Global governance indicators
18.11.2023
Global governance indicators , Daily Current Affairs , RACE IAS : Best IAS Coaching in Lucknow
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For Prelims: About Global Governance Indicators , Importance of Global Governance Indicators ,Dimensions of Global Governance Indicators , About the World Bank ,World Bank Group |
Why in the news?
Recently the Chief Economic Advisor of India expressed concern over the use of World Bank's Global Governance Indicators in rating assessment by credit rating agencies, especially for emerging economies.
About Global Governance Indicators:
- It is issued by the World Bank.
- It provides rankings of 215 countries and territories based on six dimensions of governance.
- These indicators are designed to help researchers and analysts assess broad patterns in perceptions of governance across countries and over time.
- The World Bank compiles worldwide governance indicators using data from more than 30 think tanks, international organizations, NGOs, and private firms considered credible.
- The WGI was developed in 1999 by two World Bank researchers, Daniel Kaufman and Art Craye .
- World Bank This data is updated every year in September.
Importance of Global Governance Indicators:
- It plays an important role in determining the sovereign credit rating of any country.
Dimensions of Global Governance Indicators:
It is based on six dimensions of governance.
- Voice and accountability.
- Political stability and absence of violence.
- Government effectiveness.
- Rule of law.
- The rule of law.
- Control on corruption.
About the World Bank:
- It is an international financial institution that provides loans and grants to governments of low and middle income/developing countries to pursue capital projects.
- It was established along with the IMF at the Bretton Woods Conference of 1944.
World Bank Group:
- International Bank for Reconstruction and Development (IBRD): It provides loans, credits and grants.
- International Development Association (IDA): It provides low or no-interest loans to low-income countries.
- International Finance Corporation (IFC): It provides investment, advice and asset management to private companies and governments.
- Multilateral Guarantee Agency (MIGA): It ensures lenders and investors against political risks such as war.
International Center for Settlement of Investment Disputes (ICSID): It settles investment disputes between investors and countries.