Good Governance
What is the purpose of government?
What is it that all human beings want? 
In view of the fact that all knowledge and every pursuit aims at some good, what is the highest of all goods achievable by action? Verbally there is very general agreement; for both the general run of men and people of superior refinement it is happiness; they identify living well and doing well with being happy. 
Aristotle
People are social beings 
"It would be strange to represent the supremely happy man as a recluse. No one would choose to have all possible good things on the condition that he must enjoy them alone; for man is a social being and one whose nature is to live with others; accordingly the happy man must have society, for then he has everything that is naturally good." 
Aristotle
How is happiness attained? 
 When our desires are fulfilled. 
 Hungry -> food -> happy 
 Missing someone -> see them -> happiness
The problem is that . . . 
 Some desires are unrealistic 
 Some desires are immature 
 Some desires are excessive 
 Some desires are wrong 
And this leads to unhappiness
Religions all recognize this 
 Paul - ‘wretched man that I am’ 
 Jeremiah - ‘heart is corrupt’ 
Buddhism - all suffering caused by craving -> whole way of life based on extinguishing craving 
 Paradox - fulfilment of desire leads to both happiness and suffering 
Desires need to be chanelled and controlled so they bring happiness and not suffering
What are the main desires people have? 
Desire to eat, sleep and be warm 
Desire to experience love 
Desire for social position or power 
Desire for knowledge 
Desire to worship
Structures to satisfy these desires 
Human desire 
Social system 
To experience love 
Family 
For material things 
Economy 
For position and authority 
Civil society, politics 
For knowledge and skills 
Education 
To worship 
Religion
What is the purpose of government? 
Defence 
To protect a country from invasion which would destroy a people’s way of life and prevent them from being happy 
Justice 
To maintain the laws necessary to create a realm of freedom so that people can live a moral and meaningful life and thus be happy and fulfilled
What is Law? 
 System of rules that mediates the relations between people 
Creates rights and obligations 
 “The rule of law is better than the rule of any individual” Aristotle 
 Creates freedom
Where does law come from? 
 Divine 
 Mosaic law, Sharia 
 Custom and judges 
 English Common law 
 Legislation 
 Emperor 
 Legislature
The family system 
Fulfiling the desire for loving relationships
Family is the place of meaning 
Dwelling place of God - the family that prays together stays together 
Spiritual life creates hope for the future 
Sense of meaning 
Reason to live and to multiply 
Shabbat prayer
Family as the school of love 
Place for love between husband and wife 
Reproduction and love between parents and children 
Socialisation and education into the manners, customs and traditions of one’s community 
Transmission of culture and the good way of life
Family as an economic unit 
Work together to create wealth to support family and community 
Develop a sense of responsible ownership 
Develop and realise creativity 
Culture of giving and sharing
Family is the basis of society 
Love 
Life 
Lineage
Family crimes 
 Adultery - chief cause of divorce and family break up 
 Unmarried mothers - every child has the right to a mother and a father 
 Child abuse and neglect 
 Especially common among step-families 
 Neglect of parents and grandparents 
 Government supplanting role of family in education, health, welfare, finance
Role of government 
 Support traditional family 
Family and marriage law 
Tax system 
Favour marriage and children 
Inheritance 
Build up generational wealth and responsibility 
Social security system should not subsidise unmarried mothers 
Social services should be voluntary sector
The family is the basis of society 
Familial collapse -> social collapse 
Society more than just families 
