The government effectiveness index is an index elaborated by the
World Bank Group
The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. It is the largest and best-known development bank in the world and an observer at the United Nations Development Gr ...
which measures the quality of public services, civil service, policy formulation, policy implementation and credibility of a government's commitment to raise these qualities or keeping them high. This index includes 193 countries ranked from -2.5 (less effective) to 2.5 (more effective). It is one in a broad set of government quality indicators.
The World Bank issues the government effectiveness index among other 5 worldwide governance indicators: voice and accountability, political stability, regulatory quality, rule of law and control of corruption.
All these indexes are produced by
Daniel Kaufmann, from the
Natural Resource Governance Institute
The Natural Resource Governance Institute (NRGI) is an independent nonprofit organization dedicated to improving countries' governance over their natural resources (in particular oil, gas and minerals) to promote sustainable and inclusive developm ...
, and Aart Kraay, from the World Bank Development Research Group.
These 6 indexes are considered as dimensions of governance.
Methodology
The government effectiveness index uses 47 variables (ranging from quality of bureaucracy to distribution infrastructure of goods and services) from 32 sources (ranging from
African Development Bank
The African Development Bank Group (AfDB) or (BAD) is a multilateral development finance institution headquartered in Abidjan, Ivory Coast, since September 2014. The AfDB is a financial provider to African governments and private companies ...
to Global Insight Business Conditions and Risk Indicators). These variables are then rescaled and combined through the
unobserved components model.
Significance
As an aggregate measure, the government effectiveness index does not allow to spot specific problems of a country or to analyse particular solutions, but it is a useful tool to compare countries in a broad sense, to measure the improvement of a particular country, or to ascertain trends.
Government effectiveness shows a high
correlation with
life satisfaction
Life satisfaction is a measure of a person's well-being, assessed in terms of mood, relationship satisfaction, achieved goals, self-concepts, and self-perceived ability to cope with life. Life satisfaction involves a favorable attitude towards one ...
, GDP per capita and education expenditure. Guisan
[ concludes that it fosters development.
]
See also
* Governance
Governance is the process of interactions through the laws, norms, power or language of an organized society over a social system ( family, tribe, formal or informal organization, a territory or across territories). It is done by the gove ...
* World Governance Index
References
Index numbers
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