Quality of Public Administration

CATEGORY: Sustainable Economic Opportunity
Sub-category: Economic Management
Indicator name: Quality of Public Administration
Data provider: International Bank for Reconstruction and Development, The World Bank (WB); African Development Bank (AfDB)
Data source: IDA Resource Allocation Index, IRAI, (WB); Country Performance Assessment, CPA (AfDB)
Publication years used in the Ibrahim Index of African Governance (IIAG):IRAI (WB) 2005-2008; CPA (AfDB) 2005, 2007 and 2008
Website:
http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:21359477~menuPK:2626968~pagePK:51236175~piPK:437394~theSitePK:73154,00.html
and
http://www.afdb.org/en/documents/project-operations/country-performance-assessment-cpa/

Definition of the indicator:

An expert assessment of the extent to which the civil service (including teachers, health workers, and police) is structured to design and implement government policy and deliver services effectively and ethicly. This includes the executive, and all other ministries and administrative departments, including autonomous agencies, but excludes the armed forces, state-owned enterprises, and sub-national government.

For details of the methodology, please see:

http://siteresources.worldbank.org/IDA/Resources/73153-1181752621336/CPIA08CriteriaB-rev.pdf
and
http://www.afdb.org/fileadmin/uploads/afdb/Maps/CPIA%20Questionnaire%20for%202008oct22_English.pdf

Technical notes:

• Raw data for this indicator were calculated using the average of AfDB and WB scores. In circumstances where only one source had available data that individual score was taken. Any data gaps that remained have been estimated using mean substitution and/or extrapolation.

• This indicator’s raw data range from 1 to 6, with a low score being worst, and a high score being best.  To produce the IIAG score the data were normalised using the Min-Max method to transform them to a scale of 0 to 100, where 100 is always the best possible score.
• The publication year used in the IRAI and CPA reflects performance in that same year. The latest available data are for 2008, which correspond to 2007/08 in the IIAG.

• AfDB scores for 2005 are within the CPA sub-component ‘County Policy and Institution Assessment (CPIA)’, and within the CPA sub-component ‘Governance Rating (GR)’ for 2007 and 2008.

• The 2007 AfDB CPA dataset is no longer accessible online, but was available at the time of data collection for the IIAG.

Quality of Budget Management

CATEGORY: Sustainable Economic Opportunity
Sub-category: Economic Management
Indicator name: Quality of Budget Management
Indicator name at source (if different): Quality of Budgetary and Financial Management
Data provider: International Bank for Reconstruction and Development, The World Bank (WB); African Development Bank (AfDB)
Data source: IDA Resource Allocation Index, IRAI (WB); Country Performance Assessment, CPA (AfDB)
Publication years used in the Ibrahim Index of African Governance: IRAI (WB) 2005-2008; CPA (AfDB) 2005, 2007 and 2008
Websites:
http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:21359477~menuPK:2626968~pagePK:51236175~piPK:437394~theSitePK:73154,00.html
and
http://www.afdb.org/en/documents/project-operations/country-performance-assessment-cpa/

Definition of the indicator:

An expert assessment of the extent to which there is a comprehensive and credible budget, linked to policy priorities; an effective financial management system to ensure that the budget is implemented; and  timely and accurate accounting and fiscal reporting.

For details of the methodology, please see:

http://siteresources.worldbank.org/IDA/Resources/73153-1181752621336/CPIA08CriteriaB-rev.pdf
and
http://www.afdb.org/fileadmin/uploads/afdb/Maps/CPIA%20Questionnaire%20for%202008oct22_English.pdf

Technical notes:

• Raw data for this indicator were calculated using the average of AfDB and WB scores. In circumstances where only one source had available data that individual score was taken. Any data gaps that remained have been estimated using mean substitution and/or extrapolation.

• This indicator’s raw data range from 1 to 6, with a low score being worst and a high score being best. To produce the IIAG score the data were normalised using the Min-Max method to transform them to a scale of 0 to 100, where 100 is always the best score possible.

• The publication year used in the IRAI and CPA reflects performance in that same year. The latest available data are for 2008, which correspond to 2007/08 in the IIAG.

• AfDB scores for 2005 are within the CPA sub-component ‘County Policy and Institution Assessment (CPIA)’, and within the CPA sub-component ‘Governance Rating (GR)’ for 2007 and 2008.

• The 2007 AfDB CPA dataset is no longer accessible online, but it was available at the time of data collection for the IIAG.

