The essence of democracy is that it is a process of careful deliberation and choice among diverse social groups and individuals. Private firms and individuals make most private decisions, such as buying and selling of goods and services. But the major public choices demand wide participation and debate, involving not just governmental agencies but also diverse, representative and accountable non-governmental organizations. A main objective of good governance as it relates to participation is to encourage a political leadership that reflects and promotes ideals of good citizenship, such as informed participation, compassion and fairness. Well-informed and wider participation by citizens is facilitated by transparency and openness.
Participation also helps to ensure greater accountability.
Further, many studies show that wider participation also leads to public policies that match better the particular needs of citizens. Such policies are viewed as more legitimate and representative. They tend to be implemented more fully and thus more effectively than policies crafted through narrower, less inclusive debate. Fourth, good governance is built on the rule of law. Modern societies, especially those in cities, are extremely complex.