Abstract
TheWorld Bank Research Observer publishes balanced surveys of the literature. When the authors of a survey are also the proponents of one of the major indicators being surveyed, it invites comments to ensure that balance is maintained. Kaufmann and Kraay provide a useful taxonomy of governance indicators, distinguishing between those measuring “rules on the books” and “rules on the ground” and those reflecting the views of experts and the results of surveys. While providing a balanced overview of the pros and cons of different methods, they make a strong case in favor of measuring rules on the ground based on an aggregated mix of expert- and survey-based indicators, along the lines of their World Governance Indicators (WGI). Any assessment of governance indicators—or any indicator for that matter—must be based on the purposes to which the indicators will be put, as Kaufmann and Kraay note. This comment examines how well the WGI and other indicators perform in two specific instances.
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