Bad governance is a relationship between those who govern and those who are governed as a consequence of decision-making. This unfavourable relationship is created as a consequence of external factors or decisions such as violation of central or acceptable norms, such as those of liberal democracy, and bad economic policy:. Bad governance collectively encompasses governance in government and corporate settings. It is the opposite of good governance. Bad governance addresses governance in a government setting but bad governance and bad government are different concepts. Bad governance encompasses a variety of situations from corruption, deceit and to passing of unfair policy. From this, it can be noted that different manifestations of bad governance can vary in severity and the potential impact in their respective setting. The World Bank has identified key indicators of governance which are used as a method to measure bad governance.
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Bad governance is centralised around the idea of not only corruption within a system but a lack of transparency and accountability, arbitrary policy making and the cheating of those who are governed.