Worldwide Governance Indicators vs. ‘Afro-Pessimism’: Lessons from an empirical perspective on governance in Africa countries Daniel Kaufmann & Aart Kraay, The World Bank www.worldbank.org/wbi/governance www.govindicators.org Background Handout for Presentation at the Center for Global Development Seminar, Jurys Hotel, Wash. DC, November 28th, 2007 Inputs and collaboration from Massimo Mastruzzi and staff from the World 1 Bank’s Africa region is acknowledged. Errors and views are the author’s. Issues: Empirics inform on Fallacies vs. Realities? Moving Away from Fallacies: • Unmeasurability of Governance & only rely on objective or ‘official’ data • ‘Afro-pessimism’ – lack of governance changes, and poor perfomers, or • ‘Irrational Exuberance’ – by focusing on growth in very recent short term, declaring victory prematurely • Generalizations about the whole African continent – excessive averaging • Governance a ‘Luxury Good’ Towards a new Reality: • Governance is measured • ‘Governance Matters’ for development • Understanding the variety and contrasts across countries in the continent • Learning from good performers: some leaders, countries, and institutions showing ‘the art of the possible’ • Role of the ‘Demand Side’ of Governance, & of the International Community 2 & Private Sector The ‘Long View’– Sobering but some hope… While Africa Stagnated, East Asia Soared GDP per capita: Africa & East Asia, 1960-2006/7 1600 1473 1400 East Asia & Pacific Low income Sub-Saharan Africa GDP per capita 1200 1000 800 605 509 600 400 200 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 -- Chart depicts income per capita in 2000 constant terms. In 1960, actual per capita income of East Asia region was $141, while Sub-Saharan Africa average was $432; in 1974 it was $202 and $595, respectively, in 1994 it was $677 and $486, and in 2006 it was $1473 for East Asia and $583 for Africa. 3 -- Source: WDI, Low-income economies are those in which 2006 GNI per capita was $905 or less (53 countries of which 33 from Sub-Saharan Africa). WHILE ON AVERAGE DISAPPOINTING, AFRICA’S FIVE FASTEST GROWING ECONOMIES STACK UP WELL WITH ASIA… 10% Africa Average Africa top performers Asia top performers China Annual GDP per capita growth, simple average 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% -1% 1960's Source: WDI, 1960-2005 1970's 1980's 1990's 2000~2005 4 Macroeconomic Management has improved Inflation Rates, 2000-06 (in %) 26 22 OilOil-Exporting Countries 18 14 Africa Average Oilimporting countries 10 6 2000 2001 Source: IMF, SSA Regional Economic Outlook. 2002 2003 2004 2005 2006 5 Growth has recently picked up in a number of countries in Africa, yet very diverse Eq. Guinea Angola Chad Sudan Nigeria Congo Gabon Mali Tanzania Uganda Ghana Lesotho Sierra Leone Rwanda Namibia Cameroon Burkina Faso Zambia Senegal South Africa Guinea Benin Malawi Seychelles Gambia Mauritania -4 Per Capita Growth: 2 - 3% 22% Per Capita Growth: 1 - 2% 13% Kenya Swaziland Madagascar Togo Niger Comoros Cote d'Ivoire Central African Burundi Eritrea Congo, Dem. Rep. Guinea-Bissau Zimbabwe Countries with per Capita Growth Rate >3% 13% % of total African Population Mozambique Botswana Sao Tome Mauritius Cape Verde Ethiopia Growth in Oil Rich Countries 28% 10% Per Capita Growth 0 - 1% 14% Negative Per Capita Growth -2 0 2 4 6 GDP per capita growth, 1996-2006 8 10 6 Source: Africa’s Silk Road (2007). Authors calculations based on 2007 ADI Report. Governance in Africa: work in progress • Governance defined and measured • The WGI, margins of error, and caution • Africa’s governance performance: diversity in levels and in trends – variance galore • Complementing aggregate WGI with other data sources • Some preliminary implications 7 What Is Governance?: the traditions and institutions by which authority in a country is exercised. This includes: • The process by which governments are selected and replaced: 1.Voice and Accountability 2. Political Stability & No Violence/Terrorism • Capacity of state to formulate and carry out good policies and deliver services 3. Government Effectiveness 4. Regulatory Quality • Respect of