Good Governance Webinar

Worldwide Governance Indicators & Good

Governance Index
16 April 2021
Agenda

1 About DMEO

2 Global Indices for Reforms and Growth: Overview

3 Global Indices for Reforms and Growth: Implementation

4 Worldwide Governance Indicators

5 Conclusions

2
01
An Overview
Development Monitoring and Evaluation Office

3
Background: DMEO

• Established: September 2015 by merging the erstwhile Program Evaluation Office (PEO) and
the Independent Evaluation Office (IEO)
• Functions: DMEO is an attached office under NITI Aayog for fulfilling the mandates of
evaluation and monitoring assigned to NITI Aayog

1950 to 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Program Evaluation Office (PEO) Development Monitoring &

Independent Evaluation Office Evaluation Office (DMEO)
(IEO)
Performance Monitoring and Evaluation
System (2009-2014)
eSamiksha & Pragati

4
Key Functions & Projects
Monitoring Evaluation
• Output-Outcome Monitoring Framework • UCSS Evaluation Studies (10 Packages)
• Targets for CS/CSS Schemes (appended to
Budget)
• Quick Assessment Studies
• Performance Reviews on OOMF Indicators by • Performance Notes
M/Ds
• EFCs/SFCs/PIB/DIB proposal review • Flagship Evaluation Studies preparation
• Sector Reviews
• Global Indices for Reforms & Growth
(GIRG)
• Data Governance Quality Index (DGQI)

Partnerships, external collaborations and others

Capacity Building at M/D and State Level

5
02
An Overview
Global Indices for Reforms and Growth

6
Global Indices for Reforms and Growth (GIRG)
• Leverage the monitoring of select Global Indices (GIs)
i. To monitor performance at national and sub-national level
ii. For systemic reforms in the policies and processes to improve citizen service delivery and investor confidence,
create a conducive ecosystem for investment and enhance ease of living

Publishing Agencies – multilaterals, NGOs, private agencies

GIs

Usually annual and biennial

Varying methodologies

• Dashboard
i. Monitor progress of the States/Uts/Cities in the indigenised indices
ii. Monitor progress on key reform actions identified

Improve India’s global ranking

7
Coverage

46
19
30 ~1000 Line Ministries/
Nodal Ministries/
Global Indices Parameters Departments &
Departments
All State Govts.

Those which can be directly used to drive reforms

Those which require engagement with Publishing Agency to modify parameters or data
sources in the Indian context

Those which have serious issues with methodology, data sources etc.

8
 30 Global Indices – 4 Categories
ECONOMY DEVELOPMENT GOVERNANCE INDUSTRY

Ease of Doing Human Development

1 6 11 Democracy Index 19 Logistics Performance Index
Business Index
Financial Development Global Multidimensional Travel and Tourism Competitiveness
2 7 12 Rule of Law Index 20
Index Poverty Index Index
Global Innovation
3 8 Global Gender Gap Index 13 Corruption Perception Index 21 E-Government Index
Index
4 Globalization Index 9 Global Inequality Index 14 Press Freedom Index 22 ICT Development Index
Global
5 10 Global Hunger Index 15 Linguistic Diversity Index 23 Global Energy Transition Index
Competitiveness Index
16 Global Peace Index 24 Network Readiness Index

17 Global Terrorism Index 25 Environment Performance Index

Worldwide Governance
18 26 Climate Change Performance Index
Indicators
27 Global Climate Risk Index

28 Global Livability Index*

29 Safe Cities Index*

30 Services Trade Restrictiveness Index

*Scores world’s top cities 9
19 Publishing Agencies – share of indices
NGO Canada
NGO Ireland 3% 1. World Bank
NGO USA 3%
2. United Nations Agencies
3%
3. IMF
NGO Germany
6% 4. OECD
MultilateralAgencies
Multilateral Agencies
32%
32% 5. World Economic Forum
Global
Think Tank 6. Reporters Without Borders
6%
7. World Justice Project
8. Transparency International
9. Climate Action Network
Private
Agency 10. KOF Swiss Economic Institute
9% 11. Columbia University
12. Oxford Poverty and HD Institute
13. Economist Intelligence Unit
14. Institute for Economics and Peace
Universities
9% 15. Germanwatch
16. Welt Hunger Hilfe
17. Climate Institute
International
NGOs/Civil Societies 18. Concern Worldwide
29% 19. Terralingua 10
Global Indices – a comprehensive look (part 1)
Publishing Latest report Previous report
No. Global Index Publishing Agency Nodal M/D
Frequency
Year Rank Year Rank
1 Safe Cities Index Economist Intelligence Unit Annual 2020 NA 2019 NA

