A. Good governance consists of two key elements. The first element is state capacity, the ability of a government to efficiently execute the tasks it intends to. In the case of a charter city, this refers to the ability of the governing authority to build and maintain public goods like transportation infrastructure, water systems, and power generation; collect tax revenue; and maintain the rule of law. The second element of good governance is the extent to which a government’s policies support the functioning of markets and inclusive economic growth. The governing authority should facilitate economic activity, rather than place harmful restrictions upon it. Registering a business, investing in a business, resolving disputes, trading across borders, paying taxes, and other such activities should be free of overly burdensome regulations or compliance processes.