Local economic activities serving good governance in rural areas

The aim of this study is to give an overview on the concepts and practices of governance and good governance in the world with the recent Hungarian research results. It has always an important issue how good governance can lead to the development and catching up of rural areas, how it can translate economic growth to the welfare of people. Good governance has been placed high on the agenda of development policies, since it is supposed to create an environment in which sustained economic growth becomes achievable. Therefore, good governance has key importance in the development of rural areas which are mainly disadvantaged regions of Hungary and their sustainable development is a must. However, based on their current resources and socio-economic status, rather recession can be observed instead of their development. Several studies have been made in relation to the development potentials of Hungarian rural areas, calling attention on endogenous development strategies. This paper intends to focus on the role of good governance in achieving the expected targets.