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Scholars, policymakers, aid donors, and aid recipients acknowledge the importance of good governance for development. This understanding has spurred an intense interest in more refined, nuanced, and policy-relevant indicators of governance. In this paper we review progress to date in the area of measuring governance, using a simple framework of analysis focusing on two key questions: (i) what do we measure? and, (ii) whose views do we rely on? For the former question, we distinguish between indicators measuring formal laws or rules 'on the books', and indicators that measure the practical application or outcomes of these rules 'on the ground', calling attention to the strengths and weaknesses of both types of indicators as well as the complementarities between them. For the latter question, we distinguish between experts and survey respondents on whose views governance assessments are based, again highlighting their advantages, disadvantages, and complementarities. We also review the merits of aggregate as opposed to individual governance indicators. We conclude with some simple principles to guide the refinement of existing governance indicators and the development of future indicators. We emphasize the need to: transparently disclose and account for the margins of error in all indicators; draw from a diversity of indicators and exploit complementarities among them; submit all indicators to rigorous public and academic scrutiny; and, in light of the lessons of over a decade of existing indicators, to be realistic in the expectations of future indicators.
This study helps users find their way through the jungle of governance indicators, and shows how they tend to be widely misused both in international comparisons and in tracking changes in individual countries.
Abstract: Governance is central to development outcomes in infrastructure, not least because corruption (a symptom of failed governance) can have significantly negative impact on returns to infrastructure investment. This conclusion holds whether infrastructure is in private or public hands. This paper looks at what has been learned about the role of governance in infrastructure, provides some recent examples of reform efforts and project approaches, and suggests an agenda for greater engagement - primarily at the sector level - to improve governance and reduce the development impact of corruption. The discussion covers market structure, regulation, state-owned enterprise reform, planning and budgeting, and project design.
Abstract: The authors report on the latest version of the worldwide governance indicators, covering 213 countries and territories and measuring six dimensions of governance from 1996 until end-2005: voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law, and control of corruption. The latest indicators are based on hundreds of variables and reflect the views of thousands of citizen and firm survey respondents and experts worldwide. Although global averages of governance display no marked trends during 1996-2005, nearly one-third of countries exhibit significant changes [for better or for worse] on at least one dimension of governance. Three new features distinguish this update. (1) The authors have moved to annual reporting of governance estimates. This update includes new governance estimates for 2003 and 2005, as well as minor backward revisions to biannual historical data for 1996-2004. (2) The authors are, for the first time, publishing the individual measures of governance from virtually every data source underlying the aggregate governance indicators. The ready availability of the individual data sources underlying the aggregate governance indicators is aimed at further enhancing the transparency of the methodology and of the resulting aggregate indicators, as well as helping data users and policymakers identify specific governance challenges in individual countries. (3) The authors present new evidence on the reliability of expert assessments of governance which, alongside survey responses, form part of the aggregate measures of governance.
Indicators and rankings are widely used by governments and organisations to assess the effectiveness, efficiency, and success of policy decisions. This book evaluates the creation of indicators, their impact on policy decisions, and the implications of their use.
Spreading good governance is a key goal of political leaders and reformers — whether it is to improve cities, nations, regimes or institutions — because better-governed people are more likely to avoid civil conflict and obtain significant social returns. But just what is meant by “governance” at the national or international level? Is it a fuzzy concept, or is it a clear set of rules or norms? How can it help to strengthen societies and drive better policy? On Governance: What It Is, What It Measures and Its Policy Uses answers these questions. By proposing new theories for national and global governance, examining more than 90 governance indexes and analyzing best practices in governance, this volume suggests how policy makers can use governance theory and governance indexes to improve both domestic and multilateral decision making. World order depends on strengthened governance. On Governance spells out the meaning and the potential benefits of governance innovation for civil society and national policy makers. Building on the measured effects of policies in many dimensions of human existence, this book provides a guide to creating more positive outcomes for people everywhere.
Developing countries commonly adopt reforms to improve their governments yet they usually fail to produce more functional and effective governments. Andrews argues that reforms often fail to make governments better because they are introduced as signals to gain short-term support. These signals introduce unrealistic best practices that do not fit developing country contexts and are not considered relevant by implementing agents. The result is a set of new forms that do not function. However, there are realistic solutions emerging from institutional reforms in some developing countries. Lessons from these experiences suggest that reform limits, although challenging to adopt, can be overcome by focusing change on problem solving through an incremental process that involves multiple agents.
With the advance of an increasingly globalized market, the opportunities for, and scale of, corruption is growing. The size of corporations and their wealth relative to nations provides the resources for corrupt practices. The liberalization of international financial markets makes transferring and hiding the proceeds of corruption easier. Moves towards privatization in East and West are providing once-only incentives for corruption on an unprecedented scale, as officials not only deal with the income of the state, but with its assets as well. In this book, Transparency International's (TI) world-renowned 'Corruption Perception Index' (CPI) and 'Bribery Perception Index' (BPI) are explained and examined by a group of experts. They set out to establish to what extent they are reliable measures of corruption and whether a series of surveys can measure changes in corruption and the effectiveness of anti-corruption strategies. The book contains a variety of expert contributions which deal with the complexity, difficulty and potential for measuring corruption as the key to developing effective strategies for combating it.
Updated governance indicators report estimates of six dimensions of governance for 175 countries in 2000-01. They can be compared with those constructed for 1997-98.
Abstract: The Worldwide Governance Indicators, reporting estimates of six dimensions of governance for over 200 countries between 1996 and 2005, have become widely used among policymakers and academics. They have also attracted some explicit written criticisms. In this short paper the authors synthesize 11 critiques offered by four recent papers. They then refute them as either conceptually incorrect or empirically unsubstantiated.