The World Bank popularised the concept of Good Governance in the 1990s. It deals with improving both qualitative and quantitative aspect of the governance framework in which the people can achieve their true potential and maximum welfare of the people is realised.

It ensures effective use of resources and deliverance of services to citizens and also provides social legitimacy to the system. So, the concept of Good Governance goes beyond the concept of Governance.

As per the UNESCAP, the characteristics of Good Governance are as follows:

1. Participation: Participation by people of all race, caste, creed, and gender in governance ensures that the rights of citizens are respected and citizens feel obligated towards their duties at the same time.
   
   
2. Rule of Law: This provides a suitable framework for good governance and ensures that human rights are protected and weaker sections feel safe.
   
   
3. Transparency: It is important that the citizens are aware of the functioning of the government. The access to information and its free availability ensures fairness in decision making and implementation.
   
   
4. Responsiveness: The institutions of the government ensure that the citizens are served in a reasonable time frame by removing unnecessary delays in decision making and implementation.
   
   
5. Consensus-Oriented: The diverged interests are reconciled and the consensus is reached for maximum welfare of the society accounting for both short-term and long-term interests.
   
   
6. Equity and Inclusiveness: The government takes care of interests of all its citizens and special care is given for most vulnerable groups such as minorities, SC/STs, women, etc. so that they don’t feel side-lined from the mainstream.
   
   
7. Effectiveness and Efficiency: Good governance calls of optimal utilisation of resources at disposal. The wastage is minimised and sustainable development is encouraged.
   
   
8. Accountability: It is crucial that both public and private institutions are accountable to their stakeholders and uphold the interest of the public at large.
   
   

Over the time the government has taken steps like Constitutionalising Panchayati Raj, formulating Citizens’ Charters, enacting RTI Act, promoting Cooperative Federalism, launching programs like Pro-Active Governance and Timely Implementation (PRAGATI), and even celebrating December 25th as “Good Governance Day” each year. However, the outcome is not commensurate with the initiatives taken. This can be gauged from the poor service delivery in India. The challenges to good governance are corruption, criminalization of politics, lingering administrative reforms, lack of IT infrastructure in many departments etc. Therefore, the mechanisms and institutions promoting the Good Governance must be strengthened over the time.