In this article, we will be navigating through factors contributing to good governance while covering the 30 worst-governed countries in the world. If you wish to skip our detailed analysis, you can move directly to the 5 Worst Governed Countries in the World.
Good Governance at a Glance
As reported by The United Nations, good governance guarantees the rule of law, respect for human rights, an efficient public sector, and accountability in processes. All of these eventually translate into national development. Good governance and human rights mutually reinforce each other. While human rights shape the performance standards for government actors, appropriate political processes enable sustained human rights.
Democratic institutions that incorporate public opinion in policymaking symbolize a well-established governance system. Simultaneously, the government should be capable of making state services accessible to all. Effective implementation of legislation in courts and parliaments is also necessary. Constraining corruption is also a key factor in this regard since high corruption tends to become a burden on a nation’s economic progress. Monitoring governments’ use of public funds and establishing anti-corruption mechanisms are solutions to eliminate corrupt practices. You can also take a look at some of the most corrupt countries in the world.
As reported by The World Bank, the global pandemic and the war in Ukraine challenged governments around the world and ultimately led to a pattern where governments need to do more with less to meet the demands of residents. Countries having strong institutions tend to be more resilient and are capable of driving public sector growth while earning the public trust. Some of the most powerful nations and politically influential countries in the world have been previously covered.
Politically Stable Nations as Business Destinations
Companies around the world tend to resort to attractive business destinations amid stable environments. Some of the most valuable companies are situated in politically stable countries such as Norway, Canada, and Sweden. These include Equinor ASA (NYSE:EQNR), Royal Bank of Canada (NYSE:RY), and Atlas Corp. (NYSE:ATCO).
Equinor ASA (NYSE:EQNR) is a Norwegian state-owned multinational energy company. On November 21, Equinor ASA (NYSE:EQNR) reported that its exploration, operations, and maintenance activities resulted in 63,000 person-years of employment across Norway in 2022. This includes Equinor employment, jobs in Norwegian supplier companies, or as a result of sub-supplies and consumer effects. Hence, the company is contributing to the local economy and is a major force in the oil and gas sector, which is one of the largest industries in Norway.
Royal Bank of Canada (NYSE:RY) is a Canadian multinational financial services company. On November 15, the company reported that it ranked in the top three for artificial intelligence maturity among 50 global financial institutions. This is due to the firm’s commitment to AI innovation while maintaining transparency. Data-driven insights are also used by the Royal Bank of Canada (NYSE:RY) to help clients make informed decisions. The bank has also launched different AI-powered products including Aiden which applies deep reinforcement learning to the rapidly changing environment of equities trading.
Atlas Corp. (NYSE:ATCO) is a Swedish industrial company that offers compressed air and vacuum solutions, energy solutions, dewatering and industrial pumps, industrial power tools, and assembly and machine vision solutions. Atlas Corp. (NYSE:ATCO) operates in more than 180 countries and continues to build its global footprint. On November 24, the company reported that it has successfully acquired Hamamcıoğlu Makina, a Turkish distributor of compressed air solutions. This acquisition will strengthen the presence of the firm in Türkiye.
Without further ado, let’s move to the 30 worst-governed countries in the world.
Our Methodology:
In order to compile a list of the 30 worst-governed countries in the world, we sourced data from the Chandler Good Governance Index. This index assesses the capacities and performance of governments throughout the world. The most recent data was available from 2022. Countries that rank low on the index are considered poorly governed since their governments tend to be incompetent and policies are weakly implemented. We have used the governance index score for all countries as our metric since it covers all necessary factors quantifying the performance of the government. These include foresight and leadership, strong policies and laws, reliable institutions, financial management, an appealing marketplace, a global reputation, and assisting others in their ascent. Since quantifying a bad government is complex, we have used the index score which provides a comprehensive view of national governments.
Finally, we ranked the 30 worst-governed countries in the world in descending order of their index scores, as of 2022.
30 Worst Governed Countries in the World
30. Tunisia
Index Score: 0.414
Tunisia introduced a presidential system of government and a bicameral legislative system in July 2022. However, issues including widespread corruption and socioeconomic disparities have still not been addressed in the country.
29. Kenya
Index Score: 0.412
Kenya is another nation that suffers as a result of poor leadership and governance. Deeply rooted corruption ranks Kenya as one of the 30 worst-governed countries in the world.
28. Ghana
Index Score: 0.409
Political corruption persists in Ghana while the state institutions are unable to deliver to the public. This makes Ghana a country badly managed by its government.
