UNDP defines governance as the exercise of economic, political and administrative authority to manage country's affairs at all levels. It comprises the mechanisms, processes and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences.
Good governance is, among other things, participatory, transparent and accountable.
It is aslo effective and equitable. And it promotes the rule of law. Good governance ensures that political, social and economic priorities are based on broad consensus in society and the voices of the poorest and the most vulnerable are heard in decision making over the allocation of development resources. Government vs. Governance Governance is a broader term not restricted to governments or territories. Governance for Sustainable Human Development refers to different governance mechanisms contributing to Sustainable Human Development.