As discussed earlier, the quality of governance is partly identified by the government
effectiveness in implementing sound policies, efficient delivery of public goods and
services and enforcement of rules uniformly. The government’s role extends to the
establishment of property rights, police protection units, judiciary, national defense,
regulation of market activity and so on which are theoretically categorised as public
goods. The availability and quality of public goods is viewed as instrumental for
development in developing countries. The lack of publicly provided infrastructure in
turn has been shown to constitute an important bottleneck for the development of
private firms (Reinikka and Svensson 2002)