Worldwide Governance Indicators (WGI)

Introduction

To improve governance, it must first be measured. The WGI project combines the views of a large number of enterprises, citizens and expert survey respondents, drawn from over 30 data sources, including surveys, NGOs, commercial risk-rating agencies and public sector organizations.

The six dimensions

The WGI group the six indicators into three pairs, following the World Bank's definition of governance:

• The process by which governments are selected, monitored and replaced: (1) Voice and Accountability; (2) Political Stability and Absence of Violence/Terrorism.
• The capacity of the government to effectively formulate and implement sound policies: (3) Government Effectiveness; (4) Regulatory Quality.
• The respect of citizens and the state for the institutions that govern economic and social interactions: (5) Rule of Law; (6) Control of Corruption.

How scores are reported

• Each indicator is reported as a percentile rank, showing the percentage of countries ranking below a given country.
• The indicators also include an estimate on a standard normal scale (roughly −2.5 to +2.5) and margins of error.
• Because of margins of error, small changes from year to year are often not statistically significant.

Uses

• Comparing countries and tracking changes over time.
• Guiding aid allocation and reform priorities.
• Academic research on governance and development.
• Used by bodies such as the US Millennium Challenge Corporation in eligibility decisions.

Limitations

• Based mainly on perceptions, which may be biased or lag behind real changes.
• Aggregates many sources, which can hide what exactly is being measured.
• Does not tell governments what specific reforms to make.
• Critics argue it reflects the views of business and Western experts.

Pakistan's overall position

Pakistan generally ranks in the bottom third of countries on most WGI dimensions, with its weakest scores on political stability and absence of violence, and relatively better (though still below average) scores on voice and accountability and government effectiveness. Pakistan's figures here are approximate recent ranges; check the latest annual release of the Worldwide Governance Indicators for exact values.

Conclusion

The WGI give a useful broad picture of governance, but they should be combined with more specific, actionable indicators to guide reform.