World Bank says better governance pays off

WASHINGTON, Tuesday (AFP) Better government brings decisive improvements in living standards, the World Bank said in a report that unveiled new governance targets for developing nations to aim for.

The leading development funder noted that with the United States now explicitly tying aid to improvements in a country's political administration, the pressure for change is building.

But too often around the world, the good governance message has failed to get through, to the financial cost of the world's poor.

The World Bank presented updated benchmarks for six measures of good governance which it expects will be used heavily by aid donors, foreign investors and developing governments themselves. The areas covered are:

"Voice and Accountability" - measuring political, civil and human rights;

"Political Instability and Violence" - gauging the likelihood of violent threats to government, including terrorism;

"Government Effectiveness" - measuring the competence of the bureaucracy and the quality of public service delivery;

"Regulatory Burden" - evaluating the extent of market-friendly policies;

"Rule of Law" - covering the quality of contract enforcement, the police and the courts, including judicial independence; and "Control of Corruption" measuring the abuse of public power for private gain, including by state elites.