2 Global Terrorism Index* Institute of Economics and Peace Annual 2020 8/138 2019 7/138
MHA
3 Global Climate Risk Index* Germanwatch Annual 2018 5/181 2017 14/181

4 Global Peace Index Institute of Economics and Peace Annual 2020 139/163 2019 141/163

5 Gender Inequality Index UNDP Annual 2018 122/162 2017 108/144

6 Global Hunger Index Welthungerfilfe, Concern Worldwide M/o WCD Annual 2020 94/107 2019 103/119

7 Global Gender Gap Index World Economic Forum Biennial 2020 112/153 2018 108/149

8 Logistic Performance Index World Bank Biennial 2018 44/160 2016 35/160

9 Globalization Index KOF Swiss Economic Institute D/o Commerce Annual 2019 95/203 2018 86/209

10 Services Trade Restrictiveness Index OECD Annual 2019 NA2 2018 NA

11 Global Innovation Index World Intellectual Property Organization Annual 2020 48/131 2019 52/129
NITI Aayog
12 Global Multidimensional Poverty Index UNDP & OPHI Annual 2020 62/107 2019 NA

13 Environment Performance Index WEF and Columbia University Biennial 2020 168/180 2018 177/180
M/o EF&CC
14 Climate Change Performance Index* Climate Institute & Climate Action Network Annual 2019 9/61 2018 14/60

15 Linguistic Diversity Index Terralingua M/o Culture Not Applicable1

*Indicates lower ranker is better

1Publishing agency has not provided scores and ranks for India
11
Global Indices – a comprehensive look (part 2)
Publishing Latest report Previous report
No. Global Index Publishing Agency Nodal M/D
Frequency
Year Rank Year Rank
16 Network Readiness Index World Economic Forum Annual 2019 79/121 2018 91/134
D/o Telecom
17 ICT Development Index UN ITU Annual 2017 134/176 2016 138/175

18 Global Competitiveness Index World Economic Forum Annual 2019 68/141 2018 58/140
DPIIT
19 Ease of Doing Business World Bank Annual 2020 63/190 2019 77/190

20 Rule of Law Index World Justice Project D/o Justice Annual 2020 69/128 2019 68/126

21 Democracy Index Economist Intelligence Unit Legislative Dep Annual 2019 51/165 2018 41/165

22 Global Livability Index3 Economist Intelligence Unit M/o HUA Annual 2020 NA 2019 NA

23 Global Energy Transition Index World Economic Forum M/o Power Annual 2020 74/115 2019 76/115

24 Human Development Index UNDP D/o SEL Annual 2019 129/189 2018 129/189

25 Travel & Tourism Competitiveness Index World Economic Forum M/o Tourism Biennial 2019 34/140 2017 40/136

26 World Press Freedom Index Reporters without Borders M/o I&B Annual 2020 142/180 2019 140/180

27 E Government Index UN DESA MeitY Annual 2020 100/193 2019 96/193

28 Financial Development Index IMF DEA Annual 2020 NA2 2019 NA

29 Corruption Perception Index Transparency International D/o PT Annual 2020 80/180 2019 80/180

30 Worldwide Governance Indicator World Bank DARPG Annual 2016 111/214 2015 124/214
2Ranking not provided by Publishing Agency
3Index is calculated for 140 global cities and not at national level (New Delhi 119/140 and Mumbai 118/140 in 2019; New Delhi 112/140 and Mumbai 117/140) 12
19 Nodal Ministries/Departments
No. Ministry/Department No. of indices Indices mapped
1 M/o Home Affairs 4 Safe Cities Index, Global Climate Risk Index, Global Terrorism Index, Global Peace Index
2 M/o WCD 3 Global Gender Gap Index, Global Hunger Index, Gender Inequality Index
3 D/o Commerce 3 Globalization Index, Logistics Performance Index, Services Trade Restrictiveness Index
4 NITI Aayog 2 Global Multidimensional Poverty Index, Global Innovation Index
5 M/o EF&CC 2 Climate Change Performance Index, Environment Performance Index
6 DPIIT 2 Ease of Doing Business, Global Competitiveness Index
7 D/o Telecom 2 Network Readiness Index, ICT Development Index
8 M/o Tourism 1 Travel and Tourism Competitiveness Index
9 M/o I&B 1 World Press Freedom Index
10 MeitY 1 E Government Index
11 M/o Culture 1 Index of Linguistic Diversity
12 M/o Power 1 Global Energy Transition Index
13 M/o HUA 1 Global Livability Index
14 D/o SEL 1 Human Development Index
15 D/o Personnel & Training 1 Corruption Perception Index
16 D/o Justice 1 Rule of Law Index
17 Legislative Department 1 Democracy Index
18 D/o Economic Affairs 1 Financial Development Index
19 DARPG 1 Worldwide Governance Indicators
13
Total 30
03
Implementation
Global Indices for Reforms and Growth

