This chapter examines the concepts of governance and, specifically, good governance. The good governance agenda and the indices developed to assess governance have been criticized for being too encompassing and for not adequately distinguishing between how power is obtained (the input side of politics) and how power is exercised once in office (the output side of politics). Increasingly, scholars are calling for a separation between governance and democracy. The chapter first considers various conceptualizations of governance and good governance before discussing the link between governance and development, taking into account taxation in the developing world as well as the difference between earned and unearned revenue. It then explores corruption as a key governance challenge and concludes by assessing the relationship between democracy and governance.