Currency Inside Banks

CATEGORY: Sustainable Economic Opportunity
Sub-category: Economic Management
Indicator name: Currency Inside Banks
Data provider: The Economist Intelligence Unit (EIU); The International Monetary Fund (IMF)
Data source: Country Data Tool (EIU); International Financial Statistics (IFS) Yearbook
Publication years used in the Ibrahim Index of African Governance (IIAG): 2000-2008
Websites:
http://www.eiu.com/ 
and
http://www.imfstatistics.org/imf/

Definition of the indicator:

Official data measuring the total stock of currency held within banks as a proportion of the money supply in an economy.

For details of methodology, please see: 

http://www.imfstatistics.org/imf/IFSMoney.htm

Technical notes:

• This indicator was introduced as ‘Contract-Intensive Money’ by Christopher Clague, Philip Keefer, Stephen Knack, and Mancur Olson in ‘Contract-Intensive Money: Contract Enforcement, Property Rights, and Economic performance’,  Journal of Economic Growth, 4 (June 1999).

• The IIAG uses the ‘Contract-Intensive Money’ formulation [(M2-C)/M2 ] to approximate the extent to which currency is held inside banks, thereby indicating the degree of trust the people have in their banking system.

• ‘M2’ is a broad measure of Money Supply (defined as the sum of currency outside deposit money banks and demand deposits other than those of the central government, as well as time, savings, and foreign currency deposits of resident sectors other than central government), and ‘C’ is Currency Held Outside Deposit Money Banks.

• The formula used to calculate this indicator produces results in the range of 0 to 100, with a low score being good, and a high score being bad. That is to say, it measures currency outside banks. As the 2009 IIAG measures currency inside banks,  the results from the above calculation were first normalized, using the Min-Max method to transform the data to a scale of 0 to 100, and then subtracted from 100, so that the higher the score the better the performance.

• The latest available data are for 2008, with the exceptions of Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Malawi, Senegal, Togo and Zimbabwe, for which the latest available data are for 2007. For Ethiopia, Ghana and Rwanda the latest available data are for 2006. For Guinea, the latest available data are for 2005. Where data are unavailable, estimates are made using mean substitution and/or extrapolation.  This also applies for Ethiopia, Ghana, Guinea and Rwanda in 2007/08 and Guinea in 2006/07.

• Data are unavailable for all years for the Central African Republic, Comoros, the Democratic Republic of Congo, Djibouti, Eritrea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Sierra Leone and Somalia.

Ratio of Total Revenue to Total Expenditure

CATEGORY: Sustainable Economic Opportunity
Sub-category: Economic Management
Indicator name: Ratio of Total Revenue to Total Expenditure
Data provider: The Economist Intelligence Unit (EIU)
Data source: Country Data Tool
Publication years used in the Ibrahim Index of African Governance (IIAG): 2001-2008
Website: http://www.eiu.com

Definition of the indicator:

Official data measuring total budget revenue as a proportion of total budget expenditure.

Technical notes:

• Total Revenue = Budget Revenue: Central government receipts (including grants received and loan repayments), and  Total Expenditure = Budget Expenditure: Central government outlays (including loans). The indicator is calculated as the ratio of (total revenue/total expenditure)*100.

• To produce the IIAG score, the data were normalised using the Min-Max method to transform them to a scale of 0 to 100, where 100 is always the best possible score.

• Data are unavailable for all years for the Central African Republic, Comoros, the Democratic Republic of Congo, Djibouti, Eritrea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Sierra Leone and Somalia. No data were available from source for Egypt for the IIAG year 2000/01, and so the data were estimated using mean substitution and/or extrapolation.

• The years stated in the ‘Country Data Tool’ reflect performance in that same year. The latest available data are for 2008, which correspond to 2007/08 in the IIAG.

Ratio of Budget Deficit or Surplus to GDP

CATEGORY: Sustainable Economic Opportunity
Sub-category: Economic Management
Indicator name: Ratio of Budget Deficit or Surplus to GDP
Data provider: The Economist Intelligence Unit (EIU)
Data source: Country Data Tool
Publication years used in the Ibrahim Index of African Governance (IIAG):  2001-2008
Website: http://www.eiu.com

Definition of the indicator:

Official data measuring a country’s budget surplus or budget deficit as a percentage of Gross Domestic Product (GDP).

