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What Is Quality of Governance QualityQuality ofof Government:Government: WhatWhat youyou getget –– WhatWhat itit isis -- HowHow toto getget itit Bo Rothstein The Quality of Government Institute Department of Political Science University of Gothenburg TheThe QualityQuality ofof GovernmentGovernment InstituteInstitute (QoG)(QoG) StartedStarted inin 20042004 (minor(minor grantgrant toto buildbuild database)database) MajorMajor fundingfunding fromfrom JanuaryJanuary 20072007 (Bank(Bank ofof SwedenSweden Foundation)Foundation) andand 20092009 (Wallenberg(Wallenberg Foundation)Foundation) AboutAbout 2525 researchersresearchers ++ 66 assistantsassistants AA problemproblem drivendriven resarchresarch programprogram TwoTwo openopen accessaccess majormajor crosscross --countrycountry databankdatabank AboutAbout 100100 reports,reports, articles,articles, etc.etc. JustJust GoogleGoogle ””QoGQoG ”” IntellectualIntellectual backgroundbackground InstitutionalInstitutional economicseconomics DevelopmentDevelopment studiesstudies DemocratizationDemocratization studiesstudies WorldWorld BankBank ResearchResearch InstituteInstitute SocialSocial capitalcapital researchresearch TI,TI, EBRD,EBRD, CouncilCouncil ofof Europe,Europe, AfricanAfrican UnionUnion AnAn internationalinternational antianti --corruption/goodcorruption/good governancegovernance regime?regime? TheThe IssueIssue ofof WaterWater WHO:WHO: AboutAbout 12.00012.000 peoplepeople diedie everyevery dayday duedue toto lacklack ofof accessaccess toto cleanclean waterwater TwoTwo thirdsthirds areare childrenchildren NotNot aa problemproblem ofof lacklack ofof naturalnatural waterwater NotNot aa lacklack ofof technicaltechnical solutionssolutions oror equippmentequippment BasicallyBasically aa problemproblem causedcaused byby …….. …… CORRUPTIONCORRUPTION TheThe firstfirst failedfailed hope:hope: MarketizationMarketization "The encounter between neo-classical economics and developing societies served to reveal the institutional underpinnings of market economies. A clearly delineated system of property rights, a regulatory apparatus curbing the worst forms of fraud, anti-competitive behavior and moral hazard, a moderately cohesive society exhibiting trust and social cooperation, social and political institutions that mitigate risk and manage social conflicts, the rule of law and clean government--these are social arrangements that economists usually take for granted , but which are conspicuous by their absence in poor countries.” Dani Rodrik (1999). TheThe secondsecond failedfailed hope:hope: DemocracyDemocracy ThereThere isis aa specterspecter hauntinghaunting democracydemocracy inin thethe worldworld today.today. ItIt isis badbad governancegovernance …….. GovernanceGovernance thatthat isis drencheddrenched inin corruption,corruption, patronage,patronage, favoritism,favoritism, andand abuseabuse ofof power.power. ……WhereWhere powerpower confersconfers virtuallyvirtually uncheckedunchecked opportunitiesopportunities forfor personal,personal, factional,factional, andand partyparty enrichment,enrichment, itit isis difficultdifficult ifif notnot impossibleimpossible toto sustainsustain democraticdemocratic rulesrules ofof thethe game.game. TheThe democraticdemocratic spiritspirit ofof electionselections drownsdrowns inin votevote --buying,buying, rigging,rigging, violence,violence, oror allall threethree …….... Diamond,Diamond, Larry.Larry. 2007.2007. "A"A QuarterQuarter --CenturyCentury ofof PromotingPromoting Democracy."Democracy." JournalJournal ofof DemocracyDemocracy 18:11818:118 --120.120. QoGQoG –– whatwhat youyou get?get? EconomicEconomic prosperityprosperity LifeLife satisfactionsatisfaction LowLow InfantInfant mortalitymortality ReducedReduced PovertyPoverty AccessAccess toto safesafe waterwater HealthHealth carecare PeacePeace PoliticalPolitical legitimacylegitimacy GDP per capita and QoG 2 Denmark Finland Sweden Netherlands Germany Ireland United Kingdom Austria 1.5 France Malta Belgium Portugal Cyprus Spain Estonia 1 Slovenia Lithuania Czech Republic Hungary Poland Latvia Slovakia Italy .5 Greece Pearsson = .85 Bulgaria Romania 0 40 60 80 100 120 140 GDP per capita in Purchasing Power Standards (PPS) (EU-27 = 100) Social Capital and QoG .7 Denmark Sweden Netherlands .6 Pearsson = .72 Finland .5 .4 Spain Ireland Germany Italy Austria .3 Belgium United Kingdom Bulgaria Lithuania Greece Czech Republic Luxembourg Hungary Estonia Poland Malta France .2 Slovenia Latvia Slovakia Portugal Romania .1 0 .5 1 1.5 2 QoG Index QoGQoG andand SocialSocial TrustTrust Corruption by Generalized Trust [Imputed] 10 FIN ICE NZ DEN SNG SWZ SWE NOR AUS UK HOL ASTLUX CAN WGR 8 CHL BEL USA IRE FRA SPN MLT JPN POR ISR URU SLO EST BOT 6 TAI CYP TUN MAL CRI HUN ITA SAF LIT SKR ELS CZK