Good governance in a liberal democracy relies on a 'democratic political system operating in conjunction with an accountable system of government'.170 In broad terms, it is a system that is transparent, accountable, just, fair, democratic, participatory and responsive to people's needs.171 This is different to the narrower idea of corporate governance, or the way large organisations are directed and controlled, where the focus is more on matters such as the responsibilities of directors and internal management functions.
This report considers the governance of infrastructure financing in terms of decision making and institutional arrangements in the democratic system.172
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170 J Buckley, The Art of Governance: Putting the Pieces Together, Global Education Centre Inc., Adelaide, 2002
171 Commonwealth Innovations (1999)
172 See also Public Accounts and Estimates Committee, Report on Corporate Governance in the Victorian Public Sector, May 2005