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.

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.

This highly accessible book investigates the rankings that increasingly influence perceptions of countries' governance and civil rights.

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.

Why are carefully designed, sensible policies too often not adopted or implemented? When they are, why do they often fail to generate development outcomes such as security, growth, and equity? And why do some bad policies endure? World Development Report 2017: Governance and the Law addresses these fundamental questions, which are at the heart of development. Policy making and policy implementation do not occur in a vacuum. Rather, they take place in complex political and social settings, in which individuals and groups with unequal power interact within changing rules as they pursue conflicting interests. The process of these interactions is what this Report calls governance, and the space in which these interactions take place, the policy arena. The capacity of actors to commit and their willingness to cooperate and coordinate to achieve socially desirable goals are what matter for effectiveness. However, who bargains, who is excluded, and what barriers block entry to the policy arena determine the selection and implementation of policies and, consequently, their impact on development outcomes. Exclusion, capture, and clientelism are manifestations of power asymmetries that lead to failures to achieve security, growth, and equity. The distribution of power in society is partly determined by history. Yet, there is room for positive change. This Report reveals that governance can mitigate, even overcome, power asymmetries to bring about more effective policy interventions that achieve sustainable improvements in security, growth, and equity. This happens by shifting the incentives of those with power, reshaping their preferences in favor of good outcomes, and taking into account the interests of previously excluded participants. These changes can come about through bargains among elites and greater citizen engagement, as well as by international actors supporting rules that strengthen coalitions for reform.

In recent years, the developing world has seen a burst of efforts to reduce corruption, increase transparency and accountability, and improve governance. Needless to say, this is an important and encouraging development. However, the lack of a reliable compass to describe where a country is at a given moment—and where it could be heading in the absence or acceptance of proposed reforms—can result in disastrous missteps. The unfortunate absence of such a guide has helped lead to innumerable failed governments or ineffective regimes. This important book aims to fill that void. How to Improve Governance emphasizes the need for an overall analytical framework that can be applied to different countries to help analyze their current situations, identify potential areas for improvement, and assess their relative feasibility and the steps needed to promote them. A country-specific analysis needs to be comprehensive, in the sense that it includes the four concepts of transparency, accountability, governance, and anticorruption throughout the calculus. Without such an analytic framework, any reform attempt is likely to flounder for lack of a shared understanding of the underlying problems and of the feasible reforms. The book gives special emphasis to the potential for civil society groups to play a stronger role in holding governments accountable for their use of public resources, and to the importance of developing politically feasible, prioritized country strategies for reform. "Whether one looks at how to increase domestic demand for good governance, how to make government more accountable to the public, or how to build democratic processes that deliver results, the underlying issues are essentially the same.... As development actors of various types... seek to help, more and more of them are calling for a clearer conceptual framework to guide their efforts."—From the Introduction

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.