Governance, Development and Aid Effectiveness: A Quick Guide to Complex Relationships

The relationship between governance and development has risen up the international policy agenda. There is widespread agreement that governance matters, intrinsically and for improvements in economic and social outcomes. But what exactly is 'good governance'? In what ways and why does governance vary among countries? When, why and how do governance issues make a difference to the way countries develop? What are the priorities for poor countries? Why does governance matter for aid effectiveness and what can donors do?