ABSTRACT

Good governance is defined as impartial governance or governance without regards to the personal preferences or relationships of those wielding authority. It manifests itself in the absence of corruption, a meritocratically selected and autonomous civil service and equality before the law. Impartiality means that the selection of public administrators should be based on merits and qualifications previously stipulated in law, rather than on personal relationships, political affinity or group membership. The quality of governance has been defined much more broadly. Because of their country coverage and over time comparability, most quantitative work has employed the World Governance Indicators published by the World Bank. Perceptions-based indicators have both strengths and weaknesses. Market inequality on the other hand emerges when income and wealth diverge in the context of voluntary market exchange. Equal opportunity policies such as public health and education can reduce market inequality insofar as they mitigate the impact of uncontrollable factors.