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Corruption and the Global Economy

By: Daniel Kaufmann
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Click Refresh Button Investment Climate Reconsidered

By: Daniel Kaufmann

...16 Development Outreach WORLD BANK INSTITUTE SPECIAL REPORT BY DANIEL KAUFMANN “‘Have dinner menus here a... ...UTE SPECIAL REPORT BY DANIEL KAUFMANN “‘Have dinner menus here always been the same?,’asked Menem’s aide to the chef at the Argentinian presidential r... ...asked Menem’s aide to the chef at the Argentinian presidential residence. 'The menus change, the presidents change. What never changes are the dinner ... ...the presidents change. What never changes are the dinner guests', retorted the presidential chef, referring to the cadre of businessmen who frequented... ...pointed to a challenge circum- scribed within one country or region of the world. Years later, John Lloyd would write in The Financial Times: “The oli... .... These findings have enjoyed some exposure and dis- cussion in the policy world, such as parliamentary debate (Russia), or the publication of a full-... ...ually accounting for chal- lenges of capture and influence, such as in the Bank reports on Anti-Corruption in Transition, and in the recently launched... ...ank reports on Anti-Corruption in Transition, and in the recently launched World Development Report 2005. However, concrete progress in terms of coun... ...”); GCI based on GCR calculations for 2004/2005; GDP per capita from World Bank. Gains in competitiveness based on regression estimates of the impact ...

...THIS ANECDOTE by no means pointed to a challenge circumscribed within one country or region of the world. Years later, John Lloyd would write in The Financial Times: ?The oligarchs were so called because they had real power, state power. They wrote laws. They appointed ministers, often entire cabinets, and made sure th...

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Challenges in the Next Stage of Anti-Corruption

By: Daniel Kaufmann

... SEPTEMBER 1998 139 Challenges in the Next Stage of Anti-corruption Daniel Kaufmann I t is a Thursday ... ...xt Stage of Anti-corruption Daniel Kaufmann I t is a Thursday in October 1994, at the Kiev World Bank Resident Office weekly roundtable debate with th... ...of Anti-corruption Daniel Kaufmann I t is a Thursday in October 1994, at the Kiev World Bank Resident Office weekly roundtable debate with the media, ... ...i-corruption Daniel Kaufmann I t is a Thursday in October 1994, at the Kiev World Bank Resident Office weekly roundtable debate with the media, public... ...fice weekly roundtable debate with the media, public officials and civil society. The topic this afternoon in this participatory post- Soviet fora is ... ...ere has been progress in the struggle to combat corruption in many corners of the world, particularly due to the lead- ership and concerted awareness-... ...parent data dissemination, etc). Similarly, a number of localities throughout the world have em- braced a participatory process in the adoption of mun... ...fore, in the near future we can expect to have an improved and more reliable data bank on these governance indicators. Y et the challenge of continuin... ...much of the challenge still lies ahead. At present, with colleagues at the W orld Bank-EDI (and in collaboration with TI and local NGOs) we are develo...

...It is a Thursday in October 1994, at the Kiev World Bank Resident Office weekly roundtable debate with the media, public officials and civil society. The topic this afternoon in this participatory post- Soviet fora is the ever-latent potential for economic refor...

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Anti-Corrupcao Dentro de Uma Perspectiva Desenvolvimentista E de Governanca Mais Ampla

By: Daniel Kaufmann
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Corruption, Transparency and Governance Workshop on Deliberative Democracy

By: Daniel Kaufmann

...fmann and Francesca Recanatini WBI Global Governance Team May 14, 2003 www.worldbank.org/wbi/governance Objective To discuss cross-country and in-cou... ...ective To discuss cross-country and in-country methodologies developed by the World Bank Institute to assess governance and transparency To introdu... ...ve To discuss cross-country and in-country methodologies developed by the World Bank Institute to assess governance and transparency To introduce t... ...iscuss cross-country and in-country methodologies developed by the World Bank Institute to assess governance and transparency To introduce the priv... ... World Bank Institute to assess governance and transparency To introduce the private-public governance ‘nexus’ (capture) and present some prelimin... ...ansparency, incentives and prevention play a role in improving governance The role of politics – especially influence/capture has been under- estima... ... Outline Definition of ‘governance’ Governance, development and democracy World Bank methodologies developed to measure and improve governance Cross... ...ne Definition of ‘governance’ Governance, development and democracy World Bank methodologies developed to measure and improve governance Cross-count... ...versity Columbia U. State Failure Poll 84 developed and developing •World Bank Country Policy & Institution Assmnt Poll 136 developing •Gallup Intern...