GRE SLV LAT BUL 4 BRZ COL PAN PRU POL GHA SRICRO MEX THA BLR TUR EGYARM BOS ROM SEN DOMIRN MAC NIC RUS SER IND PHL ARG UGA TI Corruption Perceptions Index 2004 Index Perceptions Corruption TI VNZ MOL HON GUAUKR KEN PAK GEO INS 2 AZR NIG BNG 0 .2 .4 .6 Most People Can Be Trusted [Imputed] r2 = .440 N = 84 QoGQoG atat thethe regionalregional levellevel inin EUEU SocialSocial PolicyPolicy andand QoGQoG Sweden 40 Norway Denmark Netherlands 35 Belgium Finland 30 France Germany Austria Switzerland New Zealand 25 Canada Ireland Italy Benefit GenerosityIndex 20 UK Australia United States Japan 15 .7 .8 .9 1 Quality of Government (ICRG) CorruptionCorruption andand thethe economiceconomic crisiscrisis Papandreou:Papandreou: AtAt thethe heart,heart, ourour economiceconomic crisiscrisis hashas notnot comecome fromfrom outsideoutside butbut isis causedcaused byby ourour ownown internalinternal corruptioncorruption DanielDaniel Kaufmann:Kaufmann: “If anybody thought that the governance and corruption challenge was a monopoly of the developing world… that notion has been disposed completely”. IsIs democracydemocracy overrated?overrated? OnOn almostalmost allall measuresmeasures ofof socialsocial outcomes,outcomes, QoGQoG variablesvariables clearlyclearly oror massivelymassively outperformoutperform measuresmeasures ofof democracy.democracy. TheThe impactimpact ofof democracydemocracy onon developmentdevelopment andand povertypoverty reductionreduction isis negliablenegliable ThisThis includesincludes propensitypropensity forfor violentviolent conflictsconflicts WhatWhat ExplainsExplains PoliticalPolitical Legitimacy?Legitimacy? "General governance (a composite of the rule of law, control of corruption and government effectiveness) clearly has a large, even overarching, importance in global citizen evaluation of the legitimacy of states." "it is notable that democratic rights, while certainly qualifying as one of the most important causes of legitimacy, turn out to be roughly on par with welfare gains, and both of these are far less important than good governance. This clashes with standard liberal treatments of legitimacy that give overall priority to democratic rights ” (Bruce Gilley 2006) MyMy favoritefavorite bumberbumber sticker:sticker: TheThe ArtistotelianArtistotelian LegacyLegacy WhatWhat typetype ofof governmentgovernment ””createscreates ”” virtousvirtous behaviorbehavior WhyWhy dodo differentdifferent societiessocieties havehave differentdifferent typestypes ofof governmentgovernment qualitiesqualities ReflectionsReflections onon thethe discipline?discipline? WhyWhy soso littlelittle researchresearch onon corruption/QoG?corruption/QoG? WhyWhy soso muchmuch interestinterest onon politicspolitics andand dependentdependent variablesvariables andand notnot socialsocial outcomes?outcomes? WhereWhere isis publicpublic administrationadministration inin allall this?this? HowHow toto handlehandle thatthat representativerepresentative democracydemocracy maymay bebe quitequite overrated?overrated? QoG:QoG: WhatWhat itit is?is? QualityQuality ofof GovernmentGovernment (good(good governence)governence) isis importantimportant but,but, yetyet nono clearclear definitiondefinition ofof whatwhat itit isis DefinitionsDefinitions areare eithereither tootoo broad,broad, tootoo narrownarrow functionalistfunctionalist oror simplysimply wrongwrong oror normativelynormatively problematicproblematic TooToo broadbroad definitionsdefinitions ofof QoG:QoG: KaufmannKaufmann etet al.al. 2004:2004: ““thethe traditionstraditions andand institutionsinstitutions byby whichwhich authorityauthority inin aa countrycountry isis exercisedexercised ”” ““(1)(1) thethe processprocess byby whichwhich governmentgovernment areare selected,selected, monitoredmonitored andand replaced,replaced, (2)(2) thethe capacitycapacity ofof thethe governmentgovernment toto effectivelyeffectively formulateformulate andand implementimplement soundsound policies,policies, andand (3)(3) thethe respectrespect ofof citizenscitizens andand thethe statestate forfor thethe institutionsinstitutions thatthat governgovern economiceconomic andand socialsocial interactionsinteractions amongamong themthem ”” (Kaufmann,(Kaufmann, Kraay,Kraay, andand MastruzziMastruzzi 2004,2004, 3)3) ProblemsProblems IfIf QoGQoG isis everything,everything, thanthan maybemaybe itit isis nothingnothing IfIf QoGQoG isis justjust ””goodgood democracydemocracy ””,, thenthen whywhy dodo youyou needneed anotheranother conceptconcept QoGQoG cancan notnot bebe justjust DemocracyDemocracy becausebecause thethe curvecurve betweenbetween DD && QoGQoG isis JJ --shapedshaped SingaporeSingapore vsvs JamaicaJamaica ””SoundSound policiespolicies ””:: DoDo wewe reallyreally know?know? andand thethe PlatoPlato
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