14
 Roles and Responsibilities
Publishing Agencies: Owners of the select Global Indices that scores and ranks countries

Cabinet Secretariat NITI Aayog 19 Nodal M/Ds 46 Line M/Ds All State Govts.

• Quarterly monitoring • Nodal for 2 indices • Identify reform areas • Support nodal M/D • Coordinate with line M/ D
committee under Cab
Sec • NITI Communication • Engage with publishing • Undertake reforms • Undertake reforms
Vertical: Communication agencies
• Monthly monitoring - strategy • Coordinate with States • Periodic progress
Committee under AS, • Stakeholder & media updation
Cab Sec engagement • Conduct Index wise
DMEO workshops for States • Overall progress
• Dashboard configuration
monitoring across Indices
• Knowledge partner • Identify and share best
• Own & use Index
practices • Implement best practices
• Support to Index dashboard
Monitoring Cells in M/Ds • Periodic progress • Share local best
• Coordinate with Line
Ministries; trainings, updation practices
• Periodic reports to Cab
target setting
Sec
• Track global performance
NIC/NICSI: Develop integrated IT system/ dashboard; dashboard customization; helpdesk support for nodal and line M/Ds, and states

MoSPI: Ensure timeliness and accuracy of data sources monitored by publishing agencies; identify available and alternate data sources

MoI&B: Prepare and aid Nodal M/Ds in implementation of communication strategy

MEA: Support Nodal M/Ds engage PublishingAgencies via High Commissions in their respective locations 15
Score calculation and ranking
Three sets of scores and ranks will be entered/calculated for each index

1. Global Index 2. India Index 3. Reform Actions

 Entry of score and rank  Parameters, formula including weights  Reform Area/Action definition
as published by o Finalised by Nodal o Finalised by Nodal M/Ds with
publishing agencies Ministries/Departments Line M/Ds
o Input in the dashboard o Priority-based weights, timelines

 Progress data entry  Status update

o Entered by Nodal/Line/State users o Updated by Nodal/State/Line
o Scores calculated and ranks assigned users
o Scores calculated and ranks
assigned

16
30 Indigenized Indices for scoring and ranking

• States/UTs scored and ranked

26
State
Indices

• • Top cities in India

Index parameters applicable
at National Level 2 2 i. Smart Cities Index
i. Globalization Index ii. Global Liveability
National City Index
ii. Financial Devp. Index
Indices Indices

17
 India Index

Rank Parameter to GI Scoring

Indigenised India Index methodology should preferably
Logistics Performance Index be same as defined by
GI Score Publishing Agency

Parameters 𝑤𝑝1 𝑤𝑝2 Nodal Ministry to fill:

Quality of trade and transport related o Weightages
infrastructure P1 P2 o Formula
o Targets

Sub-Parameters 𝑤𝑠𝑝1 𝑤𝑠𝑝2 𝑤𝑠𝑝3 𝑤𝑠𝑝4

Quality of transport infrastructure Entering Progress
SP1 SP2 SP3 SP4

Automated:
Sub-Sub-Parameters 𝑤𝑠𝑠𝑝1 𝑤𝑠𝑠𝑝2 o Normalization
Further divided to include parameters o Scoring & Ranking
related to air, water and surface transport SSP1 SSP2

