In this paper, governance is defined as the manner in which power is exercised in the management of a country’s economic and social resources for development. “Good Governance” is then synonymous with sound development practices. Vital reforms for public expenditure may flounder if accounting systems are so weak that budgetary policies cannot be implemented or even monitored; if poor procurement systems encourage corruption and distort public investment priorities. This only illustrates a broader point; good governance is central to creating and sustaining an environment that fosters strong and equitable development. Governments play a key role in the provision of public goods. They establish the rules that make markets work efficiently, and they correct for market failure. In order to play this role, they need revenues, and ‘agents’ to collect these revenues. This in turn requires systems of accountability, adequate and reliable information, and further, efficiency in resource management and delivery of public services.

 

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