuk 2006, 3).7) First, the Boalemo government raised the annual pay
132 An Inventory of Government Innovations and Good Governance in Asia

of public officials based on performance, and implemented penalties for faulty or delayed
administrative services; these measures had a direct impact on the attitudes and work
capacity of the public officials, resulting in improved services. In addition, the Boalemo
government initiated a variety of meetings in order to get in touch with the local people
and collect their opinions or complaints. Also, an open procurement system and public
officials’ code of ethics were strengthened in order to improve the transparency and
accountability of the government’s budget and procurement functions.

2) Main Features of Innovation

The local government of the Boalemo district was created in 2000, following the
decision by the central government in 1999. In 2002, Indonesia began to engage in
a series of administrative reforms under the ‘Initiatives for Local Governance Reform
(ILGR) Project’ sponsored by the World Bank. This program aimed to improve the
transparency and accountability of the government’s fiscal management and procurement
practices and raise the quality of public services by inviting public participation in the
government’s decision making, with the ultimately objective of realizing good governance
(Gaduh, Yunarti, and Cahyaningrum 2005, 3). Starting in 2001, the Boalemo government,
led by the Mayor who was elected in the regional elections, opened regular meetings
to collect the opinions and/or complaints regarding the city’s administration and policies.
Also the code of ethics for public officials was strengthened alongside with a new
payment system that rewarded improved public services and work attitude of public
officials.
The mayor began the reform effort by making an example of himself first; he
eliminated the fence surrounding the official residence, and starting in 2002 held ‘morning
coffee’ sessions in his residence, inviting the local people and hearing their views on
the state of public services or any complaints they had against the government. The
removal of the fence was a symbolic gesture by the mayor and showed his resolve to
improve transparency in the Boalemo government. The mayor tried to solve the issues
raised by the local people in the ‘morning coffee’ sessions through open public debate
and consultations.

7) Public officials of Boalemo are divided into 2 categories. Currently full fledged
officials receiving pay from the central government are 1,320 since 2004; district
contracted officials called ‘honda’or ‘honor daerah’ who receive pay from the
city are 1,476. There is no increase in the number of officials in Boalemo following
the decision of the central government in 2003; thus the Boalemo government has had
to depend on contract based officials in order to deal with the increasing work load
(Gaduh, Yunarti, and Cahyaningrum 2005, 2).
9. Government Innovation and Good Governance in Indonesia 133

In trying to improve the quality of public service of public officials, the Mayor
implemented a revised payment system where officials with proven performance record
could be rewarded up to 80% of his basic pay. A code of ethics was established, in
which a penalty system for categories of unacceptable behavior was detailed out; any
official found to have violated the code would be given penalty points, which could
result in a pay cut in the case of repeated violations of up to 10 times.8) At the beginning,
public officials reacted strongly against this new system, but this was overcome by the
strong political will of the mayor. In the end, the system proved to be quite effective
in improving the attitude and performance of the public officials, resulting in higher
quality of service.
At the end of 2004, the regional parliament passed the Regional Regulation No.
6/2004 on Transparency of Public Service in Governance. Based on this law, the mayor
established the Transparency Commission, whose purpose was to secure the regional
government budget and improve the procedures of budget planning and execution.
Starting from 2005, the commission revealed information on the yearly budget objectives
and resources assigned to execute the budget, and the names of the officials and contact
information to the local public; these measures have improved the check and balance
against the government, forcing greater accountability and transparency in the work
procedures of the public officials..
In such background, President Megawati Soekarnoputri issued in 2003 the
Presidential Decree No. 80/2003 on Competitive Bidding. Despite the strong resistance
of local businesses and politicians, the mayor of Boalemo created an ad hoc Procurement
Committee to implement a competitive bidding system. Despite the negative reactions
of some members of the committee, the mayor instituted a religious signing ceremony
where each committee member had to sign an oath of propriety; such measure proved
to be effective in preventing potential corruption. Also, a Verification Team was set
up to review and confirm the initial plan and implementation of each procurement
activity; a Legal Advocacy Team was set up so that corruption channels could be blocked
preemptively (Gaduh, Yunarti, and Cahyaningrum 2005, 4).

8) The penalty system applied differentiated penalty rates for categories of

unacceptable behavior. For example in the case where a public official misses hourly
roll call without explanation, a penalty rate of 0.625% is applied. In the case of
arriving late at the office, the penalty rate is 1.25%. For leaving the office early,
the penalty rate is 1.25%, for being absent without explanation, 4%, reported for
poor service provision by the public, 10%, not performing public service, 5%, not
attending a required meeting or event, 10%, failing to obey supervisor policy, 20%,
and failing to make appropriate report, 5 10% are applied to the pay.
134 An Inventory of Government Innovations and Good Governance in Asia

3) Consequences of Innovation

The reform efforts led by the Boalemo government is a case where the government
engaged in a series of reform measures to improve its services to the public even before
any complaints or demands from the local public were forwarded. It is a case where
the government initiated reform on its own initiative, and succeeded in providing better
quality services to the people. Especially, the mayor of Boalemo showed strong policy
leadership and will power to implement the series of reform measures. In an environment
where the quality of public services was seriously lacking and corruption of public
officials prevalent, the new code of ethics and incentive pay system, and the competitive
bidding system introduced in procurement had a significant impact on the attitudes of
public officials and the quality of services offered to the public. These efforts greatly
improved the transparency and accountability of the Boalemo government.
From the perspective of government effectiveness, the series of reform efforts
pursued by Boalemo proved to be successful. However, despite the measureable
improvements, the reform has had limited success from the perspective of policy
effectiveness. While the efficiency of public services and work procedures have improved
greatly, several institutional deficiencies and actual violations in the management of the
penalty system and competitive bidding procurement system still continued. For example,
in the first year the penalty system was introduced, the number of public officials who
received pay cuts resulting from the application penalty was very few. The main reason
was found to be in the passiveness of the local people who feared retribution from
the public officials; they were not very active in notifying or complaining about the
services received from the government. This problem was also found in the competitive
bidding procurement system as well. In procurement projects involving little financial
interest, the new system proved to be quite effective. But in major procurement projects,
the political pressure from the central government played a significant role in determining
which bidder would get the contracts.
From the perspective of transparency, the decision by the Boalemo government
to reveal the names and contact points of the public officials in charge of budget planning
and execution and of the competitive bidding of procurement projects proved to be
successful in improving the transparency of government. Suspicious expense categories
and unnecessary activities could be eliminated beforehand, and procurement contracts
were signed in a much more transparent and fair manner. But in cases of major
procurement projects, there is still the need to establish a stronger legal framework or
institution to block political influences from affecting the procurement process.
9. Government Innovation and Good Governance in Indonesia 135

4) Lessons Learned and Key Recommendations

The administrative reform led by the Boalemo district government was possible
due to the strong political leadership and will power of the Mayor. The Mayor understood
the necessity to introduce innovation in the regional government and spearheaded the
effort to improve the work ethics of public officials and the quality of public services.
However, despite the remarkable achievements, the reform efforts were led primarily
by one individual (the mayor) and did not contain enough incentives to encourage the
voluntary participation of the public and public officials. In some cases, the local residents
feared retribution from the public officials and were reluctant to report or complain
about the poor services they received. There were instances were political influence from
above distorted the process of competitive bidding in procurement projects.
Another shortcoming to note is the lack of qualitative evaluation mechanism. The
existing evaluation scheme of public officials relied mostly on simplistic evaluations of
work type or category of ethical behavior, but lacked a sophisticated qualitative evaluation
mechanism. In fact the penalty scheme resulting in pay decrease succeeded in getting
the attention of the public officials, but without a detailed evaluation system that can
measure the qualitative aspects of public service and the work capacity of public officials,
it was impossible to get reliable performance evaluation of the public officials. Some
public officials were found to exploit the deficiencies of the existing evaluation method
by undertaking only the simple tasks that are measured for evaluation and neglecting
other tasks.
In addition, there are criticisms that the Boalemo government reform efforts lacked
any cooperative relationship between the public officials and the local residents. As the
evaluation of the administration and public officials was mostly focused on what the
mayor did, the opportunity for the public officials and the local residents to meet and
discuss the issues of the region were not very often. The local residents had no significant
forum to voice their concerns or opinions, while the public officials were subject to
performance evaluations from above (mayor) instead of from the people. Thus, despite
improved public administration and services, the local residents continued have a strong
distrust of public officials, and the public officials displayed superficiality in conforming
to the reforms led by the mayor.
Lack of understanding on the nature of public services and public reform on the
part of the Boalemo civil society was another issue. Despite the ‘morning coffee’ sessions
and other improved opportunities to have their voices heard, the local residents displayed
passiveness in forwarding their concerns because of fear of retribution from public
136 An Inventory of Government Innovations and Good Governance in Asia

officials. Given such state of affairs, only a very few number of public officials were
affected by the penalty system. The notably passive attitude of the local residents could
only mean that the reform experiment of Boalemo to realize good governance would
be a half success.

5) Concluding Remarks

The Boalemo district created in 2000 engaged in a series of public service reform
under the leadership of the elected mayor. A variety of reform efforts to improve the
transparency of work procedure and quality of public services were carried out, including
the ‘morning coffee’ sessions that tried to raise the quality of public services by inviting
the local people to participate in the government’s decision making, with the ultimately
objective of realizing good governance. Also implemented was a pay system that rewarded
or penalized public officials based on performance, and a competitive bidding
procurement system with the aim of preventing corruption.
Nevertheless, the reform experiment in Boalemo can only be considered a half
success, since the policies targeting reform depended too heavily on the leadership of
the incumbent mayor. Because the mayor was such a powerful presence on the reform
scene, voluntary participation in the reform effort on the part of the public officials
and local public did not come easily. Some public officials and politicians even tried
to exploit the deficiencies of the system, resulting in institutional and policy failures.
Particularly, the absence of a cooperative relationship between the local residents and
public officials proved to be an obstacle to the viability of reform. In order to ensure
the long term success of this reform, institutional reforms to regularize and solidify
cooperative relations between the two are greatly needed.
10. Good Governance in Malaysia: Searching for a Hope at the Local Level 137

10. Good Governance in Malaysia:

Searching for a Hope at the Local Level

Jaehyon Lee
(Yonsei University)

(1) Introduction

This study aims to evaluate the elements of accountability, transparency and

participation in Malaysian governance. Accountability refers to the activities that are
related to how citizens of a country freely select their political representatives, monitor
their activities, make demands to the government, and create organizations that realize
their interests (Smith 2007, Ch. 2). Transparency is usually linked to the issue of
corruption; thus it is fundamentally related to how those in powerful political positions
exploit their power for private gains, and how society can prevent such occurrence by
monitoring the decision making and implementation processes. Participation is about
reflecting the various and different voices of society and not about policymaking by
the select few; hence encouraging and expanding the participation of civil society is an
important element in the concept (Smith 2007, Ch. 7). This study looks as how the
three elements described above are reflected in local governance in Malaysia. A caveat
is in order; some of the local governance cases are still underway, so a complete analysis
of the three elements of governance may have to be deferred.
It is difficult to characterize Malaysia as an underdeveloped country. Malaysia has
achieved considerable industrialization, and among the Muslim world it is perhaps the
only country that has achieved industrialization. Among the countries studied in this
project, Malaysia ranks among the highest in terms of economic development. However
the governance environment in Malaysia has not achieved the level comparable to its
economic development. The political environment is far from participatory or transparent;
politics is inherently authoritarian and dominated by the state. Since its independence
there has never been a transfer of power in Malaysia and the state has dominated policy
making. What is more, the dominant view among the leadership is that state led policy
making and implementation is more effective than democratic governance. Thus, the
participation of civil society in Malaysian politics is virtually absent, which has major
negative implications for governance, particularly from the perspective of participatory
138 An Inventory of Government Innovations and Good Governance in Asia

governance.
Since achieving independence in 1958, the United Malays National Organization
(UMNO) has led the ruling coalition without any break in power.9) Long ruling political
coalition and the existence of authoritarian political institutions have made Malaysian
politics “neither authoritarian nor democratic,” or a semi democracy (Case 1993; Crouch
1993). Two factors are pointed out as explanations for the authoritarianism in Malaysia:
ethnic politics and a relatively recent politico economic phenomenon called
developmentalism.
Malaysia is a multi ethnic society consisting 60% Malays, 25% Chinese, less than
10% Indian, and the indigenous people called Orang Asli and natives in Sabah, and
Sarawak. After World War II, the biggest challenge facing Malaysia was how to harmonize
the cultures, languages and religions of different ethnic groups. The most effective way
to deal with ethnic conflicts and rivalry was the use of authoritarian politics. Until 1969
during a period of relative liberal politics, Malaysia experienced a series of ethnic riots;
the political response to this was stronger central control and authoritarianism. The ruling
elites used the rhetoric of ethnic discourse and rivalry to mobilize political support from
certain ethnic groups and consolidate their hold on power; the people’s fear of social
conflict from ethnic rivalry provided the justification for authoritarian rule.
Since 1980, as Malaysia began rapid economic development, the discourse of
developmentalism has played a major role in Malay politics (Loh 2002). Those who gained
wealth from the rapid economic development came to support the ruling regime in order
to maintain their wealth and enjoy continuous economic growth. Instead of the textbook
demand for political freedom and democracy, the middle class expects the ruling regime
to maintain economic growth so that they can continue to benefit from it. This kind
of middle class is inherently dependent on the state, and the ruling regime exploits the
fear of disappearing wealth of the middle class and draws political support from them.
The developmentalism in Malaysia has circulated a social discourse that justifies the
repression of democracy and freedom for the sake of continuous economic development.
Hence, the developmentalism and ethnic discourse have had negative impacts on
Malaysia’s democracy, justifying authoritarian rule. Such authoritarian politics may
continue as long as the people support this political arrangement, and the possibility
of realizing good governance at the level of the central government and political elites

9) The ruling party in Malaysia is the Barisan Nasional (BN) or National Front, a coalition group
in which UMNO has the most number of seats. BN’s predecessor is the Alliance Party; after the
ethnic riots in 1969 BN reorganized to incorporate not only existing members (UMNO, Malaysian
Chinese Association, the Malaysian Indian Congress) but also additional 13 political parties including
major Islamic opposition.
10. Good Governance in Malaysia: Searching for a Hope at the Local Level 139

may be difficult, if not impossible.

