Over the past decade, the international community has increasingly recognised the centrality of “good governance” to poverty reduction and sustainable development.

The DAC's work in the area of governance is carried out primarily through its Network on Governance (GOVNET), an international forum that brings together practitioners of development co-operation agencies, both bilateral and multilateral, as well as experts from partner countries. The GOVNET aims at improving the effectiveness of donor assistance in support of democratic governance.

It provides members with a policy forum for exchanging experiences and lessons, as well as identifying and disseminating good practice, and developing pro-poor policy and analytical tools, relating to the reform of institutions, the dynamics of change and the interplay of checks and balances, and issues surrounding domestic accountability and respect for human rights. Consistent with the Paris Declaration on Aid Effectiveness (2005), the GOVNET promotes partner country ownership, aligned and co-ordinated donor approaches, results and mutual accountability.

The GOVNET’s work covers a range of governance issues, including human rights, transparency, accountability, participation and equality, anti-corruption, taxation and governance, governance assessments and capacity development in support of these elements of democratic governance. It also covers relationships between the state, citizens, civil society and the private sector.

The membership of the GOVNET is composed of representatives from responsible Ministries of DAC members and observers, experts from developing countries, international NGOs and policy research institutes. The GOVNET works in collaboration with other DAC subsidiary bodies such as the International Network on Conflict and Fragility (INCAF) and draws on, and contributes to, horizontal work within the OECD on a broad range of issues of governance and policy coherence.