The concept of governance has been established in rural development models based on the balance between public powers and the citizenry in conjunction with the importance of society’s active, committed participation.

Governance and the formation of partnerships create a series of positive externalities that are beneficial to territorial development, such as improving technical and institutional capacities, defining agreed rules and commitments, creating shared social value, and developing management and agreement processes.

Governance allows for access to public services and the existence of institutions in territories by decreasing corruption, a lack of access to services, the presence of alternative forces of power, and the non-sustainable use of natural resources through other complementary mechanisms.

Good governance promotes equality, participation, pluralism, transparency, responsibility, and the rule of law, in such a way that it is effective, efficient and long-lasting (United Nations). 

“Territorial governance” refers to a society’s capacity to resolve issues and contribute to the development of its territories through the coordination and participation of various territorial actors, including (i) the state (multilevel vertical governance), (ii) civil society, (iii) territorial localized public agencies and (iv) the private sector (multilevel horizontal governance) (RIMISP, 2010).

Vertical governance implies coordination, consistency and complementarity between central, regional and local levels. Horizontal governance opens up the possibility of non-political social actors participating in debates and political decisions.