1 / 29

Setting the Governance ‘Straw Man’ and Challenging Orthodoxies

Governance Matters – Power of Data Challenging Orthodoxies on Democracy, Corruption and Poverty Daniel Kaufmann and Colleagues Seminario Democracia y Desarrollo Vallalolid, Spain, March 7-8. Setting the Governance ‘Straw Man’ and Challenging Orthodoxies.

alexa
Download Presentation

Setting the Governance ‘Straw Man’ and Challenging Orthodoxies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Governance Matters – Power of Data Challenging Orthodoxies on Democracy, Corruption and PovertyDaniel Kaufmann and Colleagues Seminario Democracia y DesarrolloVallalolid, Spain, March 7-8

  2. Setting the Governance ‘Straw Man’ and Challenging Orthodoxies • Good Governance and Democracy a Luxury good? • Democracy necessarily rapid growth? • Improved Governance = Control of Corruption? • Failed States = Dysfunctional Bureaucracy • Administrative Bribery main Corruption problem? • Unreliability & Unavailability of Data in governance? These orthodoxies will be answered in the negative and suggestions for strategic approach put forth.

  3. Broadening Analytical Framework: Governance: A working definition • Governance is the process and institutions by which authority in a country is exercised: (1) the process by which governments are selected, held accountable, monitored, and replaced; (2) the capacity of governments to manage resources efficiently, and to formulate, implement, and enforce sound policies and regulations; and, (3) the respect for the institutions that govern economic and social interactions among them

  4. Operationalizing Governance: Unbundling its Definition into Components that can be measured, analyzed, and worked on Each of the 3 main components of Governance Definition is unbundled into 2 subcomponents: • Voice and Accountability • Political Stability and lack of Violence&Terror • Quality Regulatory Framework • Government Effectiveness • Control of Corruption • Rule of Law We measure these six governance components…

  5. Control of Corruption: one Aggregate Indicator (selected countries from 155 worldwide, for illustration, based on 1998 research data*) Good Corruption Control Margin of Error Corruption Level GOOD POOR Source: ‘Governance Matters’, PRWP 2196 by Kaufmann, Kraay and Zoido. http://www.worldbank.org/wbi/governance/

  6. ‘Traffic Light’ World MapsRule of Law – 2000/01 Source for data: http://www.worldbank.org/wbi/governance/govdata2001.htm ; Map downloaded from : http://info.worldbank.org/governance/kkz/gov2001map.asp Colors are assigned according to the following criteria: Red, 25% or less rank worse; Orange, between 25% and 50%; Yellow, between 50% and 75%; Light Green between 75% and 90% ; Dark Green above 90%

  7. Rule of Law Index, 2001 (preliminary, selected countries): Failed States, in Crisis, Vulnerable, Out of Danger… Poor Good Rankings were calculated on the basis of 2001 country estimates. Source: KKZ01. Preliminary

  8. ‘Traffic Light’ World MapsVoice and Accountability – 2000/01 Source for data: http://www.worldbank.org/wbi/governance/govdata2001.htm ; Map downloaded from : http://info.worldbank.org/governance/kkz/gov2001map.asp Colors are assigned according to the following criteria: Red, 25% or less rank worse; Orange, between 25% and 50%; Yellow, between 50% and 75%; Light Green between 75% and 90% ; Dark Green above 90%

  9. ‘Traffic Light’ World Maps Control of Corruption – 2000/01 Source for data: http://www.worldbank.org/wbi/governance/govdata2001.htm ; Map downloaded from : http://info.worldbank.org/governance/kkz/gov2001map.asp Colors are assigned according to the following criteria: Red, 25% or less rank worse; Orange, between 25% and 50%; Yellow, between 50% and 75%; Light Green between 75% and 90% ; Dark Green above 90%

  10. ‘Traffic Light’ Map – Latin AmericaControl of Corruption – 2000/01 Source for data: http://www.worldbank.org/wbi/governance/govdata2001.htm ; Map downloaded from : http://info.worldbank.org/governance/kkz/gov2001map.asp Colors are assigned according to the following criteria: Red, 25% or less rank worse; Orange, between 25% and 50%; Yellow, between 50% and 75%; Light Green between 75% and 90% ; Dark Green above 90%

