Good governance is an indeterminate term used in the international development literature to describe how public institutions conduct public affairs and manage public resources. The term governance can apply to corporate, international, national, local governance or to the interactions between other sectors of society. The concept of “good governance” often emerges as a model to good corporate governance pdf ineffective economies or political bodies with viable economies and political bodies.
The concept centers on the responsibility of governments and governing bodies to meet the needs of the masses as opposed to select groups in society. Because countries often described as “most successful” are Western liberal democratic states, concentrated in Europe and the Americas, good governance standards often measure other state institutions against these states.
Aid organizations and the authorities of developed countries often will focus the meaning of “good governance” to a set of requirements that conform to the organization’s agenda, making “good governance” imply many different things in many different contexts. The varying types of comparisons comprising the analysis of governance in scholastic and practical discussion can cause the meaning of “good governance” to vary greatly from practitioner to practitioner.
The meaning of good governance in regards to corporate sectors varies between actors. Legislation has been enacted in an attempt to influence good governance in corporate affairs. Oxley Act of 2002 set up requirements for businesses to follow. Whistleblowing has also been widely used by corporations to expose corruption and fraudulent activity.
Good governance in the context of countries is a broad term, and in that regards, it is difficult to find a unique definition. They both complement, in the sense that when the state is more capable, for instance through the collection of taxes, there should be more autonomy because the bureaucrats are able to conduct things well without being instructed with a lot of details. In less capable states, however, less discretion and more rules setting are desirable. Another way to think about good governance is through outcomes.