Completing the modern, effective local governance institutions to meet the country's development requirements

Dr. CAM THI LAI
Department of Political Schools,
Ho Chi Minh National Academy of Politics
Prof., Dr. VU CONG GIAO
University of Law, Hanoi National University

1. Overview of local governance, modern and effective local governance

Local governance

According to UNDP’s definition, “local governance” is the processes in which public policy decisions are made and implemented”(1). Thus, local governance refers to the process of managing and making management decisions at the local (community, regional) level. It includes the organization, coordination, and supervision in the provision of various public services, which have a direct impact on residents in a specific administrative unit. Subjects of local governance include natural resource management, urban/residential planning, education, health care, construction, infrastructure maintenance, and issues directly related to the daily lives of residents in a certain area. The methods of local governance vary between countries, but share the same goal of optimizing management activities to serve the people in local communities in the most effective way. This often involves a combination (with varying degrees and methods) of local government self-management and central government directives.

According to the approach of UNDP and several other international organizations, local governance is a level of national governance or “state governance”, which includes governance at both the central and local levels.

National governance is defined by UNDP as “the exercise of economic, political, and administrative authority to manage the affairs of a country at all levels. It includes the mechanisms, processes and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations, and mediate their differences”(2). A number of other international organizations also have a similar definition, which views national governance as “a process through which power is given to administrators, therefrom they make and organize the implementation of rules”(3) or “the way in which power is exercised to manage economic and social resources for the development of a country”(4), or “institutions, regimes, mechanisms, and actions through which issues of concern to the people will be decided on and adjusted”(5).

The concept of national governance/local governance is related but not identical to the concept of “state management” and its counterpart “state management at the local level” used in Vietnam.

In Vietnam, state management/state management at the local level is often understood as the exercise of power by central and local public agencies to maintain and perform the functions of the state. State management/state management at the local level is mainly concerned with the exercise of power by state agencies to ensure social order, while state governance/local governance also addresses other issues associated with democratic institutions.

State governance/local governance requires the use of state power, but at the same time sets strict and specific requirements for the use of state power. It requires central/local governments to effectively promulgate public policies, establish, and implement legal, reasonable, timely, and accountable procedures and processes for providing public services to citizens(6). The difference between national governance/local governance and state management/ state management at the local level is most evident in two aspects: the subjects and the methods of addressing social issues.

Specifically, if in state management/local state management, the apparatus of public agencies holds an almost unique position and mainly uses imposing measures to solve social issues. In state governance/local governance, public agencies share that work and consult with many other subjects, such as social organizations, communities, etc., to solve social issues in many different ways(7). Therefore, state power is more reasonably distributed and better controlled(8).

Modern and effective local governance

“Modern and effective local governance” is a concept that reflects the Party’s major policy stated in the Documents of the 13th National Party Congress, which is: “Renovating national governance towards modernization and efficiency”(9). This is one of the important policies that opens up opportunities for the country’s development in the new period(10).

While Vietnam does not yet have a unified definition of “modern, effective national governance/local governance”, this issue can be linked to the concept of “good national governance/state governance”. “Good governance/national governance” is a concept commonly used by international organizations in recent decades(11) and has now become a “buzzword for all people”(12).

In other words, “modern, effective national governance/local governance” in Vietnam can be understood through the lens of the concept of “good national governance/state governance” that has been recognized by the international community.

According to the general concept of the international community, good governance is a set of principles for the operation of the state and society aimed at promoting and ensuring harmonious and sustainable development of a country(13). The number of these principles vary more or less from the perspective of different international organizations. The common view is that the principles of good national governance/state governance include the rule of law, people’s participation, transparency, and accountability of the state apparatus(14). There is a broader view that, in addition to those 4 principles, adds 4 more principles: effectiveness and efficiency, responsiveness, and equity and inclusiveness and consensus orientation(15).

However, it can be seen that, whether broad or narrow, the stated principles reflect the modernity of national governance/local governance, as they have only been established in recent decades and help address the necessary and essential requirements for the development of a country/locality in the world in the 21st century. These principles also ensure the effectiveness of national/local governance because they help control and improve the effectiveness of public institutions and manage public resources appropriately(16).