...s on how strongly individual sources are correlated with each other Margins of error reflect (a) number of sourcesin which a country appears, and (b) the precision of those sources......

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Corruption and the Global Economy

By: Daniel Kaufmann

...n el terna desde muchas perspectivas. En esta obra sucinta, Corruption and the Global Economy, resultado de una conferencia sobre el tema patrocin...

...na la corrupcion, ha dado por resultado una explosion de libras que analizan el terna desde muchas perspectivas. En esta obra sucinta, Corruption and the Global Economy, resultado de una conferencia sobre el tema patrocinada por el Instituto de Finanzas Internacionales en abril de 1996, distintos analistas presentan opiniones muy diversas sobre el merito de varios metodos ...

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Constructing Governance Indicators Matters

By: Daniel Kaufmann

...s Matters Daniel Kaufmann (with Aart Kraay and Massimo Mastruzzi) Based on the Governance Indicators research Project (and ‘Governance Matters’ serie... ...ndicators research Project (and ‘Governance Matters’ series) initiated in the late 1990’s by Kaufmann & Kraay. The Governance Databank, covering 209... ...nance Databank, covering 209 countries and territories for 1996-2004, and the research papers, can be accessed at: www.worldbank.org/wbi/governance... ...ritories for 1996-2004, and the research papers, can be accessed at: www.worldbank.org/wbi/governance For Conference on Constructing an Index for E... ...nce Data • Cross-Country Surveys of Firms: Global Competitiveness Survey, World Business Environment Survey, World Competitiveness Yearbook, BEEPS •... ...• Expert Assessments from Commercial Risk Rating Agencies: DRI, PRS, EIU, World Markets Online, Merchant International Group, IJET Travel Consultanc... ...ton University • Expert Assessments from Governments, Multilaterals: World Bank CPIA, EBRD, AFDB, ADB, UNECA, State Dept. Human Rights Report 7 Exam...

...Six Dimensions of Governance -- The process by which those in authority are selected and replaced ?VOICE AND ACCOUNTABILITY ?POLITICAL STABILITY & ABSENCE OF VIOLENCE/TERRORISM -- The capacity of government to formulate and implement policies ?GOVERNMENT EF...

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Challenging Orthodoxy on Governance : Lessons from Evidence and Implications

By: Daniel Kaufmann

...e: Lessons from Evidence and Implications Daniel Kaufmann and Colleagues World Bank Institute – The World Bank www.worldbank.org/wbi/governance Soci... ...essons from Evidence and Implications Daniel Kaufmann and Colleagues World Bank Institute – The World Bank www.worldbank.org/wbi/governance Social Saf... ...nce and Implications Daniel Kaufmann and Colleagues World Bank Institute – The World Bank www.worldbank.org/wbi/governance Social Safety Nets – Core C... ...ember 5, 2005 2 ‘Popular Notions’ on Anti-Corruption – Are they right? 1. Worldwide Consensus on Anti-Corruption since ’90s 2. But Corruption is an ‘... ...is a result of development & growth, – & emerging economies corrupt; rich world a model 4. Major Improvement worldwide on Corruption Control 5. The P... ...rich world a model 4. Major Improvement worldwide on Corruption Control 5. The Problem is just with Public Sector/Public Officials 6. Cultural & Histo... ...iquely) – data can be gathered, analyzed, and used judiciously 2. Beyond the Washington: Institutions, Governance and Corruption Matters 3. On Av... ...ing Evolution of Governance/A Evolution of Governance/A - - C at the World Bank: C at the World Bank: From C ... From C ... ‘ ‘ Prohibition Prohib... ... Corruption- Development 6 1. Evolution of Governance/A-C at the World Bank: -- From missing in Washington consensus to center stage -- Bank: Fr...

