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How is good governance "measured"?
Changes in the standard of governance often happen gradually and are not easily "measurable". Within German development cooperation, key elements of good governance are assessed against a list of criteria devised specifically for the purpose by the Federal Ministry for Economic Cooperation and Development (BMZ). This enables a qualitative assessment of the governance situation in Germany's partner countries and an evaluation of their development orientation.
Numerous international organisations and institutions worldwide have developed instruments for evaluating and comparing the level of governance in different countries. As a result, a variety of indices have been created, some of which are described below.
World Bank Governance Matters Index
Since 1996 the World Bank Institute has been publishing its "Governance Matters Index", which rates 212 countries and territories on specified indicators. These include Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption.
Bertelsmann Transformation Index (BTI)
The Bertelsmann Transformation Index (BTI) evaluates 125 developing and transition countries. It rates the state of a country’s democracy and socially responsible market economy (the Status Index). It also evaluates each country’s management performance: how determined have the political actors been in implementing reform activities in their particular countries (the Management Index)? The Bertelsmann Transformation Index is published every two years.
Transparency International Corruption Perceptions Index
Since 1995 the non-governmental organisation Transparency International has published the Corruption Perceptions Index (CPI). On the basis of experts’ estimates and opinion surveys the annual list rates 180 countries according to the degree of corruption perceived to exist among politicians and holders of public office.
Failed States Index of The Fund for Peace and the magazine Foreign Policy
The Failed States Index, compiled since 2005 by The Fund for Peace (FFP) and Foreign Policy magazine, calculates the fragility level of individual states on the basis of social, economic and political indicators. 177 countries are currently covered by the Index.
CPIA – Country Policy and Institutional Assessment
All recipient countries of World Bank loans are rated according to the Country Policy and Institutional Assessment (CPIA) on their policies for economic growth and poverty reduction. The CPIA includes indicators on economic management, structural policies, policies for social inclusion and equity, and public sector management and institutions. The ratings result in a country ranking, and are also used as an indicator of fragile statehood. All low-income countries which score 3.0 or less (on the CPIA scale of 1 to 6) are classed as "Low-Income Countries Under Stress" (LICUS).
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