citizens and state for rules of the game 5. Rule of Law 8 6. Control of Corruption Worldwide Governance Indicators • Data on six dimensions of governance covering 212 countries over 1996-2006 • Based on hundreds of underlying indicators taken from 33 different data sources • Aggregate and individual indicators available interactively at www.govindicators.org, largest governance database • Full transparency on degree of imprecision: taking margins of error seriously • Unobserved Component Model (UMC) used to aggregate individual sources 9 Why Measure Governance? • Governance matters for: – Development outcomes – Effectiveness of foreign aid • WGI are not a “scorecard” or a “horserace” – entry point for serious empirical analysis • Data on governance empowers reformers and advocates for change – enables evidence-based policymaking 10 Whose Views Do the WGI Reflect? • WGI capture views of tens of thousands of stakeholders worldwide – household and firm survey respondents sharing their successful and failed interactions with governments – experts in NGOs, private and public sectors sharing their international perspective on governance successes and failures • WGI do not reflect views of World Bank – almost all data sources from outside WB – WB allocation of IDA resources based on CPIA 11 Sources of Governance Data • Cross-Country Surveys of Firms: Global Competitiveness Survey, World Competitiveness Yearbook, BEEPS • Cross-Country Surveys of Individuals: Gallup World Poll, Global Corruption Barometer, Latinobarometro, Afrobarometer • Expert Assessments from Commercial Risk Rating Agencies: Global Insight, Political Risk Services, BERI, Economist Intelligence Unit, Merchant International Group, IJET Travel Consultancy, Asia Risk Consultancy • Expert Assessments from NGOs, Think Tanks: Reporters Without Borders, Heritage Foundation, Freedom House, Bertelsmann Foundation, Amnesty International, IREX, Global Integrity, Binghamton University, International Budget Project • Expert Assessments from Governments, Multilaterals: World Bank CPIA, EBRD, AFDB, ADB, State Department, 12 OECD, IFAD Why Aggregate Indicators? Basic Premise: individual data sources provide a noisy “signal” of broader concept of governance, e.g.: – trust in police → RULE OF LAW – freedom of press → VOICE & ACCOUNTABILITY – bureaucratic quality → GOV’T EFFECTIVENESS Benefits of Aggregation • aggregate indicators are more informative about broad concepts of governance – simple intuition of averaging • less likely to generate extreme outliers • generate explicit margins of error for country 13 scores Three Principles for Using Governance Indicators 1. All indicators have measurement error – rely on variety of data sources – reduce noise by aggregation 2. There are no silver bullets – subjective/perceptions vs. objective/statutory – aggregate vs. individual indicators – regular cross-national monitoring/research vs. detailed country diagnostics/country policy advice – complements vs. substitutes 3. Links from policy actions to outcomes are complex – “actionable” versus “action-worthy” indicators 14 4 Governance Indicators, 2006, Some Regions 100 Voice & Accountability Government Effectiveness Regulatory Quality Control of Corruption Percentile Rank (0-100) 90 80 70 60 50 40 30 20 10 0 East Asia NICs ('T igers') East Asia developing Sub-saharan Former Soviet Africa Union Eastern Europe Latin America Source for data: 'Governance Matters VI: Governance Indicators for 1996-2006’, by D. Kaufmann, A.Kraay and M. Mastruzzi, June 2007 - www.govindicators.org. 15 Governance in Sub-Saharan Africa – Resource-Rich vs. Non Resource Rich Countries, 2006 100 Percentile Rank (0-100) OIL RICH COUNTRIES 80 OTHER (NON-OIL RICH) STRONG GROWTH PERFORMER (NON-OIL RICH) 60 40 20 0 Voice & Accountability Political Stability / Lack of Violence Government Effectiveness Regulatory Quality Rule of Law Control of Corruption 16 Source for data: 'Governance Matters VI: Governance Indicators for 1996-2006’, by D. Kaufmann, A.Kraay and M. Mastruzzi, June 2007 - www.govindicators.org. Oil Rich countries included Gabon, Congo, Nigeria, Chad, Sudan, Angola