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“Governance is a broader concept than government and it refers to the process that involves formal institutions and those of the so-called civil society. Institutions are the expression of public authorities (governments), civil society is the social fabric constituted by a multiplicity of units territorially created by the citizens” (definition given by "The Governance Working Group" of the International Institute of Administrative Sciences in 1996).

The Governance processes are based on interwoven relationships between Institutional, Human and Social Capitals.

Institutional Capital is constituted by decision-making processes, organisational capacity, support, services and resources, provided by the institutions that operate at whatever level of a social community.

Human Capital consists of individually possessed knowledge, skills and competencies acquired through learning, experiences, attitudes and values widely shared within a specific local context and transmitted from generation to generation.

Social Capital is a “relational capital”, a public good produced and shared by individuals and communities through mutual trust and benefit, participation and cooperation, formal and informal networks (from family to trade unions, trade associations, political, religious, socio-cultural, environmentalist organisations, etc.), norms, and so on.