This study aims to find out examples of successful governance in Malaysia, despite
the problems mentioned above. Two cases are examined, where analysis centers on
whether local development policy can be more effective by inviting the participation
of the people in the region. The angle of analysis is applied differently for each case.
The first case examines whether local government established by the opposition party,
viewed by many to be more reformist than the ruling party, employs different approaches
in the execution of the regional development fund. The second case examines how private
organizations such as think tanks play the role of coordinator or mediator between the
government and civil society on policy issues of the region, and whether such
communications structure brings about better governance.

(2) Case I: A New Initiative in Sungai Siput

1) Background

In March 2008, the 10th general elections were held in Malaysia, with remarkable
results. The traditional 2/3 majority maintained by the ruling party was broken by the
opposition; furthermore five state governments became under the control of opposition
parties.10) The best results achieved by the opposition until then were the 1999 elections
where only the two states of Kelantan and Trengganu were taken. This remarkable event
signaled a major change in the policies of the five state governments that came under
the control of opposition parties.11)
The results of the 2008 elections form the basis of speculations that changes in
the power relation between the central and state governments are to be expected. There
are the beginnings of such change, particularly in the Sungai Siput of the state of Perak.
Perak is a region where tin production and plantation form the major source of economic
income for the people. Laborers and miners of relatively poor economic circumstances
form the majority of the population. In fact Perak has one of the highest ratios of
the poorest ethnic group (Indian origin) in Malaysia.12)

10) The states controlled by the opposition in the 2008 elections are Penang, Kedah, Selangor, Perak,
and Kelantan.
11) For analysis of the 10th national elections in March 2008, see Lee and Hwang (2008).
12) The population of Sungai Siput consists of 31.04% Malay, 41.04% Chinese, 22.5% Indian and
others form 4.7%. Considering the fact that the percentage of Indians in the overall Malay
population is less than 10%, the number of Sungai Siput is very high. Also the ratio of Chinese
140 An Inventory of Government Innovations and Good Governance in Asia

Sungai Siput is a district of the Parliament seat, and there are two sub districts
each with a state assembly. In the recent national elections, the state of Perak in which
Sungai Siput is part of, the opposition parties won 31 seats, beating the ruling party
which obtained only 28 seats; thence the Perak government was formed by the opposition
parties. Sungai Siput was a district that had belonged to Samy Vellu, a national political
figure who was previously Works Minister and the Chairman of the Malaysian India
Congress (MIC). Michael Jeyakumar Devaraj, a doctor who has been long active in the
civic movement on local health issues, was the candidate representing the opposition
party Parti Keadilan Rakyat (People’s Justice Party or PKR) ; but he is a party member
of the Parti Sosialis Malaysia (Malaysian Socialist Party or PSM).

2) Main Feature of Innovation

The main reason why Samy Vellu could stay in power continuously in Sungai Siput
was because of the patronage in the form of various development project funds he
brought into the district as minister of the federal government. However, Samy Vellu
chose recipients of these funds for political purposes; hence the interests of the people
who would be most affected by the implementation of policy and distribution of the
funds were excluded. But once the opposition party took power, it made efforts to
encourage the participation of the local residents and implement the funds based on
the needs of the people.
The most notable efforts were the People’s Consultative Council (Majlis Perundingan
Rakyat or MPR) created in June 2008.13) This council was not created by the public
authorities of Sungai Siput, but by PSM. The council held a public hearing to decide
on how to use the RM 500,000 distributed to the members of Parliament elected in
the 2008 elections. The purpose of the meeting was to listen to the opinions of the
local residents on this issue and then determine the use of the funds. PSM operated
regional service centers, and after the 2008 elections appeals or complaints from the
local residents had already increased 400% compared to the previous year.
The MPR consisted of representatives of 15 local committees that belonged to Sungai
Siput. The representatives consisted of various ethnic and professional backgrounds;
plantation laborers, urban residents, farmers, FELDA dwellers, traditional rural residents

is very high as well, since the national percentage is around 25%. Given the large number of
the Indian population, Sungai Siput has traditionally been the ground for political competition
among Indian politicians.
13) For more information on the council, refer to PSM website (http://www.parti sosialis.org/?p=315)
(searched on July 3, 2008).
10. Good Governance in Malaysia: Searching for a Hope at the Local Level 141

and the native Orang Asli, Chinese and residents of redevelopment projects.14) In the
council these people debated on how the RM 500,000 should be used, and agreed on
the main categories of expense.

<Table 10.1> Decision on the Use of Funds by Sungai Siput MPR

Amount of Fund
Content of Decision
allocated
Aid RM 1000 for single parent households with
1 school age children, and with less than RM700 in 200,000 250,000
household income
Yearly rental payment for office space for the Public
2 100,000
Library of Sungai Siput
3 Building funds for partly aided schools in Sungai Siput 150,000
4 Donation to Tualang Tengah (orphanage) 50,000
Developmental aid of RM3000 each to 50 Orang Asli
5 150,000
kampong (villages)
6 Disaster emergency fund Not fixed
7 Emergency medical expenses fund Not fixed

3) Consequence of Innovation

The idea that the use and distribution of state development funds should be
determined by the recipients of the funds is not new. But in Sungai Siput, the effort
by the opposition party to hold a hearing on the use of the development funds provided
by the government can be considered novel, given the traditional approaches taken until
then.
The UMNO led by the National Front is generous with regional development funds.
However, in order to obtain the development funds, two conditions must be met. The
first condition is a situation where the ruling party is actively supported. The second
condition is when there is a power balance between the ruling and the opposition parties,
or when there is a by election. In the case where the residents actively support the ruling
party candidate and the candidate wins in the elections, the central government generously
provides funds and supports local development. Those areas have priority in receiving

14) FELDA (Federal Land Development Authority) is a program pursued by the Malay government,
where rural areas are developed into residential districts. The Orang Asli are natives of the Malay
Peninsula who have lived in the area much longer than the current Malaysians; most of them
live in the mountainous regions, in exclusion from the modern economy. They are also the poorest
class of people in Malaysia.
142 An Inventory of Government Innovations and Good Governance in Asia

the funds for the building of public facilities or other development projects over the
area supporting opposition. For instance in areas that supported the ruling party, pipe
water supply systems have been installed many years ago, but in the Kelantan region
that has supported the opposition, water and electricity supply is inadequate outside the
city area. Public facilities such as libraries and Mosques are in better shape in regions
that support the ruling party.
The second condition is perhaps more critical. When political support for the ruling
and opposition parties are split evenly among the residents, or when the ruling party
wants to win the by election, development funds and local development projects become
abundant to win over the hearts of the residents. New roads are paved, Mosques are
repaired or newly built, and large scale reconstructions of public schools are carried out.15)
The real problem however, is that even when executing such development projects or
distributing funds, the opinions of the residents are totally ignored. The target recipients
and means of implementation of development projects or funds are unilaterally decided
by the central government and the ruling party politician representing the district. Hence
most projects are carried out for public campaign purposes, such as the building of
public facilities and roads, and real assistance for the poor or low income people are
short in coming. Projects such as assisting single parents, funding orphanages or helping
the natives the very projects pursued in Sungai Siput after the 2008 elections are excluded
from consideration because they do not help much the ruling party win the elections.
Another serious problem is that such funds are used for self motivated purposes
under opaque decision making procedures. For example, local leaders in secrecy decide
how to use the fund money provided by the central government, and through such
process expand their own political power and influence. Most often, funds are directed
at areas in which they have a political interest, or to public projects carried out by
companies owned by the politician himself, and so on. The procedure for procuring
companies to carry out public projects is often highly suspicious; in the end it is the
politicians themselves who benefit economically from these projects.16)
The actions taken by PSM described above show how corruption problems related
to the execution of development funds can be prevented. First, the residents and local
politicians participated in public hearings where they collectively determined how the

15) For instance in April 2007 in the by election of Ijok district in Selangor, the state government
under control by the UMNO suddenly invested RM 36 million to repave the roads. Given the
fact that voters were only 12,000 in the district, the government had spent 3000 Ringgit per person.
3000 Ringgit is around 100 US dollars.
16) This is a pernicious problem of disabuse of developmental aid and programs. For more refer
to Shamsul 1983 & 1986.
10. Good Governance in Malaysia: Searching for a Hope at the Local Level 143

development funds should be used, and in the process the opinions of the residents
were incorporated. The residents participating in the public hearing came from various
ethnic backgrounds and professions, which is significant in terms of fairness of
representation. PSM proclaimed after the hearing that the detailed use of the fund would
be opened to the public and that the views of the local residents will be fully reflected
in future hearings to be held with each stage of the implementation of the plan. While
still at the beginning stage, this approach is far different from the approach taken in
previous governments. It is hoped that by reflecting the wishes of the local residents
and through open and transparent execution of the development funds, the basis for
open and democratic governance will be established.

4) Lesson Learned and Key Recommendations

The case of Sungai Siput may be unique in that it is still underway and innovation
in governance has just begun, which poses difficulty for the researcher to make a proper
evaluation. In Malaysia, the political reality of a strong centralized government, the
structure of patronage between the center and regions, and the chain of corruption
prevent the effective execution of development funds. Sungai Siput, however, showed
that a better governance model is possible. Yet the momentum for change came from
a different political impetus: a local Member of Parliament from the ruling party was
ousted, to be replaced by the opposition party. This case shows that efforts to improve
governance cannot be realized solely through the political will or effort of the government,
and that power shift in the local political economy may be a necessary precondition.
The example of Sungai Siput illustrates that good governance may come not through
policy innovation but through political change.
Nevertheless, the lesson to be learned here is that the beginnings of good governance
start from many sources. In cases where the local authorities are incapable of initiating
policy innovation on their own, Sungai Siput shows that other actors such as local
politicians can take the initiative, and that such efforts can be spilled over to the public
authorities.
144 An Inventory of Government Innovations and Good Governance in Asia

(3) Penang State Government

1) Background

The problems of authoritarianism in Malaysia can be observed also in the

federal local dimensions. According to the constitution, Malaysia has adopted a system
of local autonomous governments. Prior to the riots in 1969 all the representatives of
public institutions were elected by popular vote, but since then, only elections for the
state assembly members is possible, and the political party that wins by majority can
form the local government (Goh 2005). Also, the ruling party’s members form state
executive committee which is in charge of policy making and implementation. Hence,
while regional political autonomy is guaranteed in form, it has no great meaning in local
politics (Chin 1997).
The National Front which has dominated politics until 2008 had control over all
the states but one. Thus, the political will of the central government could be delivered
directly to the local governments, and the local governments not only depend financially
on the central government but also in policy making. Such structure resulted in public
services and development projects being decided unilaterally by the center, and what
is more, executed as a means of enforcing the political will of the center to the local
regions. Under this political structure, local governments were mere policy instruments
of the central government, and could not incorporate the views or demands of the people.
In short, it was difficult to establish democratic and transparent governance in such
settings.
On the other hand, the local government under control of the opposition party
lacked financial independence, and because it was dependent on the central government
for its operating funds, it was difficult to maintain policy autonomy even if it wanted
to. In the state of Kelantan which is a long time opposition party stronghold, there
were several efforts to escape from the influence of the central government and engage
in autonomous policies. But because the central government had control over distributing
subsidies and licensing projects, it was extremely difficult for Kelantan to manage on
its own. At one point the government of Kelantan could not pay the salaries of its
employees. Furthermore, the central government would use the ‘carrot and stick’ strategy;
grants would be suddenly stopped when the opposition took power at the local level.
This kind of political interference incapacitates local politics and governments.17)

17) In 1998 the firing of Deputy Prime Minister Anwar Ibrahim and the subsequent rise of the Reformasi
(Reform) movement resulted in the opposition party PAS(Parti Islam Se Malaysia) to take power
10. Good Governance in Malaysia: Searching for a Hope at the Local Level 145

Therefore, it should be pointed out that even if there are plans to introduce innovative
governance measures, the financial weakness of local governments make them
fundamentally dependent on the central government, whether they are from the ruling
party or the opposition party.

2) Main Feature of Innovation

The second case examined in this study is the state government of Penang. In
order to understand the efforts to improve governance by the state government of
Penang, it is necessary to understand the peculiar environment facing Penang and its
social and economic circumstances. In Malaysia, public governance is about administrative
efficiency through centralized control. As mentioned previously the biggest challenge for
local governance in Malaysia is the overextended powers of the central government. The
central government is simply too powerful and does not give local governments any
policy autonomy. Unless local governments discard their dependency, the introduction
of transparent and democratic governance that guarantees the participation of local
residents cannot be realized.
Given such circumstances, the state government of Penang has been in a unique
situation. In March 2008, the state government of Penang came to be under control
of the opposition coalition called Pakatan Rakyat (People’s Pact). A long time political
presence in Penang, this coalition was led by the Democratic Action Party (DAP), which
became in charge of the state government. Until then, the state government of Penang
was controlled by Gerakan Rakyat (People’s Movement) which is a member of the ruling
coalition National Front. Gerakan Rakyat was actually an opposition party in the
beginning. It took power in 1969, but soon became part of the ruling coalition after
the ethnic riots and the emergency rule that was imposed thereafter. However within
the ruling coalition, Gerakan has maintained some distance from UMNO, MCA, and
MIC, acting as an opposition party within the ruling coalition (Mauzy 1978). The members
including Dr Toh Kin Woon are well known to raise critical comments against the ruling
government that other members of the coalition dare not express.

in the state of Trengganu which has a high ratio of Malay population. The central government
of the National Front immediately stopped giving Trengganu the royalty fees for oil drilling on
the coastal area of the state. Until then the state owned oiling company Petronas had been providing
royalty fees to the local government, which consisted a large portion of the government budget.
The sudden suspension of royalty fees was political retribution for supporting opposition and
opposition talking power in the state; the state of Trengganu experienced financial difficulties so
much that even daily administrative operations could not be maintained.
146 An Inventory of Government Innovations and Good Governance in Asia

Penang is the only state where the Chinese form the majority of the population.
This is in contrast to other states where Malays are the majority. Thus political parties
drawing support from the Chinese have been active in Penang; especially the educated
Chinese are critical of the National Front Government. Furthermore, the oldest NGOs
in Malaysia, the Penang Consumer Association and Aliran are located in Penang. Such
socio economic environment forms the background of the unique political position that
Penang has in Malaysia, and how a local government that is part of the ruling coalition
often engages in autonomous policies against the wishes of the central government.
The state government of Penang, even under the control of Gerakan, had made
efforts to incorporate the views of the people on the government’s many public projects.
Of course such efforts are not enough to characterize the state government of Penang
as totally independent of the politics of the center that is so characteristic of Malaysia.
Yet it is also true that where the people did participate in policy making, the state
government of Penang made some meaningful efforts toward good governance. In the
case of Penang, a think tank played the role of coordinator and mediator between the
government and residents. This think tank encouraged cooperation among the state
government, civic and nonprofit organizations to work together on desirable policy
directions and alternative ideas to replace the existing policies.
The mechanism of linkage between the government and civil society was through
forums and councils organized by the think tank. The state government continued to
maintain control over the budget and policy decisions, but the forums functioned to
deliver the opinions of civil society to government, functioning as a communications
channel between the two actors.