Social structures and institutions 
Distinction between family and society 
family based on affection - forgiveness 
society based on justice 
Affection in social relations -> corruption (nepotism) 
Legalism in family relations -> destruction
Family  society 
Family expands  small society Affection declines as distance increases Scarcity of goods - selfishness/limitations to generosity -scarcity of desirable goods  destructive conflict  Need framework of commonly accepted rules
The economic system 
Fulfilling the desire for goods to be able to live a comfortable life
1.Recognition and respect of ownership 
 Relationship between person and things 
 Relationship between people - property is a social convention 
 End of disputes - stability of possession 
 3rd blessing. Lord of Creation
2. Transfer of ownership 
 Rights over goods transferred by consent 
Can give things to someone 
Can sell things to someone 
 Market 
Place where transfer ownershp by exchange 
 Origin of money 
Convenient unit of exchange 
  division of labour and specialisation 
 Freedom and responsibility 
 Freedom within the law 
 2nd blessing - ethical relationships
3. Performance of promises 
 “My word is my bond” 
 Promise keeping 
 1st Blessing 
 Society as moral 
 Self-limitation - don’t be greedy 
 Natural rational expectations 
 Trust people including strangers 
 Free trade between strangers
3 Principles of justice, 3 Blessings, 3 Laws 
1.Society of owners 
-3rd blessing - dominion over creation 
-Do not steal/misuse public money 
2.Society as a market 
-2nd blessing - ethical relationships 
-Do not have immoral relationships 
3.Society as moral 
-1st blessing - mind body unity 
-Do not hurt a person’s heart
Economic crimes 
 Theft, robbery, stealing, fraud, 
 Denial of private property - nationalisation without compensation; 
 Unreasonable and punitive taxation including taxation for social engineering such as inheritance tax 
 Reneging on agreements - not paying salaries, invoices, 
 Breaking promises
Role of government 
 Establish and maintain simple legal framework for free market. 
 Law of contract, laws against theft, fraud 
 Maintain independent judiciary 
 Independent central banks 
 Limited taxation 
 Government should not be involved in finance or the economy. 
Minimise bureaucracy and corruption
Civil society 
Fulfiling the desire for social position and power
Civil society 
Human desire to have position in society where can make a difference, unique contribution 
Multitude of institutions in civil society: 
Politics, businesses, charities, local government, religion, schools, hospitals etc. 
Civil society should be law governed 
Freedom of speech, movement, living, career 
Meritocracy
Crimes against civil society 
Achieving position illegitimately 
Murder, coups 
Nepotism 
Cronyism 
Corruption, bribery 
Discrimination in public sector 
Totalitarianism
Role of government 
Maintain an independent judiciary 
Maintain roads, sewers 
National defence 
Safety net welfare 
Government to protect way of life and not to engage in social engineering
Educational system 
Fulfilling the desire for knowledge and understanding of the world we are to inhabit
What is education? 
Education is the transaction between the generations when children are initiated into the world which they are to inhabit 
This is not just transfer of knowledge and skills 
It is most fundamentally learning to perform humanly
Where does education take place? 
 Family 
Teach children how to behave 
To live a spiritual life 
How to think, not what to think or believe 
Skills 
Swimming, gardening, house maintenance, money management etc. 
School 
History, literature, language, religion 
Specialised knowledge, skills 
More complex thinking
Educational crimes 
Failing to pass on the wisdom of the ages- treason of intellectuals 
Dumbing down 
Indoctrination 
Not graduating with qualifications and skills 
Information without values, purpose, meaning
Schools should be . . . 
