Governance is a fundamental pillar of sustainable competitiveness. Good governance provides the framework for economic development, social stability, and environmental protection. It encompasses the quality of institutions, regulatory effectiveness, rule of law, transparency, and the capacity of governments to formulate and implement sound policies. Strong governance creates an enabling environment for businesses, attracts investment, and ensures that economic growth benefits society as a whole while protecting natural resources for future generations.
Strong institutions and effective governance drive sustainable development and prosperity
Bottom Line: Countries with high governance scores consistently demonstrate higher levels of sustainable competitiveness, economic stability, and quality of life.
Key clusters to measure institutional quality and governance effectiveness
Evaluation of the availability and quality of public infrastructure based on performance indicators
Evaluation of the balance and stability of government expenditure
Evaluation of government agencies efficiency and corruption levels
Evaluation of the extend and quality of political decision making
Evaluation of the availability, level, impartiality, and fairness of internal domestic security
Evaluation of stability and quality of government policies against holistic ESG aspects based on performance indicators
A global snapshot of governance performance and trends
Western European dominance: Sweden (#1), Netherlands (#2), Denmark (#3), Norway (#4), and Switzerland (#5) occupy the top five positions
Strong correlation between governance and prosperity: Countries with high governance scores consistently demonstrate higher levels of sustainable competitiveness
Infrastructure quality varies significantly: Top-ranked countries invest heavily in transport, energy, and digital infrastructure
Business registration efficiency matters: Leading governance performers streamline business registration processes
Major economies show varied performance: USA ranks 18th, China 71st, India 82nd, Brazil 94th
Deteriorating governance trends globally: With 50% of countries showing negative trends, governance quality is declining in many nations
Explore how countries compare across governance indicators
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Discover how Governance Capital connects with Natural, Economic, Social, and Intellectual Capital
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