<Figure 10.1> Interaction of the State Government of Penang, SERI, Civil Society
10. Good Governance in Malaysia: Searching for a Hope at the Local Level 147

The above figure shows the interaction among the government of Penang, SERI
Penang, and the civil society. SERI, Penang (Socio Economic & Environmental Research
Institute, Penang) is a government supported think tank that holds various forums and
hearings where the government and people can meet and exchange views; through this
space participatory governance can be realized. While the state government is still in
control over policy and budget, at least a channel through which the voices of the people
are delivered to the government is established.18)

3) Consequence of Innovation

If one were to point out a case of bad governance in Penang, it would be the
public transportation system called Rapid Penang introduced in 2007. This case should
be examined a little in order to understand the context of governance in Penang. Rapid
Penang is a good example where the central government pursued a public project with
little regard for the opinions of the people, which ended with terrible results.
The most widely used method of transportation in Penang is the bus which covers
the entire island; there are three bus companies sharing virtual monopoly over the
business. These companies exploited their monopolistic power and provided the bus
services without any improvements; yet the residents had no alternative means of
transportation.
In 2007 a new public transportation system was introduced by the central
government, benchmarking the transportation system in Kuala Lumpur. The Ministry
of Finance provided the funds to establish a bus company called Rapid Penang. Rapid
Penang, however, created problems as much as it solved problems. Because the central
government’s initiative ignored the demands of the Penangite, the bus lines were
determined without consideration of the needs of the bus users. Thus, the people of
Penang could not adjust to the new bus line, and bus users complained that travel time
actually increased with the new bus service (Malaysiakini 2007). Complaints from existing
bus companies and bus drivers erupted as well; stones would be thrown on the windows
of the new buses of Rapid Penang. Such sabotage actions were reflective of the sense
of crisis and anger among the existing bus drivers and taxi drivers. Had the central
government engaged in prior discussion and consultation with the existing companies,
such problems could have been prevented. Also, had there been efforts to incorporate
the demands of the local residents on the bus lines, the objective of better and more

18) For SERI’s activities see its website (http://www.seri.com.my/ap/good governance activities.html)
(searched on August 2, 2008).
148 An Inventory of Government Innovations and Good Governance in Asia

efficient bus services by Rapid Penang would have gained their support.
The policy innovations pursued by the government of Penang is in contrast to
the unilateral policy of the central government as evidenced in the case of Rapid Penang.
While both policies were targeted at the local level, the different approaches to governance
clearly had significant difference in results. The innovative governance via SERI began
with a program called Sustainable Penang Initiative (SPI). In the aftermath of the
economic crisis in 1997, Penang society was deeply concerned about the problems of
rapid urbanization, environmental issues, transportation problems and preservation of
culture issues. The state government at that time prepared the ‘Strategic Development
Plan, 2001~2010’ with long term development plans in the following five areas: Ecological
Balance, Social Justice, Economic Productivity, Cultural Vibrancy, and Popular
Participation
To discuss these 5 subjects, SERI held a roundtable conference. In this conference,
local experts, activists, and residents participated and debated freely. Small groups
dedicated to discussion on specific issues were created in order to produce more ideas.
In this process, participants sharing common vision or ideas came together to create
their own civic organizations such as the Water Watch Penang(WWP), Sustainable
Transport Environment Penang(STEP), and Sustainable Independent Living & Access
(SILA). These organizations became leaders of the local society in their respective areas
of specialty.

<Table 10.2> Themes of the Conference Organized by SERI

Area Main Themes Organization Created
Ecological Air pollution, Marine & Forest resources, Water Watch Penang,
Balance Ecosystem STEP
Health, Labor, Family and Social Services, Sustainable Independent
Social Justice Governance and Civil society, Poverty and Living & Access(SILA)
Disability issues, Housing and Public facilities disability issues
Auditing of Finance, Development of Human
Economic
resources, Environment, Public Infrastructure,
Productivity
Land and Natural Resources, Governance
Culture and Diversity, Cultural Identity,
Cultural
Traditional Culture, Education and Youth,
Vibrancy
Multiculturalism
Popular Voter Rights, Internal Security Act, Participate
Participation in State Government Policy Making

In addition, efforts to ensure cultural diversity were carried out. Penang is dominated
by the Chinese population, but a significant number of Malays also reside in the state.
10. Good Governance in Malaysia: Searching for a Hope at the Local Level 149

In this context, as the forums in the roundtable conference were filled with English
speaking or Chinese speaking participants, parallel forums in Bahasa Malaysia were also
created as well. The roundtable conferences therefore tried to represent the various ethnic
populations in Penang. The activities of the roundtable culminated in the Penang People’s
Forum. In this forum, the opinions or consensus formed in each roundtable were
presented. The state government also presented a public relations campaign speech on
the SPI. Academics, NGO activists, public officials including the State Governor, and
the general public participated.
These efforts had positive results. The NGOs created as a result of the roundtable
conferences (SILA, STEP, WWP etc) continued their activities, growing up to become
representative NGOs of Penang. SILA plays a leading role in introducing laws for the
disabled and assistance programs for the disabled women, and operating access programs.
STEP also continues its public campaigns on public transportation in Penang; for example
the project for improving bus stops and the inauguration of bicycle riding day to promote
the use of alternative modes of transportation. WWP operates the environment education
program River Walk and the Adopt a River Campaign.19)
The results of the Penang People’s Forum were published under the name “Penang
People’s Forum Report 1999,” and distributed to various organizations including the
state government. The ideas suggested in the report were not all adopted, but the
government of Penang incorporated the theme of the roundtable (Sustainable
Development) and the principles of SPI. The government also created its own
organization called Penang Local Government Consultative Forum (PLGCF), whose role
was to direct SERI to collect the opinions of the local residents and provide a forum
for public discussion. Also, two organizations, called the State Council for Sustainable
Development and the Centre for Sustainable Development were established so that they
would continue to examine the policy issues raised in the roundtable conferences.

4) Lesson Learned and Key Recommendations

The case of Penang’s innovation efforts and the resulting governance are the product
of unique circumstances. First, while not entirely free of the influence of the central
government, the government of Penang had relative autonomy compared to other state
governments. Second, instead of directly communicating with the people, the government
of Penang made use of an intermediary organization SERI to collect the views of the

19) For details on their activities, visit the websites of WWP (http://waterwatchpenang.org/),
SILA(http://www.geocities.com/RainForest/Andes/6611/index.htm) (searched on August 5, 2008).
150 An Inventory of Government Innovations and Good Governance in Asia

local residents through forums organized by SERI where policy initiatives were publicly
debated. This experience suggests that if the conditions do not allow for direct contact
between the government and local residents, an intermediary that connects civil society
to the government may be a good idea. Another point to note is how SERI tried to
reflect the diverse ethnic and cultural groups in Malaysia. In many third world countries,
a major factor inhibiting good governance is its multiethnic population. As the case
of Penang shows it appears to be much more effective to encourage the participation
of various ethnic groups, rather than repressing their interests. Finally, the experience
of Penang demonstrates that implementation of good governance not only raises the
effectiveness of public services and the participation of the people, but also augments
the capacity of civil society itself.

(4) Concluding Remarks

This study examined the efforts to implement good governance under the
authoritarian and centralized political environment of Malaysia. It is difficult for state
governments to engage in autonomous policies when they are heavily dependent on the
central government that emphasizes authoritarian effectiveness. But under certain
conditions, the possibilities for good governance are realized even in such circumstances
as the cases examined in this study illustrate.
First, the case of Sungai Siput showed that a reformist opposition party that
encouraged the participation of the people and executed the development fund under
improved conditions. The experience in Sungai Siput is still underway, and whether this
opposition party government will continue to engage in innovative policies remains to
be seen. But there is a noticeable increase in the participation of the people and planning
for the funds are targeted to those who really need government assistance. The execution
of the development fund is not complete, so it may be too early to evaluate the
transparency and accountability dimensions. But the observable changes in greater citizen
participation and actual incorporation of the residents’ demands point to an improved
governance environment.
In the second case, the reformist state government of Penang pursued participatory
governance by the use of an intermediary organization that linked civil society to the
government. When it is difficult for the government to directly communicate with the
people, a think tank such as SERI can play the role of intermediary and provide the
forum for the people to participate in the government’s policy initiatives. The mechanism
10. Good Governance in Malaysia: Searching for a Hope at the Local Level 151

of participation is indirect, but as seen in the case of Penang, the result was quite effective:
the ideas that were debated at the roundtable forums became grounds for the policy
direction of the state government. This approach encouraged the participation of civil
society, and what is more, became reinforcement for the government to react positively
to the needs of the society.
152 An Inventory of Government Innovations and Good Governance in Asia

11. Improving Quality of Life in Thailand:

Good Governance in Khon Kaen and
Phisanulok City
Dong Yoon Lee
(Silla University)

(1) Introduction

Situated in Southeast Asia, Thailand borders on the Andaman Sea and the Gulf
of Thailand. To the north lies Laos and Cambodia and to the south Malaysia; Thailand
shares the border with Myanmar to the west. The land mass is about 514,000 sq km
(land 511,770 sq km, water 2230 sq km) with 65,500,000 people, where 75% is Thai
and 14% is Chinese; 95% of the population is Buddhist. With a tropical monsoon climate,
agriculture forms the main base of the economy. However with industrialization that
began in the 1970s and 1980s, the economic structure of Thailand went through a
transformation. In 2007, only 11.4% of the economy is agriculture based, while industry
forms 43.9% and services form 44.7% of the economy. The per capita GNP is around
$7,900.20)
Since the adoption of a parliamentary system based on constitutional monarchy
in 1932, Thailand went through democratization in 1992 and an economic crisis in 1997,
and in the process initiated various reforms in order to meet the growing political
demands from the people. As part of the efforts to overcome the economic crisis of
1997, the government innovation projects designed to increase transparency, accountability
and effectiveness of public services were carried out. This reform effort was linked
with the traditional Thai concept of ‘thammarat haengchat,’ which meant ‘good governance’
in Thai version, and transparency and effective public administration became the objective
of the movement for good governance and innovation (Thirayuth 2002, 30).
Thailand began by pursuing a series of local decentralization policies; through a
new legal framework the central government’s budgetary powers were transferred to the
regional governments, and civic participation in the policy making of regional
governments was encouraged (Kuwajima 2003, 191; Weerasak, Riccucci, and Charas 2008,
4). Historically, Thailand had a bureaucratic political regime where public officials enjoyed

20) CIA World Factbook. Http://www.cia.gov/library/publications/the world

factbook/index.html (accessed on September 3, 2008).
11. Improving Quality of Life in Thailand: Good Governance in Khon Kaen and Phisanulok City 153

great autonomy in decision making; participation by the public in the policy making of
government was limited (Riggs 1966; Girling 1981). Thai bureaucracy established since
th
the 19 century developed without the input of colonial rulers, an experience not found
in other Southeast Asian countries. A hierarchical and centralized decision making
structure became firmly rooted in Thailand, and even the local assembly’s powers of
overview over the budget was strictly controlled by the central government (Gonzalez
Ⅲ, Lauder and Melles 2000, 85).
Staring from the 1980s under the period of semi democracy of the Prem
Tinsulanond government, and the democracy movement in 1992, Thai society grew
exponentially while the political autonomy traditionally enjoyed by Thai bureaucrats and
government became weakened. New social actors emerged to exert influence on the
bureaucrats and government; their demands for decentralization of political power and
improvement of public services and administrative innovation grew bigger over time
(Anek 1992; Yee 2003; Surapong 2006, 54 5). Responding to these demands, the Thai
government issued the Decentralization Plan and Process Act in 1999. Autonomous rule
at the three tiers of central, regional and local level became possible; the Act covered
the 76 Provincial Administration Organization (PAO), 1,276 Municipalities, 6,500 Tambon
Administrative Organization (TAO), the capital city of Bangkok (BMA: Bangkok
Metropolitan Administration) and the special administrative district of Pattaya City
(Weerasak 2004, 218).21)
On the other hand, the movement for democracy and political participation grew
rapidly in Thai society after the 1992 democracy. The Thai social movement prior to
1992 was focused mainly on democracy issues, but since then the movement spread
to other aspects of Thai society in the realm of economy, culture, labor, environment,
women, and so on. This meant that instead of the simple ‘democracy vs. anti democracy’
frame of the past, the Thai social movement expanded to include a variety of advocacy
movements and legislative efforts to address the broader socio economic issues and
problems facing Thailand. These efforts by the civil society, coupled with the self initiated
reform efforts pursued by the Thai government in the aftermath of the economic crisis
of 1997, created a synergistic effect on the policy of decentralization in Thailand that

21) These local administration organizations consist of a chief executive and local
council elected by the local people for a period of 4 years. The authority and
functions of each local administration organization is different depending on the
political and administrative structure of the region. The elected mayor of PAO or
TAO is accountable to the local council and local residents. The mayor is in charge
of preparing and executing regional development policy and the budget, which is
reviewed and voted by the local council (Charas 2004, 1; Weerasak, Riccucci, and
Charas 2008, 3).
154 An Inventory of Government Innovations and Good Governance in Asia

has been pursued since 1999.

This study examines two models of local government innovation and good
governance: in the civic participatory policy making of Khon Kaen City and the waste
management policy of Phisanulok City. The case of Khon Kaen City is viewed as a
representative example of administrative reform and decentralization where the local
people participate actively in the policy making of government (Gonzalez Ⅲ, Lauder
and Melles 2000; Charas 2004, 12; Weerasak 2004). The waste management policy of
Phisanulok City is a good example where the local people and the public officials of
the regional government formed cooperative network to collectively resolve the problems
of waste and environmental damage (Suthi and Scholl 2004).