Independent - self-governing and not controlled by the state 
Financed by fees, scholarships, vouchers 
Free to specialise and set curricula 
Not for indoctrination - religious or political 
Follow public exams set by universities and other professional bodies
Religion 
To satisfy the desire to worship
Religion 
Acknowledgement of a dependence on a superhuman being expressed through acts of cult - worship of God 
Concerned with questions of meaning of life, right and wrong behavior, salvation 
Rituals to give meaning and sanctification to rites of passage such as marriage
Religious crimes 
Idolatry 
Mistaking the relative for the absolute 
Sectarianism 
Bigotry 
Fundamentalism
Role of government 
 Allowing religious freedom 
 Enable religious communities to be involved in law making, education and values
Summary 
Human desire 
Social system 
Crime 
Experience love 
Family 
Adultery 
Material things 
Economy 
Stealing 
Position 
Civil society 
Murder 
Knowledge, thinking 
Education 
Falsehood, indoctrination 
Worship 
Religion 
Idolatry
Renaissance 
Enlightenment 
Communism 
Reformation 
Second Reformation 
Liberal Democracy 
Maturation of politics, economy 
and ideology (1789-1918) 
Maturing of political structure, economy, 
Agricultural & industrial revolution 
Conflict between religion and philosophies 
Reformation and Renaissance 
Cain- type view 
Abel- type view
Ideas have consequences 
Cain view of life French rationalism German idealism Materialism, atheism 
Abel view of life British empiricism Spiritual revival 
Totalitarian Democracy 
Liberal Democracy
Cain-type democracy: totalitarian democracy 
France 
Powerful monarchy 
Justinian legal code 
Little democracy 
Revolution 1789 
Atheistic 
Rationalistic 
Idealistic - remodel society 
Statist, collectivist 
Totalitarian
Abel-type democracy: liberal democracy 
Anglo-Saxon England 
Witan, rule of law, freedom, separation of powers, value of the individual, tradition, custom, Christian 
Magna Carta 1215 
Trial by jury, monarchy limited by law 
Parliament 1297 
Government by consent 
English Civil War 1640 
Abolition of arbitrary rule, religious freedom 
Glorious Revolution 1688 
Parliamentary independence
Separation of powers 
American Revolution 1776 
Constitution, individual rights 
From the very beginning the separation of powers was to be characteristic of the ideal society which God has been working to realise to prevent the concentration of power in the hands of a single individual. EDP, 361 
God Legislature Judiciary 
Executive 
Makes laws 
Executes policies 
Upholds justice 
With the establishment of constitutional democracy, the framework for the ideal political system was set up. EDP, 362
Industrial revolution 
The Industrial Revolution which began in England arose out of God's providence to restore the living environment to one suitable for the ideal world. 
Promoted trade which led to empire 
Supported spreading of the Gospel
Person is the model for society 
Brain 
Spine 
Nervous System 
Heart 
Lungs 
Stomach 
Limbs 
Cells 
God Christ Political leaders and parties Executive Legislative Judiciary Organizations Individuals 
In the ideal world, because people’s horizontal relationships with each other are rooted in their vertical relationship with God, they will form one integrated and interdependent society. EDP, 362
What kind of economic system? 
In front of God all people have the same value 
God wants to provide a good environment and living conditions equally for all his children 
No destructive competition due to over production 
No unfair distribution leading to excessive accumulation and consumption EDP, 342 
What kind of system?
One where there is . . . 
Interdependence, mutual prosperity & universally shared values 
Original mind pursues socialist values 
Community 
Support 
Equality 
Freedom 
Democracy
How has Satan been working? 
Satan has worked through fallen people to realise, in advance of God, a perverted form of the ideal society which God intends to realise. 
As a result in human history we witness the rise of unprincipled societies which are built upon twisted versions of the Principle. EDP, 329
What kind of socialism? 
God’s plan is to develop a socialistic economy, although with a form and content utterly different from the state socialism and communism actually established. EDP, 341 
Not a planned economy 
Not a welfare state 
Not a state educational system 
Not a state health system 
No state owned banks and industries 
Limited state social security
Where do we find . . . 
Excessive production 
Communist and planned economies 
But planning is inherently impossible
Why is planning impossible? 
Impossibility of calculation 
Ludwig von Mises, F.A. Hayek 
All knowledge is tacit knowledge 
Michael Polanyi, F.A. Hayek 
Knowledge for planning does not exist 
G.L.S. Shackle
Where do we find . . . 
Excessive production 
Communist and planned economies 
But planning is inherently impossible 
Unfair distribution 
Feudalism where monarchy and aristocracy accumulate and consume excessively 
Socialism where state employees are at an unfair advantage
What is a free market? 