18
Score Calculation Convention*

P1 P2 P3 P4 P5 Overall Score
State 1 W1P11 W 2P21 …. …. …..
State 2 W 1P12 W 2P22
State 3 . Normalized Parameter value
. .
. .
. . . … …… .
State n W 1P1n W 2P2n … …… W 5P5n
Weightage
o The annual progress data on parameter will be fed in the dashboard

o The normalization of parameter would be done at the lowest abstraction level

o In cases where (sub)-parameter(s) are not applicable to a State, that (sub)-parameter(s) will not be considered
for the calculation of score for that State

*Methodologies of individual indices vary significantly involving complex arithmetic, statistical and
logical operations
19
Reform-performance scoring and ranking

RA1 RA2 RA3 RA4 RA5 Overall Score

State 1 W1RA11 W 2RA21 …. …. …..
Reform 3 1 0 -1
State 2 W 2RA12 W 2RA22
Action Completed In Yet Overdue
State 3 .
Score Progress to be
. . Initiated
. .
State n W nRA1n W 2RA2n … …… W 5RA5n
4 2 1 0
Priority
High Medium Low Not Feasible
for current year

o The weightages (W i) will be defined based on the priority of the Reform Actions

o The Reform Action scores (RAij) will be considered based on progress status

o The Index Reform score will be a simple weighted average of all the Reform Actions

o The States will be ranked on Reform Actions based on the Index Reform score calculated

20
Dashboard – Key features

• India Index performance tracking

Cabinet Secretary
o State rankings
Monitoring & Review

• Reform actions NITI Aayog

o Planning and tracking

Update / Track Index
• High end visualization Nodal Ministry performance and
o Seamless decision support reform actions
Common
Data
• Reports
Update parameter Architecture
o Progress and compliance progress & reform
Line Ministries
actions undertaken
• Document Management
o Minutes, best practices
Update parameter
States progress & reform
• Accountability and transparency
actions undertaken

21
Dashboard Modules

GIRG Dashboard Modules Functional requirements enabled

 Configure index hierarchy, i.e.

1. Index Creation Master • Add/edit delete parameters/sub-parameters etc.
• Assign targets, formula, user mapping
2. Reforms Master  Configure Reform Areas and Reforms Actions
 Progress data entry for India Index
3. Progress data entry  Status update for Reform Actions
 Update published scores and ranks for Global Index
4. Visualization  Real-time display of performance in Global Index, India Index and Reforms

5. Reports  Performance and Compliance reports

6. Administrative module  User creation and management

7. Approvals and notifications  Approval and escalation matrix; Email and SMS alerts

22
 Engagement with Nodal and Line Ministries/ Departments
Oct-Nov’ 20
3 Aug’ 20 1st round of one-to-one meetings with
Nodal officers
D.O. from CEO NITI Aayog Sep-Nov’ 20
1st round of one-to-one meetings with
Nodal officers
29 Oct’ 20
5 Feb’ 20 17 Aug’ 20 D.O. from DDG DMEO April 21
DO from Cab Sec Workshop with Nodal Officers to clarifying scope of Reform Dashboard
finalize dashboard approach Areas & Actions Launch

9 Oct’ 20 Nov’ 20
28 Aug’ 20
10 Jul’ 20 Nodal officer 2nd round of one-to-
Start of discussions with M/o I&B one meetings with
Workshop chaired by Cab Sec regarding communication strategy appointed by MEA
for PA engagement Nodal officers

6 Aug’ 20
2 Sep’ 20
DashboardApproach Note 26 Oct’ 20
Reminder D.O. from DG, DMEO
shared with Nodal officers of DO from CEO NITI
all GIs

23
03
Worldwide Governance Indicators

24
Worldwide Governance Indicators: 3 Areas and 6 Dimensions

The process by which governments are selected, monitored,

Traditions and institutions by and replaced
which authority in a country
• Voice and accountability
is exercised
• Political stability and absence of violence/terrorism

The capacity of the government to effectively formulate and

● Published by the
implement sound policies
World Bank
● Annual since 1996 • Government effectiveness
● Uses more than 30 • Regulatory quality
data sources
● Categorizes indicators The respect of citizens and the state of institutions that govern
in 6 themes economic and social interactions among them
(aggregate indicators) • Rule of law
• Control of corruption

