In development policy, international organizations have shifted their focus to the importance of good governance and sound institutions. The theory behind this is that only with a high quality of government (QoG) can a country reap the benefits of economic growth and social development. We review the research behind this policy shift and offer a first benchmark statistical analysis. The first section contains a review of the conceptual discussion of what QoG means. Second, we present four salient approaches pertaining to the outcomes of QoG: the debates concerning QoG and democracy, economic growth, corruption, and the rule of law. The third section uses insights gained from these debates to focus on the policy outcomes of QoG—its effects on social well-being, public health, and environmental sustainability. We conclude by discussing possible pitfalls in future research on QoG and development.