CORRELATES OF CORRUPTION

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1 CORRELATES OF CORRUPTION BO ROTHSTEIN SÖREN HOLMBERG WORKING PAPER SERIES 2011:12 QOG THE QUALITY OF GOVERNMENT INSTITUTE Department of Political Science University of Gothenburg Box 711, SE GÖTEBORG November 2011 ISSN by Bo Rothstein and Sören Holmberg. All rights reserved.

2 Content Economy GDP / Capita 4 Economic Equality (gini index) 5 Economic Freedom 6 GDP / Capita Growth 7 Population below $2 a Day (%) 8 Foreign Credit Rating 9 Welfare Human Development Index 10 Government Revenue (% of GDP) 11 Tax Revenue (% of GDP) 12 Social Security Laws 13 Average Schooling Years 14 Health Life Expectancy 15 Healthy Life Years 16 Infant Mortality Rate 17 Maternal Mortality Rate 18 Government Expenditure on Health (% of total health) 19 Private Expenditure on Health (% of total health) 20 Environment CO 2 Emissions / Capita 21 Access to Improved Drinking Water 22 Access to Adequate Sanitation 23 Gender Gender Equality 24 Secondary Education Enrollment (female) 25 Crime Homicide Rate 26 Number of Police Officers 27 Number of Prisoners 28

3 Trust Interpersonal Trust 29 Confidence in Parliament (all countries) 30 Confidence in Parliament (democracies only) 31 Confidence in Government (all countries) 32 Confidence in Government (democracies only) 33 Happiness Feeling of Happiness 34 Life Satisfaction 35 Democracy Level of Democracy 36 Quality of Government Government Effectiveness and Description of Variables 39

4 GDP / Capita vs. 4 GDP / Capita Equatorial Guinea Belarus Russia Gabon Turkmenistan Ukraine Afghanistan Niger Chad Sao Tome United Arab Emirates USA Norway Qatar IrelandAustralia Singapore Brunei Japan Italy Belgium Germany Israel New Zealand Trinidad S. Arabia Barbados Estonia Chile Bulgaria South Korea Suriname Uruguay Cape Verde Mauritania Bhutan Luxembourg R²=0.71 Sources: Gleditsch (2002), World Bank ( )

5 Economic Equality vs. 5 Economic Equality (Reversed Gini-index) Slovakia Bosnia Hungary Ukraine Albania Bulgaria Bangladesh France Russia Egypt Greece Latvia Maldives Djibouti Israel Turkmenistan Tunisia Nigeria St Lucia Uganda Uruguay Nepal Zimbabwe Sao Tome Costa Rica Liberia Suriname Haiti Angola Bolivia Comoros Panama Belize South Africa Denmark Norway Austria Netherlands Belgium New Zealand Chile USA Singapore R²=0.13 Sources: World Development Indicators ( ), World Bank ( )

6 Economic Freedom vs. 6 Economic Freedom Estonia Ireland USA El Salvador Bahrain Australia Trinidad and Tobago Cyprus Cambodia Jamaica Lithuania Japan Bolivia Israel Belgium Tunisia Slovenia France Paraguay Cape Verde Russia Fiji Haiti Yemen Nepal Myanmar Suriname Serbia Bosnia Zimbabwe Belarus Libya Cuba North Korea Singapore New Zealand Luxembourg Austria Norway R²=0.56 Sources: Heritage Foundation (2002), World Bank ( )

7 GDP / Capita Growth vs. 7 GDP / Capita Growth Equatorial Guinea Turkmenistan Sierra Leone Afghanistan Armenia Sao Tome Myanmar China Lithuania Estonia Georgia Russia Iran Ireland Greece Slovenia Dem. Rep. Congo Australia Nigeria Haiti Japan USA Zimbabwe Senegal Mauritania Israel Barbados Gambia Dominica Malawi Iraq Argentina Uruguay Venezuela Madagascar New Zealand Iceland R²=0.01 Sources: World Development Indicators ( ), World Bank ( ) (N.B. The data for GDP / Capita growth is for a single year only)

8 8 Population Below $2 a Day (%) High Haiti Bangladesh Turkmenistan Kenya Paraguay Kazakhstan Argentina Mozambique Papua New Guinea Russia Population Below $2 a Day vs. Djibouti India Bosnia Mali Lesotho Sao Tome China South Africa Sri Lanka Iran Senegal Brazil Madagascar Tunisia Bhutan Hungary Costa Rica Chile R²=0.26 Sources: World Bank ( )

9 9 Foreign Credit Rating High Angola Russia Papua New Guinea China Peru Kazakhstan Uganda Egypt Albania Saudi Arabia Malaysia Italy Macedonia Ghana Lithuania Jordan Greece Poland Grenada Taiwan Israel Cyprus Costa Rica France USA Austria Japan Chile Uruguay Switzerland Norway New Zealand Ireland Foreign Credit Rating vs. Iceland R²=0.62 Sources: Standard & Poor's (2011), World Bank ( )

