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The seminar that took place
on May 17, 2005 at the World Bank headquarters in Washington, DC, marked the launch
of the new World Bank report on governance indicators. The report is the fourth
in a series that started in the late nineties, when the World Bank launched the
worldwide Governance Indicators project, and which in addition to presenting an
ever expanding database on governance, has addressed a number of methodological
and analytical challenges. The report "Governance Matters IV: Governance
Indicators for 1996-2004" (by Daniel Kaufmann, Aart Kraay, and Massimo Mastruzzi)
was presented by co-authors Daniel Kaufmann, Director of the World Bank
Institute’s Global Programs and Aart Kraay, Lead Economist at the
World Bank’s Development Research Group.
They first presented on the methodology used to measure governance and elaborated on the margins of error that one should take into account in any dataset or study on governance and the investment climate. They also explained how the indicators of measuring good governance were selected and talked about the significance of these data. In this context, they outlined a new methodology to interpret the significance of changes over time.
The authors also presented some of the key findings of the report, in particular, that the report did not find worldwide significant changes on average, for better or worse. Yet, some countries and groups of countries have managed to improve significantly over the past 6 to 8 years, while others deteriorated. They also focused on the relationship between income levels and quality of governance, concluding with some insights on the role of the international community in supporting improvements in governance in the developing world.
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