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Public management reforms have been a key factor in improving capacities of OECD countries to address issues such as budget deficits; external pressures on competitiveness, not least as a result of growing globalisation; perceived lack of public confidence in government; growing needs for services; and increasing demands for better and more responsive services.There is also a growing recognition that the current world financial crisis stems from weaknesses in the institutions of governance, and that durable solutions to this crisis need to address these governance problems.

Systems of governance affect the performance of the state in executing its core functions and through this, the performance of countries in meeting their major economic and social goals.

Governments create the conditions for functioning of markets, operation of private firms, strength of civil society, and welfare of communities and individuals.The quality of governance is recognised as fundamental to ensuring the quality of life of citizens.In its own right, good governance is important as a determinant of the sustainability and strength of democracies.
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