Political theory is significant in understanding governance as it provides frameworks for analyzing power, authority, and the relationship between state and society. Theoretical perspectives, such as liberalism, conservatism, and socialism, help contextualize governmental structures and policies. By examining the philosophical underpinnings of governance, political theory facilitates critical debates about justice, rights, and the common good. Additionally, it informs practical policy decisions and can inspire movements aimed at reforming or redefining existing systems, making it indispensable for an informed citizenry.