25
Sources of Data for WGI
Institute for Management Development World Competitiveness
ADB Yearbook (WCY)
AFR Institutional Profiles Database (IPD)
African Electoral Index (IRP) International Budget Project Open Budget Index (OBI)
Asian Development Bank Country Policy and Institutional International Research and Exchanges Board Media Sustainability
Assessments (ASD) Index (MSI)
Bertelsmann Transformation Index (BTI) JET Country Security Risk Ratings (IJT)
Business Environment and Enterprise Performance Survey (BPS) Latinobarometro (LBO)
Cingranelli Richards Human Rights Database & Political Terror Scale Political and Economic Risk Consultancy Corruption in Asia Survey
(HUM) (PRC)
Economist Intelligence Unit (EIU) Political Risk Services International Country Risk Guide (PRS)
European Bank for Reconstruction and Development Transition
Report (EBR) Reporters Without Borders Press Freedom Index (RSF)
Freedom House (FRH) Transparency International Global Corruption Barometer (GCB)
Freedom House Countries at the Crossroads ( CCR) U.S. Department of State Trafficking in Persons Report (TPR)
Gallup World Poll (GWP) Vanderbilt University's Americas Barometer (VAB)
Global Integrity Index (GII) Varieties of Democracy Project (VDEM)
Heritage Foundation Index of Economic Freedom (HER) World Bank Country Policy and Institutional Assessments (CPIA)
IFAD Rural Sector Performance Assessments (IFD) World Economic Forum Global Competitiveness Survey (GCS)
IHS MARKIT (WMO) World Justice Project Rule of Law Index
Data source wise no. of indicators in WGI
U.S. Department of State Trafficking in Persons Report (TPR) 1
Reporters Without Borders Press Freedom Index (RSF) 1
Political and Economic Risk Consultancy Corruption in Asia Survey (PRC) 1
JET Country Security Risk Ratings (IJT) 1
International Research and Exchanges Board Media Sustainability Index (MSI) 1
International Budget Project Open Budget Index (OBI) 1
African Electoral Index (IRP) 1
Heritage Foundation Index of Economic Freedom (HER) 3
European Bank for Reconstruction and Development Transition Report (EBR) 3
Freedom House Countries at the Crossroads ( CCR) 4
Varieties of Democracy Project (VDEM) 5
World Bank Country Policy and Institutional Assessments (CPIA) 7
Asian Development Bank Country Policy and Institutional Assessments (ASD)
ADB
World Justice Project Rule of Law Index
7
8
9
385
Vanderbilt University's Americas Barometer (VAB) 9
Gallup World Poll (GWP) 9
Cingranelli Richards Human Rights Database & Political Terror Scale (HUM) 9
Transparency International Global Corruption Barometer (GCB) 10
Political Risk Services International Country Risk Guide (PRS) 10
IFAD Rural Sector Performance Assessments (IFD) 12
Freedom House (FRH) 12
Latinobarometro (LBO) 15
Business Environment and Enterprise Performance Survey (BPS) 15
Bertelsmann Transformation Index (BTI) 15
AFR
16
IHS MARKIT (WMO) 24
Global Integrity Index (GII) 24
Economist Intelligence Unit (EIU) 26
Institute for Management Development World Competitiveness Yearbook (WCY) 30
World Economic Forum Global Competitiveness Survey (GCS) 37
Institutional Profiles Database (IPD) 59
Theme-wise number of indicators by data sources
Political
Control of Government Stability and Regulatory Voice and
Data Source Rule of Law Grand Total
Corruption Effectiveness Absence of Quality Accountability
Violence
• ADB 1 3 0 3 1 0 8
• AFR 4 2 0 2 5 3 16
• African Electoral Index (IRP) 0 0 0 0 0 1 1
• Asian Development Bank Country Policy and Institutional Assessments (ASD) 1 3 0 2 1 0 7
