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6 - Governance matters VII: aggregate and individual governance indicators 1996–2007

from PART I - New actors and processes in contemporary standard setting

Published online by Cambridge University Press:  06 January 2010

Anne Peters
Affiliation:
Universität Basel, Switzerland
Lucy Koechlin
Affiliation:
Universität Basel, Switzerland
Till Förster
Affiliation:
Universität Basel, Switzerland
Gretta Fenner Zinkernagel
Affiliation:
Universität Basel, Switzerland
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Summary

Introduction

This paper presents the latest update of the Worldwide Governance Indicators (WGI) research project. The indicators measure six dimensions of governance: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. They cover 212 countries and territories for 1996, 1998, 2000, and annually for 2002–2007. The indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 35 separate data sources constructed by 32 different organisations from around the world. We assign these individual measures to categories capturing these six dimensions of governance, and use an unobserved components model to construct six aggregate governance indicators in each period.

As in the past, we complement our estimates of governance for each country with margins of error that indicate the unavoidable uncertainty associated with measuring governance across countries. These margins of error have declined over time with the addition of new data sources to our aggregate indicators, and are substantially smaller than for any of the individual sources. We continue to encourage users of the governance indicators to take these margins of error into account when making comparisons of governance across countries, and within countries over time. In particular, a useful rule of thumb is that when confidence intervals for governance based on our reported margins of error overlap in comparisons of two countries, or a single country over time, this suggests that the data do not reveal statistically (or for that matter practically) significant differences in governance.

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Chapter
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Publisher: Cambridge University Press
Print publication year: 2009

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References

Kaufmann, D., Kraay, A. and Zoido-Lobatón, P. (1999a). ‘Aggregating Governance Indicators’. World Bank Policy Research Working Paper No. 2195, Washington, D.C.
Kaufmann, D., Kraay, A. and Zoido-Lobatón, P. (1999b). ‘Governance Matters’. World Bank Policy Research Working Paper No. 2196, Washington, D.C.
Kaufmann, D., Kraay, A. and Zoido-Lobatón, P. (2002). ‘Governance Matters II – Updated Indicators for 2000/01’. World Bank Policy Research Working Paper No. 2772, Washington, D.C.
Kaufmann, D., Kraay, A. and Mastruzzi, M. (2004). ‘Governance Matters III: Governance Indicators for 1996, 1998, 2000, and 2002’. World Bank Economic Review. 18: 253–87.CrossRefGoogle Scholar
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Kaufmann, D., Kraay, A. and Mastruzzi, M. (2006a). ‘Measuring Governance Using Perceptions Data’, in Rose-Ackerman, Susan, ed. Handbook of Economic Corruption. Edward Elgar.Google Scholar
Kaufmann, D., Kraay, A. and Mastruzzi, M. (2006b). ‘Governance Matters V: Aggregate and Individual Governance Indicators for 1996–2005’. World Bank Policy Research Working Paper No. 4012. Washington, D.C.
Kaufmann, D., Kraay, A. and Mastruzzi, M. (2007a). ‘The Worldwide Governance Indicators Project: Answering the Critics’. World Bank Policy Research Working Paper No. 4149. Washington, D.C.
Kaufmann, D., Kraay, A. and Mastruzzi, M. (2007b). ‘Growth and Governance: A Reply/Rejoinder’. Journal of Politics. 69(2): 555–62.CrossRefGoogle Scholar
Kaufmann, D., Kraay, A. and Mastruzzi, M. (2007c). ‘Governance Matters VI: Aggregate and Individual Governance Indicators for 1996–2005’. World Bank Policy Research Working Paper No. 4280. Washington, D.C.
Kaufmann, D. and Kraay, A. (2008). ‘Governance Indicators: Where Are We and Where Should We Be Going?’ World Bank Research Observer. Spring 2008.
Meisel, N. and Ould Aoudia, J. (2007). ‘A New Institutional Database: Institutional Profiles 2006’. Documents de Travail de la DGTPE 2007/09.
Seligson, M. (2008). ‘The AmericasBarometer Approach to Measuring the Quality of Governance’. Lecture presented at the ‘Actionable Governance Indicators Conference’, World Bank, Washington, D.C. 24 April 2008.

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