Thoughts of Kautilya: The concept of good governance is not new to Indian civilization. Kautilya, in his famous treatise ‘Arthashastra’ mentions the most important trait of the ruler as “in the happiness of his subjects lies his happiness, in their welfare his welfare, whatever pleases himself, he does not consider as good, but whatever pleases his subjects he considers as good”. This thought essentially signifies the importance of welfare of people in the scheme of governance. 

Emergence of Good Governance: Since ancient times the state has performed functions pertaining to development, protection of sovereignty of the country and law and order. Gradually its functions started to increase and it became so enormous that it covered all aspects of the life of a citizen, it thus became a leviathan. It got burdened with all these functions which only grew in intensity and density with time. Thus, as a result the state was unable to perform all these tasks by itself. This consequently led to the oversight of various crucial elements of governance. Some of the important aspects of socio-economic development got ignored or overlooked. The administration worked from the ivory tower which was inaccessible and unresponsive to the needs and requirements of the people. Such a state of affairs called for immediate attention to governance reforms and in this background emerged the concept of ‘Good Governance.

Thrust due to globalisation: As the roots of globalisation started to deepen in the late 1980’s, the international institutions began to draw attention towards certain crucial deficiencies in the governance system of developing countries. These included, non-availability of information to the people, lack of accountability, poor management of public sector and lack of appropriate legal framework.

The concept of good governance has evolved over time and is rooted in the belief that the effective and responsible management of public resources and decision-making is necessary for the promotion of social, economic, and political development. 

The concept of good governance first gained prominence in the late 1980s and 1990s when the World Bank, the United Nations, and other international organizations emphasized its importance for achieving sustainable development and reducing poverty. It has since become a key focus in development initiatives and reforms, particularly in developing countries. Good governance is seen as a crucial factor in addressing issues such as corruption, inequality, and human rights abuses, and is considered an essential component for improving the well-being of citizens and promoting sustainable economic growth.

What is the essence of using ‘good’ before the term ‘governance’?

The use of “good” before the term “governance” implies a set of desirable qualities or characteristics that are considered essential for effective and responsible management of public resources and decision-making. 

• The essence of using “good” before governance is to emphasize that not all forms of governance are equal, and that there is a distinction between governance that is effective, transparent, accountable, and responsive to the needs of citizens, and governance that is corrupt, opaque, or unresponsive to the public. 
• By using “good” as a modifier, the concept of good governance emphasizes the importance of high standards and best practices in governance, and serves as a benchmark for evaluating the performance and effectiveness of existing governance systems.
• The use of “good” is therefore meant to highlight the key principles and characteristics that are seen as necessary for effective and responsible governance.

Good governance is thus seen as a means of promoting accountability, transparency, and participation in decision-making, and ensuring that the distribution of power and decision-making authority is fair and equitable. 

Good Governance as per World Bank

Good governance aims to expand the realm of public administration by transcending traditional governmental boundaries. In other words, it is a broad reform strategy to make the government more open, responsive, accountable and democratic; regulate the private sector and strengthen the institutions of civil society. It is the qualitative dimension of governanceIt combines the efficiency objectives of public management with the accountability aspects of governance. It highlights the fundamental characteristics of good governance, which include: 

• Voice and accountability, encompassing civil liberties and political stability
• Effectiveness of the government, which includes the quality of policy making and public service delivery
• The quality of the regulatory framework
• The rule of law which includes protection of property rights
• Independence of judiciary 
• Curbs on corruption.