The exercise of public authority in a way that is participatory, accountable, transparent, responsive, effective, equitable and follows the rule of law, so that public resources are managed for the welfare of all.
Governance refers to the process by which decisions are made and implemented, involving not just government but also civil society, markets and communities. The adjective "good" was attached in the late 1980s when international lenders, starting with the World Bank's 1989 report on Sub-Saharan Africa, concluded that development aid often failed because of corruption, weak institutions and poor accountability. Good governance became a condition attached to loans and a goal in its own right.
Critics argued that the agenda sometimes promoted a narrow, market-oriented view of the state. Over time, the concept broadened to include human rights, participation and equity. In India, the idea resonates with older traditions: Kautilya's Arthashastra describes the king's duty to promote the welfare of subjects ("in the happiness of his subjects lies the king's happiness"), and Gandhi's idea of Ram Rajya imagined a just, ethical polity. The Second Administrative Reforms Commission made citizen-centric administration the theme of its twelfth report.
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