For any country developed or undeveloped, high income or low income, presence of government in a form (communist or democratic) plays an important role in shaping the wellbeing of individuals. There are certain sectors which are essential for people but not attractive to private sectors. Even when the private sectors do participate there profit making motive distorts the social implications of these sectors. Therefore role of government becomes important as they ensure provision of these goods at the price suitable for all. Such sectors helps shaping the quality of human capital of the capital. Hence suitability of a governing system is examined on the basis of how effectively it is distributing these resources. This paper has tried to examine the effect of governance on HDI index by using series of regression and analysis of data.