Governance refers to exercise of power and authority by political leaders for the well being of their citizens and subjects. It also ensures a leader’s actions and policies to ensure development of both the society and nation as whole.

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Good governance is understood through its eight indicators or characteristics:

• Participatory:
  • Good governance essentially requires participation of different sectors of the society. The management of highly complex societies and of their ever growing needs requires a participatory form of governance by diffusing power.
  • The move for decentralization is a response to this as it widens the base of participation and allows local government units to exercise governmental powers directly within their respective districts.
  • This means freedom of association and expression and an organized civil society should go hand in hand.
• Rule of Law: Democracy is essentially the rule of law. It is through the law that people express their will and exercise their sovereignty.
• Effective and Efficient: Good governance requires that the institutions, processes, and actors could deliver and meet the necessities of the society in a way that available resources are utilized well. That the different actors meet the needs of the society means that there is effective
• Transparent: Transparency, as an indicator of good governance, means that people are open to information regarding decision-making process and the implementation of the same.
• Responsive: Responsiveness means that institutions and processes serve all stakeholders in a timely and appropriate
• Equitable and Inclusive: Equity and inclusiveness means that all the members of the society, especially the most vulnerable ones or the grassroots level, must be taken into consideration in policy-making.
• Consensus Oriented: Governance is consensus oriented when decisions are made after taking into consideration the different viewpoints of the actors of the society. Mechanisms for conflict resolution must be in place because inevitably conflict that will arise from competing interests of the actors.
• Accountability: Accountability means answerability or responsibility for one’s action. It is based on the principle that every person or group is responsible for their actions most especially when their acts affect public interest.

“Good” governance promotes gender equality, sustains the environment, enables citizens to exercise personal freedoms, and provides tools to reduce poverty, deprivation, fear, and violence. The UN views good governance as participatory, transparent and accountable. It encompasses state institutions and their operations and includes private sector and civil society organizations.

Good governance is significant in public institutions to conduct and manage public affairs and resources to guarantee human rights in free of abuse and corruption, and with due regard for the rule of law.