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Governance Indicators: Where Are We, Where Should We Be Going?

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  • Daniel Kaufmann
  • Aart Kraay

Abstract

Progress in measuring governance is assessed using a simple framework that distinguishes between indicators that measure formal rules and indicators that measure the practical application or outcomes of these rules. The analysis calls attention to the strengths and weaknesses of both types of indicators as well as the complementarities between them. It distinguishes between the views of experts and the results of surveys and assesses the merits of aggregate as opposed to individual governance indicators. Some simple principles are identified to guide the use and refinement of existing governance indicators and the development of future indicators. These include transparently disclosing and accounting for the margins of error in all indicators, drawing from a diversity of indicators and exploiting complementarities among them, submitting all indicators to rigorous public and academic scrutiny, and being realistic in expectations of future indicators. Copyright The Author 2008. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / the world bank . All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org, Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal The World Bank Research Observer.

Volume (Year): 23 (2008)
Issue (Month): 1 (January)
Pages: 1-30

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Handle: RePEc:oup:wbrobs:v:23:y:2008:i:1:p:1-30

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References

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  1. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
  2. Charles Oman & Christiane Arndt, 2006. "Governance Indicators for Development," OECD Development Centre Policy Insights 33, OECD Publishing.
  3. Mireille Razafindrakoto & François Roubaud, 2006. "Are international databases on corruption reliable? A comparison of expert opinion surveys and household surveys in sub-Saharan Africa," Working Papers DT/2006/17, DIAL (Développement, Institutions et Mondialisation).
  4. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank.
  5. Omar Azfar & Peter Murrell, 2005. "Identifying Reticent Respondents: Assessing the Quality of Survey Data on Corruption and Values," Electronic Working Papers 05-001, University of Maryland, Department of Economics.
  6. Knack, Stephen, 2006. "Measuring corruption in Eastern Europe and Central Asia : a critique of the cross-country indicators," Policy Research Working Paper Series 3968, The World Bank.
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Citations

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Cited by:
  1. Clist, Paul, 2011. "25Years of Aid Allocation Practice: Whither Selectivity?," World Development, Elsevier, vol. 39(10), pages 1724-1734.
  2. Gaoussou Diarra & Patrick Plane, 2011. "Assessing the World Bank's influence on the good governance paradigm," Working Papers halshs-00555814, HAL.
  3. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2009. "Governance matters VIII : aggregate and individual governance indicators 1996-2008," Policy Research Working Paper Series 4978, The World Bank.
  4. Quibria, M.G., 2014. "Governance and Developing Asia: Concepts, Measurements, Determinants, and Paradoxes," ADB Economics Working Paper Series 388, Asian Development Bank.
  5. Thai, Mai Thi Thanh & Turkina, Ekaterina, 2014. "Macro-level determinants of formal entrepreneurship versus informal entrepreneurship," Journal of Business Venturing, Elsevier, vol. 29(4), pages 490-510.
  6. Bold, Tessa & Gauthier, Bernard & Svensson, Jakob & Wane, Waly, 2010. "Delivering service indicators in education and health in Africa : a proposal," Policy Research Working Paper Series 5327, The World Bank.
  7. Amavilah, Voxi Heinrich, 2009. "Globalization, governance, and the economic performance of Sub-Saharan Africa," MPRA Paper 15600, University Library of Munich, Germany.
  8. Oehler-Sincai, Iulia Monica, 2008. "Strengths And Weaknesses Of The New Public Management (NPM)- Cross-Sectional And Longitudinal Analysis," MPRA Paper 11767, University Library of Munich, Germany.
  9. Gupta, Sanjeev & Kangur, Alvar & Papageorgiou, Chris & Wane, Abdoul, 2014. "Efficiency-Adjusted Public Capital and Growth," World Development, Elsevier, vol. 57(C), pages 164-178.
  10. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "Governance Matters VI: Aggregate and Individual Governance Indicators, 1996-2006," Policy Research Working Paper Series 4280, The World Bank.
  11. David Hulme & Antonio Savoia & Kunal Sen, 2014. "Governance as a global development goal? Setting, measuring and monitoring the Post-2015 Development Agenda," Brooks World Poverty Institute Working Paper Series esid-032-14, BWPI, The University of Manchester.
  12. World Bank, 2008. "Local Gains from Global Opportunities : Improving Central America's Investment Climate," World Bank Other Operational Studies 7959, The World Bank.
  13. Razafindrakoto, Mireille & Roubaud, François, 2010. "Are International Databases on Corruption Reliable? A Comparison of Expert Opinion Surveys and Household Surveys in Sub-Saharan Africa," World Development, Elsevier, vol. 38(8), pages 1057-1069, August.
  14. Mary-Françoise Renard, 2011. "Working Paper 126 - China’s Trade and FDI in Africa," Working Paper Series 297, African Development Bank.
  15. Amavilah, Voxi Heinrich, 2008. "Domestic resources, governance, global links, and the economic performance of Sub-Saharan Africa," MPRA Paper 11193, University Library of Munich, Germany.
  16. Rubio, Gloria M., 2011. "Measuring governance and service delivery in safety net programs," Social Protection Discussion Papers 64633, The World Bank.

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