It's only words : validating the CPIA governance assessments
AbstractThis study analyzes the validity of the World Bank's Country Policy and Institutional Assessments governance ratings, an important factor in allocating the Bank's concessionary International Development Association funds. It tests for certain biases in the ratings, and examines the quality of the written justifications that accompany the ratings. The study finds no evidence of bias in favor of International Development Association-eligible countries, despite a potential moral hazard problem inherent in the ratings process. However, there is some evidence of an upward bias in ratings for one region, relative to the other five regions. The study finds significant regional differences in the quality of the written justifications accompanying the six World Bank regions'proposed ratings. The length of these write-ups has exploded over time. Although higher-quality write-ups are also longer on average, there is wide dispersion in the word count at any given quality level, and some long write-ups provide little relevant information. Higher quality write-ups are associated with a lower likelihood that central unit reviewers will either disagree with proposed ratings, or request additional information to assess the proposed rating. Controlling for quality, longer write-ups are associated with a greater probability that central reviewers will disagree with a proposed rating. Although checks and balances built into the process appear to work reasonably well, the author concludes that a more proactive role for central unit reviewers and regional chief economists'offices could further enhance the quality of write-ups and reduce regional bias.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 6526.
Date of creation: 01 Jun 2013
Date of revision:
Regional Economic Development; Banks&Banking Reform; National Governance; Governance Indicators; E-Business;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-05 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cagé, Julia, 2009. "Growth, Poverty Reduction and Governance in Developing Countries: a Survey," CEPREMAP Working Papers (Docweb) 0904, CEPREMAP.
- Collier, Paul & Dollar, David, 1999.
"Aid allocation and poverty reduction,"
Policy Research Working Paper Series
2041, The World Bank.
- Knack, Stephen, 2009. "Sovereign rents and quality of tax policy and administration," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 359-371, September.
- Oecd, 2002. "Aid volume, channels and allocations for poverty reduction," OECD Journal on Development, OECD Publishing, vol. 3(3), pages 33-46.
- Knack, Stephen & Rogers, F. Halsey & Eubank, Nicholas, 2011.
"Aid Quality and Donor Rankings,"
Elsevier, vol. 39(11), pages 1907-1917.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.