(2) Case Study 1: Participatory Policy Making in Khon Kaen

City

1) Background

Khon Kaen City is in the Northeastern region of Thailand, and was established
in 1935 as a Metropolitan municipality. About 130,000 residents live in Khon Kaen City;
unlike other cities in the region suffering from economic underdevelopment and poverty,
it is a dynamic and growing city offering high quality public services in city planning,
urban infrastructure, primary education, fire and hazard prevention facilities, healthcare,
social welfare, and employment (Charas 2004, 11).
Prior to the Decentralization Plan and Process Act of 1999, the central government
selected four cities representing each region of Thailand and implemented a pilot program
of decentralization as part of the New Public Management program.22) The NPM
program was about managing a consultative committee consisting of the local residents
to collect their views on city policy, and to improve transparency and accountability
in the provision of public services by the regional government. Khon Kaen City,
representing the Northeast region, collaborated with the University of Khon Kaen on
setting up focus group meetings, where local residents could participate in the
management of city policy. These focus group meetings were called “participatory
approach system” whose purpose was to enable municipality administrators and local

22) The New Public Management concept which appeared in 1997 was deeply related to the
various reforms efforts pursued by the central government to streamline the
national administration (Weerasak 2004, 225).
11. Improving Quality of Life in Thailand: Good Governance in Khon Kaen and Phisanulok City 155

residents to meet and discuss on the city development plan, and find collaborative
solutions to the problems of policy making and policy execution (Weerasak 2004, 223;
Weerasak 2006, 10).
In addition to the focus group meetings, Khon Kaen City beginning in 1998 also
created a policy consultative mechanism; in the town hall meeting held every 3~4 months
important policy issues were laid on the table for discussion and consultation. In these
meetings, about 140 representatives of civic organizations and villages met to discuss
on the city plan and policies, and established policy priorities on their own initiative.
This mechanism resulted in greater policy effectiveness because the participants in the
discussions ― policy experts, public officials, interested civic organizations etc. ― would
reach consensus on the policy goals, priorities, and the means of execution through
collective discussion and debate. Thus, the local residents could have their opinions or
interests reflected on the city budget and planning. Ultimately a proper check and balance
between the residents and government was formed, which led to greater transparency
and accountability in policy making and implementation (Charas 2004, 12).

2) Main Features of Innovation

In 1997, Khon Kaen City in collaboration with the University of Khon Kaen created
a system of focus group meetings, where local residents could participate in the
management of city policy. These focus group meetings aimed to bring about
participation from civic organizations, policy experts, and public officials whose interests
were directly or indirectly involved in the community’s policies. Through collective
decision making, the interested parties would decide on policy priorities and methods
of implementation. Khon Kaen City hosted the focus meetings regularly on a variety
of issues such as the city’s development plans, policy strategy, budget and services issues,
and tried to reflect the residents’ opinions or complaints about the city’s services. Such
efforts improved the transparency and accountability of the city’s budget management.
Furthermore, beginning from 1998 Khon Kaen City institutionalized the city’s policy
consultative mechanism; town hall meetings were held every 3~4 months to discuss
important policy issues. In these meetings, about 140 representatives of civic organizations
and villages met to discuss on the city plan and policies, and established policy priorities
on their own initiative. This mechanism resulted in greater policy effectiveness because
the participants in the discussions ― policy experts, public officials, interested civic
organizations etc. ― would reach consensus on the policy goals, priorities, and the method
of policy execution through collective discussion and debate. The collective manner by
156 An Inventory of Government Innovations and Good Governance in Asia

which the stakeholders came to final agreement was a distinct characteristic of the town
hall meetings (Gonzalez Ⅲ, Lauder and Melles 2000, 86 7).
The town hall meetings were managed as follows. The city would first determine
the target groups that would be affected by a particular policy, and send invitation letters
on the date and place of the town hall meeting. The city would advertise the town
hall meeting in various media. In the town meeting, the interested parties would meet
to discuss and debate on the policy and budget. Those invited to the town hall meeting
came from diverse backgrounds; public officials, local media, village representatives,
regional business associations, expert groups, the Rotary Club and Lions Club and so
on. The meetings were open to the public, and the governor of Khon Kaen Province
would often preside the meetings. The mayor of Khon Kaen City played the role of
mediator as well as reporting on the contents of policy in these meetings (Charas 2004,
13 4).
The mayor of Khon Kaen City tried to maintain a collaborative relationship with
the local NGO and local leaders in order to encourage their active participation and
cooperation in the town hall meetings. Information on the city’s development plans,
policy implementation, budget planning and management were shared with the
participants in the meeting, and the views or complaints of local residents were collected.
Also, public opinion surveys were conducted after the meetings in order to measure
the level of popular satisfaction with the city’s policies. Information collected in these
surveys was analyzed and would be used as reference in the future.

3) Consequences of Innovation

The focus group meetings and town hall meetings carried out by Khon Kaen City
were not the result of demands from the local residents for greater policy participation.
Rather, it was Khon Kaen City itself that initiated these policies as part of the pilot
program of decentralization by the central government. However, from the perspective
of voice and accountability, the reform efforts by Khon Kaen City can be considered
a success; they show that citizens’ participation and collective approaches to resolving
the problems associated with policy execution and budget execution are possible. The
people of Khon Kaen City achieved viable channels of communication with their
government through the focus group meetings and town hall meetings, and could resolve
their dissatisfaction on various public services through direct contact with the government.
From the perspective of government or policy effectiveness, the focus group
meetings and town hall meetings in Khon Kaen City were carried out in open forum
11. Improving Quality of Life in Thailand: Good Governance in Khon Kaen and Phisanulok City 157

and through collective debate from the policy making stage to the implementation stage.
Such approach had a visible impact in improving the effectiveness and efficiency of
policy. Additionally, as the people of Khon Kaen City could directly participate in
determining policy priorities in the budget, public trust over the city’s management
improved greatly. Of course, not all public policy issues could be resolved in these focus
group meetings or town hall meetings. Given the collective decision making structure
of these meetings, it was difficult to ensure the interests of minority groups. Nonetheless,
the participatory decision making system introduced by Khon Kaen City gave back power
to the local residents on the city’s policy, which had a positive impact on raising the
effectiveness of public policy.
From the perspective of transparency on city policy, the reform efforts by
Khon Kaen City did not necessarily have a direct impact on reducing corruption. However
information on the city’s budget plan and its implementation had to be opened to the
public in the focus group meetings and town hall meetings; such measures appears to
have had a positive impact on the city’s budget policy (Gonzalez Ⅲ, Lauder and Melles
2000, 97). Since the people of Khon Kaen City participated in all aspects of city
management, public faith and trust in the city’s budget management as well as
transparency in policy management improved.

4) Lessons Learned and Key Recommendations

The focus group meetings and town hall meetings carried out by Khon Kaen City
are considered an example of great success in the context of decentralization and public
service reform pursued by the central government since 1999.23) The success of the
program also owed to the synergy effect coming from the strong leadership of the
elected mayor who was determined to introduce visible reforms in Khon Kaen City
(Weerasak 2004, 231). In Thailand, a culture of citizens’ participation in government
policy is still at a beginning stage; therefore the actual efforts and leadership shown
by both the central and local governments, and the elected mayor had a visible impact
on the success of the reform program. However, even if decentralization of power

23) Originally Thailand’s decentralization policy was executed by the DOLA (Department
of Local Administration; DOLA changed its name to Development of Local
Administration Promotion). But the ways by which local governments attempted to
enlist the participation of the local residents in response to the decentralization
policy differed in each region. For instance, the simplest form of citizen
participation was the focus group meetings. The town hall meetings of Khon Kaen
city is notable in terms of size and level of participation, since the recommended
method by the Ministry of Interior (civic forum managed by the TAO) was of relatively
small scale (Charas 2004, 18).
158 An Inventory of Government Innovations and Good Governance in Asia

and participatory institutions are in place, other factors may deter meaningful public
participation in the decision making of government, such as vote buying, money politics
and patronage relations in the regional governments or local assembly. In Thailand, most
elections have exhibited behaviors that are contrary to democracy (Arghiros 2001, 276;
Nelson 2005). In order for decentralization and popular participation in the management
of regional government to take proper root, democratic elections and electoral institutions
need to be in place in advance.
On the other hand, it is important to ensure that regional governments are fiscally
stable in order for the citizens’ participatory system to be viable in the long run.24)
Also, institutional improvement and innovation in the management of the system are
necessary (Weerasak 2004, 231). The vote system adopted in the focus group meetings
and town hall meetings are dependent on a decision making structure that favors the
majority, which may result in overrepresentation of the interests of the urban middle
class. In order for the government’s reform to truly have the desired effect, it is important
to ensure that the interests of the socially and economically marginalized groups are
fully reflected in the government’s policies (Gonzalez Ⅲ, Lauder and Melles 2000, 92;
Charas 2004, 15).
In order for decentralization to achieve concrete results, it is necessary to have a
civil society that is active and capable of making impact on the government (Naruemon
2002, 198). The fact that the general public began to participate in the focus group
meetings and town hall meetings in Khon Kaen City means that Thai civil society has
become politically stronger and viable. Yet certain NGOs were found to pursue selfish
objectives, and the local society failed to deal with the “complaints of minority groups”
adequately. This may be due to the lack of political will and culture of participation
on the part of those who managed the programs in Khon Kaen City, but the fundamental
reason may be due to the underdevelopment of Thai civil society.
The fundamental solution to activating public participation in the government’s
decision making is closely related to the political culture of the public. Without a high
level of political participation and healthy attitude on the part of the local residents,
participatory decision making programs like the ones introduced in this section will only
entice conflict or dispute among residents, resulting in the loss of policy efficiency and
effectiveness. The rise in political demands by citizens to participate in government

24) The budget of local governments in Thailand come from tax revenues, tax revenues
transferred from the central government, grants and other transfers among local
governments. Local governments cannot change or raise the tax rate on their own,
and must follow the legal mandate from the central government. Thus, most local
governments lack financial independence except for some major cities (Weerasak
2006, 5; Weerasak 2007, 4).
11. Improving Quality of Life in Thailand: Good Governance in Khon Kaen and Phisanulok City 159

decision making comes from the reality of unequal economic status and cultural conflicts
among the people (Connors 2005, 262). Thus, in order to encourage the proper
decentralization of power and voluntary participation by citizens in the affairs of
government, a culture of democratic politics must be in place.

5) Concluding Remarks

The reform program by Khon Kaen City is an exemplary case where the
participatory decision making system had a positive impact on the government’s policy
decision making. Many studies found that the local residents expressed satisfaction with
the government, reporting high levels of policy transparency, accountability and trust
in Khon Kaen City (Charas 2004, 12). The success of Khon Kaen City’s experiment
owes much to the series of administrative reforms and decentralization policy pursued
by the central government as part of the democracy movement in 1992, the reform
of the constitution in 1997 and decentralization project that began in 1999. In distributing
authority and budget to the local government and encouraging the participation in local
governance, Khon Kaen City’s experience is showcased as an effective method of good
governance.
Despite Khon Kaen City’s success, there is the danger that unrestrained pursuit of
decentralization of power coupled with populism owing to electoral democracy can result
in political disorder in the early stage of management of citizen participatory programs.
In order to prevent any potential problems and improve the effectiveness of institutional
reform, a mature and democratic culture at the local level should be cultivated.

(3) Case Study 2: Waste Management Policy in Phisanulok City

1) Background

Phisanulok city is the provincial capital of Phisanulok Province, a commercial city

of 90,000 people. As a center of transportation linking east, west, north and south
for the past several centuries, Phisanulok is a center for health and education institutions,
small and medium sized companies and other public institutions. However, situated near
a Tambon (Administration Organization) Phisanulok is still primarily a city dominated
by agriculture. Given the regional characteristics of the city, Phisanulok lacks large scale
industrial centers and production facilities; the fiscal structure of the city is therefore
160 An Inventory of Government Innovations and Good Governance in Asia

quite weak.
Phisanulok began to show interest in environmental issues and waste management
in 1995 as the new mayor came to power and initiated a management program to deal
with the city’s waste problems. Like other cities, Phisanulok did not show much interest
in waste problems in the past, which was exacerbated by the habits of the local residents
and lack of waste management technology. In particular the waste produce by Phisanulok
was 1.6 times greater than other cities of comparable size. This was because around
160,000 people living in the nearby tambon and satellite cities threw their waste in the
city on their way back and forth from work (Suthi and Scholl 2004, 432).
Since democratization in 1992, Thai society has begun to take interest in issues
broader than politics. Various social movements are occurring at both the central and
local level of government, taking on issues from environmental pollution to nature
conservation (Pasuk 2002, 13; Forsyth 2002, 197). Environmental issues are not a major
issue that has the attention of the Thai people. However, the environmental movements
are in conflict with the various development programs pursued by the central or regional
governments; there is a fundamental discord between the interests of economic
development and the interest of health and nature conservation of the local residents.
Especially with the widespread implementation of the decentralization policy since 1999,
the problems of environmental pollution in regional governments are creating real
concerns for the health and quality of life of local residents.
The waste problem in Phisanulok was directly related to the issue of pollution,
and required immediate policy response by the regional government. Yet it was left in
relative neglect, exacerbating the health and quality of life of residents. It did not require
much technical expertise for the city to deal with this issue, but the problem was directly
related to management costs. The newly elected mayor of Phisanulok, with the
cooperation of the central government, succeeded in obtaining the environment
improvement fund from Germany’s Federal Ministry of Economic Cooperation. Starting
from 1999, the Solid Waste Management Program for Phisanulok began operation.
Phisanulok received technical assistance from the German Agency for Technical
Cooperation (GATC), and established a waste disposal procedure and management system
as part of a pilot program. The city also carried out public relations campaigns and
education programs for the public on waste management, in conjunction with subsidies
and other related financial assistance designed to augment the effectiveness of waste
management.
11. Improving Quality of Life in Thailand: Good Governance in Khon Kaen and Phisanulok City 161

