Chapter 69. Governance and Development In this chapter we discuss whether or not governance is an important source of variation in development experiences. We draw four main conclusions. First governance is best thought of a subset of institutions and as such emphasis on governance is consistent with much recent academic work. Nevertheless governance is a quite vague rubric which is difficult to unbundle. Second the governance of a society is the outcome of a political process and as such is closely related to the literature on the political economy of development. Third improving governance necessitates understanding the nature of the entire political equilibrium. Finally an important research frontier is understanding the forces that create or impeded endogenous changes in governance.