...naysayers?still alive and well? 2.Governance and Corruption canbe measured, analyzed, & monitored: just released ?Governance Matters IV?Report --with worldwide data 3.Large ?development dividend?of anti-corruption 4.Worldwide: On Average, Corruption and Governance has not declined 5.But some countries have improved in short term 6.Some Key Findings from Variance--& Policy ...

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Anticorrupcion Dentro de Una Perspectiva Mas Amplia de Desarrollo Y Gobernabilidad Algunas Lecciones Del Empirismo Y la Experiencia

By: Daniel Kaufmann
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10 Idees Recues sur la Gouvernance et la Corruption

By: Daniel Kaufmann

...“Transparenting Transpa- rency: Initial Empirics and Policy Applications,” World Bank Policy Research Working Paper (à paraître) (Washington); http:/... ...parenting Transpa- rency: Initial Empirics and Policy Applications,” World Bank Policy Research Working Paper (à paraître) (Washington); http://www. ... ...Bank Policy Research Working Paper (à paraître) (Washington); http://www. worldbank.org/wbi/governance/pubs/TransparencyIMF.html. Commission for Afri... ...F.html. Commission for Africa Report, 2005, Our Common Interest: Report of the Commission for Africa (London); http://www.commissionforafrica.org. Ins... ... http://www.commissionforafrica.org. Institut de la Banque mondiale, 2002, The Right to T ell: The Role of Mass Media in Economic Development (Washing... ...zzi, 2005, “Gover- nance Matters IV: Governance Indicators for 1996–2004,” World Bank Policy Research Working Paper 3237 (Washington); http://worldban... ...005, “Gover- nance Matters IV: Governance Indicators for 1996–2004,” World Bank Policy Research Working Paper 3237 (Washington); http://worldbank.org/...

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Customs in an Empirical Perspective : Some Questions and Issues for Debate, From a Selective Review of the Data

By: Daniel Kaufmann

...ive: some questions and issues for debate, from a selective review of the data Daniel Kaufmann, The World Bank Presentation in Workshop on Manag... ...ues for debate, from a selective review of the data Daniel Kaufmann, The World Bank Presentation in Workshop on Managing Integrity in Customs Globa... ...r debate, from a selective review of the data Daniel Kaufmann, The World Bank Presentation in Workshop on Managing Integrity in Customs Global Foru... ...um III, Seoul, Korea, May 29 th , 2003 www.fightcorruption.org Outline 1. The Power of Data and Indicators 2. The Broader Perspective on Country Gov... ...for debate Control of Corruption Map, 2002 Source for data: http://www.worldbank.org/wbi/governance/govdata2002 ; Map downloaded from : http://in... ...ldbank.org/wbi/governance/govdata2002 ; Map downloaded from : http://info.worldbank.org/governance/kkz2002/govmap.asp Colors are assigned according... ...dbank.org/governance/kkz2002/govmap.asp Colors are assigned according to the following criteria: Red, 25% or less rank worse ( bottom 10% in darker... ... Source: GCS, 2002: “The combined effect of import tariffs, license fees, bank fees and time for red tape raise the cost of business by......” Brib... ...ion • Quality of Leadership Capacity Building in Customs and IFIs • World Bank, IaDB, IMF provide technical assistance to reformists/modernization •...

...Outsider Questions: 1. On basic Design Issues -- Shouldn?t Reform Measures be tailored to the overall country reality?: Systemic, Widespread or Individualized corruption? Rule or Misrule of Law? -- Differentiation may also be needed due to major institutional differences across Customs instits: Substantial or negl...

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Corruption Within a Governance Framework : Practical Lessons from Empirical Evidence