In this regard, according to the International Monetary Fund (IMF), “promoting good governance in all its aspects, including by ensuring the rule of law, enhancing the efficiency and accountability of the region public sector and tackling corruption, (are) essential elements of a framework within which economies can prosper”(17).

2. Perfecting modern and effective local governance institutions is an indispensable requirement for our country’s development in the new period

In essence, state governance is an institutional issue, state governance effectiveness is a measure of the impact of these institutions(18). The concept of “institutions” here is understood in a broad sense, including laws, rules, and practices, both formal and informal, that shape the behavior of subjects in society, including the state(19). Since “progressive institutions will pave the way for the country to develop”(20), it is necessary to renovate models and methods of state governance in general, and local governance in particular, in an advanced and effective way (good state governance) to make the country/locality strong and prosperous(21).

From a policy perspective, the requirement to perfect local governance institutions in a modern and effective direction in Vietnam today originates from the Party’s policy on renovation of national governance in a modern and effective direction. This policy requires renovation in governance not only at the central level but also at the local level, because local governance is also a level of national governance, contributing significantly to national governance.

In practical terms, the need to improve local governance institutions in a modern and effective direction in Vietnam today also comes from limitations in the governance capacity of local governments in our country. Herein, the concept of “local governance capacity” can be understood as “the attributes and values of local governance entities being consistent with local governance requirements, ensuring the promotion of development of each locality and meeting local desires and expectations”(22).

Since the implementation of the renovation process (in 1986) through to today, the administrative capacity of the central government and local governments in our country has been continuously improved, but there are still many limitations, inadequacies, and shortcomings, not yet meting the development requirements of the country or each locality. Meanwhile, the requirements for national governance/local governance in the coming time will be increasingly high due to the context of globalization, deeper international integration, and the rapid development of the world economy. Industrial Revolution No.4 has been posing more and more complex issues for national/local governance.

Along with that, the process of building and perfecting Vietnam’s socialist rule-of-law state requires increasing the participation of the people in state management activities - this also poses an urgent need for renovation of national governance/local governance institutions in our country.

3. Directions and solutions to improve modern and effective local governance institutions to meet the country’s development requirements in the new period

Renovating and perfecting national governance institutions in a modern and effective direction requires boldly and urgently converting the approach to state management at the local level to local governance. This aims to ensure the people’s democratic rights and the people’s participation in local government affairs in a practical and effective way. This, in turn promotes sustainable economic, social, and environmental development within the framework of the Constitution and laws. Institutional improvement also needs to aim at building a local governance system that responds quickly to the people’s demands, operates better but at lower costs, is open, transparent, and accountable to the people.

Experiences of many countries around the world shows that the focuses of local governance are the self-management of local governments and the participation of many subjects in community affairs. Thus, the focus of perfecting local governance institutions in our country in the coming time also needs to focus on renovation management activities to enhance regular, substantive, and effective interaction between the community and local public authorities. This requires local governments to really care about the thoughts, aspirations, and interests of the people, creating conditions for the local people to have many opportunities to participate in government work; The government takes care of the material and spiritual lives of the people, implementing social justice and equality at the local level.

To implement the above direction requires solving some of the following issues:

Firstly, it is necessary to clearly define the position, role, functions, and tasks of local governments

Currently, local governments in our country are divided into three levels, with the provincial level being the highest level. Therefore, it is necessary to have an appropriate organizational model with full authority and management and administration capabilities to help the central government manage all aspects of social life, ensure law enforcement and discipline, while ensuring respect for the will, aspirations, and interests of communities within a large territory.

The district level is an intermediate administrative level, a bridge between the provincial government and the commune government. Therefore, the district-level government is not necessarily organized uniformly according to the provincial or commune-level government model. The commune level is the grassroots level of government that is closely linked to the people, directly representing the will, aspirations, and interests of the people. It is also the place to directly organize the management and administration of public works and directly organize law enforcement at the grassroots level. Therefore, commune-level governments need to be built and regulated in detail, distinct from provincial and district-level governments.