• Bertelsmann Transformation Index (BTI) 2 4 0 2 4 3 15
• Business Environment and Enterprise Performance Survey (BPS) 4 3 0 3 5 0 15
• Cingranelli Richards Human Rights Database & Political Terror Scale (HUM) 0 0 4 0 1 4 9
• Economist Intelligence Unit (EIU) 1 2 5 5 8 5 26
• European Bank for Reconstruction and Development Transition Report (EBR) 0 0 0 3 0 0 3
• Freedom House (FRH) 2 0 0 0 2 8 12
• Freedom House Countries at the Crossroads ( CCR) 1 0 0 0 1 2 4
• Gallup World Poll (GWP) 1 3 0 0 4 1 9
• Global Integrity Index (GII) 2 5 0 0 7 10 24
• Heritage Foundation Index of Economic Freedom (HER) 0 0 0 2 1 0 3
• IFAD Rural Sector Performance Assessments (IFD) 1 1 0 4 2 4 12
• IHS MARKIT (WMO) 2 5 6 4 5 2 24
• Institute for Management Development World Competitiveness Yearbook (WCY) 1 6 1 16 5 1 30
• Institutional Profiles Database (IPD) 3 6 3 8 18 21 59
• International Budget Project Open Budget Index (OBI) 0 0 0 0 0 1 1
• International Research and Exchanges Board Media Sustainability Index (MSI) 0 0 0 0 0 1 1
• JET Country Security Risk Ratings (IJT) 0 0 1 0 0 0 1
• Latinobarometro (LBO) 9 1 0 0 3 2 15
• Political and Economic Risk Consultancy Corruption in Asia Survey (PRC) 1 0 0 0 0 0 1
• Political Risk Services International Country Risk Guide (PRS) 1 1 4 1 1 2 10
• Reporters Without Borders Press Freedom Index (RSF) 0 0 0 0 0 1 1
• Transparency International Global Corruption Barometer (GCB) 10 0 0 0 0 0 10
• U.S. Department of State Trafficking in Persons Report (TPR) 0 0 0 0 1 0 1
• Vanderbilt University's Americas Barometer (VAB) 3 0 0 0 4 2 9
• Varieties of Democracy Project (VDEM) 1 0 0 0 1 3 5
• World Bank Country Policy and Institutional Assessments (CPIA) 1 3 0 2 1 0 7
• World Economic Forum Global Competitiveness Survey (GCS) 8 6 1 10 8 4 37
• World Justice Project Rule of Law Index 1 0 1 1 3 3 9
Grand Total 61 54 26 68 92 84 385
Countries covered by data source
Political and Economic Risk Consultancy Corruption in Asia Survey (PRC) 15
Latinobarometro (LBO) 18
AFR 19
Vanderbilt University's Americas Barometer (VAB) 23
Business Environment and Enterprise Performance Survey (BPS) 27
European Bank for Reconstruction and Development Transition Report (EBR) 29
Asian Development Bank Country Policy and Institutional Assessments (ASD) 29
African Electoral Index (IRP) 53
ADB 53
Institute for Management Development World Competitiveness Yearbook (WCY) 55
Freedom House Countries at the Crossroads ( CCR) 62
International Research and Exchanges Board Media Sustainability Index (MSI) 76
Global Integrity Index (GII) 79
Transparency International Global Corruption Barometer (GCB) 80
International Budget Project Open Budget Index (OBI) 85
Institutional Profiles Database (IPD) 85
IFAD Rural Sector Performance Assessments (IFD) 90
World Justice Project Rule of Law Index 113
Bertelsmann Transformation Index (BTI) 125
Gallup World Poll (GWP) 130
World Economic Forum Global Competitiveness Survey (GCS) 134
Political Risk Services International Country Risk Guide (PRS) 140
World Bank Country Policy and Institutional Assessments (CPIA) 142
U.S. Department of State Trafficking in Persons Report (TPR) 153
Reporters Without Borders Press Freedom Index (RSF)
170
Varieties of Democracy Project (VDEM) 171
Heritage Foundation Index of Economic Freedom (HER) 179
Economist Intelligence Unit (EIU)
181
JET Country Security Risk Ratings (IJT) 185
Cingranelli Richards Human Rights Database & Political Terror Scale (HUM) 192
Freedom House (FRH) 197
IHS MARKIT (WMO) 203
Methodology used in different data sources

