This paper deals with the nature of relation between democracy and governance and how do they vary with the terms of political discourse. The word “Govern” or “Governance” is derived from Greek word “kubernao” which means to lead, steer, conduct or guide. In the ancient time it was used by Plato to help ruler in decision making. For Indians it is not new. The concept was ruled by “Dharma” which was to ensure good and responsible government to people. The definition of Democracy is based on universal suffrage, procedural indicators of electoral democracy, unbiased choices among alternatives, voter preferences in elections, and these things becomes the basis for making holders of Government and Public offices without thinking whether the Government produced has good governance or not. It is accepted universally as the perfect form of government. These two concepts i.e. Governance and Democracy are based on different preferences so it can be said that good governance may or may not include democracy and democracy itself is not sufficient for good governance but they both are necessary for development of country. The 2000 Report of Human Development has described few important features of good governance. The paper also deals with the relationship of political parties with Governance and Democracy. The visions, systems and values promoted by the powerful political leaders play a vital role in governing an entire nation to encourage peace and development. Both democracy and good governance are equally necessary for a nation. The countries either with no or less democratic governance do face tremendous challenges and risks. The paper also covers the modern democratic system and the influence of political parties. The modern democratic prevailing in India is one of the appropriate ones for good governance.

Key words: Democracy, Political Parties, Government, Governance, Laws.

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