Regarding tasks, it is necessary to clearly identify groups of jobs related to the authority of each level of local government as follows: (1) Tasks that are solely under the authority and responsibility of central state agencies, such as national defense, national security, diplomacy, currency, institutions, planning, plans, etc. (2) Tasks that are completely under the authority and responsibility of local governments, which is carried out using local resources through autonomous methods. (3) Tasks that are related to sectoral and territorial management that are the responsibility of both central agencies and local governments, to be carried out through mechanism of assignment, coordination, and commissioning among central agencies and local authorities.

On that basis, tasks and powers assigned to each level will be the responsibility of that level to execute, with other levels only playing a coordinating role if related, thereby thoroughly addressing the issue of inappropriate intervention, direction, and administration from higher levels over the implementation of tasks and powers of lower levels.

Secondly, it is necessary to renovate the local government organization model to suit rural, urban, island, and special administrative-economic localities

The 13th National Party Congress and the 2013 Constitution established the political and constitutional basis for renovating the local government organizational model in our country to suit rural, urban, island areas, and special administrative-economic units. Regarding this issue, the popular opinion is that, for urban areas, People’s councils should only be organized at the city and town level and not at the subordinate administrative units of urban administrative units, as the subordinate administrative units are only an extension of the urban administrative agency to ensure the unified implementation of administrative decisions.

For rural areas, provincial and commune governments need to have People’s council representative bodies and administrative agencies. However, the district is an intermediate administrative level, and important issues that govern the development of the whole province are decided by the provincial government, while specific issues at the grassroots level, associated with people’s lives and residential community is considered and resolved by the local government. Therefore, the district level should not organize a People’s council but only an administrative agency (administrative committee).

Regarding the government in island administrative units, due to the extremely important nature of national security and defense, it is still necessary to organize local government with both People’s Councils and People’s Committees at all three levels. For special economic administrative units established by the National Assembly, the local government model is specifically stipulated by the National Assembly when establishing that administrative unit.

Thirdly, it is necessary to promote the role of autonomy and self-responsibility of local governments

Regarding this issue, the majority of opinions believe that it is necessary to continue to improve the legal provisions on decentralization and authorization between levels of government, from the central to each level of local government in a way that emphasizes the role of autonomy, self-responsibility, and encouraging proactivity, creativity, and efficiency in the management activities of local governments at each level.

But it is also important to note that decentralization and delegation of power hate their negative sides, the biggest risk being increasing the risk of abuse of power and corruption, especially when the mechanism to control state power at the local level of the country is still weak. Therefore, along with promoting decentralization and delegation of power, it is necessary to renovate the legal regulations on supervision, inspection, examination, and control of state power at the local level, thereby ensuring effective management of state power. This ensures unified and seamless management of systems from the central to the local levels, promoting autonomy, self-responsibility and preventing and combating corruption at all levels of local government.

Fourthly, it is necessary to renovate the organization and operations of the People’s council

As a local state power agency, representing the will, aspirations, and ownership of the people, elected by the local people, responsible to the local people, the People’s Councils play a critical role in local governance institutions. Therefore, it is necessary to improve the People’s Council delegate mechanism to ensure the standards, structure, and professionalism of the delegates.

It is necessary to renovate the election of People’s Council members, to more specifically regulate the standards for People’s Council members, and to more reasonably regulate the structure of People’s Council members, reducing the participation of delegates working in specialized agencies of administrative agencies, and increasing the number of delegates coming to work at party agencies, unions and delegates with high professional qualifications and lots of practical experience. In addition, it is necessary to improve the People’s Council’s supervision mechanism to ensure openness, transparency, effectiveness, and efficiency of supervision activities.

Fifthly, it is necessary to renovate the organization and operations of villages, residential groups and self-governance models in villages and residential groups

The experience of many countries shows that these are very important institutions in modern, democratic local governance institutions. Therefore, it is necessary to renovate regulations on the establishment and operating methods of villages and residential groups in a way that suits the characteristics of each locality, enhances the people’s participation, promotes the direct ownership of the people, and the self-governing role of the local community. There is a need to clearly define the content and scope of responsibilities in each field of work managed and organized by the local government; tasks assigned by the grassroots government to villages and residential groups for implementation; the content of self-management activities of villages and residential groups and self-management organization models according to fields in villages and residential groups.

