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Governance Matters III: Governance Indicators for 1996–2002

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Note: The latest indicators, which supersede all previously posted indicators, are available at www.govindicators.org

by D. Kaufmann A. Kraay, and M. Mastruzzi (2003) • World Bank Policy Research Working Paper 3106

This paper presents estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. We assign these individual measures of governance to categories capturing key dimensions of governance, and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. We present the point estimates of the dimensions of governance as well as the margins of error for each country for the four periods. We have also prepared a powerpoint presentation and a brief synthesis paper, which can also be downloaded from this page.

The governance indicators reported here are an update and expansion of our previous work, part of a research project on indicators initiated in 1998 (Kaufmann, Kraay and Zoido-Lobatón 1999a,b and 2002). We also address various methodological issues, including the interpretation and use of the data given the estimated margins of error.

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Note: The updated indicators for 1996–2004, available in May 2005, supersede the previously posted indicators for 1996-2002 and can be accessed here.

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