Uses and Abuses of Governance Indicators
by Christiane Arndt & C. Oman
Publisher: OECD, Paris
Rapidly rising attention to the quality of governance in developing countries is driving explosive growth in the use of governance “indicators” by international investors, donors of official development assistance, development analysts and academics. This study helps both users and producers of governance indicators to understand the strengths and weaknesses of the best and most widely used indicators, helps them find their way through the jungle of the hundreds of existing governance indicator datasets, and shows how governance indicators tend to be widely misused both in international comparisons and in tracking changes in the quality of governance in individual countries. It also explains recent developments in the supply of governance indicators, arguing that while there will never be one perfect governance indicator, the production and use of more transparent governance indicators will better serve the needs of users and developing countries alike.