2) Main Features of Innovation

Before implementing the waste management program, Phisanulok city first

established a step by step plan to deal with the city’s waste problems and a plan to set
up a waste management program. First, in order evaluate the existing state of waste
problems, Phisanulok conducted investigation on the various factors that would determine
the viability of the management program: waste producers, waste characteristics,
technological issues, qualification of staff and organization, funding etc. The results of
the investigations showed that the people of Phisanulok were ignorant about the waste
problems in their neighborhood, and would throw plastic bags and PET bottles anywhere.
The residents of the nearby tambon were also found to bring their waste to Phisanulok
on their way back and forth to work. About 45 50% of the waste was found to be
of recyclable materials, 30 35% organic waste, and 20% unrecyclable waste. There were
several technical problems found in relation to classifying recyclable waste and in the
method of waste collection. A comprehensive evaluation of the city’s public officials
and waste management program was carried out, and concerns and solutions related
to funding in order to operate the waste management program were examined (Suthi
and Scholl 2004, 434 7).
As the first step in activating the waste management program, the city began a
public relations effort to educate the residents about the need for the waste management
program and for their cooperation. This education program continued, informing the
residents about changes in the waste management method such as waste collection
schedules. In addition, the city formed regular meetings with village representatives to
discuss and get approval on a tax increase of 2.5% to be allocated for spending on
waste management; the city even discussed on a 5% increase for the long run until
a balanced budget could be achieved. Phisanulok made special efforts to educate the
residents and people of the nearby tombon and have their voluntary participation in the
waste management program. The city provided information on how recyclable and
organic waste could be used for compost, which could then be sold for profit. In order
to encourage the participation of residents, the city also provided various waste collection
methods at the village level such as a waste bank, waste market, waste collectors, reward
mileage, etc.; thus the promotion efforts by the city did not simply end in catchphrases
but into real solutions for the residents.
In operating the waste management program, Phisanulok found the disposal of
organic waste to be the most difficult. Disposing of organic waste required much time
for the chemical treatment to take effect, while immediate benefits did not come by
162 An Inventory of Government Innovations and Good Governance in Asia

easily. The city created collaborative relationships with environmental NGOs and village
communities, and built underground facilities that could dispose of organic waste which
would be transformed into compost. For each household, the city distributed two 20
liter waste bins in which organic waste and other waste were separated; this method
proved to be effective in reducing odor and space problems. In individual houses the
disposal of organic waste could be done at the premises; however in the dense residential
neighborhoods such as apartment complexes and commercial buildings, the underground
facilities proved to be an effective method to deal with organic waste and minimize
the problems of odor and pollution. Organic waste would be collected by a manufacturer
of agricultural products, to be transformed into compose after a certain period. The
profits from this program were redistributed back to the participating households.
The biggest problem was in the incineration and burial of waste material. At the
beginning of the waste management program, the existing facilities and land fills were
enough to hold the collected waste; however with time the city required new or expanded
facilities. But the problem of odor and pollution associated with waste incineration was
a sensitive issue to the residents, who were strongly opposed to having any such facilities
in their neighborhood. Such ‘Not in my Backyard‘(NIMBY) attitude forced the city to
pursue other incentive programs that would persuade local residents to agree to the
facilities. For instance, with the help from GATC of Germany, the city provided evidence
on the safety of the facilities and persuaded the local residents to agree to install waste
disposal facilities in their neighborhood.

3) Consequences of Innovation

From the perspective of voice and accountability, the waste management program
operated by Phisanulok is a case where the city itself took the initiative in providing
public services, instead of passively responding to the demands of the residents.
Especially, it was the mayor who was the main driving force behind the program. In
order to better operate the waste management system, Phisanulok city operated 24 hour
open complaint center (Suthi and Scholl 2004, 448), as well as various public relations
and information forums in order to encourage the voluntary participation of the residents
on the means of waste retrieval and funding (such as tax increase) to operate the program.
The program was conducted through cooperation with 20 TAOs in the region or
local level units, and with the help of local NGOs. Such collaboration greatly improved
the quality and accountability of public services provided by the city.
From the perspective of government effectiveness, the city operated a management
11. Improving Quality of Life in Thailand: Good Governance in Khon Kaen and Phisanulok City 163

system that collected the complaints or opinions of residents regarding waste retrieval
and management which greatly improved the effectiveness of policy. Especially in the
process of raising taxes to fund the waste management system, Phisanulok made efforts
to meet and persuade the local residents instead of forcing a unilateral tax increase on
them. Also, by setting up the rules of waste management from the viewpoint of the
residents, the city tried to improve the residents’ ease of use. Furthermore, Phisanulok
also tried to link the waste management program to actual economic benefits to the
residents by encouraging the recycling of waste and sale of recyclable waste materials.
From the perspective of policy and administrative transparency, the waste
management program was not necessarily targeted at improving the transparency of
Phisanulok’s administration. However, as the city formed collaborative relationships with
local communities and NGOs from the policy decision making stage to the
implementation stage, participation by the local residents in the affairs of the city
increased. Such changes had direct and indirect impact on improving corruption problems.
In particular, the operation of the complaint center proved to be particularly effective
in monitoring the overall execution of the program as well as encouraging the transparent
implementation of public services.

4) Lessons Learned and Key Recommendations

The success of Phisanulok is largely due to the political vision and leadership of
the mayor who saw the need for introducing an effective waste management program
in the city. Elected in 1995, the mayor determined that environmental problems would
be the most important policy issue to be dealt with during her tenure and pursued a
set of policies targeted at reducing the problems of environmental pollution of
Phisanulok. However, because the waste management program depended on the
leadership by the mayor, it came to the point where the mayor would become involved
in all the detailed processes, which would often delay the timely execution of the program.
Furthermore, there was the possibility that if the mayor failed to get re elected for the
second term, the waste management program would cease to continue.
Another problem identified was that of acquiring funding necessary to operate the
waste management program (Kuwajima 2003, 207 8). Phisanulok depended on the
assistance from the central government and on the technical and financial aid from
Germany. Furthermore, it is necessary to levy some additional taxes from the local
residents in order to operate the waste management program for the long run. This
can be a political burden for the mayor who is sensitive to re election considerations.
164 An Inventory of Government Innovations and Good Governance in Asia

On the other hand, the waste management program would be difficult to implement
in other cities that lack the kind of assistance from the central government or other
foreign agencies. Phisanulok, which was the recipient of the decentralization policy of
the central government was rather lucky; other cities may not have such help.
On the other hand, it is important to point out that the voluntary participation
and cooperation by the local residents played a major role in the success of the waste
management program. The mayor of Phisanulok actively persuaded the local residents
on the seriousness of the pollution problems facing the city, and succeeded in getting
their approval on tax increase and cooperation for the operation of the waste management
program. The mayor continued to hold information meetings and education sessions
in neighboring tambon with the village representatives as well as form collaborative
relations with the local NGOs in order to persuade and educate the people. The success
of the waste management program depends on a high level of awareness of the problems
of environmental pollution and the necessity for collective management of waste.
The formation of a policy network at the level of local government is an important
factor affecting the nature of the policy programs, administrative capacity and local
political economy (Weerasak, Riccucci, and Charas 2008, 1). In the case of Phisanulok,
the relationships between the central and regional government, the local residents and
government, and neighboring satellite cities and other TAOs are managed quite well,
and the mayor’s leadership is deployed successfully for the effective execution of policy.
Nevertheless, the waste management program of Phisanulok has also shown that without
overcoming funding issues and resistance by the local residents it would be very difficult
to replicate the program elsewhere. There are various waste management programs that
are in operation in Thailand and in other countries, but all have shown fundamental
difficulties of overcoming the so called NIMBY (not in my backyard) phenomena.

5) Concluding Remarks

Phisanulok realized the seriousness of the pollution problems arising from

mismanagement of waste, and through the strong leadership of the new mayor,
implemented a waste management program that proved to be effective. The waste
management program was largely possible thanks to the decentralization policy of the
central government; the city could obtain financial and technical assistance from the
capital. The city also engaged in an active public relations campaign to inform and educate
the local residents about the program. Since organic waste and recyclable waste collection
require active participation from the local residents, the mayor’s effort to persuade the
11. Improving Quality of Life in Thailand: Good Governance in Khon Kaen and Phisanulok City 165

residents on the necessity of installing the incineration facilities proved to be a decisive

factor behind the success of the program.
Despite the success of the waste management program of Phisanulok, it would
be difficult to replicate its success to other cities or countries. First, in order to operate
a waste management program, funding and technical issues must be addressed. Most
often local governments lack the financial and technical capacity to operate a waste
management program. What is more, the resistance of local residents to the waste
management program is a major factor preventing the viability of such programs.
Phisanulok City also faced these difficulties, and they were political challenges to the
incumbent mayor. However, the mayor displayed outstanding leadership and political will
in pursuing the waste management program. Additionally, Phisanulok City succeeded in
forging a policy network which facilitated collaboration among the stakeholders of the
program. These factors may not be easily replicable in other cities or countries.
166 An Inventory of Government Innovations and Good Governance in Asia

12. Participatory Governance through Innovative

Ideas and ICT: The Case of Singapore

Jaehyon Lee
(Yonsei University)

(1) Introduction

In describing Singapore’s political economy, one often draws upon the word
“survival.” The economic development of Singapore is the result of efforts for survival,
and the absence of democratic institutions is justified in terms of the need for survival.
In 1965 when Singapore achieved independence from the Federation of Malaysia,
Singapore was a small island of no natural resources and constituting of 70% Chinese,
with very little chance of survival as an independent state. But 40 years since then,
Singapore is now the most advanced and dynamic economy in the region. The factors
behind Singapore’s achievements are explained in terms of two trends. First, Singapore’s
economic achievements are explained in terms of the tradition of efficient government
and effective execution of policy. Second, an authoritarian political environment is argued
to have brought about the successful growth of the country (Quah 2001). These two
arguments are not necessarily at odds with each other.
Since independence, the ruling PAP (People’s Action Party) has never let go of
its power.25) The first Prime Minister Lee Kwan Yew reigned for several decades, and
via a transitional figure Prime Minister Goh Chok Tong,26) the reigns of power are now
transferred to Lee Kwan Yew’s son Lee Hsien Loong. In contrast to a powerful executive,
the opposition parties and civil society have shown little potential as a viable alternative,
while the ruling government has implemented various institutional innovations such as
electoral rules designed to restrain the opposition’s power.27) The existence of an

25) The ruling political party of Singapore PAP was founded in 1954 by Lee Kwan Yew and others.
In the beginning Singapore was dominated by the Socialist Front, and PAP was the opposition
party. PAP took power in 1959, where Singapore regained all its political rights except for security
from the United Kingdom. Lee Kwan Yew was the first prime minister of Singapore, and PAP
never lost its status as ruling party since then. Lee Kwan Yew maintained his position from 1959
to 1990 for 31 years.
26) Goh Chok Tong was prime minister from 1990 to 2004, and in 2004 gave the position over
to Lee Kwan Yew’s son, Lee Hsien Loong. Goh was widely viewed as an interim prime minister
that played the role of caretaker until Lee Kwan Yew’s son was ready to take power.
12. Participatory Governance through Innovative Ideas and ICT: The Case of Singapore 167

authoritarian government and oppression of civil society form the basis of Singapore’s
governance environment.
At the same time, the ruling power has the support of the people through regular
elections despite continuing to suppress opposition to the government and criticisms
against the ruling elites. The reason for this could be that the people do not feel the
need for a powerful opposition to restrain the government. This may be due to the
wishes of the people of Singapore for continued economic growth from the existing
regime, but perhaps more significant is the fact that the ruling authoritarian government
is extremely responsive to the people’s demands and/or the criticisms over the
government’s administration and public services.28)
This particular situation in Singapore has some unique implications for governance.
From the perspective of public services, the government has high marks for transparency
and efficiency. The government itself emphasizes efficient administration and it is
extremely responsive to the complaints or feedback from the people of Singapore.
However, from the perspective of democratic governance, the Singaporean model has
limitations in that voice and participation by the people is lacking. Singapore’s
governance model is deficient of democratic and participatory institutions and practices.
It is difficult to find actual examples where the people of Singapore directly participate
in the policy decision making of government, or have an impact on the policy making
process. But one can find abundance of examples where the government responds to
the public service needs of the people, and an attitude that the people of Singapore
are consumers of administrative services whose needs the government should respond
to effectively.
The above point is a significant characteristic of the government of Singapore and
the ruling regime. For the ruling elites, giving political autonomy to the people and having
their participation in the affairs of government inhibits the effective deployment of
administrative and developmental policies that are decided at the centralized
decision making level. But getting feedback on the public services offered to the people,
and conducting public relations campaigns to educate the people about the government’s
policies are considered measures to improve the effectiveness of public services. These

27) On the opposition party in Singapore, see Rodan 1996; on its electoral system, see Yeo 2002
and Rodan 1996.
28) In some countries achieving rapid economic growth, the middle class instead of being the harbinger
of political liberalization has become co opted by the ruling regime, supporting the regime’s
authoritarian hold on power. This phenomenon is seen in several rapid growing economies in
Asia, and it is called developmentalism. For more, see Brown and Jones 1995, Loh 2002, and
Chua 2005.
168 An Inventory of Government Innovations and Good Governance in Asia

measures are expected to instill public confidence in the government’s services, which
in turn strengthen the ruling elites’ justifications for holding on to power. In sum,
government performance is a useful measure by which the ruling elites justify their rule
and reinforce their political legitimacy (Alagappa 1995).