For details of the methodology, please see: www.eiu.com

Technical notes:

• To produce the IIAG score the raw data were normalised using the Min-Max method to transform them to a scale of 0 to 100, where 100 is always the best possible score.

• The years stated in the ‘Country Data Tool’ reflects performance in that same year. The latest available data are for 2008, which correspond to 2007/08 in the IIAG.

• Data are unavailable for all years for the Central African Republic, Comoros, the Democratic Republic of Congo, Djibouti, Eritrea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Sierra Leone and Somalia. No data were available for Egypt for 2000/01, and were estimated using mean substitution and/or extrapolation.

 Outliers:

This is one of the 10 indicators that were fixed for outliers in the Ibrahim Index. Analysis indicated that there were extreme values that needed to be filtered so that the results would not be unduly influenced by those extreme values.

The filter fix was as follows:

• All observations that lie more than 2.5 trimmed standard deviations from the trimmed mean are replaced with: trimmed mean + 2.6 trimmed standard deviations if they are in the right tail, and trimmed mean -2.6 trimmed standard deviations if they are in the left tail.
• The trimmed moments are computed on the 95% central part of the distribution (i.e. removing the bottom 2.5% and top 2.5%).

Management of Public Debt

CATEGORY: Sustainable Economic Opportunity
Sub-category: Economic Management
Indicator name: Management of Public Debt
Indicator name at source (if different): Fiscal Policy
Data provider: International Bank for Reconstruction and Development, The World Bank (WB); African Development Bank (AfDB)
Data source: IDA Resource Allocation Index, IRAI (WB); Country Performance Assessment, CPA (AfDB)
Publication years used in the Ibrahim Index of African Governance (IIAG):IRAI (WB) 2005-2008; CPA (AfDB) 2005, 2007 and 2008
Websites:
http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:21359477~menuPK:2626968~pagePK:51236175~piPK:437394~theSitePK:73154,00.html
and
http://www.afdb.org/en/documents/project-operations/country-performance-assessment-cpa/

Definition of the indicator:

An expert assessment of the short- and medium-term sustainability of fiscal policy and its impact on growth. This indicator incorporates assessments of how well a country balances expenditure and spending, whether public expenditure and revenue can be adjusted to absorb shocks, and whether the povision of public goods, including infrastructure, is consistent with medium-term growth.

For details of the methodology, please see:

http://siteresources.worldbank.org/IDA/Resources/73153-1181752621336/CPIA08CriteriaB-rev.pdf
and
http://www.afdb.org/fileadmin/uploads/afdb/Maps/CPIA%20Questionnaire%20for%202008oct22_English.pdf

Technical notes:

• Raw data for this indicator were calculated using the average of AfDB and WB scores. In circumstances where only one source had available data that individual score was taken. Any data gaps that remained have been estimated using mean substitution and/or extrapolation.

•  This indicator’s raw data range from 1 to 6, with a low score being worst and a high score being best.  To produce the IIAG score the data were normalised using the Min-Max method to transform them to a scale of 0 to 100, where 100 is always the best possible score.

• The publication year used in the IRAI and CPA reflects performance in that same year. The latest available data are for 2008, which correspond to 2007/08 in the IIAG.

• For this indicator, AfDB scores for 2005, 2007 and 2008 are within the CPA sub-component ‘County Policy and Institution Assessment (CPIA)’.

• The 2007 AfDB CPA dataset is no longer accessible online, but was available at the time of data collection for the IIAG.

Inflation

CATEGORY: Sustainable Economic Opportunity
Sub-category: Economic Management
Indicator name: Inflation
Indicator name at source (if different): Consumer Prices (% change pa; end period)
Data provider: The Economist Intelligence Unit (EIU)
Data source: Country Data Tool
Publication years used in the Ibrahim Index of African Governance (IIAG): 2001-2008
Website: http://www.eiu.com

Definition of the indicator:

Official data measuring the annual change in the consumer price index at the end of the year.

Technical notes:

• To produce the IIAG score the raw data were normalised using the Min-Max method to transform them to a scale of 0 to 100, where 100 is always the best possible score.

• The years stated in the Country Data Tool reflects performance in that same year. The latest available data are for 2008, which correspond to 2007/08 in the IIAG.
• For Libya, data for 2000/01and 2002/03 are not available, and have been estimated using mean substitution and/or extrapolation.

