Government System
Government System captures a nation's political stability, governance structures, and expression of democratic values (e.g. inclusion and representation in government, media, or otherwise deliberative and/or decision-making spaces; trust in government; respect for and participation in international policy-making process; etc.). Use 'Government System' to assess potential political risk factors.
Governance
Governance refers to the processes, systems, and practices through which an organization, government, or society is managed and directed. It involves the establishment of policies, the allocation of resources, decision-making, and the mechanisms for ensuring accountability, transparency, and effectiveness in achieving objectives.
Components
Control of Corruption
Captures perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as capture of the state by elites and private interests.
Government Effectiveness
Perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government's commitment to such policies. It is a proxy indicator for political stability and therefore potential risk of project success or failure over the long-term.
Political Stability
Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. This is a proxy indicator for the potential for project success or failure over the long-term.
Regulatory Quality
Regulatory quality captures perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development. Countries that have better quality regulatory systems are more transparent and are better places to invest in the longer term.
Rule of Law
Rule of law captures perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. Countries with clear and transparent legal systems are better places to invest over the long-term.
Trust in Government
Trust in government refers to the share of people who report having confidence in the national government. When average citizens indicate a high level of trust in their government, the country tends to be more politically stable and predictable.
Voice and Accountability
Voice and accountability captures perceptions of the extent to which a country's citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association, and a free media.