World Gallup Poll Institutional Profile Database IMD World Competitiveness Index
• Face to face and telephonic • 330 questions • 118 point questionnaire
interviews conducted • Sent to Ministry of Economy and • Filled-up by middle and upper level
• Multistage sampling Finance (MEF) country offices managers in the economies included in
• Identification of Primary and the network of AFD country the Index
Sampling Units (PSUs) offices • Distribution of managers is across
• Random selection of households • Officers from these offices fill sectors
in selected PSUs required information • In 2017, total 6200 responses received,
• Kish grid method for selection of i.e. 90 replies per country
respondent
 Sample list of indicators by source

World Gallop Poll Economist Intelligence Unit World Economic Forum : Competitiveness Index
Rule of Law
Voice and Accountability Voice and Accountability
Business costs of crime and violence
Democracy Index Transparency of government policymaking
Voice and Accountability Vested interests Organized crime
Freedom of the Press
Confidence in honesty of elections Accountablity of Public Officials
Favoritism in decisions of government officials Reliability of police services
Human Rights
Freedom of association Effectiveness of law-making body Judicial indepdendence
Political Stability and Absence of Violence
Efficiency of legal framework in challenging regulations
NA Political Stability and Absence of Violence
Orderly transfers Political Stability and Absence of Violence Intellectual property protection
Armed conflict Business costs of terrorism
Government Effectiveness Property rights
Violent demonstrations
Satisfaction with public transportation system Social Unrest Informal sector
Satisfaction with roads and highways International tensions / terrorist threat Government Effectiveness

Satisfaction with education system

Quality of overall infrastructure
Government Effectiveness Quality of road infrastructure Control of Corruption
Quality of bureaucracy / institutional effectiveness
Regulatory Quality Excessive bureacucracy / red tape Quality of railroad infrastructure Public trust of politicians

NA Quality of port infrastructure Diversion of public funds

Regulatory Quality Quality of air transport infrastructure Irregular payments in exports and imports
Unfair competitive practices
Rule of Law Price controls
Quality of primary education
Irregular payments in public utilities
Confidence in the police force Discriminatory tariffs
Irregular payments in tax collection
Excessive protections
Confidence in judicial system Regulatory Quality
Discriminatory taxes Irregular payments in public contracts
Have you had money property stolen from you or another Burden of government regulation
household member? Rule of Law Extent and effect of taxation Irregular payments in judicial decisions
Have you been assaulted or mugged? Violent crime Extent and effect of taxation on incentives to invest State Capture
Organized crime
Extent and effect of taxation on incentives to work
Fairness of judicial process
Control of Corruption Enforceability of contracts Prevalence of non-tariff barriers
Is corruption in governmnent widespread? Speediness of judicial process Intensity of local competition
Confiscation/expropriation
Extent of market dominance
Intellectual property rights protection
Private property protection Ease of starting a new business
Effectiveness of antitrust policy
Control of Corruption
Corruption among public officials
Stringency of environmental regulations
31
Methodology of WGI

1. Assigning data from individual sources to the six aggregate indicators

Individual questions from the underlying data sources are assigned to each of the six aggregate indicators.
For example, a cross-country household or firm survey might provide us with data on respondents’
perceptions or experiences with corruption, while a NGO or commercial data provider might provide its
own

2. Preliminary rescaling of the individual source data to run from 0 to 1

The questions from the individual data sources are first rescaled to range from 0 to 1, with higher values
corresponding to better outcomes

3. Using an Unobserved Components Model (UCM) to construct a weighted average of the

individual indicators for each source.

4. Data sources may be added or dropped in each newer version of the WGI
WGI: India, China and United States Comparison

33
33
WGI 2019: India vis-à-vis Rest

34
33
05
Conclusions

35
WGI under GIRG: Steps

● Establish PMU and engage knowledge partners (NCGG, Public Affairs Centre)

● Identify common themes/ parameters

● Engage with Govt. stakeholders

● Engage with Publishing Agency

● Identify Reform Areas and Actions

● Create India Index

● Comparison with Good Governance Index of DARPG

Suggested PMU Structure

Ministry/ Department

Senior Consultants/ DS/

Communications
Director
Specialist/ DS/ Director

Consultants/Under Secy.

Analysts/SO

Consultant Experience Nos.

Sr. Consultant/ Director/ DS 10+ Yrs. 1
Communications Specialist/ Director from
8+ years 1
PR or Communications cell / DS
Consultant/ Under Secy. 7+Yrs. 1 per 4 Analysts / 1 per 2-3 Section Officers
Analyst/ Section Officer 2+ Yrs. 1 per 20 parameters
37
Implementation Mechanism & PMU Role
Committees at Nodal Ministries/ Departments PMU at Nodal Ministry/ Department for each Index

 Headed by SS/AS of Nodal Ministry/ Department, with  Identify key parameters

AS/JS of line Ministries/ Departments
 Data source mapping – Parameter wise identification of
 Monthly review & coordination meetings alternate data sources, identify key parameters for action

