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

Posted: 7 Jul 2008  

Daniel Kaufmann

Natural Resource Governance Institute (NRGI); The Brookings Institution

Aart Kraay

World Bank - Development Research Group (DECRG)

Multiple version iconThere are 2 versions of this paper

Date Written: Spring 2008

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.

Keywords: H1, O17

Suggested Citation

Kaufmann, Daniel and Kraay, Aart, Governance Indicators: Where are We, Where Should We Be Going? (Spring 2008). The World Bank Research Observer, Vol. 23, Issue 1, pp. 1-30, 2008. Available at SSRN: https://ssrn.com/abstract=1156202 or http://dx.doi.org/lkm012

Daniel Kaufmann (Contact Author)

Natural Resource Governance Institute (NRGI) ( email )

80 Broad Street
New York, NY 10004
United States

HOME PAGE: http://www.resourcegovernance.org

The Brookings Institution ( email )

1775 Massachusetts Avenue, NW
Washington, DC 20036
United States

HOME PAGE: http://www.brookings.edu/experts/kaufmannd

Aart Kraay

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-5756 (Phone)
202-522-3518 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/akraay

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