by Gugu Mgwebi

Ethical governance is a key feature of good governance practice. It is partly predicated upon responsiveness towards people’s needs and demands and the ability to coordinate a democratic balance with efficiency and equity as core principles.

Other factors that contribute towards good governance is the availability of resources and the  existence of a politically conscious, active and organised civil society who are credibly aware of policies in place that protect their interests as well as their constitutional limits together with an understanding of  powers and functions of government institutions in place.

The continuous practice of ethical governance and leadership within a country ushers political stability e.g. the experience of over 20 years of a politically stable and independent Ghana, increased economic growth through market oriented governments who contributed to the reduction of red tape and the improvement of regulatory environments with more effective business dispute resolution mechanisms.

In general, ethical governance, devoid of corruption and other criminal tendencies has quite a number of positive spinoffs especially in Africa. In his piece on ‘leadership matters’ in September 2008, Fred Swaniker discusses some of these possible benefits.

Increased GDP growth is one such spinoff. According to the IMF and World Bank, Africa is experiencing the fastest level of sustained economic growth (at least until the current global economic slump) it has seen in 30 years (averaging over 5% since 2004.) In fact, at a time when most of the world was already experiencing an economic slowdown, Africa had remained one of the fastest growing regions in the world.

According to various analysts the continent’s economy is focused to grow between 5% and 7% over the next five years. Despite popular belief that most of this growth is temporary and is driven by the global increase in commodity prices, a deeper analysis shows that this is a more robust form of growth. According to research by McKinsey & Company, the international management consultancy, only 15% of economic growth in Sub-Saharan Africa between 2000 and 2006 was directly attributable to an increase in commodity resource prices. This point is underscored by the fact that countries such as Mozambique, Rwanda, Ghana and Uganda were all growing at rates of 5-7% per annum and yet they have no commodities of significance to export.  The likely contributing factor to this sustained impressive growth rates can be traced to democratic transitions which although still on-going and has led to greater openness in such countries.

Democratic transition has also enabled macroeconomic stability. After years of hyperinflation and large government deficits, inflation across the continent and interest rates have come down across the continent to more acceptable rates in the lower double-digits. African leaders are implementing far more prudent, fiscal and monetary policies than in the past.

Another positive outcome has been the increase in Foreign Direct Investment (FDI).  In 2000, Africa received about 8 billion in FDI. By 2006, this figure had quadrupled to $ 33 billion. This investment is being led by both multinational companies and private investors. For instance, Prince Al Walid of Saudi Arabia (the thirteenth richest man in the world according to Forbes magazine and renowned as one of the world’s most astute investors), has set aside almost a billion dollars of his net worth just to invest in Africa. In the past, foreign investors shied away from Africa due to political instability. The new surge in investment signals the increased belief in the long term future of Africa.

Moreover, with more stable environments and booming economies, more and more Africans are returning to the continent and beginning to reverse the “brain drain” that has long played out in Africa. Nigeria is attracting several of its highly skilled citizens back from the west, as are Ghana, Kenya and others. These returnees are bringing back their ideas and launching new businesses and participating actively in a broader socio-economic revival of their countries, similar to what occurred in China and India when its western educated and trained citizens began to return.

Presently, a common persistent problem prevalent in many African countries is corruption-induced poverty. The practice of ethical governance at this point is severely weighed down as efforts to sustain a democratic culture among the majority are nonetheless faced by serious resistance from those who benefit from corruption and rent-seeking behaviour.

Documents such as the South African Constitution of 1996 committed the country to the implementation of an ethical, transparent, accountable and democratic system of governance. As addressed by Mr Tony Ehrenreich of COSATU under the topic: Thirteen years after apartheid: The quest for democratic governance, it is important that we define what we mean by ethical leadership.

Ehrenreich describes it as a standard that should be universal, as a tool that guides as to appropriate conduct. In democratic governance, ethical leadership is the kind of leadership that ensures there are regular free and fair elections, the marginalised and disadvantaged are included in society, there is a separation of powers between the judiciary and government, giving both credibility and transparency. In addition, citizens must be given a chance to participate in building up the democracy by being provided with sufficient spaces to do so.

References

• Sharon Machanzi: Ethical leadership – In and through politics conference
• Fred Swaniker: Leadership matters,19 September 2008
• www.thedisplacedafrican.com

The Transformer Vol. 15 No. 2 Apr-May 2009