In particular, it is necessary to build and strengthen the contingent of village heads, residential group leaders and part-time activists in villages and residential groups to ensure they have enough capacity, responsibility, and credibility in their activities. Additionally, it is important to issue general instructions on the organization and operation of the self-governance models of residential communities in villages and residential groups, specifically on the establishment process, operating regulations, and specific responsibilities of members in charge of self-governing organizations, and so on.

Sixthly, promote the construction of electronic government and digital government, meeting the requirements of digital transformation

Experience from many countries and in our country recently shows that the application of modern technology, especially information technology, plays a particularly important role in national governance in general and local governance in particular.

To achieve the goal of Vietnam becoming a digital country by 2030, synchronous solutions are required such as raising awareness across society, institution building, digital infrastructure development, and digital platform development. For local governance, local governments need to strengthen the application of information technology and use smart technology, connect, and smoothly operate management software to gradually expand the provision of public services at localities and establishments.

It is necessary to promote the implementation of e-government construction, moving towards digital government at the local level to ensure openness and transparency of information about the organization and activities of local governments, and to provide better public services for the local people and businesses according to the government’s “four Non’s”, which are: (1) non-face-to-face meetings; (2) non-paper document processing; (3) non-contact administrative procedures and (4) non-cash payments.

Seventhly, build a team of local government officials and civil servants

The team of officials and civil servants is one of the factors that determine the success of the transition from state management to local governance, because local governance requires an effective, efficient, dedicated, and honest administration that serves the people. The principles (characteristics) of good governance require local government officials and civil servants to have high professional capacity, good public service performance skills and standard public service ethics. These requirements need to be expressed in all stages, from source generation, recruitment, training, fostering, use, evaluation, regime, policy, inspection, discipline, etc., associated with the employment position of each officer and civil servant in each field of work.

In formulating job positions, it is not only necessary to describe the work of each position, but also to describe the good management requirements associated with each position to serve as a basis for selection, arrangement and evaluation of the level of work preformed by each cadre and civil servant in a public and fair manner, creating motivation to strive in performing the duties of cadres and officers.

Eighthly, it is necessary to increase people’s participation in local government governance activities(23)

The people’s participation is an indispensable requirement of local governance, helping local government management decisions to be accurately, appropriately, and effectively implemented. To attract the people’s participation in local governance, local governments need to truly put the people (and businesses) at the center of all governance activities. However, first of all, local governments must help the people clearly understand their position, role, and powers in local governance activities, and at the same time the need to effectively implement the motto “The people know, the people discuss, and the people do, the people check, the people supervise, the people enjoy”(24) proposed by the 13th National Party Congress.

Ninthly, it is necessary to strengthen openness, transparency, and accountability in the organization and operations of local governments(25)

Openness, transparency, and accountability of public agencies are both criteria and requirements for national and local governance. To ensure openness, transparency, and accountability of public agencies, it is necessary to organize and effectively implement relevant regulations in the Law on Prevention and Combat of Corruption, the Law on Access to Information, etc., as well as other regulations, and legal documents guiding the implementation of these laws. Regarding accountability, it is necessary to ensure that public entities are accountable not only to superior agencies and elected agencies, but also to businesses, social organizations, and the people.

4. Conclusion

Improving local governance institutions is an urgent requirement in our country, in order to implement the policy of modern and effective national governance renovation that the Party set forth in the Documents of the 13th National Party Congress. This is also an urgent requirement from our country’s development practice in the context of globalization, international integration and building and perfecting the socialist rule-of-law state.

Local governance is a broader concept than local management. Therefore, perfecting local governance institutions also requires a broader approach than perfecting the organization and operations of local governments. Specifically, in addition to the requirements to improve the organization and operations of local governments, local governance institutions need to be built based on the principles of good national governance, thereby helping local governments to operate effectively, efficiently, and truly representative while receiving the support of the people(26).