(2) Case I: TEC in the PS21

1) Background

In this section, the policy innovations examined in the context of good governance
are the Enterprise Challenge (TEC) which is a program established under the Prime
Minister’s Office, and the public relations campaign/feedback program using information
communications technology (ICT). These two projects are part of the PS21 (Public Service
st
for 21 Century) that began in 1995, which are public service innovation projects that
aim to provide the best public service that meets the public’s needs and create an
environment inducing continuous change. When we examine the goals of PS21 from
the perspective of governance, the TEC project is consistent with the aim of creating
an environment inducing continuous change, while the public relations campaign using
ICT technology is congruent with the aim of establishing the best public service. The
objective of PS21 is the pursuit of government service innovations; the success of PS21
has put Singapore’s mark in the international community as the country having one
of the most efficient administration and public service programs in the world.
The Enterprise Challenge (TEC) aims to facilitate innovation in the public sector,
and expand the wind of innovation and change to the private sector, academia and
research institutes. The results of innovations are re introduced back to the public sector
which in turn is expected to improve the quality of public services. In short, the success
of PS21 is expected to incite innovation in the entire Singapore society.
12. Participatory Governance through Innovative Ideas and ICT: The Case of Singapore 169

<Table 12.1> World Bank Evaluation of Governments around the World

Voice and Political Government Regulatory Control of
Rule of law
Accountability stability effectiveness control corruption
Denmark 1 Iceland 1 Denmark 1 HongKong 1 Iceland 1 Finland 1
Switzerland 2 Luxemburg 2 Singapore 2 Singapore2 Denmark 2 Iceland 2
Netherlands 3 Finland 3 Iceland 3 Denmark3 Norway 3 Denmark 3
Singapore 112 Singapore 12 Singapore 11 Singapore 5
Source: The Singapore Public Service. 2007. National Goals, Global Perspectives (available at
http://app.psd.gov.sg/data/Corporatebook/internationalstanding.html)

2) Main feature of innovation

TEC which began in 2000 originally got its ideas from the innovation program
titled “Shell Game Changer” of Shell, the oil refinery conglomerate. TEC is a program
where innovative ideas are collected by public officials, private sector employees, public
organizations, academia and individuals; the applicant with an innovative idea can
download the documentation forms from the TEC website (http://www.tec.gov.sg) and
submit his idea through the internet or by mail to the government. Ideas collected are
then reviewed by a panel of 13 people composed of government, private sector, and
academic experts. If an innovative idea is approved in the panel, then it goes under
a trial test with funding by the TEC. After the idea is proven to be of practical value
after the trial test, the government officially puts it into action. Even if an idea does
not pass the review panel, it is collected and managed in a database for possible future
use. The following illustration shows how an innovative idea becomes selected by TEC
and finally becomes a reality.
The main criteria used to evaluate an innovative idea are: a. innovativeness, b.
relevance to public service, c. quantum leap benefits, d. upscalability, and e. need for
a trial test. Innovativeness means that the idea should be unique and not used before;
relevance to public service means that the idea should be applied for the collective benefit
and for public services. Quantum leap benefits refer to the notion that the social welfare
gained from applying this idea should be significant to warrant adopting the idea.
Upscalability is another word for commercial value; in applying this idea the public
benefits derived should exceed the costs. Finally the need for a trial test refers to the
notion that since TEC must determine whether the innovative idea is applicable in reality,
the idea must go through a pilot test.
170 An Inventory of Government Innovations and Good Governance in Asia

<Figure 12.1> Procedure for Selecting an Innovative Idea under the TEC

Source: TEC website, www.tec.gov.sg

What we should note here is the active effort by the Singapore government to
induce new ideas and innovations. TEC’s main objective is to examine and test an
innovative but often risky idea, and determine whether the idea is realizable. In many
cases, private companies and/or research institutes often have to discard innovative ideas
because of the risks or costs of developing the idea. But in the case of Singapore, with
the strong support by the government, an innovative idea is selected and applied in
the improvement of public services. These efforts not only bring about new and
innovative services in the government but also encourage innovation in the entire society
as well.
TEC encourages new and innovative ideas and supports the realization of these
ideas; in order to encourage society wide efforts at innovation, the TEC Award is held
each year. The award is divided into several categories as shown below.
12. Participatory Governance through Innovative Ideas and ICT: The Case of Singapore 171

<Table 12.2> Categories of the TEC Award

Name of Award Characteristics
TEC Public Service Presented to the most impactful and iconic innovations
Innovation Award implemented in the public service, introduced in 2006
Presented to the most outstanding proposer/proposing team
The Enterprise Challenge
whose project has created the highest new value to the Public
Shield
Service and has service wide application in Singapore.
Presented to the Agency identified to have created the most
Innovative and
conducive environment and provided support for staff to surface
Enterprising Agency Shield
TEC proposals.
Innovator Award For every Approved TEC proposal
Awarded to all TEC Piloting Agencies for their initiatives and
Enterprising Agency
enterprise in championing those innovative yet untested TEC
Award
ideas
presented to the Innovators of the most outstanding TEC
TEC Achievement Award
innovations
presented to exemplary public officers who have championed
TEC innovations, and who have consistently demonstrated the
TEC Champion Award
qualities of Tenacity, Enterprise and Commitment in their
innovation journeys

Source: TEC website, http://www.tec.gov.sg

3) Consequence of innovation

Since the beginning of TEC in 2001, a total of 82 ideas were approved. For example
in 2002, 35 ideas were submitted and 14 were approved by the TEC. Most ideas that
are approved go through a pilot test and then applied in the government’s public services.
Several ideas that have been approved in recent times are currently undergoing pilot
tests. On average, around 10 ideas are selected each year and applied to the government’s
public services. The innovative ideas approved so far are divided into categories as shown
in the table below.
172 An Inventory of Government Innovations and Good Governance in Asia

<Table 12.3> Ideas Approved by the TEC by Category

By Applicant By Stage
Area Private Research Government
individual joint Going oncompleted
sector Institute agencies
Education 3 2 5
1(public/research
Environment 6 6* 6 7
institute)
1(private sector/
Health 10 5 1 1 8 10
research institute)
1(public /
Development 7 5 2 11
research institute)
3(public/private,
Security 6 2 public/ 4 7
research institute)
4(public/research
Safety 2 2 3 2 9
institute)
Society 3 4 1(public/private)*** 2 6

Source: reconstructed from TEC website, http://www.tec.gov.sg

* joint proposal by University of Singapore and Stanford University of USA
** including 3 cases where stage of approval could not be confirmed
*** 4 cases of public & private sector joint proposal

The above table shows that of all the projects approved by TEC, the majority of
them are ideas proposed by the private sector. This suggests that the government actively
adopts the ideas of the private sector, and via feasibility tests applies them into actual
public policy. Thus, there is mutual complementarity between the private sector which
benefit commercially from its ideas, and the government that provides better service
by adopting those ideas. While few in number, there are ideas submitted by individuals
as well. Joint submissions are numerous also, especially in the field of environment,
the University of Singapore and Stanford University submitted a joint proposal, showing
that applicants need not be only from Singapore. Another thing to note in the joint
proposals is the various forms of collaboration. In other words, there can be various
ways by which collaboration between public institutions and research institutions, between
research institutions and the private sector, and between private sector and public
institutions result in innovative ideas. Furthermore, innovative ideas that go through the
pilot test are actually applied to public services in real life.
Notable among the projects is the Prison Department’s “Internet Home Tele visit
Initiative for Inmates’ Families and Visitors” service. This service allows inmates in prison
to visit their families through the internet, using the video communications (web camera)
12. Participatory Governance through Innovative Ideas and ICT: The Case of Singapore 173

technology of the internet. This service, a world first, was introduced in 2001; inmates
could log on to the internet to communicate with their families without being restrained
by time concerns. In the past, families of inmates could visit only on weekdays and
for limited time periods; with the new service it became possible to meet families even
during the weekend. This service also enabled individuals who have difficulties in visiting
the facilities in person to ‘virtually’ visit the facilities, and entire families to meet the
inmate at the same time (Channel News Asia 2002).

4) Lesson learned and Key Recommendations

The TEC program, introduced in 2001 signaled the strong will of the government
of Singapore to bring about continuous innovations in administration and public services
to the society. The government actively encourages new and innovative ideas from various
segments of society, from private companies, research institutions, public organizations,
to individuals. It is also active in funding these ideas for possible applications in real
life. As a newspaper describes it, “it is a “100,000 dollar gamble to save 600,000 dollars”
(The Straits Times 2002). In fact, not only are the ideas that are realized through the
TEC innovative, the establishment of TEC itself is innovation of the public sector, an
effort by the government to realize better governance.
The benefits from these services are as follows. First, the quality of public services
improves greatly when innovative ideas are realized and applied to actual policy. The
improvements in service are directly related to the public’s satisfaction with the
government of Singapore. Second, in submitting innovative ideas, the private sector,
research institutions, academia and the government can engage in collaboration, and
through the process form constructive and cooperative relationships with one another.
As the government emphasizes innovation and supports successful ideas, the entire society
becomes highly receptive to the promotion of innovation and provides an environment
conducive to new ideas.

(3) Singapore’s Public Service: Reaching out to people

1) Background

The second case of good governance to be examined in this study is the

government’s efforts to improve public services and have the public participate in the
174 An Inventory of Government Innovations and Good Governance in Asia

provision of services by using information communications technology (ICT). Already

in the 1980s, the government of Singapore set up the National Computerization Plan
(1980 1985), and in 2003 established the second phase of the 700 million dollars
e Government Action Plan II. The government aimed to enable 90 % of the population
to have access to e Government services, with a 90% approval rating. The government
set forth three goals Delighted Customers, Connected Citizens, and A Networked
Government to be realized in the pursuit of this plan.29) These efforts have put Singapore
on the world frontier of informatization and its achievements are evaluated positively
by the international community.

<Table 12.4> Evaluation of Singapore’s E Government

Number of countries
Category Evaluating party Ranking
investigated
Information Society Index IDC* 4 53
National Informatization Index NIE* 16 50
E Government Readiness Index UN 7 191
e Business Readiness Index EIU* 6 69
Digital Opportunity Index ITU* 5 181
Network Readiness Index WEF* 3 122

source: National Information Society Agency. 2007. 2007 National Informatization White Paper.
* EIU(Economist Intelligence Unit), IDC(International Data Corporation), WEF(World Economic
Forum), ITU(International Telecommunication Union), NIA(National Information Society
Agency)

In the ICT environment the government has tried to use the advanced ICT
technology and infrastructure to provide effective and responsible public services that
is receptive to the demands of the people. In particular, in terms of communications
and participation by the citizens in the affairs of government, the ICT technology and
infrastructure play an important role. The government’s efforts can be viewed in terms
of three aspects: a. improvement in public services, b. expansion of public relations c.
strengthening effective feedback on government services. Improvement of public services
refers to the greater ability of the people to acquire information on, and access to
government services. Expansion of public relations refers to the improvement in the
quality of public services due to the government’s efforts to educate and provide
information to the public. Finally, strengthening the feedback mechanism is important

29) On this plan see the website of the Singapore government http://www.igov.gov.sg/Strategic_Plans/
eGAP_II/ searched on Sept. 5, 2008.
12. Participatory Governance through Innovative Ideas and ICT: The Case of Singapore 175

for both government and consumers of public services. Innovations in these three aspects
are important for effective and participatory governance.

2) Main feature of Innovation

a. Improvement in Public Services

There are two public services utilizing ICT in Singapore: ‘CitizenConnect’ and the
‘Singapore Government Directory Interactive (SGDI)’. CitizenConnect is a service center
where people who require the services from the government can obtain them without
access to a computer or the internet. Instead of visiting the government directly,
individuals can visit the nearby CitizenConnect center. The services provided by the
center are many; issuing and re issuing Singpass which is needed to access the government
website, administrative issues related to the Citizen Provident Fund, applications for
various local communities’ services and education programs, reservations for use of
Singapore’s sports centers, payment of fines, registration for foreign workers, and so
on. There are 29 such centers in Singapore, which is open from 12 pm to 8pm, Monday
to Sunday. Given the small size of the territory, the centers are easily accessible for
all the residents of Singapore.
The other service to be examined is the Singapore Government Directory Interactive
(SGDI). This service is easily replicable in any country that has a government website
or e government. In general, the problem most frequented by individuals in accessing
the government website or e government system is to find out which department is
in charge and whom to get in touch with. Singapore’s SGDI solves this problem
effectively.
The main characteristic of SGDI is the search function which allows individuals
to find out the public official in charge of a particular public service, the relevant
government department, contact number and email address. It is possible to find out
the exact information (i.e. information on the name and contact address of the actual
public official) even if only a part of the information is available. This service has had
the effect of increasing accountability and transparency of public officials in addition
to the main function of providing information on the government. For instance, if an
individual has a problem with a particular government service, one can find out the
public official in charge and the relevant information on how to get in touch with him.
Therefore, the public official must be responsible for his actions and take pains to conduct
administrative affairs in a transparent manner.
176 An Inventory of Government Innovations and Good Governance in Asia

<Figure 12.2> SGDI Main Page

b. Public Relations Efforts

As part of its public relations efforts, the government of Singapore provides
information to the public through RSS and email services. RSS (Really Simple
Syndication) is a service that informs registered users of a website any updated news
on the site without the user having to log into the site. Through the RSS, the government
provides news or information about government services that affect the lives of the
people. In addition, the government website sends abbreviated news or information via
email; anyone who wants news on the government can register for this service.
12. Participatory Governance through Innovative Ideas and ICT: The Case of Singapore 177

<Figure 12.3> Main Homepage of Singapore Government’s Newsletter

c. Feedback function
One of the most innovative government measure taken by the government of
Singapore is the feedback function through the government website. This feedback service
not only had the effect of improving the quality of public service, but also on government
accountability and transparency. In a feedback system, users forward their views or
complaints to the service provider, who in turn responds to them promptly. As in most
government websites or e government systems, the government of Singapore also
operates a feedback system. Singapore’s REACH is an elaborated and efficient form
of such service.
Any Singapore resident with a Singpass can use the website and forward his views
on the quality of public services, or raise complaints against the government. The website
has a section titled “Your Say,” and a section titled “Blog Us.” In “Your Say,” anyone
with ideas or complaints can log in and write his views, and others can respond to
these views on the website. In “Blog Us,” ideas on improving the public services of
Singapore are shared. At present a total of 81 people have created their own blogs
in which they share their views on the services provided by the government. These
178 An Inventory of Government Innovations and Good Governance in Asia

blogs can be categorized into several themes: Singaporeans living abroad, general public,
REACH events, elderly, the disabled, youth and women. On the REACH website, there
is a corner titled ‘Consultation Channel.’ This corner provides information on the various
publications produced by the government as well as information on the surveys and
public opinion polls conducted by the government ministries. The REACH site is notable
in that information on all sorts of suggestions and complaints by the people are cohesively
complied and managed in a single website, which is very effective compared to the
government websites or e governments of other countries.30)

<Figure 12.4> The Feedback Site of the Singapore Govt: Mainpage of

REACH

3) Consequence of Innovation

It is difficult to evaluate whether the improvements in transparency, efficiency and

means of participation have had a positive impact on the public services offered through
ICT by the government of Singapore. This is because of the inherent difficulty of

