Abstract: Effective governance is the core of the implementation of China's rural revitalization strategy. Taking the development of rural collective economy in the central region as the research object, this paper analyzes the development characteristics, paths and governance effects of the collective economy, and establishes an analytical framework of "collective economy-effective governance". With various supports to the rural revitalization strategy implementation, the rural collective economy in central China has experienced rapid development, forming a small-scale but relatively stable "collective economy with basic living standard guarantees", which is also a new type of collective economy. This collective economy type adapts to the reality of rural development in the central and Western regions, and has a positive effect in promoting effective village governance, specifically in promoting the stable operation of village level organizations, maintaining the orderly supply of small and micro public goods, and providing basic public services for left-behind farmers. It is proposed that based on the reality of the collective economy development in the central and Western regions, China should promote the development of collective economy by classification and strengthen the collective planning capacity construction in village communities, so as to achieve effective village governance and avoid the practice mistakes of blindly "managing villages" in the collective economic development.