A place where people can freely buy and sell without interference 
The price mechanism regulates production 
Too much lower price reduce production 
Too little high price increase production 
Price and market regulate distribution 
Goods sold to person willing and able to pay the market price
The Principle and the free market economy 
Give and take 
Freedom and responsibility 
Three Blessings 
Promise keeping 
Law of contract 
Ownership of property 
Welfare and education organised within civil society 
Charity, business, cooperatives, insurance

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North East Region Summer Workshop 2014 Lecture 11 - good governance

  • 2. What is the purpose of government?
  • 3. What is it that all human beings want? In view of the fact that all knowledge and every pursuit aims at some good, what is the highest of all goods achievable by action? Verbally there is very general agreement; for both the general run of men and people of superior refinement it is happiness; they identify living well and doing well with being happy. Aristotle
  • 4. People are social beings "It would be strange to represent the supremely happy man as a recluse. No one would choose to have all possible good things on the condition that he must enjoy them alone; for man is a social being and one whose nature is to live with others; accordingly the happy man must have society, for then he has everything that is naturally good." Aristotle
  • 5. How is happiness attained?  When our desires are fulfilled.  Hungry -> food -> happy  Missing someone -> see them -> happiness
  • 6. The problem is that . . .  Some desires are unrealistic  Some desires are immature  Some desires are excessive  Some desires are wrong And this leads to unhappiness
  • 7. Religions all recognize this  Paul - ‘wretched man that I am’  Jeremiah - ‘heart is corrupt’ Buddhism - all suffering caused by craving -> whole way of life based on extinguishing craving  Paradox - fulfilment of desire leads to both happiness and suffering Desires need to be chanelled and controlled so they bring happiness and not suffering
  • 8. What are the main desires people have? Desire to eat, sleep and be warm Desire to experience love Desire for social position or power Desire for knowledge Desire to worship
  • 9. Structures to satisfy these desires Human desire Social system To experience love Family For material things Economy For position and authority Civil society, politics For knowledge and skills Education To worship Religion
  • 10. What is the purpose of government? Defence To protect a country from invasion which would destroy a people’s way of life and prevent them from being happy Justice To maintain the laws necessary to create a realm of freedom so that people can live a moral and meaningful life and thus be happy and fulfilled
  • 11. What is Law?  System of rules that mediates the relations between people Creates rights and obligations  “The rule of law is better than the rule of any individual” Aristotle  Creates freedom
  • 12. Where does law come from?  Divine  Mosaic law, Sharia  Custom and judges  English Common law  Legislation  Emperor  Legislature
  • 13. The family system Fulfiling the desire for loving relationships
  • 14. Family is the place of meaning Dwelling place of God - the family that prays together stays together Spiritual life creates hope for the future Sense of meaning Reason to live and to multiply Shabbat prayer
  • 15. Family as the school of love Place for love between husband and wife Reproduction and love between parents and children Socialisation and education into the manners, customs and traditions of one’s community Transmission of culture and the good way of life
  • 16. Family as an economic unit Work together to create wealth to support family and community Develop a sense of responsible ownership Develop and realise creativity Culture of giving and sharing
  • 17. Family is the basis of society Love Life Lineage
  • 18. Family crimes  Adultery - chief cause of divorce and family break up  Unmarried mothers - every child has the right to a mother and a father  Child abuse and neglect  Especially common among step-families  Neglect of parents and grandparents  Government supplanting role of family in education, health, welfare, finance
  • 19. Role of government  Support traditional family Family and marriage law Tax system Favour marriage and children Inheritance Build up generational wealth and responsibility Social security system should not subsidise unmarried mothers Social services should be voluntary sector
  • 20. The family is the basis of society Familial collapse -> social collapse Society more than just families Social structures and institutions Distinction between family and society family based on affection - forgiveness society based on justice Affection in social relations -> corruption (nepotism) Legalism in family relations -> destruction