and Equatorial Guinea Control of Corruption, African countries, 2006 1.8 Good Control of Corruption Margins of Error Governance Level B O T SWA N A C A PE VER D E SO U T H A F R IC A MA U R IT IU S N A M IB IA R WA N D A G HANA ER IT R EA T A N Z A N IA M A D A G A SC A R SEN EG A L B U R K IN A F A SO SWA Z IL A N D ET H IO PIA MA L I MO Z A MB IQ U E MA U R IT A N IA G A MB IA UG ANDA MA L A WI Z A MB IA B EN IN G ABO N L IB ER IA C A M ER O O N G U IN EA N IG ER K EN YA TO G O CO NG O C EN T R A L A F R . R EP. BURUNDI SU D A N ANG O LA C O T E D 'IVO IR E CHAD N IG ER IA SIER R A L EO N E High Corruption Z IM B A B WE C o n g o , D em . R ep . EQ . G U IN EA -1.8 SO M A L IA 0 Source for data: 'Governance Matters VI: Governance Indicators for 1996-2006’, by Kaufmann, Kraay & Mastruzzi, June 2007 ,www.govindicators.org. Colors are assigned according to the following criteria: Dark Red: country is in the bottom 10th percentile rank (‘governance crisis’); Light17 Red: between 10th and 25th percentile rank; Orange: between 25th and 50th percentile rank; Yellow, between 50th and 75th; Light Green between 75th and 90th percentile rank; and Dark Green: between 90th and 100th percentile (exemplary governance). Estimates subject to margins of error. Control of Corruption, 2006: Africa Map Source for data: : 'Governance Matters VI: Governance Indicators for 1996-2006’, D. Kaufmann, A. Kraay and M. Mastruzzi, July 2007 18 (http://www.worldbank.org/wbi/governance/govdata/); Colors are assigned according to the following criteria: Dark Red, bottom 10th percentile rank; Light Red between 10th and 25th ; Orange, between 25th and 50th ; Yellow, between 50th and 75th ; Light Green between 75th and 90th ; Dark Green above 90th. Government Effectiveness, 2006: Africa Map Source for data: : 'Governance Matters VI: Governance Indicators for 1996-2006’, D. Kaufmann, A. Kraay and M. Mastruzzi, July 2007 19 (http://www.worldbank.org/wbi/governance/govdata/); Colors are assigned according to the following criteria: Dark Red, bottom 10th percentile rank; Light Red between 10th and 25th ; Orange, between 25th and 50th ; Yellow, between 50th and 75th ; Light Green between 75th and 90th ; Dark Green above 90th. Government Effectiveness, 2006: Selected Countries 20 Over-time Changes in WGI’s Voice & Accountability, selected African Countries, 1998-06 1.5 Unit Change 1 0.5 0 -0.5 NI GE R GH SIE AN A RR A LE ON E LE SO TH O KE GU NY IN A EA -B ISS AU MA LI NI GE RI A LIB ER IA CO NG O GA BO N EQ ET UA HI TO OP RI IA AL GU IN EA TA NZ AN IA CO TE D'I VO IR E ZIM BA BW E ER ITR EA -1 Source for data: 'Governance Matters VI: Governance Indicators for 1996-2006’, by D. Kaufmann, A.Kraay and M. Mastruzzi, June 2007 - www.govindicators.org. Dark and light Green reflect significant improvement at 90 and 75% confidence level, 21 respectively, and likewise regarding light and dark Red for deteriorations. By contrast, changes in Yellow (only selected countries shown) are not highly significant statistically (once margin of error taken into account). Governance Indicators for Ghana, 1998-2006 Source for data: : 'Governance Matters VI: Governance Indicators for 1996-2006’, D. Kaufmann, A. Kraay and M. Mastruzzi, July 2007 22 (http://www.worldbank.org/wbi/governance/govdata/); Colors are assigned according to the following criteria: Dark Red, bottom 10th percentile rank; Light Red between 10th and 25th ; Orange, between 25th and 50th ; Yellow, between 50th and 75th ; Light Green between 75th and 90th ; Dark Green above 90th. Governance Indicators for Mozambique, 1998-2006 Source for data: : 'Governance Matters VI: Governance Indicators for 1996-2006’, D. Kaufmann, A. Kraay and M. Mastruzzi, July 2007 23 (http://www.worldbank.org/wbi/governance/govdata/); Colors are assigned according to the following criteria: Dark Red, bottom 10th percentile rank; Light Red between 10th and 25th ; Orange, between 25th and 50th ; Yellow, between 50th and 75th ; Light Green between 75th and 90th ; Dark Green above 90th. Governance Indicators for Liberia, 1998-2006 24 Governance Indicators for Mali, 1998-2006 25 Governance