Governance in the Modern State

Abstract

The term governance indicates a non-hierarchical, cooperative mode of political guidance in which public as well as private actors are jointly involved. The term has normative implications, and focuses attention selectively on solving problems in the common interest, rather than on power relations. The increasing use of the term governance reflects a shift of state functions from central steering to coordination and joint problem-solving in policy networks, neo-corporatist negotiation, and public-private-partnerships. This development presupposes a functionally differentiated democratic society in which private organizations enjoy autonomy within the framework of the law. In such societies, the problem-solving potential of governance can be superior to hierarchical control, but it is constrained by a tendency toward compromise solutions, and threatened by blocked decision-processes.