Public Sector Management and Institutions (Cluster D) The Governance Cluster covers property rights, rule-based governance, budgetary and financial management quality, revenue mobilization efficiency, public administration quality, transparency, accountability, and corruption in the public sector. There was significant movement in this cluster compared to previous years. In total, 20 countries had either upgrades or downgrades to their averages at the 0.1 percent level, compared to 14 in 2022. Additionally, more countries saw upgrades in their average scores than downgrades, with 11 upgrades compared to 9 downgrades. However, transparency, accountability, and corruption in the public sector had more downgrades than upgrades, with five countries’ scores decreasing and only two countries’ scores increasing.
This criterion has the lowest average score for the region of all 16 criteria and is the criterion where the region lags the global average the most. Good governance and a strong social contract provide the foundation for sustainable development by fostering stability, accountability, efficiency, and investor confidence.