Good governance is increasingly being seen as a panacea for solving problems facing developing countries.
Although it is widely acknowledged that good governance is primarily a domestic issue, this study argues that foreign assistance can be a key component in its improvement.
External assistance may help recipient countries to promote good governance in several way.
The role of international donors is important in bringing reform, especially whet internal authorities willingly overlook such reforms.
Good governance reform incurs a huge financial investment.
Moreover, many governance reform issues require technical expertise not readily available in developing countries.
While donor support towards good governance can be useful in addressing all these issues, such support should nevertheless be judged in the light of actual contributions towards promoting good governance.