Measuring and Monitoring Governance By Listening to the People and Not the Interest Groups

Governance indicators are now widely used as tools for conducting development dialogue, allocating external assistance and influencing foreign direct investment. This paper argues that available governance indicators are not suitable for these purposes as they do not conceptualize governance and fail to capture how citizens perceive the governance environment and outcomes in their countries. This paper attempts to fill this void by conceptualizing governance and implementing a uniform and consistent framework for measuring governance quality across countries and over time based upon citizens ’ evaluations. B The views expressed in this paper are those of the authors alone and should not be attributed to World Bank and its Executive Directors. Comments are welcome and should be addressed to