This draft reviews key issues in worldwide governance, and present new empirical findings. On average, the evidence shows scant if any progress in good governance worldwide, in controlling corruption, and in improved institutional quality-although there is variance across countries. Further, the empirical findings and analysis point to the private sector as influencing public governance, thereby challenging traditional notions of the functioning of politicians, the public sector, and the determinants of the investment climate. These, in turn, argue for revisiting conventional approaches to promote institutional reform.

World Bank Institute (WBI)