Indicators for Zimbabwe, 1998-2006 Source for data: : 'Governance Matters VI: Governance Indicators for 1996-2006’, D. Kaufmann, A. Kraay and M. Mastruzzi, July 2007 26 (http://www.worldbank.org/wbi/governance/govdata/); Colors are assigned according to the following criteria: Dark Red, bottom 10th percentile rank; Light Red between 10th and 25th ; Orange, between 25th and 50th ; Yellow, between 50th and 75th ; Light Green between 75th and 90th ; Dark Green above 90th. Governance and Development • Is governance “better than expected” given low income levels in Africa? – 2/3 of countries in Africa fall “above the line” in a scatterplot of governance against per capita income doing relatively ok on governance? • This scatterplot interpretation (implicitly) assumes a strong positive effect of income on governance – but actually most if not all of the causation is in the other direction – better governance raises per capita income – Weak rationale for “income discount” for governance challenges in poor countries 27 Rule of Law and Per Capita Income 3 WGI Rule of Law 2006 2 y = 0.63Ln(x) - 5.45 R2 = 0.58 1 CPVBWA MUS NAM ZAF 0 100 -1 -2 -3 GHA LSO GMB MDG MLI SEN MRT MWI TZA STP BFA UGA BEN RWA ZMB ETH 1000MOZ DJI NER COM BDI KEN ERI TGO CMR LBR GNB SLE SDN COG NGA TCD CIVGIN CAF ZAR ZWE GAB SWZ 10000 100000 GNQ SOM GDP Per Capita in 2003, USD at PPP, log scale 28 Higher Income Does Not Cause Better Governance 3 WGI Rule of Law 2006 2 y = 0.63Ln(x) - 5.45 R2 = 0.58 1 CPVBWA NAM ZAF 0 100 -1 -2 -3 GHA LSO GMB MDG MLI SEN MRT MWI TZA STP BFA UGA BEN RWA MOZ ZMB ETH 1000 DJI NERKEN COM BDI ERI CMR TGO LBR GNB SLE SDN COG NGA TCD CIVGIN CAF ZAR ZWE SOM MUS GAB SWZ 10000 100000 GNQ Causal Effect of Income on Governance GDP Per Capita in 2003, USD at PPP, log scale 29 Governance Matters: The 300% ‘Dividend’ • Large Development Dividend of Good Governance: a one-standard-deviation improvement in governance (say, corruption control) raise incomes per capita in a country by about 300% in long-run • But is such a decline in corruption unrealistically large?: NO -- One S.D. is the difference from: Somalia → Togo or Guinea- Bissau → Namibia or Rwanda → Botswana or Portugal → Netherlands or Sweden • The impact is from governance to incomes, and not viceversa -- higher incomes alone will 30 not automatically do Governance Matters -- The ‘Development Dividend’ Isolating Causality: From governance to income log(Real GDP Per Capita) 3 Kaufmann-Kraay (2002) 2 Alcala-Ciccone (2004) Rodrik-Subramanian-Trebbi (2004) 1 Acemoglu-Johnson-Robinson (2000) 0 -3 -2.5 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 Rule of Law 2004 -1 -2 -3 31 Even in the Shorter Term African countries can benefit from improvements in Governance? Changes in Control of Corruption & Income per capita growth, 1998-06 Avg per capita growth rate 98-06 (%) 2 Governance Improving Countries r = 0.41 1 0 Corruption Control Deteriorating Corruption Control Improving 32 Source for data: 'Governance Matters VI: Governance Indicators for 1996-2006’, by D. Kaufmann, A.Kraay and M. Mastruzzi, June 2007 - www.govindicators.org, and World Bank database. The Africa sample excludes 7 oil-rich countries; the correlation is somewhat lower when included. Complementing WGI & Learning from Disaggregated Data Firms Speak: Top Constraints to Business, EOS 2006 % firms reporting constraint among top 3: 80 Average for Sub-Saharan African Countries in EOS 70 60 50 40 30 20 10 Fo M ar re ke ig n t Cu rr en In cy fr as tr uc tu Bu re Ed re au uc at cr ed ac y W or kf or W ce or k Po Et l hi i cy G cs ov I ns er ta nm bi en l it y ti ns ta bi l it y Cr im e Co rr up Ta ti o xR n eg ul at io ns Ta xr at es In fla tio n bo r La Fi na n cin g 0 Source: EOS 2006. The question posed to the firm was: Select among the above 14 constraints the five most problematic factors for doing business in your33 country. Note that the overall EOS sample covers 125 countries, and in some regions –particularly in the Middle East, Africa and the FSU, many countries are not surveyed. Thus, regional averages need to be interpreted with caution, since typically countries