Web 2.0 is improving governance, with or without the help of the government in question, and irrespective of whether the country is developed or not.
Throwing traditional wisdom to the winds, the Web 2.0 story is continuing to unfold in a way that was not predicted by researchers and experts of the development community and outside. Recently there have been more than a few examples related to the citizen-fueled proliferation of news, occurring independently of the Government, (and in some countries, even inspite of the opposition of the Government).
From Egypt to Syria, with the very start of the situation, social networks played a role in disseminating news across the world. Twitter, Facebook and blogs providing fascinating live coverage of the various uprisings across the world. Citizens are managing to circumvent any attempts to block Twitter, and often flood the site with their versions of the breaking stories. All major social networking tools are in full use, with Twitter leading the attack. Facebook (status updates and groups), Flickr (photographs), YouTube (videos), Blogger.com, and others communicating the ongoing events. (Of course, this is if you accept that democracy and good governance are highly correlated)