  11. Mapa “Luz de Semaforo” – America LatinaControl de la Corrupción – 2000/01, Ajustado por Ingreso Fuente de datos: http://www.worldbank.org/wbi/governance/govdata2001.htm ; Grafico bajado de : http://info.worldbank.org/governance/kkz/gov2001map.asp Los colores estan assignados de acuerdo a los siguientes criterios: Rojo, 25% o menos ; Naranja, entre 25% y 50%; Amarillo, entre 50% y 75%; Verte, mas de 75%

  12. ‘Traffic Light’ Map – Latin AmericaVoice and Accountability – 2000/01 Source for data: http://www.worldbank.org/wbi/governance/govdata2001.htm ; Map downloaded from : http://info.worldbank.org/governance/kkz/gov2001map.asp Colors are assigned according to the following criteria: Red, 25% or less rank worse; Orange, between 25% and 50%; Yellow, between 50% and 75%; Light Green between 75% and 90% ; Dark Green above 90%

  13. Mapa “Luz de Semaforo” – America LatinaVoz y Rendición de Cuentas – 2000/01, Ajustado por ingreso Fuente de datos: http://www.worldbank.org/wbi/governance/govdata2001.htm ; Grafico bajado de : http://info.worldbank.org/governance/kkz/gov2001map.asp Los colores estan assignados de acuerdo a los siguientes criterios: Rojo, 25% o menos ; Naranja, entre 25% y 50%; Amarillo, entre 50% y 75%; Verte, mas de 75%

  14. Per Capita Income and Infant Mortality and Corruption Regulatory Burden 12,000 90 80 10,000 70 8,000 60 50 6,000 40 4,000 30 20 2,000 10 0 0 Weak Average Good Weak Average Good Development Regulatory Burden Control of Corruption Development x x Dividend Dividend Literacy and Rule of Law Per Capita Income and Voice and Accountability 100 10000 9000 8000 75 7000 6000 50 5000 4000 3000 25 2000 1000 0 0 Weak Average Good Weak Average Strong Development Development Rule of Law x x Voice and Accountability Dividend Dividend The ‘Dividend’ of Good Governance :

  15. Lower Income Households ‘Pay’ Disproportionally Bribe/Total Income ratio % ( A Latin American Country )

  16. Citizen Voice Improves Accessibility of Public Services to the Poor Based on Public Officials Survey. The sample of institutions includes 44 national, departmental, and municipal agencies which are a prior anticipated to be accessible to the poor

  17. Citizen Voice Helps Control Bribery in country in LatAm Based on 90 national, departmental, and municipal agencies covered in the Bolivia Public Officials Survey.

  18. Transparency within Government Agencies Prevents Purchase of Public Positions Based on 90 national, departmental, and municipal agencies covered in the Public Officials Survey.

  19. Defining and Measuring State Capture Elite firms illicitly shape rules of the game to their advantage, particularly through: • private purchase of legislative votes • private purchase of executive decrees • private purchase of court decisions • Illicit influence of Central Bank regulations/policies • illicit political party financing

  20. Measuring State Capture

  21. …at an enormous Socio-Economic Cost

  22. Do Foreign Firms bring Good Governance?

  23. Towards a Solution:More Political Competition Pace of Econ Reform Political Reforms

  24. Towards a Solution: Collective Action by Firms

  25. Strategic Implications for Debate • Prioritized, Differentiated ‘Comprehensiveness’ • Governance Indicators as strategic input, for Monitoring, for lessons from failures and successes • Need to complement with in-depth country diagnostic • Addressing challenge of State Capture (not just gov’t…) • Upgrade role of private/business sector / associations • Citizen Voice and Transparency as key developmental variables -- Collective Action & Power of Data Synthesis: IG = K.I + PL + CA(also for donors…) Webtool access to data, charts, analysis and methods: http://www.worldbank.org/wbi/governance/

  26. Data Presented for Analysis and informing Policy Advise, not for Precise Rankings The data contained in this presentation originates from various enterprise surveys (as well as outside expert rating agencies) and are subject to a margin of error. The purpose is therefore not to present precise comparative rankings across countries, but instead to illustrate characteristics of governmental and corporate performance in order to assist in drawing implications for action. No ranking of countries is intended in presenting results from these external sources by either the presenter of this work, the World Bank or its Board of Directors. Further details and data, visit: http://www.worldbank.org/wbi/governance

More Related