not surveyed tend to rate lower in governance than those surveyed. Unbundling Different Manifestations of Bribery, EOS 2006 % Firm Report High Bribery (1-3) 100 High Bribery Bribery in: Frequency of Bribery 80 Trade Permits Connection to Utilities Procurement Judiciary 60 40 20 Low Bribery 0 Botswana Kenya Rwanda South Africa Source: EOS firm survey, WEF2006. Questions: In your industry, how commonly firms make undocumented extra payments or bribes connected with permits / 34 utilities / taxation / awarding of public contracts / judiciary? (common…never occurs). How commonly do firms like yours make undocumented extra payments to lower level public servants / high ranking politicians, political parties, and senior public servants to secure business? Responsibility of the Private Sector & Multinationals on Anti-Corruption (% of Firms Reporting Procurement Bribery, 2006) 70605040302010-_________________________________________________________________ Multinational Domestic Firms in NON Location Multinational in operating outside OECD Countries of Firm: OECD, HQ in (comparable) another OECD OECD, HQ in OECD 35 Source: EOS2006. Questions: When firms like yours do business with the government, how much of the contract value must they offer in additional payments to secure the contract?”. Y-axis shows percentage of firms who admitted paying bribes. Last bar excludes small with less than 50 employees. Complementing WGI: Country-specific, in-depth Governance & Anti-Corruption diagnostic surveys • A demand-driven, participatory action-oriented process to improve governance • Key features: – – – – – Three surveys: households, firms, and public officials Questions focus both on experience and perceptions Questions are tested and adapted to local realities Rigorous technical requirements in implementation Local institution implements, with advise from outside • Outcomes: enhanced local capacity, baseline governance data, and action plan for policy reform • In Africa, examples of such diagnostics in Ghana, Zambia, Mozambique, Sierra Leone, Madagascar, Guinea, Nigeria, Malawi, Benin, and Burundi. 36 The power of diagnostic data and key dimensions for analysis 1. Participatory and Transparency Tool, for all stakeholders within the country to be involved 2. ‘Unpackage’ corruption – administrative, state capture, bidding, theft of public resources, purchase of licenses 3. Identify weak and strong institutions 4. Assess the costs of corruption on different stakeholders 5. Identify key determinants of good governance 6. Input to develop concrete policy recommendations 37 Corruption acts as regressive tax-- small firms pay more in bribes. Diagnostic Results from Guinea & Ghana (% of gross monthly revenue paid in bribes, reported by firms) 9 8 7 6 5 4 3 2 1 0 na ha G G ui ne a( (2 20 00 04 0) ) Small Medium Large 38 Governance Indicators, by agency (based on responses of public officials from 20 agencies, Guinea 2004) Audit Enforcement of Quality of Citizen Wage State Overall Politicization Resources Transparency Service Mechanisms Rules Rules Voice Satisfaction Capture Corruption Ministère de la justice Ministère de la Sécurité Ministère de l’Administration et de la Décentralisation Ministère des Finances Ministère de l’Enseignement Supérieurs et Recherche Scientifique Ministère de l’Urbanisme et Habitat Ministère de la Santé Publique Service Communal Service Sous Préfectoral Ministère de la Communication Ministère de la Jeunesse et Sports Ligue Islamique Nationale Ministère de l’Agriculture Ministère de l’enseignement Pré Universitaire Ministère de la Fonction Publique Organisation Non Gouvernementale (ONG) Entreprise Micro – Finance Ministère de l’Energie, Mines et Environnement 63 62 61 76 51 50 53 72 55 57 54 60 44 44 42 40 37 38 39 43 47 47 49 58 72 74 75 80 19 18 29 28 67 69 70 67 44 38 45 51 39 35 45 30 62 50 56 44 35 46 74 20 69 47 42 76 63 62 43 52 52 60 58 69 44 59 57 51 55 61 56 59 57 57 60 53 42 43 34 45 44 42 41 42 41 45 41 64 70 64 72 75 73 75 77 72 71 82 73 52 75 30 13 13 42 11 28 30 42 25 8 8 25 38 58 49 64 65 71 64 65 76 56 70 80 74 5 40 49 52 69 52 43 36 45 10 54 13 49 33 35 40 32 38 42 41 38 50 44 48 32 55 Whole Country 62 45 34 75 20 68 42 70 58 60 62 61 67 70 50 57 60 52 43 46 53 49 45 50 44 44 46 The indicators above take values between 0-100. To interpret them please keep in mind that: -The higher the value of the governance indicator the better the quality of that dimension . -The higher the value of the corruption index, the more severe the problem. 