ABSTRACT
The last 20 years have been characterised by far-reaching reform of the public sector. No public institution has been left intact and the relation between institutions, local government and central government has shifted significantly, with the consequent erosion of local government influence in certain key areas and a sharp increase overall in the privatisation of publicly owned institutions. These changes have had a profound effect on the way in which public institutions are managed and governed and the way in which managers and governors perceive their responsibilities. ‘Governance’ is one of the keywords associated with these changes in structure and perception. The shift from ‘government’ to ‘governance’ is significant: current usage does not treat the two words as synonymous. Indeed, governance highlights a significant shift in the meaning of government: what governance refers to is a new approach to government; a new method of ordered rule; a new conception, even, of who governs whom.
