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The government effectiveness index is an index elaborated by the World Bank Group which measures the quality of public services, civil service, policy formulation, policy implementation and credibility of a government's commitment to raise these qualities or keeping them high. This index includes 193 countries ranked from -2.5 (less effective) to 2.5 (more effective). It is one in a broad set of government quality indicators. The World Bank issues the government effectiveness index among other 5 worldwide governance indicators: voice and accountability, political stability, regulatory quality, rule of law and control of corruption. All these indexes are produced by Daniel Kaufmann, from the
Natural Resource Governance Institute The Natural Resource Governance Institute (NRGI) is an independent nonprofit organisation, nonprofit organization dedicated to improving countries' governance over their natural resources (in particular oil, Natural gas, gas and minerals) to promo ...
, and Aart Kraay, from the World Bank Development Research Group. These 6 indexes are considered as dimensions of governance.


Methodology

The government effectiveness index uses 47 variables (ranging from quality of bureaucracy to distribution infrastructure of goods and services) from 32 sources (ranging from
African Development Bank The African Development Bank Group (AfDB) or (BAD) is a multilateral development finance institution headquartered in Abidjan, Ivory Coast, since September 2014. The AfDB is a financial provider to African governments and private companies in ...
to Global Insight Business Conditions and Risk Indicators). These variables are then rescaled and combined through the unobserved components model.


Significance

As an aggregate measure, the government effectiveness index does not allow to spot specific problems of a country or to analyse particular solutions, but it is a useful tool to compare countries in a broad sense, to measure the improvement of a particular country, or to ascertain trends. Government effectiveness shows a high correlation with
life satisfaction Life satisfaction is a measure of a person's well-being, assessed in terms of mood, relationship satisfaction, achieved goals, self-concepts, and self-perceived ability to cope with life. Life satisfaction involves a favorable attitude towards on ...
, GDP per capita and education expenditure. Guisan concludes that it fosters development.


See also

* Governance *
World Governance Index The World Governance Index (WGI) is an indicator developed in 2008 by the Forum for a new World Governance (FnWG). It aims to provide, year on year, a precise image of the situation of world governance and of its evolution. Based on the pictur ...


References

Index numbers {{Socio-stub