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Coordination
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Assessing
Good Governance


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Assessing Good Governance
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A veritable explosion of interest in the quality of "governance" in the developing world is driving a significant increase in the use of governance indicators by international investors, by bilateral and multilateral development co-operation agencies, by academic researchers and by the media.

To illustrate, foreign Direct Investments (FDI) decisions are often based on assessments of the "quality" of governance of countries and international institutions, such as the World Bank, and many bilateral donors make their decisions on the allocation of (development aid) funds depending on the score of countries on "Good Governance Indicators". Over the last decade, quantifying the degree of good governance of countries has therefore been developed into a more sophisticated exercise.

However, measuring "good governance" is far from uncontroversial: the most-widely used measurements are plagued with many more pitfalls than users tend to realize and there is therefore a considerable misuse of governance indicators. The Maastricht Graduate School of Governance in cooperation with the OECD, has significantly contributed to and weighted on the debate concerning indicators and indices of good governance.

While the use of governance indicators has more important consequences for developing countries, because aid and investment allocation decisions depend on them, many cross-country comparable governance indicators are also available for OECD countries. Sophisticated indicators are developed in OECD countries in the field of public management.