ABSTRACT
Considering the poverty situation and the widening gap among developing countries, this author insists that the major cause is the domestic context of a good governance system, which is the result of modern state building of individual developing countries. Building a good governance system connects with building the “eff ective state” and “developmental state” for pursuing economic development, while coordinating and cooperating with private sectors including business and civil society. When the coordination and cooperation mechanism with civil society (community, NGOs, and media) works, it becomes the infrastructure of democracy. An eff ective and developmental state with a coordination mechanism is the result of building the “transformative capacity” of the state and it is the result of building qualifi ed bureaucracy with “sound” leadership of politics.
