TAILIEUCHUNG - The Worldwide Governance Indicators: Methodology and Analytical Issues

Sometimes solidarity groups study the Women in Business manuals or other reading materials together. In some village banks the solidarity group members screen each other’s loan proposals and give suggestions. They can recommend to the management committee whether or not a loan should be granted. If one of the members of a solidarity group is having a problem with her business the others might help her make her loan payment. Or if one of the members has to go to the market for buying or selling, another member might look after her children. Since the women in a. | Draft Policy Research Working Paper The Worldwide Governance Indicators Methodology and Analytical Issues Daniel Kaufmann Brookings Institution Aart Kraay and Massimo Mastruzzi World Bank September 2010 Access the WGI data at Abstract This paper summarizes the methodology of the Worldwide Governance Indicators WGI project and related analytical issues. The WGI cover over 200 countries and territories measuring six dimensions of governance starting in 1996 Voice and Accountability Political Stability and Absence of Violence Terrorism Government Effectiveness Regulatory Quality Rule of Law and Control of Corruption. The aggregate indicators are based on several hundred individual underlying variables taken from a wide variety of existing data sources. The data reflect the views on governance of survey respondents and public private and NGO sector experts worldwide. We also explicitly report margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. We find that even after taking margins of error into account the WGI permit meaningful cross-country and over-time comparisons. The aggregate indicators together with the disaggregated underlying source data are available at . dkaufmann@ akraay@ mmastruzzi@. The findings interpretations and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the Brookings Institution the International Bank for Reconstruction and Development World Bank and its affiliated organizations or those of the Executive Directors of the World Bank or the governments they represent. The Worldwide Governance Indicators WGI are not used by the World Bank for resource allocation. Financial support from the World Bank s Knowledge for Change trust fund and the Hewlett Foundation is gratefully acknowledged. We would like to thank .

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