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The list has been cited by journalists and academics in making broad comparative points about countries or regions. [ 2 ] [ 3 ] The report uses 12 factors to determine the rating for each nation, including security threats, economic implosion, human rights violations and refugee flows.
The index's ranks are based on 15 indicators of state vulnerability, grouped by category: Cohesion, Economic, Political, and Social. [4] The ranking is a critical tool in highlighting not only the normal pressures that all states experience, but also in identifying when those pressures are outweighing a state's capacity to manage those pressures.
Despite the above noted limitations and concerns recent econometric research looking at how reliable some of these indicators are, vis-a-vis data collected from natural experiments and other observational surveys, have actually concluded that the Good Governance Indicators do in fact seem to be measuring, albeit imperfectly, levels of corruption and government effectiveness. [9]
These countries can have significant faults in other democratic aspects, including underdeveloped political culture, low levels of participation in politics, and issues in the functioning of governance. [6] Hybrid regimes are countries with regular electoral frauds, preventing them from being fair and free democracies. These countries commonly ...
These aggregate indicators are based on the views of a large number of enterprise, citizen, and expert survey respondents in both industrial and developing countries. The indicators draw from over 30 individual data sources produced by a variety of survey institutes, think tanks, non-governmental organizations, international organizations, and ...
A study investigating the relationship between public governance and the Corruption Perception Index [21] found that aspects of public administration like voice and accountability, political stability, and rule of law significantly influence how corrupt a country is perceived to be. This suggests that strong governance practices can be ...
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This term is also sometimes referred to as political risk; however, country risk is a more general term that generally refers only to risks influencing all companies operating within or involved with a particular country. Political risk analysis providers and credit rating agencies use different methodologies to assess and rate countries ...