  • 21. Family  society Family expands  small society Affection declines as distance increases Scarcity of goods - selfishness/limitations to generosity -scarcity of desirable goods  destructive conflict  Need framework of commonly accepted rules
  • 22. The economic system Fulfilling the desire for goods to be able to live a comfortable life
  • 23. 1.Recognition and respect of ownership  Relationship between person and things  Relationship between people - property is a social convention  End of disputes - stability of possession  3rd blessing. Lord of Creation
  • 24. 2. Transfer of ownership  Rights over goods transferred by consent Can give things to someone Can sell things to someone  Market Place where transfer ownershp by exchange  Origin of money Convenient unit of exchange   division of labour and specialisation  Freedom and responsibility  Freedom within the law  2nd blessing - ethical relationships
  • 25. 3. Performance of promises  “My word is my bond”  Promise keeping  1st Blessing  Society as moral  Self-limitation - don’t be greedy  Natural rational expectations  Trust people including strangers  Free trade between strangers
  • 26. 3 Principles of justice, 3 Blessings, 3 Laws 1.Society of owners -3rd blessing - dominion over creation -Do not steal/misuse public money 2.Society as a market -2nd blessing - ethical relationships -Do not have immoral relationships 3.Society as moral -1st blessing - mind body unity -Do not hurt a person’s heart
  • 27. Economic crimes  Theft, robbery, stealing, fraud,  Denial of private property - nationalisation without compensation;  Unreasonable and punitive taxation including taxation for social engineering such as inheritance tax  Reneging on agreements - not paying salaries, invoices,  Breaking promises
  • 28. Role of government  Establish and maintain simple legal framework for free market.  Law of contract, laws against theft, fraud  Maintain independent judiciary  Independent central banks  Limited taxation  Government should not be involved in finance or the economy. Minimise bureaucracy and corruption
  • 29. Civil society Fulfiling the desire for social position and power
  • 30. Civil society Human desire to have position in society where can make a difference, unique contribution Multitude of institutions in civil society: Politics, businesses, charities, local government, religion, schools, hospitals etc. Civil society should be law governed Freedom of speech, movement, living, career Meritocracy
  • 31. Crimes against civil society Achieving position illegitimately Murder, coups Nepotism Cronyism Corruption, bribery Discrimination in public sector Totalitarianism
  • 32. Role of government Maintain an independent judiciary Maintain roads, sewers National defence Safety net welfare Government to protect way of life and not to engage in social engineering
  • 33. Educational system Fulfilling the desire for knowledge and understanding of the world we are to inhabit
  • 34. What is education? Education is the transaction between the generations when children are initiated into the world which they are to inhabit This is not just transfer of knowledge and skills It is most fundamentally learning to perform humanly
  • 35. Where does education take place?  Family Teach children how to behave To live a spiritual life How to think, not what to think or believe Skills Swimming, gardening, house maintenance, money management etc. School History, literature, language, religion Specialised knowledge, skills More complex thinking
  • 36. Educational crimes Failing to pass on the wisdom of the ages- treason of intellectuals Dumbing down Indoctrination Not graduating with qualifications and skills Information without values, purpose, meaning
  • 37. Schools should be . . . Independent - self-governing and not controlled by the state Financed by fees, scholarships, vouchers Free to specialise and set curricula Not for indoctrination - religious or political Follow public exams set by universities and other professional bodies
  • 38. Religion To satisfy the desire to worship
  • 39. Religion Acknowledgement of a dependence on a superhuman being expressed through acts of cult - worship of God Concerned with questions of meaning of life, right and wrong behavior, salvation Rituals to give meaning and sanctification to rites of passage such as marriage
  • 40. Religious crimes Idolatry Mistaking the relative for the absolute Sectarianism Bigotry Fundamentalism
  • 41. Role of government  Allowing religious freedom  Enable religious communities to be involved in law making, education and values