By: Daniel Kaufmann

...ance Framework: Practical Lessons from Empirical Evidence Daniel Kaufmann, World Bank Institute www.worldbank.org/wbi/governance Presentation at the S... ...ramework: Practical Lessons from Empirical Evidence Daniel Kaufmann, World Bank Institute www.worldbank.org/wbi/governance Presentation at the Seminar... ...ann, World Bank Institute www.worldbank.org/wbi/governance Presentation at the Seminar on ‘Tackling Corruption Worldwide: From 0 to Hero’, St Hugh’... ...nk.org/wbi/governance Presentation at the Seminar on ‘Tackling Corruption Worldwide: From 0 to Hero’, St Hugh’s College, Oxford, March 21 st 2004 ... ...rldwide: From 0 to Hero’, St Hugh’s College, Oxford, March 21 st 2004 2 The ‘Prohibition’ Era 1970 1980 1990 1995 1996 1997 1998 1999 2000 2001 200... ...s 1982 JDW “Cancer of Corruption” Speech (10/96) State in a Changing World (97) • Public Expenditure, Financial Mgt. & Procurement Reforms • Di... ...Corporate Governance • Legal/Judicial Reform Broadening & Mainstreaming The initial ascent … getting to base camp … TI CPI (5/95) Anti- corruptio... ... International • Expert Assessments from Governments, Multilaterals: World Bank CPIA, EBRD, State Dept. Human Rights Report 15 Inputs for Governance... ...versity Columbia U. State Failure Poll 84 developed and developing •World Bank Country Policy & Institution Assmnt Poll 136 developing •Gallup Intern...

...s countries, but to illustrate performance measures to assist in drawing implications for strategy. It does not reflect official views on rankings by the World Bank or its Board of Directors. Errors are responsibility of the author(s), who benefited in this work from collaboration with many Bank staff and outside experts....

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Corruption Within a Broader Governance and Developmental Perspective : Some Lessons from Empirics and Experiencein Brief

By: Daniel Kaufmann

...e Lessons from Empirics and Experience—in brief Statement by Head of the World Bank Delegation to the Global Forum III 1 Dr. Daniel Kaufman... ...ssons from Empirics and Experience—in brief Statement by Head of the World Bank Delegation to the Global Forum III 1 Dr. Daniel Kaufmann, D... ...from Empirics and Experience—in brief Statement by Head of the World Bank Delegation to the Global Forum III 1 Dr. Daniel Kaufmann, Directo... ...k Delegation to the Global Forum III 1 Dr. Daniel Kaufmann, Director, World Bank Institute Many thanks to the organizers and the hosts of th... ...gation to the Global Forum III 1 Dr. Daniel Kaufmann, Director, World Bank Institute Many thanks to the organizers and the hosts of the Glob... ... Dr. Daniel Kaufmann, Director, World Bank Institute Many thanks to the organizers and the hosts of the Global Forum and the special invitatio... ...he Global Forum and the special invitation to provide for a statement for the plenary session and ministerial workshop. Further, we welcome the opp... ...e. Before presenting the synthesis bullet lessons, let me note that the World Bank has been involved in hundreds of projects in scores of countrie... ...Before presenting the synthesis bullet lessons, let me note that the World Bank has been involved in hundreds of projects in scores of countries in a...

...Many thanks to the organizers and the hosts of the Global Forum and the special invitation to provide for a statement for the plenary session and ministerial workshop. Further, we welcome the opportunity to listen and learn from the guest p...

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Corruption : The Facts

By: Daniel Kaufmann

...ruption: The Facts by Daniel Kaufmann (This article originally appeared in the Summer 1997 edition of Foreign Policy.) [The King] shall protect trade ... ...Just as it is impossible not to taste honey or poison that one may find at the tip of one's tongue, so it is impossible for one dealing with governmen... ... one dealing with government funds not to taste, at least a little bit, of the King's wealth. —From the treatise The Arthashastra, by Kautilya (chief ... ...nvironmental regulations, clear regulations to assure the soundness of the banking system, and stringent regulations on the trading of nuclear materia... ...verage of 22 staff weeks for low-bribing firms. Using data compiled by the World Economic Forum's Global Competitiveness Report 1996, which surveyed 2... ...oing business. Further, the evidence from the 49 countries surveyed by the World Economic Forum reflects that where corruption is more prevalent, the ... ...tible to corruption in East Asian economies than in other countries in the world. This finding also challenges the contention that the East Asian expe... ...ctions (quotas), passports, customs and border-crossing documentation, and banking licenses; the implementation of price controls; the blocking of ent... ...g the financial sector, because market-determined interest rates, improved banking supervision, reserve-requirement compliance, and payment systems al...

...This citation attests to the ancient nature of corruption, which amounts to the abuse of public office for private gain. Yet it also illustrates that even then corruption was regarded as corrosive to the development of the state and that specific mea...