10 10 Human Development Index High Belgium Italy Japan Norway France Denmark USA South Korea Greece Argentina Israel Singapore Russia Mexico Latvia Chile Bahamas Venezuela Oman Eq. Guinea Azerbaijan Grenada South Africa Solomon Islands Tajikistan Egypt India Namibia Botswana Myanmar Cambodia Ghana Bhutan Haiti Djibouti Lesotho NigeriaBenin Eritrea Angola Dem. Rep. Congo Mali Niger Sierra Leone Burkina Faso Human Development Index vs. R²=0.47 Sources: UNDP (2002), World Bank ( )

11 Government Revenue vs. 11 Government Revenue (% of GDP) Qatar Norway Botswana Algeria Lesotho Seychelles Belgium Israel Serbia Austria Bosnia Slovenia Barbados Macedonia Slovakia Jamaica Czech Republic Russia Denmark Estonia Zimbabwe Ukraine Germany Swaziland Belarus Oman Spain Syria Malaysia Paraguay Belize Chile Singapore Thailand Mauritius Armenia USA Switzerland Indonesia Burundi Senegal Bahamas Kazakhstan India United Arab Emirates Afghanistan Sudan China Madagascar Myanmar Brazil R²=0.30 Sources: World Development Indicators ( ), World Bank ( )

12 Tax Revenue vs. 12 Tax Revenue (% of GDP) Georgia Zimbabwe Papua New Guinea Algeria Zambia Albania Russia Cambodia Central African Republic Myanmar Lesotho Swaziland Israel Jamaica Namibia Seychelles Qatar Serbia Fiji Italy France Turkey Morocco Syria Jordan Lebanon Botswana Burkina Faso China Madagascar Iran Brazil Oman Barbados Spain Belgium Ireland Chile USA Canada Bahrain United Arab Emirates Kuwait Denmark Norway Iceland Singapore Switzerland R²=0.17 Sources: World Development Indicators ( ), World Bank ( )

13 Social Security Laws Index vs. 13 Social Security Laws Index Denmark Ukraine Russia Colombia Israel Australia Lithuania Italy Spain Venezuela Argentina Latvia Uruguay New Zealand Chile Ecuador Poland USA Japan Netherlands Brazil Belgium South Africa Vietnam Morocco Georgia Singapore Bolivia Senegal Nigeria India Kazakhstan Jordan Jamaica Malaysia Zimbabwe Burkina Faso Tanzania Malawi R²=0.27 Sources: Botero et al ( ), World Bank ( )

14 Average Schooling Years vs. 14 Average Schooling Years USA Norway South Korea Switzerland Australia Japan Israel Argentina Panama Greece Taiwan Iceland Chile Austria Singapore Jordan Ecuador Mexico Paraguay Bolivia Mauritius Costa Rica Iraq Brazil Portugal Kenya Ghana Tunisia Cameroon Haiti Nepal Senegal Mozambique Niger Afghanistan Mali R²=0.65 Sources: Barro & Lee (2000), World Bank ( )

15 15 Life Expectancy at Birth (Years) High Life Expectancy at Birth vs. Japan Australia Greece Cuba Italy Liechtenstein Brunei Singapore Albania Argentina Slovakia USA Denmark Venezuela China Syria Barbados Iraq Ukraine Estonia Bahamas Cape Verde Russia Mongolia Solomon Islands Bhutan India Haiti Bangladesh Togo Benin Ghana Eritrea Liberia Cote d'ivoire South Africa Ethiopia Equatorial Guinea Malawi Burkina Faso Botswana Swaziland Afghanistan Angola Sierra Leone Zambia Zimbabwe R²=0.41 Source: World Bank ( )

16 Healthy Life Years vs. 16 Healthy Life Years Japan Spain Australia Greece Italy Belgium Switzerland Slovenia Argentina Panama Cuba USA Denmark Slovakia Chile Syria Bahamas Paraguay Ecuador Antigua and Barbuda Russia Grenada Solomon Islands Guatemala Mongolia Myanmar Tuvalu Bhutan Kiribati Iraq Yemen Ghana Haiti South Africa Nigeria Djibouti Ethiopia Mali Afghanistan Botswana Zimbabwe Mozambique Angola Swaziland Lesotho Sierra Leone R²=0.44 Sources: WHO (-), World Bank ( )

17 17 Infant Mortality (per 1000 live births) High Afghanistan Sierra Leone Dem. Rep. Congo Liberia Mozambique Mali Rwanda Nigeria Uganda Burkina Faso Cameroon Gambia India Mauritania Sao Tome Bhutan Eritrea Turkmenistan Uzbekistan Kyrgyzstan South Africa Iraq China Cape Verde Paraguay Tunisia Venezuela Argentina Cuba S. Korea Slovenia Bahamas USA Belgium Australia Infant Mortality vs. R²=0.40 Source: World Bank ( )

