1.7 Multilevel Governance and Nepal: Informal Governance, Civil Society Governance, Local Governance, Cooperative Governance, Corporate Governance and the United Nations

Concept of Multilevel Governance

Multilevel governance is rooted in the belief that effective governance requires recognizing and integrating the roles and powers of all organized levels, from local to international. It acknowledges that decision-making occurs across multiple tiers, including local, provincial, national, and global levels. This concept, first introduced by political scientists Liesbet Hooghe and Gary Marks in 1993, emphasizes the involvement of public, private, community, and non-governmental sectors in policy-making and decision processes within a country.

Meaning and Definition

Multilevel governance is characterized by:

  • Inclusion of all organized sectors in governance processes.
  • Creation of effective, efficient, and competitive governance systems.
  • Establishment of transparent, accountable, and participatory governance.
  • Ensuring citizen needs and priorities are addressed.
  • Enhancing public trust and quality in decision-making.
  • Promoting the principle of minimal government with maximum governance.

Geographical and Functional Levels

Multilevel governance operates across:

  • International Level: Involving international and regional organizations.
  • National Level: National government.
  • Sub-national Level: Provincial and local governments.
  • Sectoral Level: Public, private, non-governmental, and community sectors.

Aspects of Multilevel Governance

Key aspects include:

  • International Governance
  • Informal Governance
  • Local Governance
  • Cooperative Governance
  • Corporate Governance
  • Civil Society Governance

International Governance

The United Nations (UN) plays a pivotal role in multilevel governance. Its decisions and declarations are binding for member states, influencing national governance systems. The UN operates through six main organs: General Assembly, Security Council, Economic and Social Council, Trusteeship Council, International Court of Justice, and Secretariat. Guided by principles like sovereign equality, peaceful dispute resolution, and non-intervention, the UN contributes to:

  • International peace and security (via UNSC, peacekeeping, sanctions).
  • Human welfare and development (UNDP, WHO, UNICEF).
  • Human rights promotion (UNHRC).
  • International legal frameworks (ICJ, ICC).
  • Economic cooperation and environmental protection (UNEP, IMF, World Bank).

Informal Governance

Informal governance refers to influential governance systems or decision-making processes not formally defined by law but impactful in practice. It involves networks of actors, such as the private sector, media, civil society, and donors, interacting with formal policymakers without enforceable outcomes. Examples include:

  • International: G7, G20, SAARC, WTO trade talks.
  • National: Informal political agreements.
  • Local: Traditional systems like Panchayat or Badaghar.

Characteristics: Non-binding decisions, flexibility, and reliance on social norms and networks.

Relevance in Nepal: Informal governance aids in addressing complex issues (e.g., Nepal’s peace process via UNMIN), climate change, and fostering participatory governance.

Weaknesses: Lack of accountability, potential for self-interest, and challenges in enforcing decisions.

Local Governance

Local governance involves the exercise of authority by local governments and stakeholders to address local needs and priorities. It emphasizes participation, transparency, and accountability. In Nepal, the Constitution establishes three tiers of government, with local governments having 22 exclusive and 15 shared powers. Key features include:

  • Decentralization and empowerment through the Local Self-Governance Act, 1999.
  • Participatory planning and institutional development.
  • Increased private and civil society involvement.

Opportunities: Effective disaster management, citizen engagement, and infrastructure development.

Challenges: Limited resources, high public expectations, and issues with financial discipline.

Solutions: Enhancing local revenue, capacity building, and fostering inter-governmental coordination.

Cooperative Governance

Cooperative governance emphasizes collaboration, participation, and accountability among citizens, government, and stakeholders. It promotes inclusive decision-making and empowerment. In Nepal, cooperatives contribute to:

  • Economic growth and poverty reduction.
  • Employment generation and local resource mobilization.
  • Strengthening democratic practices.

Weaknesses: Financial mismanagement, weak regulation, and declining public trust.

Principles: Voluntary membership, democratic control, and community focus.

Corporate Governance

Corporate governance involves the systems and regulations guiding private and business sectors’ operations and their integration into national governance. In Nepal, economic liberalization since the 1980s has boosted private sector involvement. Key policies include:

  • Privatization of public enterprises.
  • Promotion of private investment in infrastructure (BOOT policy).
  • Regulatory frameworks like the Banking and Financial Institutions Act, 2006.

Challenges: Lack of political stability, inadequate investment-friendly environment, and weak industrial relations.

Civil Society Governance

Civil society governance involves non-political, non-profit organizations advocating for public welfare and social justice. In Nepal, civil society contributes to:

  • Strengthening democracy and social inclusion.
  • Conflict resolution and anti-corruption efforts.
  • Promoting cultural preservation and citizen empowerment.

Weaknesses: Political bias, donor influence, and lack of internal democracy.

United Nations

Established in 1945, the UN promotes global peace, cooperation, and justice. Its objectives include maintaining international peace, fostering friendly relations, and promoting human rights. Key organs include the General Assembly and Security Council. The UN’s contributions include:

  • Preventing large-scale wars and managing conflicts.
  • Supporting Nepal’s peace process through UNMIN.
  • Promoting disarmament, human rights, and sustainable development.

Challenges: Inability to stop regional conflicts, veto power misuse, and lack of enforcement capacity.

Recommendations: Expanding the Security Council, enhancing ECOSOC’s role, and establishing an independent UN peacekeeping force.

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