This article argues that good governance is a concern if a society is in possession of the political, legal, and administrative institutions which make it possible to enact and implement policies that can broadly be understood as public goods. It suggests that, in many cases, good governance does not only refer to certain qualities of government institutions, but also to governments' interaction with the various sections of the private sector, and that it can be produced by the government alone, but that in many cases there is a need for collaboration with business and/or voluntary organizations. The article concludes that good governance is based in a normative theory which gives some orientation for what should be regarded as good.