Introduction to Multilevel Governance and Reasons for Its Development
Question: Provide an introduction to multilevel governance and mention the reasons for the development of this governance concept. (6+4=10)
Author: Prakash Dahal, Joint Secretary
Introduction to Multilevel Governance
Multilevel governance refers to a system where public, private, and non-governmental actors from national, sub-national, and supra-national levels are involved in the governance process. This involvement is sustained through regular consultation, dialogue, agreements, cooperation, and partnerships among these actors. While these actors are independent in their existence, they are functionally interdependent. There is no rigid hierarchy of authority or interrelations among them.
In multilevel governance, the formulation, implementation, and monitoring of public policies involve various institutions, groups, and networks from local to global levels, encompassing public, private, and non-governmental sectors. Power and responsibilities are transferred upward to supra-national levels, downward to sub-national levels, and outward to private sectors and civil society, establishing collaborative relationships and shared responsibilities. Governance duties are distributed both vertically (geographically) and horizontally (functionally) across different levels and sectors, which is why it is termed multilevel governance. It is also referred to as multi-centric, multi-layered, or multi-perspective governance.
Reasons for the Development of Multilevel Governance
The concept of multilevel governance emerged prominently after the establishment of the European Union. In 1992, Gary Marks, while studying the Maastricht Treaty foundational to the EU, proposed that the concept of multilevel governance was useful for understanding the EU’s decision-making dimensions, giving it significant recognition. In today’s interdependent world, fraught with complex problems and challenges, a state alone cannot manage all governance responsibilities. It must collaborate with actors from various levels and sectors, making multilevel governance an essential requirement for modern governance.
The development of multilevel governance is primarily driven by global economic interdependence and the increased role of private and non-governmental sectors in domestic economies, spurred by globalization and economic liberalization. Additional reasons for its prominence include:
- Changes in the state’s role due to the adoption of liberal and open economic policies.
- Increased influence and participation of the private sector and civil society in governance.
- Growing practice of decentralized and people-centric governance systems.
- Development and expansion of international relations.
- Proliferation of regional and global international organizations.
- Evolution of the concept of informal governance.
- Decision-making responsibilities extending beyond representative institutions.
- Development of various public and private networks.
- The increasing complexity of global issues in politics, economy, environment, health, peace, and security, which a state alone cannot address.
Conclusion
In today’s complex environment, achieving socioeconomic prosperity requires states to collaborate with actors across various levels and sectors. To achieve this, governance must transition from a state-centric, hierarchical, and formal rule-based approach to one based on participation, dialogue, agreements, and cooperation. Adopting multilevel governance is essential to meet these demands.