 Enhanced ownership and improved compliance &  Identify global performance, national and global best practices
progress monitoring
 Dashboard management – provide compliance and progress
 Well coordinated reform action reports

 Support Line Ministries and States in identifying & driving

reform actions and low hanging fruits

 Support publishing agency engagement

 Drive internal & external Communication

38
Comparison between WGI and Good Governance Index

Worldwide Governance Indicators Good Governance Index

(385 parameters) (50 parameters)
• Government Effectiveness • Public infrastructure & Utilities
• Regulatory Quality • Commerce and Industries
• Rule of Law • Judiciary and Public Security
• Control of Corruption • Agriculture and Allied Sector
• Voice and Accountability • Human Resource Development
• Political Stability and Absence of Violence • Public Health
• Economic Governance
• Social Welfare & Development
• Environment
• Citizen Centric Governance
 04
Annexure

Copyright © 2020 NITI Aayog All rights reserved. 40

Sources of Data for WGI

*CBIP: Commercial Business Information Provider;

*GOV: Public sector data;
41
Voice and Accountability

42
Theme: Control of Corruption

43
Government Effectiveness

44
Political Stability and Absence of Violence/ Terrorism

45
Rule of Law

46
Regulatory Quality

47
Issues with Worldwide Governance Indicators* (1/4)

● Not reproducible: Many of the indicators underlying each source’s

ratings, are not published.

● Too complex: The WGI “Control of Corruption” uses 23 combinations of

sources just for East Europe and Central Asia. The sheer number and
diversity of indicators, produced by others, in a single WGI make it very
difficult to understand.

● Arbitrary: For example, WGI use the indicator “Environmental

regulations hurt competitiveness” from the World Economic Forum’s
Executive Opinion Survey, but ignore that Survey’s several questions
that give high ratings to countries with a high standard of
environmental protection.
Arndt, C.; Oman, C. (2008). "The Politics of Governance Ratings" (PDF). Working Paper MGSoG/2008/WP003.
Thomas, M. (2009). "What Do the Worldwide Governance Indicators Measure?". European Journal of Development Research.
Langbein, L.; Knack, S. (2010). "The Worldwide Governance Indicators: Six, One, or None?". Journal of Development Studies
4488
Issues with Worldwide Governance Indicators (2/4)

● Absence of an underlying theory of "good" governance: no normative

concept or unifying single theory to distinguish between good or bad
governance. When are taxes, labour or environmental regulatory
protection desirable and when are they excessive?

● Hidden biases: Low weight given to household surveys relative to the

weights of expert assessments and firm surveys. For example, Gallup’s
World Poll that asks citizens about their exposure to crime gets zero
weight for "Rule of Law", but Global Insight Business Risk and Conditions,
a U.S. commercial business information provider that measures the
crime risk to businesses, gets the third highest weight.

4499
Issues with Worldwide Governance Indicators (3/4)

● Lack of comparability over time and space: For example, the WGI
“Control of Corruption” for Eastern Europe and Central Asia has 23
different combinations of sources, but only four pair of countries ratings
are based on a common set of sources.

● Lack of actionability: WGI offers little guidance to concrete actions to

improve the quality of governance. For example, an indicator for Rule
of Law "how secure business people feel about their property"
not why they feel that way.

5500
Issues with Worldwide Governance Indicators (4/4)

● Over-selling: The World Bank Institute advertises its WGIs as "reliable measurements of
governance", but for example gives the misleading impression that the views of
ordinary citizens are well represented, making the indicators particularly attractive to
donor agencies concerned about the poor. WBI heavily stressed inclusion of the
Gallup World Poll, a cross-country household survey available for a large number of
countries, but Gallup’s World Poll gets zero weight on two WGIs, marginal weight on
two other WGIs and provides no data for the remaining two.

● Lack of conceptual clarity: “The six governance indicators measure a broad

underlying concept of ‘effective governance’ … they appear to say the same thing,
with different words … the six indexes do not discriminate usefully among different
aspects of governance. Rather, each of the indexes – whatever its label – merely
reflects perceptions of the quality of governance more broadly. An implication is that
they may have limited use as guides for policymakers, and for academic studies of
the causes and consequences of ‘good governance’ as well… their availability may
well have crowded out efforts at measuring the impact of institutions as they really
exist in a particular place on real outcomes." 5511