39 44 37 42 33 36 31 37 Concluding: Some Issues for Debate • Governance Matters, and so does Measuring it • Learning from considerable Country and Institutional Variation – in Africa & other regions • Candid & Realistic Role of Donors, Private Sector & Multinationals • Away from focus on symptoms and on superficial reforms by ‘fiat’ • Towards deeper Incentive-driven reforms • Back to basics?: Contestable Politics, Competition, Transparency, ‘Voice’ & Free Press; Judiciary Reforms 40 Concretely: 10 Transparency Reform Components 1. Public Disclosure of Assets & Incomes of Candidates, Public Officials, Politicians, Legislators - & dependents 2. Public Disclosure of Political Campaign contributions by individuals and firms, and of campaign expenditures 3. Public Disclosure of Parliamentary Votes, w/out exceptions 4. Effective Implementation of Conflict of Interest Laws, separating business, politics, legislation, & government 5. Publicly blacklisting firms bribing in public procurement 6. Effective Implementation of Freedom of Information Law, with easy access to all to government information 7. Fiscal/Financial transparency: EITI, budgets, ROSCs 8. E*procurement: transparency (web) and competition 9. Media Freedoms & Media Development 10. Country Diagnostic (& Scorecard) on Governance & A-C 41 Press Freedom (FRH) in Sub-Saharan Africa, 1995 vs. 2006 9 Not Free Part Free Free 47 % countries in 2006 44 15 % countries in 1995 Not Free Part Free Free 45 40 Source: 2006 Freedom House. Y axis measures percentage of countries in the region with free press (rating of 30 or below), partly 42 free (ratings between 30 and 60) and not free (rating above 60). In 1995 there were 45 countries divided into red (21), yellow (20) and green (4). In 2006 there were 47 countries divided into red (21), yellow (19) and green (7). FH Formal Democracies & Press Freedom, Africa, 2006 ‘Free Press’ ‘Democ racies’ ‘NonDemocr acies’ MALI, GHANA, MAURITIUS, SOUTH AFRICA, CAPE VERDE, SAO TOME & PRINCIPE, BENIN, NAMIBIA ‘Partly Free’ ‘Not Free’ BOTSWANA, KENYA BURUNDI, LIBERIA, MOZAMBIQUE LESOTHO ZAMBIA SENEGAL COMOROS GUINEA-BISSAU MADAGASCAR MALAWI SIERRA LEONE CENTRAL AFRICAN REPUBLIC NIGER SEYCHELLES BURKINA FASO, CONGO, TANZANIA, UGANDA, MAURITANIA, NIGERIA ANGOLA, GUINEA CAMEROON, IVORY COAST, GABON, DJIBOUTI, CHAD, TOGO, SWAZILAND, ETHIOPIA,GAMBIA, Congo DR, SUDAN, RWANDA, SOMALIA, EQUATORIAL GUINEA, ZIMBABWE, ERITREA 43 Source: Freedom House (FH) 2007 - Press categories based on press freedom ratings: 0-30=free; 31-60=partly free; 61-100=not free. Power of Data, Transparency and Citizen Oversight Tracking Education spending in Uganda equiv. US$ per student 3.5 3.0 Public info campaign 2.5 2.0 1.5 1.0 0.5 0.0 1990 1991 Intended grant 1993 1994 1995 1999 Actual grant received by primary school (means) Source: Uganda Public Expenditure Tracking Surveys 44 Nothing very new… ‘If it cannot be measured, it cannot be controlled’ Lord Kelvin ‘Not everything that counts, can be counted, and not everything that can be counted, counts’ Einstein 45 Data for Analysis and Informing Policy Advice, Not for Precise Rankings Any data on Governance, Institutions, and Investment Climate are subject to a margin of error. They are not intended for precise country rankings, but to highlight relative strengths and weaknesses and draw analytical and policy lessons. The data and indicators do not necessarily reflect official views on rankings by the World Bank or its Board of Directors. Errors are responsibility of the main authors. This presentation draws from collaboration and inputs from Massimo Mastruzzi as well as from staff from the Africa region. For access to the data and to bibliographical references, visit www.govindicators.org 46