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What is good governance?
Governance is fundamentally another word for government and is a necessary precondition for development. It is how governments employ their authority to pass laws and exercise force for the usual good. It is concerned along with how:
• Rulers are choose, monitored and replaced for example through free and fair elections or like an outcome of a military coup
• The authorities efficiently control resources and implement policies as like are decision taken for vested interests or the common good
• Disputes are settled for example by the impartial rule of law or through force.
In the model with utilities W i = c i + α ln(x i ) where individuals are endowed with ability levels w p m R and form fractions π p , π m , π r with π m > π p , π r
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