Improving local governance institutions needs to especially emphasize the people’s participation, ensuring that the people can participate substantially and effectively in social management activities, contributing to building and improving public policies, thereby ensuring sustainable local development. Along with that, it is necessary to focus on monitoring measures to ensure that local governments operate in accordance with the law, openly, transparently, and exercise accountability to prevent bureaucratic acts, power abuse and corruption.

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Received: November 16, 2023; Revised: January 4, 2024; Approved for publication: January 20, 2024.

Endnotes:

(1) UNDP: A Users’ Guide to Measuring Local Governance, Joachim Nahem (edited), 2008, https://www.local2030.org/library/52/A-Users%E2%80%99-Guide-to-Measuring-Local-Governance.pdf, accessed on October 10, 2023.

(2) UNDP: Governance for Sustainable Human Development, UNDP Policy Document, New York, https://www.undtr.org/publications/ discussion-paper-governance-sustainable-development, accessed on October 10, 2023.

(3) World Bank: What is Governance?, https://web.worldbank.org/ archive/website01020/WEB/0_CON-5.HTM, accessed on October 10, 2023.

(4) World Bank: Governance and Development, Washington, D.C.: World Bank Group, http://documents.worldbank.org/curated/en/604951468739447676/Governance-and-development, accessed on October 10, 2023.

(5) OHCHR: What is good governance?, https://www.ohchr.org/en/ good-governance/about-good-governance, accessed on October 12, 2023.

(6) Rose-Ackerman, Susan: What Does “Governance” Mean? Governance, vol. 30, issue 01, May-2016, pp. 23-27.

(7), (8), (10), (13), (14), (21) See Vu Cong Giao: Applying principles of good governance to renovation in state management in Vietnam today (Monograph), National Political Publishing House, Hanoi, 2022, pp. 31, 33, 35, 45, 47, 33.

(9), (24) CPV: Documents of the 13th National Party Congress, vol.I, National Political Publishing House, Hanoi, 2021, pp. 203, 96.

(11) See: UNODC University Module Series: Anti-Corruption, Module 2: Corruption and Good Governance, p.9, https://www.unodc.org/e4j/en/anti-corruption/module-1/index.html.

(12) Johnston, Michael: Measuring the new corruption rankings: implications for analysis and reform, in Arnold J. Heidenheimer and Michael Johnston (eds.): Political Corruption: Concepts and Contexts. Brunswick, New Jersey, Transaction Publishers, pp.7.

(15) UNESCAP: What is Good Governance? https://www.unescap.org/sites/default/files/good-governance.pdf.

(16) See: UNODC University Module Series: Anti-Corruption, Module 2: Corruption and Good Governance, Reference, pp.9.

(17) IMF (1998): Good Governance: The IMF’s Role, https://www.imf.org/en/Publications/EXR-Pamphlets/Issues/2016/12/30/Good-Governance-The-IMF-s-Role-2313, accessed 10-12-2023.

(18) See: Vu Cong Giao (Editor): Good governance and corruption prevention, National Political Publishing House, Hanoi, 2020, pp.15, 19.

(19) See also Geoffrey Hodgson: “What Are Institutions?”, 2006, Journal of Economic Issues, XL, No 1, pp.1-25; Jonathan Pincus: Institutions and the market economy - Introduction to public policy, Fulbright Economics Curriculum, 2009-2010 school year; Pham Duy Nghia: “Institutional reform to promote economic restructuring”, Journal of Legislative Studies, No. 10 (216), May 2012, pp.45-50.

(20) Prime Minister: Progressive institutions will pave the way for the country to develop, https://vietnamnet.vn, accessed on November 10, 2023.

(22) Hoang Mai: Renovating and improving local governance capacity, State Management Magazine No.257-2017, p.34.

(23) Nguyen Dang Phuong Truyen: Improving the governance capacity of local governments in our country today, Journal of Legislative Studies, No.15 (439), August 2021.

(25), (26) See also Le Thi Ly: Factors affecting the effectiveness of local governance in Vietnam, State Organization Magazine, April 23, 2019, https://tcnn.vn/news/detail/42871/Nhung-yeu-to-anh-huong-den-hieu-qua-quan-tri-dia-phuong-o-Viet-Nam.html.