Good governance is an indeterminate term used in development literature to describe how public institutions conduct public affairs and

manage public resources in order to guarantee the realization of human rights.[1] Governancedescribes "the process of decision-making and the process by which decisions are implemented (or not implemented)".[1] The term governance can apply to corporate, international, national, local governance[1] or to the interactions between other sectors of society. The concept of "good governance" often emerges as a model to compare ineffective economies or political bodies with viable economies and political bodies.[2] Because the most "successful" governments in the contemporary world are liberal democratic states concentrated in Europe and the Americas, those countries' institutions often set the standards by which to compare other states' institutions.[2] Because the term good governance can be focused on any one form of governance, aid organizations and the authorities of developed countries often will focus the meaning of good governance to a set of requirement that conform to the organizations agenda, making "good governance" imply many different things in many different contexts.[3][4][5]

Forms
In international affairs, analysis of good governance can look at any of the following relationships:[3] between governments and markets, between governments and citizens, between governments and the private or voluntary sector, between elected ofcials and appointed ofcials, between local institutions and urban and rural dwellers, between legislature and executive branches, and between nation states and institutions.

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.[3] [edit]

Reform and standards

Three institutions can be reformed to promote good governance: the state, the private sector and civil society.[6] However, amongst various cultures, the need and demand for reform can vary depending on the priorities of that country's society.[7] A variety of country level initiatives and international movements put emphasis on various types of governance reform. Each movement for reform establishes criteria for what they consider good governance based on their own needs and agendas. The following are examples of good governance standards for prominent organizations in the international community. [edit]

IMF
See also: Structural adjustment

The International Monetary Fund (IMF) declared in 1996 that "promoting good governance in all its aspects, including by ensuring the rule of law, improving the efciency and accountability of the public sector, and tackling corruption, as essential elements of a framework within which economies can prosper."[8] The IMF feels that corruption within economies is caused by the ineffective governance of the economy, either too much regulation or too little regulation.[8]To receive loans from the IMF, countries must have certain good governance policies, as determined by the IMF, in place.[8] [edit]

UN

The UN ag

The United Nations emphasizes reform through human development and political institution reform.[9] According to the UN, good governance has eight characteristics.[1] Good governance is[1]: [edit] Consensus Oriented Participatory following the Rule of Law Effective and Efcient Accountable Transparent Responsive Equitable and Inclusive

World Bank
Main article: Worldwide Governance Indicators The World Bank is more concerned with the reform of economic and social resource control. [9] In 1992, it underlined three aspects of society which they feel affect the nature of a country's governance:[9] 1. 2. 3. type of political regime; process by which authority is exercised in the management of the economic and social resources, with a view to development; and capacity of governments to formulate policies and have them effectively implemented.