For any society to prosper, they have to conform to the norms of that particular social setup. But what is good government exactly? Good governance can be described as the process of making and implementing decisions. But one should note that it is not only the making of the decision that makes up good governance but the making of correct decisions. But the process of making these decisions should be good also for it to qualify as being good governance.
Good decision making and to a large extent good governance has several characteristics. It also has a positive impact on the various aspects of society that include the formulation of policies and practices, meeting procedures and ensuring effective service delivery.
Good governance is very important for some reasons. It not only gives confidence to the countries citizens and their structures but it improves the faith of all stakeholders in the governance process.
Impacts of good governance
Let us now look at some of the impacts that good governance can have both to citizens and the investing community as well.
When the government of the day makes the right decisions, this means decisions that are made transparently, and in an accountable manner, the people are most likely going to have increased confidence hence feel encouraged to invest into their economy.
It will also help the people to be more secure on their investment as they know that the government has their interests at heart no matter what.
Reduces cost of doing business
When there is good governance in a country, its economy will be affected positively. It will ensure that there is no corruption as this is what mostly drives up the cost of doing business in any country. Through a transparent system that is brought about by good governance, an investor can get an operating license within the stipulated time.
Development of infrastructure
When good governance is in place, the whole process is usually in place. That government will give infrastructure development a priority. When we have good infrastructure in the form of good road networks, uninterrupted and enough power that can run industries, then probably that particular country is going to encourage many investors to come and set up shop within their territory. This will not only lead to the development of the economy of that country, but it is going to draw many investors there.
Improved living standards
Good governance most likely will draw in more investors, the more people investing in an economy, the more jobs that will be created and this will lead to improved living standards among the citizens.
Availability of services in variety
With proper governance and a favorable investment environment, many providers of goods and services are going to set camp in that particular place. This will ensure that the population there and everybody at large is going to have a variety to choose from when it comes to goods and service.
The above factors go a long way in encouraging one to ensure that they have a government that has the interest of investors at heart. This will go a long way in improving the investment environment which will lead to increased investment which translates to an improved economy.