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At the outset of the 21st century, confidence in the effectiveness and legitimacy of established forms of governance is ebbing. This article considers historical developments in governance, the driving forces likely to transform governance worldwide and the policies that might have the best chance of enhancing governance capacities in line with the desires and needs of the future. Challenges and propects are discussed which entail the dual policy of: encouraging a virtuous circle between governance and technological, economic and social dynamism; and targeting improvements in learning infrastructure, the frameworks for establishing confidence, and the standards (mission/values) within which society functions. By improving the capacity to make and implement decisions throughout society these policies are likely to provide one of the main stepping stones to the realization of people’s aspirations in the 21st century.

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