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Corrupcion, Desempeno Institucional Y Gobernabilidad

By: Daniel Kaufmann

...Daniel Kaufmann, Felipe Saez, y Francesca Recanatini, o visite: http://www.worldbank.org/wbi/governance/esp/ Los datos presentados aquí, basados en en... ...aís Mapa Mundial del Control de la Corrupcion Source for data: http://www.worldbank.org/wbi/governance/govdata2001.htm ; Map downloaded from : http:/... ...ank.org/wbi/governance/govdata2001.htm ; Map downloaded from : http://info.worldbank.org/governance/kkz/gov2001map.asp Colors are assigned according... ...dbank.org/governance/kkz/gov2001map.asp Colors are assigned according to the following criteria: Red, 25% or less rank worse; Orange, between 25% a... ...k.org/governance/kkz/gov2001mapYadj.asp Colors are assigned according to the following criteria: Red, 25% or less rank worse; Orange, between 25% a...

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Corporate and Public Governance : Irreverent Links and Implications for Anticorruption

By: Daniel Kaufmann

...ce: Irreverent Links and Implications for Anticorruption Daniel Kaufmann, World Bank Institute www.worldbank.org/wbi/governance Presentation at the P... ...reverent Links and Implications for Anticorruption Daniel Kaufmann, World Bank Institute www.worldbank.org/wbi/governance Presentation at the Partner... ...ann, World Bank Institute www.worldbank.org/wbi/governance Presentation at the Partnership Against Corruption at the Business, NGO and Development C... ...p Against Corruption at the Business, NGO and Development Conference, at The World Bank Washington, DC, April 10 th , 2006 2 Main Issues • Overall ... ...ainst Corruption at the Business, NGO and Development Conference, at The World Bank Washington, DC, April 10 th , 2006 2 Main Issues • Overall Gove... ... Corruption at the Business, NGO and Development Conference, at The World Bank Washington, DC, April 10 th , 2006 2 Main Issues • Overall Governance... ...t on Privates • Vice-versa? • Implications of Vice-versa: from barking at the wrong tree – towards a different lens… • Challenging ourselves: toward... ...ive periods: 1996, 1998, 2000, 2002, 2004 5 Control of Corruption, 2004: World Map Source for data: : 'Governance Matters IV: Governance Indicators ... ...its--substitute to over-regulating 4. Engage Bussiness Associations, MNCs, Banking, etc 5. Money in Politics: Political & Campaign Finance Reform 6. F...

...Six Dimensions of Governance Governance as the set of traditions and institutions by which authority in a country is exercised --specifically: The process by which those in authority are selected and replaced ?VOICE AND ACCOUNTABILITY ?POLITICAL STABILITY & ABSENCE OF...

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Civil Liberties, Democracy, And the Performance of Government Projects

By: Daniel Kaufmann

...How does the extent of civil liberties and democracy in a country affect the performance of its government's investment projects and, more general... ... performance of its government's investment projects and, more generally, the government's effectiveness? MPIRICAL analysis demonstrates that the ... ...is demonstrates that the extent of civil liberties in a cou ntry affects the performance of a government's investment projects. This finding contr... ... LANT PRITCHETT AND DANIEL KAUFMANN investment projects financed by the World Bank. Two indicators of a project's success were used: the project'... ...T PRITCHETT AND DANIEL KAUFMANN investment projects financed by the World Bank. Two indicators of a project's success were used: the project's econ... ... project accomplished its developmental objectives. One might think that Bank researchers would investigate the success or failure of Bank projects... ...would investigate the success or failure of Bank projects to examine the Bank's performance. Although evaluators at the Bank do use such indicators... ...untry performance, for three reasons. First, the projects financed by the World Bank are undertaken by the borrowing country's government, which is... ...they chose. Lant Pritchett, a US: national, is a Senior Economist in the World Bank's Development Research Group. 26 Finance & Developmen...

...One might think that Bank researchers would investigate the success or failure of Bank projects to examine the Bank's performance. Although evaluators at the Bank do use such indicators for that purpose, data on the success of Bank-financed proje...