• Data are unavailable for all years for Benin, Burkina Faso, Burundi, Cape Verde, the Central African Republic, Chad, Comoros, the Republic of Congo, the Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Gambia, Guinea-Bissau, Lesotho, Liberia, Madagascar, Mali, Mauritania, Niger, Rwanda, Sâo Tomé and Príncipe, the Seychelles, Sierra Leone, Somalia, Swaziland and Togo.

Outliers:

This is one of the 10 indicators that were fixed for outliers in the Ibrahim Index. Analysis indicated that there were extreme values that needed to be filtered so that the results would not be unduly influenced by those extreme values.

The filter fix was as follows:

• All observations that lie more than 2.5 trimmed standard deviations from the trimmed mean are replaced with: trimmed mean + 2.6 trimmed standard deviations if they are in the right tail, and trimmed mean -2.6 trimmed standard deviations if they are in the left tail.
• The trimmed moments are computed on the 95% central part of the distribution (i.e. removing the bottom 2.5% and top 2.5%).

Ratio of External Debt Service to Exports

CATEGORY: Sustainable Economic Opportunity
Sub-category: Economic Management
Indicator name: Ratio of External Debt Service to Exports
Indicator name at source (if different): Debt-Service Ratio, Due
Data provider: The Economist Intelligence Unit (EIU)
Data source: Country Data Tool
Publication years used in the Ibrahim Index of African Governance (IIAG): 2000-2008
Website: http://www.eiu.com

Definition of the indicator:

Official data measuring the total external debt service due as a proportion of exports of goods, non-factor services, income and workers' remittances.

Technical notes:

• To produce the IIAG score the raw data were normalised using the Min-Max method to transform them to a scale of 0 to 100, where 100 is always the best possible score.

• The years stated in the Country Data Tool reflect performance in that same year. The latest available data are for 2008 (except for Rwanda, where the latest are for 2006), and correspond to 2007/08 in the IIAG. Estimates of values for Rwanda in 2007/08 and 2006/07 have been made using mean substitution and/or extrapolation.

• Data are unavailable for all years for Benin, Burkina Faso, Burundi, Cape Verde, the Central African Republic, Chad, Comoros, the Republic of Congo, the Democratic Republic of Congo, Djibouti, Eritrea, Gambia, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, São Tomé and Príncipe, Sierra Leone, Somalia and Togo.

Outliers:

This is one of the 10 indicators that were fixed for outliers in the Ibrahim Index. Analysis indicated that there were extreme values that needed to be filtered so that the results would not be unduly influenced by those extreme values.

The filter fix was as follows:

• All observations that lie more than 2.5 trimmed standard deviations from the trimmed mean are replaced with: trimmed mean + 2.6 trimmed standard deviations if they are in the right tail, and trimmed mean -2.6 trimmed standard deviations if they are in the left tail.
• The trimmed moments are computed on the 95% central part of the distribution (i.e. removing the bottom 2.5% and top 2.5%).

Imports Covered by Reserves

CATEGORY: Sustainable Economic Opportunity
Sub-category: Economic Management
Indicator name: Imports Covered by Reserves
Indicator name at source (if different): Import cover (months)
Data provider: The Economist Intelligence Unit (EIU)
Data source: Country Data Tool
Publication years used in the Ibrahim Index of African Governance (IIAG): 2001-2008
Website: http://www.eiu.com

Definition of the indicator:

Official data measuring the number of months of imports which could be paid for by a country’s foreign exchange reserves.

Technical notes:

• To produce the IIAG score the raw data were normalised using the Min-Max method to transform them to a scale of 0 to 100, where 100 is always the best score possible.

• The years stated in the ‘Country Data Tool’ reflect performance in that same year. The latest available data are for 2008, which correspond to 2007/08 in the IIAG.

• Data are unavailable for all years for the Central African Republic, Comoros, the Democratic Republic of Congo, Djibouti, Eritrea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Sierra Leone and Somalia.

Outliers:

This is one of the 10 indicators that were fixed for outliers in the Ibrahim Index. Analysis indicated that there were extreme values that needed to be filtered so that the results would not be unduly influenced by those extreme values.

The filter fix was as follows:

• All observations that lie more than 2.5 trimmed standard deviations from the trimmed mean are replaced with: trimmed mean + 2.6 trimmed standard deviations if they are in the right tail, and trimmed mean -2.6 trimmed standard deviations if they are in the left tail.
• The trimmed moments are computed on the 95% central part of the distribution (i.e. removing the bottom 2.5% and top 2.5%).