This, however, is a very wide agenda. There is an extensive and growing literature giving varying perspectives on the subject, and one can only be selective in the examination of the issues. Meaning and scope Accountability and transparency are major pillars in the architecture of governance. While governance itself is not uniquely defined in its various uses, as we shall discuss shortly, most definitions of the term implicitly or explicitly embrace the principles of accountability and transparency. Many examples can be cited in support of this position. A typical example of this is provided by Paul Wolfowitz, former President of the World Bank, who in a 2006 speech in Jakarta stated as follows: In the last half-century, we have developed a better understanding of what helps governments function effectively and achieve economic progress. In the development community, we have a phrase for it. We call it good governance. It is essentially the combination of transparent and accountable institutions; strong skills and competence, and a fundamental willingness to do the right thing. Governance itself is not a new phenomenon. While its genesis may be traced to the Greek city-states, its meaning, purpose, practice and extent have evolved over the centuries, reflecting changing circumstances and specific concerns. In the context of developing country relationships with the international donor community however, we are dealing with a recent manifestation, which surfaced in the 1990s.

The case for transparency and good budgetary management assumes further significance in the evolving advocacy for channelling aid through the domestic budget. The provision of aid in the form of general budgetary support confers greater independence in the use of resources on recipient countries, stronger national ownership of development policies and programmes, and lower costs than those associated with multiple aid delivery modalities. For this intention to be achieved on a wide basis and the proffered benefits realised, donor governments and institutions must have confidence in mechanisms in place in recipient countries for the management of the budget. Worries about corruption and mismanagement are antithetical to this objective; hence the need for strengthened budgetary procedures, improved governance and transparency. There is a strong perception in the donor community that international assistance is required to help strengthen the public financial management systems and processes in aid receiving countries, including oversight by parliament, audit boards and civil society. Apart from the technical dimensions of the intervention, it is considered pertinent that, as may be relevant, the recipient countries should subscribe and adhere to, internationally sanctioned arrangements, such as the Extractive Industries Transparency Initiative (EITI), to ensure appropriate disclosure of revenue accruals and maximisation of inflows from national resources. Accountability is the natural concomitant of transparency. Indeed, the purpose of transparency is essentially the facilitation of accountability. In general, accountability refers to the obligation of those in authority to account to those on whose behalf they exercise such authority, for the discharge of the responsibilities entrusted to them.