30) Even in Korea, which is known to have one of the most advanced e government system
(www.korea.go.kr) in the world, there is no such site that integrates all the government services
in one place. Thus, anyone with a complaint or opinion must visit the actual website of the relevant
government ministry in Korea.
12. Participatory Governance through Innovative Ideas and ICT: The Case of Singapore 179

collecting data on the users of government portal sites; what is more, evaluation of
those services depends on the subjective opinions of the actual users. Nevertheless, it
is still possible to measure indirectly the effect of these policy innovations. First, the
government portal site ‘www.gov.sg’ has 120,000 visitors each month (multiple hits were
omitted in the count). The page view hit totals 300,000 per month, while the entire
site records 500,000 page views per month. Of the total visitors to the site, around
40% are from areas outside of Singapore.31)
In the case of CitizenConnect, the IDA (Infocomm Development Authority of
Singapore) conducted a survey on user satisfaction. 93% of the users of CitizenConnect
responded that they were satisfied with the services provided; 95% responded that the
services were actually helpful. Another 92% answered that they would use the services
again in the future. The number of users since CitizenConnect was established in October
2005 until December 2006 (about 14 months) totaled 29,393. Of the users, around 44%
(13,004) reported that they received actual help from a public official who was referred
to by CitizenConnect. 93% of the respondents expressed satisfaction with such services,
and 95% answered that the help from the public official was useful (Sanjay 2007).
The REACH website’s main purpose is to forward the opinions or complaints of
the people to the government. But often one finds active discussions in the website
among the Singapore people. These open debates are taken note of, and functions as
feedback for the government. For example, in the section “Your Say,” there was an
active discussion on the theme of the “Rising Cost of Living” that began on December
4, 2007 which lasted for 8 months; a total of 1,141 replies (short comments attached
to the posting) occurred. There is also a long debate on the issue of corruption, where
556 replies are attached to the main text. In the “Blog Us” corner, a total of 81 bloggers
are active since the site opened on October 2006; debates are ongoing on 8 themes
for a total of 619 articles. These texts were logged in and read a total of 377,898 times.32)

4) Lessons Learned and Key Recommendations

The efforts by the Singapore government to strengthen its public relations with
the people and to provide improved services to via use of ICT technology, and the
feedback system to enhance its policy responsiveness are laudable from the viewpoint

31) Searched on the website of the Singapore Government (http://www.gov.sg/about.htm) on

September 5, 2008
32) The figures were based on the data obtained from http://app.reach.gov.sg/reach/BlogUs/tabid/54
/articleType/Categories/Default.aspx on September 5, 2008.
180 An Inventory of Government Innovations and Good Governance in Asia

of accountability, transparency and effectiveness of public policy. By the appropriate use

of ICT technology and telecommunications infrastructure, it is possible to provide high
quality services and information on government services, and get feedback from the
people. The process of information provision and feedback enables more effective use
of government services and improvements in public services via the feedback mechanism.
Ultimately a virtuous circle of better quality public services and public satisfaction is
established. As can be seen in the case of Citizen Connect, by improving the means
of access to government services, it is possible for the people of Singapore to obtain
the necessary information and services from the government anytime, which in turn
leads to greater satisfaction with the government’s services. The efforts by the government
of Singapore show how policy innovations using ICT technology and accountability,
efficiency and transparency are related to good governance.
The success of Singapore had to do with the unique circumstances of the country
(size of the economy and small number of population) and the elevated level of ICT
development. But this does not mean other Third World nations cannot introduce similar
services in their own countries. Many developing countries are leapfrogging right into
the mobile telephone system instead of adopting fixed line telephone systems. The
development of technology may be linear, but the actual use of technology need not
be linear, and one can leapfrog into the next generation technology to provide quality
public services. As long as the financial support for such system and government policy
is available, an effective public policy system using ICT technology can be realized.
Singapore’s example shows that not only will such system bridge the digital divide but
also enable the provision of quality public services.

(4) Concluding Remarks

This study examined two cases of policy innovations in Singapore from the view
point of good governance. The first case examined was TEC, a support program provided
by the government to finance innovative public policy ideas forwarded by the private
sector, academia and individuals etc. The government applied the proposed new ideas
to public policy improvements which resulted in high public satisfaction of public services,
as well as improved efficiency in public administration. Most of all, these efforts
reinvigorated Singapore society’s views on innovation and an atmosphere favorable to
new ideas related to policy innovations. The TEC program enabled more effective
provision of public services by the government and greater participation by the people
12. Participatory Governance through Innovative Ideas and ICT: The Case of Singapore 181

in the affairs of the government.

The second case of policy innovation examined was the government of Singapore‘s
public relations campaign/ information service program via use of ICT technology. By
providing a forum of public participation through ICT technology, the government
encouraged the participation of the people in the application and improvement of public
policies. By providing timely and exact information to the public, the government could
expect greater public responses to government policies, which in turn acted as feedback
for the improvement of various services provided to the people. Not only was the system
effective for greater efficiency in public administration, but also for improving the
accountability and transparency of individual public officials. Finally, such system made
participation in the government easier for the people.
Despite such achievements, Singapore’s programs exhibit some shortcomings. Public
participation is limited only in the stage of information and feedback of public policies;
the people of Singapore cannot participate in the process of decision making or execution
of a particular policy. The feedback mechanism can be considered as one venue of public
participation in policy making, but it is essentially an ex post feature in that participation
is possible only after a particular government policy is already decided. Singapore’s
policies are formulated by a government committed to developmental goals of economic
growth and which exercises monopoly over policy decision making. Public participation
such as the feedback mechanism applies only to the evaluation and monitoring segment
of government policy. Given the above observations, it would be difficult to characterize
Singapore’s governance institutions as democratic. Nevertheless, the government of
Singapore has demonstrated that the combination of strong policy will and effective
use of ICT technology can augment the efficiency of public policy and effectiveness
of public participation in government. From the point of view of developing countries,
Singapore’s success can be a good benchmark model that is duplicated with relatively
reasonable costs.
182 An Inventory of Government Innovations and Good Governance in Asia

13. Conclusion:
Comparative Analysis of Good Governance
among 10 Asian Countries

Kihong Eom
(Kyungpook National University)

The primary goal of this project is to identify inventories of good governance and
policy innovations in 10 Asian countries. Policy innovations are assumed to have some
common elements of good governance that can be replicated or applied to other
countries. In addition, if the relative importance of elements in good governance can
be identified, it will be easier for countries to prioritize the application of policy
innovations in their own settings.
A team of 9 researchers used both qualitative and quantitative approaches to examine
why some countries succeeded in policy innovations while others did not. First, a team
of researchers attempted to identify what the prominent and needed matters were within
the policy areas of politics, national defense, finance and economy, education, social
welfare, environment, etc. An area expert examined whether or not good governance
existed in the relevant policy area. If a national and/or local government could be regarded
as the locus of good governance, the researcher attempted to identify the elements of
good governance and how the governance mechanisms facilitated policy innovations.

(1) What Factors Advance or Prevent Good Governance and

Policy Innovations in Asia?

1) Theoretical Framework

Governance means the management of official and unofficial rules of the political
game, where government and non governmental organizations interact. In this study, we
limit our discussion to the capacities of governments to formulate, execute and coordinate
policy. The level of government can be national or regional/local.
Good governance is realized when at least one or more of the following three
elements are satisfied: voice and accountability, government effectiveness and
13. Conclusion: Comparative Analysis of Good Governance among 10 Asian Countries 183

transparency. Voice and accountability refers to the extent to which the public participate
in policy decision making, and elected officials respond to the public’s will. A country
with high levels of voice and accountability enjoys freedom of elections, association and
a free media. A country with good governance tends to have a high level of transparency
in government. This is because the capacity of government to pursue social goals is
damaged if the public loses trust in a government that is unpredictable and inscrutable.
Finally, government effectiveness refers to the quality of civil service and the degree
of executive independence from political pressure, which are achieved through a
meritocratic recruitment and promotion system. When either one of the three elements
is satisfied, good governance may happen and policy innovations may occur. This line
of theoretical thought can be illustrated in the diagram as follows:

<Figure 13.1> Theoretical Framework

Using the theoretical framework as shown in Figure 13.1, a team of nine scholars
with area expertise attempted to identify the elements of good governance and policy
innovations in ten Asian countries. The findings will be discussed in the following section.

2) Subregional Similarity and Difference

Ten Asian countries examined are divided into the following three sub regions:
Northeast Asia, Central Asia and Southeast Asian. The characteristics of countries within
each sub region may vary, yet all the countries managed to solve their respective policy
problems through good governance measures. This section provides the summary of
the findings, which will be the base for comparative analysis in the next section.

a. Northeast Asia
China, Japan, and Korea are the selected countries representing Northeast Asia.
184 An Inventory of Government Innovations and Good Governance in Asia

The authors provided a list of inventories of good governance and policy innovations
in each country with the exception of one case in China the policy experiment of division
of administrative authority which did not succeed as initially expected. A common finding
in the cases was the existence of institutionalized forum where all the stakeholders
interacted with each other and exchanged opinions in the formulation and execution
of public policy. For example, in the case of Japan, such forum was the “the Citizens
Committee on the Environment of Toyonaka” and “the District Planning Review
Committee”; comparable forums in South Korea were the public hearings led by elected
officials in Buk Gu of the city of Gwangju, and Yeongdeungpo Gu of the city of Seoul.
In China, the residents’ committees in urban districts called ‘Shequ’ functioned as such
forum.
Second, in all the three countries high levels of voice and accountability and
transparency were found. For example, in the case of Japan, policy innovations was
propelled by the interaction between civil servants and citizens, where the local
administration played a coordinating role and citizens voluntarily participated in the policy
making and implementation. Because the residents and nongovernmental organizations
were guaranteed participation during the process of decision making and policy
implementation, the government could gain the trust of the people; this in turn increased
the chance of successful policy innovations. Korea’s ‘Yesan Citizens Network’ and the
‘Ward Supervisor System’ worked in a similar manner as the Japanese cases.
The researchers identified different paths of policy innovations in each country.
In the case of Japan and China, the role of citizens turned out to be more significant
compared to Korea where elected officials took the initiative to make and implement
policies. A good comparison would be the two cases in China. In the case of the
Shequ (District of Social Community), citizens’ participation was encouraged through
the ‘Residents’ Committee,’ which led to significant improvement in the effectiveness
and transparency of the plan. On the other hand, due to the limited citizens’ participation
the ‘Division of Administration Authority’ experiment ended up in failure. Such findings
show that voice and accountability and transparency are significant factors of good
governance, and have direct impact on the success of policy innovations.

b. Central Asia
Mongolia, Uzbekistan and Kazakhstan share several characteristics. All of them were
colonies of the former Soviet Union. A blunt summary of the legacy of the Soviet Union
is the authoritarian leadership that is found in all three countries. At the same time,
the three countries are abundant in natural resources and have the potential for economic
13. Conclusion: Comparative Analysis of Good Governance among 10 Asian Countries 185

development if the appropriate development strategy is pursued.

Some differences among these countries should be noted. For example, Mongolia
is a racially homogenous country, while Uzbekistan and Kazakhstan are racially
heterogeneous. Therefore, the foremost goal of the latter two countries is nation building
which is viewed as a major impediment to development.
The similarity and difference in these countries have affected the mechanisms of
governance and policy innovations. The authors suggest that the ‘Saemaul Undong’ and
‘forestation project’ in Mongolia were the results of successful governance, where
economic development took important priority over nation building. In the case of the
Saemaul Undong, local citizens’ organizations called “the Mongolia Saemaul Undong
Center” and an international organization called “the Korea Saemaul Undong Center”
were the key actors behind good governance and policy innovations. Through the
cooperation of the two organizations, Mongolia made great strides in economic self
reliance. In the case of the forestation project, national and local governments were
the key players. Both governments sought help from international organizations such
as Green Asia Network to reforest the deserted areas. In the process, the national and
local governments encouraged citizens to participate in the afforestation plan.
In contrast, the most important objective for both Uzbekistan and Kazakhstan was
nation building. The former Soviet Union’s deportation policy forced diverse ethnic
groups to live together in these countries. Therefore, the political elites in both countries
adopted the so called “non competitive authoritarian” leadership” (Levitsky and Lucan
2002). Here, the important player in policy innovations was the national government,
whereas nongovernmental organizations were few in number and played insignificant
roles.
The participation of international organizations was important to both Uzbekistan
and Kazakhstan. For example, an international organization called the ‘Initiative Group
of Independent Human Rights’ became involved to cut corruption in Mahalla, Uzbekistan.
The ’Nongovernmental Nonprofit Organizations Support Fund’ was formed with the
help of international originations so that social infrastructures such as hospitals could
be built.
However, things were different when it came to nation building. The president of
Kazakhstan himself took the initiative to reduce ethnic tension. After suggesting an
“Ethnic Forum,” he issued an executive order of “Assembly of Nations of Kazakhstan”
whose purpose was to educate the Kazakh people on the three languages used in the
country for free and to provide a forum for communication among ethnic groups. The
ultimate goal of these policies was the amalgamation of different ethnic groups.
186 An Inventory of Government Innovations and Good Governance in Asia

c. Southeast Asia
Four countries were examined in Southeast Asia: Thailand, Indonesia, Malaysia, and
Singapore. The four countries have some common features. Two of the countries in
the region, Indonesia and Thailand, were democratized in the late 20th century, while
the other two counties, Malaysia and Singapore, are in the process of democratization.
Because of the lateness of the democratic development process, these countries share
the following characteristics: high level of corruption, chronic red tape in bureaucracy,
and limited public participation in the policy making process. The major common element
of good governance and policy innovations in these countries were mostly voice and
accountability, i.e., citizen participation. In some cases, elected officials took the initiative,
while in others nonprofit organization played a significant role.
In the case of Thailand, the author found that the mayor of Khon Kaen City took
the initiative to reduce the existing level of public dissatisfaction with the government
by allowing greater public participation in the policy making process. For example, he
organized a forum where policy makers in the municipal administration and citizens
discussed and exchanged opinions on policy issues. The citizens were also guaranteed
to participate in the budget planning process. Such measures led to a significant reduction
in the level of distrust in government. The other example in Thailand is the ‘Waste
Management Policy’ in Phisanulok City. The mayor of the city attracted foreign capital,
built many recycle centers to manage waste, and encouraged residents’ participation in
the waste management plan. Again, the cases showed that voice and accountability is
an important element of good governance and policy innovations.
A similar pattern was found as well in Indonesia. The Boalemo district suffered
from rampant red tape, which in turn increased the level of dissatisfaction among the
residents. The new mayor of Boalemo sought aid provided by the World Bank called
the ‘Initiative for Local Government Forum.’ The mayor was also active as a mediator
among bureaucrats, who were reluctant to change, and between bureaucrats and citizens,
who did not believe in the bureaucracy. In the case of the ‘Budget Transparency
Improvement Plan’ in Bandung, Indonesia, the author suggests that a nongovernmental
organization can play a similar role. The Bandung Institute of Governance Studies played
the role of watchdog by monitoring the budget process of city government and
disseminating related information to the residents. The result was that citizens came to
understand the budget process more easily, and local government officials and city council
members learned the importance of mutual understanding.
The importance of voice and accountability is also found in cases reported in
Malaysia. Malaysia historically suffered from inefficient national treasury disbursement
13. Conclusion: Comparative Analysis of Good Governance among 10 Asian Countries 187

and corruption problems. It is also known for the asymmetric power of the national
government over local governments. Things could be changed if an opposition party
became a majority party in local government or a nonprofit organization took the
initiative. When the Malaysian Socialist Party became the majority party in the state of
Perak, the party branch in Sungai Siput in the state convened the “People’s Consultative
Council” in order to hear the views of citizens in the region. Fifteen local councils
decided to send their delegates to the People’s Consultative Council. The other case
is in Penang, Malaysia where a nongovernmental organization took the initiative. The
‘Socio Economic & Environmental Research Institute,’ played the role of mediator
between the local society and the state government. Through the institute, the
unadulterated views of the local residents could be forwarded to the state government.
Singapore provides a rather unique case. Since Singapore has been under an
authoritarian leadership yet has also enjoyed economic prosperity, the people seemed
to be satisfied with the current conditions. The Singapore government on its own made
efforts to increase the level of government effectiveness, accountability and transparency;
the people’s voice has nothing to do with politics the move was for purely administrative
effectiveness. The author identified two cases of good governance: the ‘Enterprise
Challenge’ and the improvement of feedback from the society. The former was to
stimulate policy innovation which could be put into practice by both public and private
sectors. The national government publicly invited new policy ideas or suggestions. Once
the idea is passed through an evaluation panel, the idea is put into a pilot test funded
by the government. If the new idea is proven successful in the pilot test, it is then
translated into a policy initiative. If not, it is included in the list of inventories, possibly
for future implementation. The other example is improving the quality of public service
using information and communications technology. Such technology enabled the
government to provide easier access to and use of public services. Problems in the
provision of public services could be ameliorated through the enhanced feedback
mechanism.

