The definition that I found most meaningful is: irrespective of the size of system, whether it is a country or a small firm, good governance, as a concept, ensures that the rules of the system are equal, fair and clear to everyone. Although I will focus mainly on economic governance, let me briefly mention that in order to completely grasp the notion of good governance, one has to look at its subtitles. Political governance, legal governance, economic governance, and corporate governance are the most well known among several others. In fact, these subtitles overlap with each other. For example, political governance has common issues with economic governance, while economic governance has implications on corporate governance. Accordingly, economic governance is defined as the nature and practice of economic management, regulation and development; or the institutional environment that constraints and coordinates economic action. Distinguished guests, Another point associated with the analytic evaluation of governance is that good governance provides a very important set of pillars, which are effectual in the design of an economy. The four of them are 1 the most useful ones for every economy: transparency, accountability, rule of law and participation . First, transparency means that the needed and the necessary information is freely available and 2 directly accessible to those who will be affected by decisions and their enforcement . Second, accountability is a mirror image of the responsibility and liability of an organization or institution for its decisions and actions to those who will be affected.
In Sweden, economic policy has charged the economy with a good deal of stimuli that can help to generate a broader increase in demand now that the stocks cycle is beginning to have a favourable effect and the prospects for the international economy are brightening. As a result of lower taxes and increased transfers, for example, most things suggest that household purchasing power is rising comparatively strongly this year. Seen over a complete economic cycle, the Riksbank’s instrumental rate is comparatively low. Considering the rate of inflation and the signs that activity is picking up, the real repo rate (the repo rate less the rate of inflation) can be said to be low. Then there is the weak exchange rate, which has subdued effects of the international slowdown and is now helping to stimulate the export-oriented sector. All this amounts to not inconsiderable stimuli to general demand in the Swedish economy, stimuli that look like materialising successively. How heavily should we tread on the accelerator? If inflation, even disregarding the temporary effects, is above the target initially, activity is entering an upward phase and economic policy’s impact on the economy is expansionary, then monetary policy ought to contribute to a somewhat lighter foot on the accelerator. But if most of the unduly high inflation stems from transient increases in the price level and if an economic upturn is not yet assured, it may then indeed be advisable to somewhat defer an upward adjustment of the instrumental rate.