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Chapter 2. 1 Myths and Realities of Governance and Corruption

By: Daniel Kaufmann

...R 2.1 Myths and Realities of Governance and Corruption DANIEL KAUFMANN, 1 World Bank Governance and corruption remain controversial and mis- understo... ... Myths and Realities of Governance and Corruption DANIEL KAUFMANN, 1 World Bank Governance and corruption remain controversial and mis- understood top... ...pics. But they are now given higher priority in development circles and by the corporate sector, including multinationals. Indeed, some donors and int... ...ruption, and increase citizen voice, gen- der equality, and accountability.The 2005 World Economic Forum in Davos highlighted the agreement reached am... ...and increase citizen voice, gen- der equality, and accountability.The 2005 World Economic Forum in Davos highlighted the agreement reached among 63 mu... ...es having ratified already, and another handful of developing countries on the verge of doing so, 2 the UN convention against corruption signed almost... ...nly limited impact.” Similar statements are voiced in other regions of the world, and there is also increasing scrutiny about corruption in OECD count... ... et in recent years, through the efforts of institutions such as the World Bank (the Governance Indicators), the World Economic Forum (the Executive O... ...ons, we have sought to counteract this widespread perception. At the World Bank, in order to more closely define and measure governance, we have const...

...Governance and corruption remain controversial and misunderstood topics. But they are now given higher priority in development circles and by the corporate sector, including multinationals. Indeed, some donors and international financial institutions (IFIs) increasingly work with emerging economies to help reduce corruption, and increase citizen voice, gender equal...

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Challenging Orthodoxy on Governance : Lessons from Evidence and Implications for Donors

By: Daniel Kaufmann

...ance: Lessons from Evidence and Implications for Donors Daniel Kaufmann, World Bank Institute www.worldbank.org/wbi/governance Background for Discus... ... Lessons from Evidence and Implications for Donors Daniel Kaufmann, World Bank Institute www.worldbank.org/wbi/governance Background for Discussion a... ...nk Institute www.worldbank.org/wbi/governance Background for Discussion at the Meeting with Ministry of Foreign Affairs, Ministry of Finance, and SID... ... 17 th , 2005 2 ‘Popular Notions’ on Anti-Corruption – Are they right? 1. Worldwide Consensus on Anti-Corruption since ’90s 2. But Corruption is an ‘... ...is a result of development & growth, – & emerging economies corrupt; rich world a model 4. Major Improvement worldwide on Corruption Control 5. The P... ...rich world a model 4. Major Improvement worldwide on Corruption Control 5. The Problem is just with Public Sector/Public Officials 6. Cultural & Histo... ...iquely) – data can be gathered, analyzed, and used judiciously 2. Beyond the Washington: Institutions, Governance and Corruption Matters 3. On Av... ...ing Evolution of Governance/A Evolution of Governance/A - - C at the World Bank: C at the World Bank: From C ... From C ... ‘ ‘ Prohibition Prohib... ... Corruption- Development 6 1. Evolution of Governance/A-C at the World Bank: -- From missing in Washington consensus to center stage -- Bank: Fr...

...jective?indicators -- Changes in governance over time 1996-2004 ?Are these changes are significant?: new method ?Have occurred in some countries, not worldwide -- How useful are ?perceptions?-data on governance? -- What is the ?development dividend?of good governance, and is a ?poverty discount?warranted?...

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Challenges for the Future for Debate

By: Daniel Kaufmann

...Challenges for the future – for debate Daniel Kaufmann, World Bank Institute www.worldbank.org/wbi/governance Session on ´Towards t... ...Challenges for the future – for debate Daniel Kaufmann, World Bank Institute www.worldbank.org/wbi/governance Session on ´Towards the Fut... ... World Bank Institute www.worldbank.org/wbi/governance Session on ´Towards the Future´ in Measuring Corruption Workshop by TM/TI Merida, Mexico, Dec... ...ormation, Transparency and Incentives? • • You are approaching your car in the empty and You are approaching your car in the empty and unattended ga... ...late at night unattended garage late at night • • You see an envelope on the floor, and you You see an envelope on the floor, and you pick it up p... ...ion 6.01: General infrastructure in your country is among the best in the world? Extent of Independence of the Judiciary 2 4.5 7 1998 1999 2000 200...

...A ?Live? Test: Is it ?Culture?, Information, Transparency and Incentives? -- You are approaching your car in the empty and unattended garage late at night -- You see an envelope on the floor, and you pick it up -- It contains 20 bills of US $100 each. -- If no possibility that anyone would know: No cameras, no monitoring, no reporti...

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