3) Governance Matters and Voice and Accountability Matters More

Across cases and sub regions, one can find a common feature behind policy
innovations: good governance. Whether at the national or local level, if a country has
good governance, it can solve the problem it faces, and vice versa. In addition, a frequently
recurring element of good governance is voice and accountability. If a system has a
mechanism of communication and where the elected officials are answerable to the
188 An Inventory of Government Innovations and Good Governance in Asia

people, policy innovations happened. Of course, different countries have different

emphases on the elements of governance, and the combination of the elements can
be different. The bottom line is that good governance matters and voice and accountability
matters more.
The findings described above suggest that the elements of good governance have
relative importance across countries and cases. Here, we attempt to generalize which
elements of good governance matters more. Three factors leading to good governance
are identified and listed in a descending order.
The role of citizens proved to be the most important and of highest priority leading
st
to good governance. As shown in the “1 factor” column, Table 13.1, the most frequently
mentioned factor was citizens; in both cases for Japan, the citizens’ role directly impacted
good governance and successful policy innovations. Four cases out of 19 cases indicated
that the citizens’ involvement in the program was the critical variable. Regarding the
2nd and 3rd factors, only four cases do not mention the role of citizens in good governance;
15 out of 19 cases point to the role of citizens as an important factor.
13. Conclusion: Comparative Analysis of Good Governance among 10 Asian Countries 189

<Table 13.1> Factors Leading to Good Governance

Subregion Country Case 1st Factor 2nd Factor 3rd Factor

Environment Local
Citizens Local NGO
Management Plan Government
Japan
District Development Local Local Experts
Citizens
Plan Government & Students
Citizen Participatory National
Northeast Elected Official Local NGO
Budgeting system Government
Asia
Korea Public Project Quality
Management OK Civil Servants Citizens Elected Official
Program
District of Social Market National
China* Citizens
Community Condition Government
National &
Saemaul Undong International
Local NGO Local
Movement NGO
Government
Mongolia
National &
International
Forestation Policy Local Citizens
NGO
Government
The Nongovernmental
Central National International
Nonprofit Organizations Local NGO
Asia Government NGO
Uzbekistan Support fund
The Case of Mahalla International National
Citizens
“Yangi Kamolon” NGO Government
Transformations of International National
Citizens
Kurchatov NGO Government
Kazakhstan
The Assembly of National
Citizens Local NGO
Nations of Kazakhstan Government
Participatory Policy National
Elected Official Local NGO
Making Government
Thailand
International
Waste Management Policy Elected Official Citizens
Aid
Budget Transparency Local
Local NGO Citizens
Improvement plan Government
Indonesia
Public Service National
Elected Official Citizens
Improvement Plan Government
Southeast
A New Initiative in Local
Asia Local Elites Citizens
Sungai Siput Government
Malaysia
Local
Penang State Government Local NGO Citizens
Government
National
The Enterprise Challenge Citizens
Government
Singapore Information and
National
Communication Citizens
Government
Technology
* The case of Division of Administration Authority is excluded in the table because it is a
failed policy
190 An Inventory of Government Innovations and Good Governance in Asia

A comparable importance could be found in the role of elected officials. If they

had the political will, elected officials maneuvered the relevant actors into the
decision making and implementation of policy. In four out of 19 cases, the role of elected
official was of the highest priority for good governance. In addition, if national and/or
local government is filled by elected officials, this factor is a major input for good
governance. It is because the role of government including that of elected officials is
st nd rd
the 1 factor in 10 out of 19 cases. In the 2 and 3 factors, the importance of
government is easily identified.
Finally, the role of nongovernmental organization (NGO), whether it is domestic
or international, played an important role for good governance. Out of 19 cases, 3 cases
in the 1st factor column, 7 cases in the 2nd factor column, and 3 cases in the 3rd factor
column point to the role played by local and international NGOs.
The most interesting story is that all the three important factors indentified for
good governance belong to the realm of voice and accountability. The role of citizens
and NGOs are the voice of people, while government including elected officials is the
object of accountability. When the people have a say in the making of public policy,
or the government takes the initiative in policy, and when they cooperate each other,
good governance and policy innovations can be expected. The cases show that although
the three elements of good governance matters, the element of voice and accountability
matters even more.

(2) Exploration of Generalizability of Good Governance and

Policy Innovations

Governance theory suggests that if a country has at least one element of good
governance, policy innovations can occur. A team of scholars attempted to examine this
possibility by identifying inventories of good governance and related policy innovations.
In the previous section, it was argued that the most important element of good
governance is voice and accountability. In this section, we examine whether or not this
finding is applicable to a more general setting. First, we list the relative importance of
the three elements of good governance and policy innovations and examine whether
voice and accountability shows more frequently than the other two elements of good
governance. Second, we utilize an index of economic prosperity and examine whether
good governance is related to economic prosperity.33)

33) It should be noted that good governance and economic prosperity are related, but not causally
13. Conclusion: Comparative Analysis of Good Governance among 10 Asian Countries 191

1) Does Voice and Accountability Really Matter?

As mentioned in the theoretical section, the three elements of good governance

are voice and accountability, government effectiveness and transparency. The table below
summarizes the extent to which the three elements affect good governance and policy
innovations in a more easily readable format. If a country shows a high level of the
elements for good governance, it is coded as high. If one of the elements for good
governance is damaged, it is coded as low. Finally, if there is no mention on the element
of good governance, it is coded as moderate. For example, in the case of the ‘Haraichi
District Development Plan’ in Japan, high level of voice and accountability was secured
through several public hearings and in the elected officials’ response to the demands
of residents. In this case, voice and accountability is coded as high. On the other hand,
in the case of the Mahalla community in Uzbekistan, the voice of the society was not
heard; hence the level of voice and accountability was coded as low. The summary is
shown below in Table 13.2.
Except in four cases, high level of voice and accountability were the most frequently
observed element of good governance in all the cases under study. On the other hand,
government effectiveness and transparency varied across cases.

related, because economic prosperity may lead to good governance, and vice versa.
192 An Inventory of Government Innovations and Good Governance in Asia

<Table 13.2> The Three Elements of Good Governance and Policy

Innovations.

Voice & Government Transparen

Subregion Country Case
accountability Effectiveness cy
Environment Management Plan High Moderate High
Japan
District Development Plan High Moderate High
Citizen Participatory Budgeting
High Moderate High
system
Northeast Korea
Public Project Quality
Asia High Moderate High
Management OK Program
District of Social Community High Moderate Moderate
China Division of Administration
Low Low Low
Authority
Saemaul Undong Movement High Low Moderate
Mongolia
Forestation Policy Moderate High Moderate
The Nongovernmental Nonprofit
Low Low Low
Organizations Support fund
Central Uzbekistan
The Case of Mahalla “Yangi
Asia Low Low Low
Kamolon”
Transformations of Kurchatov High Low Low
Kazakhstan The Assembly of Nations of
High Moderate Low
Kazakhstan
Participatory Policy Making High Moderate High
Thailand
Waste Management Policy High Moderate Moderate
Budget Transparency
High Moderate High
Indonesia Improvement plan
Southeast Public Service Improvement Plan High Moderate High
Asia A New Initiative in Sungai Siput High Moderate Moderate
Malaysia
Penang State Government High Moderate Moderate
The Enterprise Challenge High* High High
Singapore Information and Communication
High* High High
Technology

* The society’s participation in decision making process is limited, but communication between
the society and a national government is secured.

Countries in Northeast Asia showed high levels of voice and accountability with
the exception of one case in China. The two cases in Japan showed high levels of
voice and accountability and transparency, as were the cases in Korea. China also showed
a good record in the case of the District of Social Community, but not so in the case
13. Conclusion: Comparative Analysis of Good Governance among 10 Asian Countries 193

of the failed policy experimentation with the division of administration authority. All
the countries in Southeast Asia showed high levels of voice and accountability. The second
ranked element of good governance was government effectiveness followed by
transparency whose level varied across cases. Finally, most of the cases in Central Asia
recorded low levels of voice and accountability.
Additional points should be made as well. Table 13.2 indicates that if all the elements
of good governance are recorded in the high level, policy innovations are likely to be
more achievable. We examine and generalize this possibility in the next section.

2) Generalizability of Good Governance and Policy Innovations

The aim of this project identifies cases of good governance and policy innovations
which can be generalized to other settings and countries. A team of area experts unearthed
several cases of good governance and policy innovations in ten Asian countries. One
would ask, however, whether good governance and policy innovations can be related
to economic success, which is the ultimate goal of most developing countries.34) This
section explores the implications of good governance for economic development.

Economic success is typically measured by growth domestic product (GDP) in a

country. Since the ultimate object of good governance and policy innovations is economic
success, GDP shall be a good indicator to examine the impact of good governance
and policy innovations. In order to adjust for the size of population in each country
and inflation over years, GDP per capita in a country is used on the basis of 1995
constant US dollars. Because of data availability, the year 1997 and 1998 are used for
the analysis. For comparison among countries, a country is ranked on the basis of GDP
per capita. Data was collected from 2001 World Development Indicators.
Good governance is conceptualized by the following three elements: voice and
accountability, government effective and transparency. Since three elements tend to move
together, albeit not always, a measure of good governance can be generated by summing
the values of the three elements. The relevant data are furnished by the World Bank
(Kaufmann, Kraay and Mastruzzi 2008). Since the years of GDP per capita are 1997
and 1998, three indicators of good governance are utilized on the basis of the year
1996. For a comparison between good governance and economic success, a country
is ranked on the basis of governance score similarly as the GDP per capita ranking.

34) Once again, we assume that good governance and economic success is co related, but not causally
related.
194 An Inventory of Government Innovations and Good Governance in Asia

The findings are shown below in Table 13.3

<Table 13.3> Good Governance and Economic Success

Ranked
Voice & Government Ranked GDP per GDP per
Subregion Country Transparency Governance GDP
accountability effectiveness Governance capita,1997 capita,1998
per capita
Japan 0.87 1.38 1.14 1.13 2 43,483 42,285 1
Northeast
Korea 0.50 0.92 0.32 0.58 3 11,925 11,022 3
Asia
China 1.66 0.14 0.15 0.56 8 679 725 9
Mongolia 0.46 0.53 0.37 0.10 6 437 448 10
Central
Uzbekistan 1.52 0.99 1.05 1.19 10 721 740 8
Asia
Kazakhstan 0.93 1.00 0.92 0.95 9 1,328 1,325 6
Thailand 0.29 0.46 0.31 0.15 5 2,947 2,629 5
Southeast Indonesia 1.17 0.14 0.55 0.53 7 1,139 975 7
Asia Malaysia 0.31 0.88 0.49 0.35 4 4,840 4,380 4
Singapore 0.21 2.31 2.24 1.45 1 26,066 25,297 2
Source: Kaufmann, Kraay and Mastruzzi(2008), 2001 World Development Indicators.

As shown in Table 13.3, good governance is likely to be related to economic success.

In general, the higher the governance rank, the higher the GDP per capita rank, and
vice versa. For example, Singapore is ranked first in the governance measure while
it is ranked second in the GDP measure. Japan is ranked second in the governance
measure while it ranked first in the GDP measure. A similar pattern is found in Korea,
Malaysia, Thailand and Indonesia; for example, Korea is ranked third in the governance
measure while it also ranked third in the GDP measure. Across sub regions, the same
pattern of relationship was found; if the sub region showed a good rating in the
governance measure, and so was the GDP measure. For example, Northeast Asia and
Southeast Asia showed relatively high rankings in the governance measure compared
to Central Asia, and this finding was replicated in the GDP per capita measure. The
findings suggest that there is a possibility that good governance move together with
economic success.

(3) Concluding Remarks

The purpose of this project is simple; identify good governance and policy
innovations and make inventory for possible users. A team of scholars have unearthed
cases of good governance and policy innovations, and made inventories of the cases
which were organized in a standardized format: background information for a country
13. Conclusion: Comparative Analysis of Good Governance among 10 Asian Countries 195

and policy, main features of good governance and policy innovations, consequences of
innovation, and recommendations for users. Since the ultimate goal of good governance
and policy innovations is economic success, this project explored the relationship between
the two factors. The findings show a positive relationship, and the implications of this
finding are numerous for other developing countries.
It is up to a country whether or not to utilize the information reported in this
study. It is the hope of all the authors that good governance and policy innovations
identified here provide hope to the peoples of the developing world as they search for
ways to a better future.
196 An Inventory of Government Innovations and Good Governance in Asia

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