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INTRODUCTION overnance includes the state, but transcends it by taking in the private sector and civil society. All three are critical for sustaining human development. The state creates a conducive political and legal environment. The private sector generates jobs and income. And civil society facilitates political and social interaction-mobilising groups to participate in economic, social and political activities. Because each has weaknesses and strengths, a major objective of our support for good governance is to promote constructive interaction among all three (UNDP Policy Document on Governance for Sustainable Human Development, Jan. 1997) overnance is a term that has been used in development literature only in recent years. The Oxford English Dictionary defines governance as the,” action or manner of governing.” From this very narrow meaning of the term, it is now used to describe various processes of …