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Wednesday, June 25, 2008

 

RP’s governance indicators lag in region

By Darwin G. Amojelar, Reporter

The Philippines’ ratings in the world governance indicators were poor compared to its Asian peers, dragged by weak political stability and corruption control, according to a World Bank report released on Tuesday.

In its Governance Matters 2008 report, the Washington-based lender said the Philippines scored lower in the overall Worldwide Governance Indicators (WGI) compared to its Asian neighbors, but better than Vietnam and Indonesia.

The indicators capture six dimensions of governance for more than 200 countries and territories in 2007. The six dimensions are voice and accountability, political stability and absence of violence or terrorism, government effectiveness, regulatory quality, rule of law and control of corruption.

The World Bank organizes and synthesizes data reflecting the views of thousands of stakeholders worldwide, including respondents to household and firm surveys, and experts from nongovernment organizations, public-sector agencies and providers of commercial-business information.

The report said the Philippines scored 10th percentile in political stability and absence of violence; control of corruption, 22nd percentile; rule of law, 34th percentile; voice and accountability, 43rd percentile; regulatory quality, 50th percentile; and government effectiveness, 56th percentile.

The multilateral lender said the country scores are in percentile ranks, with higher values indicating better governance ratings. Percentile ranks indicate the percentage of countries worldwide that score below each country. For example, the bank said a country with a percentile rank of 70 has 70 percent of countries scoring worse than it, and 30 percent of countries scoring better.

In Asian countries, the report said, controlling corruption in Singapore was higher at 96th percentile followed by South Korea, 68th percentile; Malaysia, 62nd percentile; India, 47th percentile; Thailand, 44th percentile; China, 31st percentile; Vietnam, 28th percentile; and Indonesia, 27th percentile.

In terms of political stability and absence of violence, the Philippines trailed other Asian countries, with Singapore, 90th percentile; South Korea, 62nd percentile; Vietnam, 56th percentile; Malaysia, 52nd percentile; China, 32nd percentile; India, 18th percentile; Thailand, 17th percentile; and Indonesia, 15th percentile.

The World Bank said good governance can be found at all income levels, with some emerging economies matching the performance of rich countries on key dimensions of governance. Over a dozen emerging countries, including Slovenia, Chile, Botswana, Estonia, Uruguay, Czech Republic, Hungary, Latvia, Lithuania, Mauritius and Costa Rica score higher on key dimensions of governance than industrialized countries, such as Greece or Italy. And in many cases, these differences are statistically significant.

But despite governance gains in some countries, overall quality of governance around the world has not improved much over the past decade, the World Bank report said.

Aart Kraay, co-author of the Worldwide Governance Indicators and lead economist in the Development Research Group of the World Bank, said the indicators and other efforts to measure governance are useful in prompting public discussion of governance challenges and successes.

“Better governance helps in the fight against poverty and improves living standards. Research over the past decade shows that improved governance raises development, and not the other way around. When governance is improved by one standard deviation, infant mortality declines by two-thirds and incomes rise about three-fold in the long run,” Kraay added.

Policymakers and civil-society groups worldwide use the governance indicators as a tool to assess governance challenges and monitor reforms. Scholars researching the causes and consequences of good governance also use them.

The World Bank said this year’s study is the seventh update of the Worldwide Governance Indicators, a decade-long effort by the researchers to build and update the most comprehensive cross-country set of governance indicators currently available.

   

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