27. Namibia
Index Score: 0.401
Namibia has witnessed a deterioration in security and the rule of law. Corrupt practices are undertaken by politicians which ranks Namibia among the worst-governed countries globally.
26. El Salvador
Index Score: 0.400
El Salvador remains subject to non-transparent budgeting systems and inadequate tax collection. Corruption and lack of transparency further expose the bad governance in the country.
25. Tajikistan
Index Score: 0.300
Weak public sector governance, corruption, and limited accountability serve as significant challenges to Tajikistan thereby making the country one of the 30 worst-governed nations in the world.
24. Tanzania
Index Score: 0.399
Tanzania ranks low in transparency and the rule of law. The government has not been able to put a stop to organized crime-related violence thereby ranking the country among the most poorly governed nations.
23. Ecuador
Index Score: 0.394
Ecuador also ranks as one of the 30 worst-governed countries in the world. Corruption and political instability continue to be significant issues in the country.
22. Bosnia and Herzegovina
Index Score: 0.392
Bosnia and Herzegovina has seen political instability and rampant corruption. The undermined rule of law ranks the country among the worst-governed nations across the globe.
21. Sri Lanka
Index Score: 0.390
Sri Lanka’s long-time political dynasty was overthrown by ordinary Sri Lankans after decades of policy failure in the country. This political incompetency makes Sri Lanka another poorly governed country.
20. Uganda
Index Score: 0.386
Due to a misuse of public funds, the economic development in Uganda remains halted. This has also led to reduced public trust in governance thereby ranking Uganda among the worst-governed countries globally.
19. Honduras
Index Score: 0.381
Honduras faces challenges related to poor governance, weak institutions, and a lack of transparency. Inefficient public policy ranks the country among the most badly governed nations in the world.
18. Algeria
Index Score: 0.378
Algeria has witnessed electoral processes that were not transparent while the freedom of media was restricted in the country. This makes Algeria one of the worst-governed nations worldwide.
17. Cambodia
Index Score: 0.363
Poor governance also impacts Cambodia due to corruption and reduced accountability of public policy making. Hence, Cambodia is another nation subject to bad governance.
16. Guatemala
Index Score: 0.361
Other than poverty and income inequality, Guatemala is a victim of weak democratic institutions and corruption. Politicians preferring authoritarian rule tend to reduce the economic growth of the country.
15. Nicaragua
Index Score: 0.348
Amidst human rights violations, the government of Nicaragua engaged in the excessive use of force and attacks on civilians to silence activism. This lack of accountability ranks Nicaragua as another poorly governed state.
14. Pakistan
Index Score: 0.344
Pakistan ranks among the 30 worst-governed countries globally since the public institutions are weak in the state while political instability halts national development. Lack of accountability is also an issue.
13. Nepal
Index Score: 0.342
The unequal allocation of resources and widespread corruption continue to prevail in Nepal. This has led to policy failures in Nepal which ranks the country among the worst-governed nations in the world.
12. Malawi
Index Score: 0.326
A number of political and economic problems persist in Malawi. Corruption further derails the country’s progress thereby making Malawi another badly governed country in the world.
11. Madagascar
Index Score: 0.324
Madagascar also qualifies for the 30 worst-governed countries in the world. Lack of accountability, a weak rule of rule, and reduced transparency in managing public resources are some of the contributing factors to bad governance.
10. Ethiopia
Index Score: 0.321
The government of Ethiopia has been unable to address or limit the atrocities in the country. The transitional justice consultation process introduced by the government is also flawed and doesn’t engage victims which makes Ethiopia a badly governed country.
9. Iran
Index Score: 0.314
Iran has one of the highest rates of corruption among other countries. The country’s incompetent leadership engages in coercion and electoral manipulation which results in inefficient state management.
8. Zambia
Index Score: 0.312
Corruption remains a deeply rooted issue in Zambia due to declining transparency in the public sector. This ranks Zambia among other countries that are poorly managed by their governments.
7. Burkina Faso
Index Score: 0.310
Burkina Faso has been subject to violence from armed militant groups and government forces. This has led to a political crisis in the country. Hence, Burkina Faso is another poorly governed country in the world.
6. Mozambique
Index Score: 0.302
Mozambique ranks as one of the 30 worst-governed countries in the world. The country ranks low in control of corruption, the effectiveness of government, and the rule of law.
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Disclosure: None. 30 Worst Governed Countries in the World is originally published on Insider Monkey.