  • 42. Summary Human desire Social system Crime Experience love Family Adultery Material things Economy Stealing Position Civil society Murder Knowledge, thinking Education Falsehood, indoctrination Worship Religion Idolatry
  • 43. Renaissance Enlightenment Communism Reformation Second Reformation Liberal Democracy Maturation of politics, economy and ideology (1789-1918) Maturing of political structure, economy, Agricultural & industrial revolution Conflict between religion and philosophies Reformation and Renaissance Cain- type view Abel- type view
  • 44. Ideas have consequences Cain view of life French rationalism German idealism Materialism, atheism Abel view of life British empiricism Spiritual revival Totalitarian Democracy Liberal Democracy
  • 45. Cain-type democracy: totalitarian democracy France Powerful monarchy Justinian legal code Little democracy Revolution 1789 Atheistic Rationalistic Idealistic - remodel society Statist, collectivist Totalitarian
  • 46. Abel-type democracy: liberal democracy Anglo-Saxon England Witan, rule of law, freedom, separation of powers, value of the individual, tradition, custom, Christian Magna Carta 1215 Trial by jury, monarchy limited by law Parliament 1297 Government by consent English Civil War 1640 Abolition of arbitrary rule, religious freedom Glorious Revolution 1688 Parliamentary independence
  • 47. Separation of powers American Revolution 1776 Constitution, individual rights From the very beginning the separation of powers was to be characteristic of the ideal society which God has been working to realise to prevent the concentration of power in the hands of a single individual. EDP, 361 God Legislature Judiciary Executive Makes laws Executes policies Upholds justice With the establishment of constitutional democracy, the framework for the ideal political system was set up. EDP, 362
  • 48. Industrial revolution The Industrial Revolution which began in England arose out of God's providence to restore the living environment to one suitable for the ideal world. Promoted trade which led to empire Supported spreading of the Gospel
  • 49. Person is the model for society Brain Spine Nervous System Heart Lungs Stomach Limbs Cells God Christ Political leaders and parties Executive Legislative Judiciary Organizations Individuals In the ideal world, because people’s horizontal relationships with each other are rooted in their vertical relationship with God, they will form one integrated and interdependent society. EDP, 362
  • 50. What kind of economic system? In front of God all people have the same value God wants to provide a good environment and living conditions equally for all his children No destructive competition due to over production No unfair distribution leading to excessive accumulation and consumption EDP, 342 What kind of system?
  • 51. One where there is . . . Interdependence, mutual prosperity & universally shared values Original mind pursues socialist values Community Support Equality Freedom Democracy
  • 52. How has Satan been working? Satan has worked through fallen people to realise, in advance of God, a perverted form of the ideal society which God intends to realise. As a result in human history we witness the rise of unprincipled societies which are built upon twisted versions of the Principle. EDP, 329
  • 53. What kind of socialism? God’s plan is to develop a socialistic economy, although with a form and content utterly different from the state socialism and communism actually established. EDP, 341 Not a planned economy Not a welfare state Not a state educational system Not a state health system No state owned banks and industries Limited state social security
  • 54. Where do we find . . . Excessive production Communist and planned economies But planning is inherently impossible
  • 55. Why is planning impossible? Impossibility of calculation Ludwig von Mises, F.A. Hayek All knowledge is tacit knowledge Michael Polanyi, F.A. Hayek Knowledge for planning does not exist G.L.S. Shackle
  • 56. Where do we find . . . Excessive production Communist and planned economies But planning is inherently impossible Unfair distribution Feudalism where monarchy and aristocracy accumulate and consume excessively Socialism where state employees are at an unfair advantage
  • 57. What is a free market? A place where people can freely buy and sell without interference The price mechanism regulates production Too much lower price reduce production Too little high price increase production Price and market regulate distribution Goods sold to person willing and able to pay the market price
  • 58. The Principle and the free market economy Give and take Freedom and responsibility Three Blessings Promise keeping Law of contract Ownership of property Welfare and education organised within civil society Charity, business, cooperatives, insurance