Abstract
Good governance has now become a buzzword in the political economy. It contributes to accelerating the overall development including human development. Its role in making effective delivery of social and public services is crucial. This paper analyzes the relationship between good governance and human development and its importance based on published data, documents, and theories. The concept of governance and human development emerged after the failure of economic growth based development to reduce poverty and inequality around 1980. Consequently, the UN proposed the concept of a human development approach to fulfill the voids created by past development. It is believed that the proper function of governance in terms of political, economic and administrative can create sound development. Rule of Law, participation, public accountability and responsiveness, transparency, equity and inclusion, efficiency, and decentralization are a key institutional framework for good governance. These principles are structured to perform well-functioning for the assigned goals and objectives. If the institution performs good governance, human development can easily be achieved, and ultimately, sound human development enhances good governance The prospect of good governance and sound human development for developing countries like Nepal is inevitable for economic development.

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