Does governance matter?

The good governance is usually assumed to be necessary for good performance. This paper argues that the link between governance and performance is not obvious; that much that is written about governance is unclear and unhelpful and that performance depends greatly on the skills and behaviour of individuals rather than on governance structures or policies. I conclude that it is performance that tell us about effective governance rather than the other way round. This paper builds on some of the arguments set out in Fit and Proper? Governance in the public interest 2013.