PERFORMANCE OF TRANSITION ELITES How to measure it

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PERFORMANCE OF TRANSITION ELITES How to measure
it?

• by
• TAMAS Pal HAS, Budapest

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Governance

• government ? governance
• institution process
• many agents can be involved in governance

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GOVERNANCE- A TERM WITH ROOTS

• At first sight 'governance' seems to be simple
  and clear it is an exercise of authority,
  control or direction.
• Latin 'gubernare' sounds quite familiar in
  various modern languages.
• Its Greek background can produce a surprisingly
  modern linguistic association 'kybernaein'
  cybernetics?
• Actually, it is much closer to navigation the
  old art of ascertaining the position and
  directing the course at sea.
• When human conduct was under discussion with
  Greek philosophers, navigation or 'governance'
  as 'directing the course at sea' was a
  frequently used metaphor.
• Lets see a case.

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...THE AGENTS THEMSELVES MUST CONSIDER...

• But this must be agreed upon beforehand, that the
  whole account of matters of conduct must be given
  in outline and not precisely, as we said at the
  very beginning that the accounts we demand must
  be in accordance with the subject-matter matters
  concerned with conduct and questions of what is
  good for us have no fixity, any more than matters
  of health. The general account being of this
  nature, the account of particular cases is yet
  more lacking in exactness for they do not fall
  under any art or precept but the agents
  themselves must in each case consider what is
  appropriate to the occasion, as happens also in
  the art of medicine or of navigation.
• Aristotle, Nicomachean Ethics

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5 Good Governance Principles
The Five Principles
UNDP Principles on which they are based
Legitimacy Voice
- Participation- Consensus Orientation
Accountability
- Accountability- Transparency
Performance
- Responsiveness- Effectiveness, Efficiency
Fairness
- Equity- Rule of Law
Direction
- Strategic Vision
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Criteria

• Performance Criteria
• Cost Effectiveness
• Capacity
• Co-ordination
• Performance Information to the Public
• Responsiveness
• Monitoring and Evaluation
• Adaptive Management
• Risk Management

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GOVERNANCE INDICATORS

• VOICE AND ACCOUNTABILITY
• POLITICAL STABILITY Probability of a sudden
  change in the government?
• GOVERNMENT EFFECTIVENESS
• REGULATORY QUALITY
• RULE OF LAW
• CONTROL OF CORRUPTION

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BEEPS Unbundling and Comparing Governance
Constraints Across all countries in Transition
(and beyond)
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Measuring State Capture
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GOVERNANCE-EFFECTIVENESS
Fuente Growth without Governance, Daniel
Kaufmann and Aart Kraay by D. Kaufmann and A.
Kraay (Fall 2002) Economia, Volume 3, Number 1
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THE DIVIDEND OF GOOD GOVERNANCE
Note
The bars depict the simple correlation between
good governance and development outcomes. The
line depicts the
predicted value when taking into account the
causality effects (Development Dividend) from
improved governance to better
development outcomes. For data and methodological
details visit http//www.worldbank.org/wbi/governa
nce.
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New Strategy A broader analysis of corruption
causes and response options
Corruption
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Overall Corruption Over Time
(Selected Countries ICRG index, rescaled 0-10)
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High corruption
Indonesia
El Salvador
8
Russia
Indonesia
6
Russia
4
El Salvador
Poland
2
Poland
Low corruption
Finland
Finland
0
1992
1993
1994
1995
1996
1997
1998
1988-92
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Control of Corruption Aggregate Indicator
(selected countries from 155 worldwide, for
illustration, based on 1998 research data)
Good Corruption Control
Margin of Error
Corruption Level
POOR
GOOD
Source Governance Matters, PRWP 2196 by
Kaufmann, Kraay and Zoido. http//www.worldbank.or
g/wbi/governance/
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Probability of Losing Investment Due to
Corruption(For FDI, within a 5-year period.
Source SP/DRI, 2000, Selected Countries,
Preliminary)

Certain
Probability of Losing FDI due to Corruption
Unlikely
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Higher Education and Good Governance(cross-countr
y correlations with tertiary enrollment rates
all governance indicators are scored on 6 or 10
point scales with higher values reflecting better
ratings)
Source of governance data International Country
Risk Guide (ICRG) data, as compiled and processed
by Stephen Knack and the University of Maryland.
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MEASURING TRADITIONAL THINK TANK INFLUENCE

• Issue articulation
• Policy formulation
• Policy implementation (such as contracting,
  advisory, media, supply of officials, training,
  database maintenance)

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Decentralised Governance
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GOVERNANCE- AN INTEGRATED VIEW ON CONTROL
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Policy PerformanceRegulatory Governance Structure

• Executive with multitude of regulatory agencies
• Legislature inserting itself into implementation
• Judiciary and regulation by lawsuit
• Constitutional bodies
• Local governments
• Private sector and civil society participation

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Policy PerformanceRegulation Modes

• Restructuring electric power generation,
  transmission, distribution and supply
• De-monopolization telecommunications
• Privatization water services
• Public enterprise - ports development
• Infrastructure development BOT
• Devolution local government streamlining
• Self-, co-, and stakeholder regulation

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CONCLUSIONS

• Governance indicators can be used for the
  measurement of transition elites performance
• The indicators change during the states of
  transition. For Stage I rule of law and
  political stability. For Stage 2 governmental
  effectiveness and control of corruption, for
  Stage 3 regulatory quality is central
• Sustainable growth and social cohesion together
  are dividends of good governance