In recent years there has been a surge of interest in governance: good governance
increasingly is seen as a vital adjunct to successful development efforts. This paper
attempts to explain what governance is and why it is important, and assess which
forms of governance are likely to best support and promote economic development.
Although economies with very different governance arrangements have
performed strongly in recent decades, a focus on governance is likely to bring out
some commonalities that may be helpful for 21st century policy-makers.