18 Maternal Mortality Ratio vs. 18 Maternal Mortality Ratio (per 100,000 live births) Afghanistan Central African Republic Malawi Chad Lesotho Sierra Leone Angola Cameroon Eritrea Mauritania Haiti Nigeria Rwanda Namibia Botswana Madagascar Eq. Guinea Gambia Indonesia Sao Tome Bhutan Comoros India Mongolia Iraq Barbados Paraguay China Iran South Korea Tunisia Australia USA R²=0.22 Sources: Institute for Health Metrics and Evaluation - University of Washington (2002), World Bank ( )

19 19 Government Expenditure on Health (% of total health) High Solomon Islands Marshall Islands Kiribati North Korea Czech Republic Luxembourg Cuba Eq. Guinea Angola Japan Germany Tonga Maldives Brunei France Malawi Turkmenistan Namibia Dominica Andorra Canada Australia Zambia Thailand Netherlands Russia St Lucia Grenada Switzerland Peru Benin Chile Haiti Kyrgyzstan Cyprus USA South Africa Zimbabwe China Eritrea Morocco Vietnam Nepal Uruguay Singapore Nigeria Iraq Guinea India Azerbaijan Afghanistan Government Expenditure on Health vs. R²=0.20 Sources: WHO ( ), World Bank ( )

20 20 Private Expenditure on Health (% of total health) High Afghanistan Togo Iraq Tajikistan India Nigeria Vietnam Nepal Uruguay Singapore Zimbabwe China Eritrea South Africa Bahamas USA Haiti Benin Jordan Peru Cyprus Chile Russia Jamaica Grenada Bulgaria Switzerland Bolivia Thailand Bahrain Netherlands Turkmenistan Madagascar Australia Panama Namibia Canada Slovenia Angola Brunei Equatorial Guinea France Germany Ireland Tonga Maldives Japan Cuba Oman North Korea Czech Republic Luxembourg Solomon Islands Marshall Islands Private Expenditure on Health vs. R²=0.20 Sources: WHO ( ), World Bank ( )

21 Carbon Dioxide Emissions vs. 21 Carbon Dioxide Emissions (tons per capita) Equatorial Guinea Haiti Afghanistan Kazakhstan Angola Indonesia Myanmar Bangladesh Djibouti Comoros Bolivia Russia Gabon Gambia Trinidad and Tobago Yemen Belize Swaziland Mongolia Bulgaria Suriname Qatar Mauritius United Arab Emirates Australia Bahrain USA Luxembourg Mauritania New Zealand Bhutan Tunisia Japan Israel Hungary Belgium Spain Austria Chile Netherlands R²=0.02 Sources: Environmental Performance Index ( ), World Bank ( )

22 Access to Improved Drinking Water (%) vs. 22 Access to Improved Drinking Water (%) Belarus Tonga Bulgaria Italy Israel Belgium N. Korea Jordan Ecuador Iran Chile USA Pakistan Brazil Antigua and Barbuda Paraguay Iraq Cape Verde Oman Sao Tome Solomon Islands LibyaChina Cameroon Kiribati Liberia Vanuatu Bhutan Romania Haiti Angola Nigeria Laos Fiji Mozambique Afghanistan Somalia Ethiopia R²=0.34 Sources: Esty et al / WHO (2004), World Bank ( )

23 23 Access to Adequate Sanitation (%) High Italy JapanIsrael Ukraine Thailand Trinidad/Tobago Georgia Bosnia Tuvalu Sri Lanka Oman Russia Iran Iraq Marshall Islands Brazil Kazakhstan Venezuela Egypt Bhutan Peru South Africa Turkmenistan Equatorial Guinea El Salvador Cameroon Belize Cape Verde Nigeria Yemen Botswana Bangladesh Kiribati India Mauritania Haiti Namibia Somalia Cambodia Ethiopia Chad Eritrea Belgium USA Chile Access to Adequate Sanitation vs. R²=0.38 Sources: Environmental Performance Index (2004-), World Bank ( )

24 Gender Equality vs. 24 Gender Equality Norway Germany Iceland Philippines Ireland Latvia Colombia Lithuania Spain Moldova Sri Lanka Belgium Netherlands Estonia Israel Namibia Russia Switzerland Venezuela France USA Greece Japan Singapore Malaysia Chile Nigeria Guatemala Syria Jordan United Arab Emirates Cameroon Ethiopia Mauritania Oman Turkey Burkina Faso Chad Pakistan Nepal Saudi Arabia Yemen R²=0.20 Sources: World Economic Forum (2005), World Bank ( )

25 25 Secondary Education Enrollment (Female) High Iraq Kazakhstan Georgia Bangladesh Nigeria Angola Afghanistan Vietnam Palau Libya Brazil Tonga Russia Bulgaria China KenyaVanuatu Gambia Mali Mozambique Grenada Seychelles France Hungary Tunisia Tuvalu United Arab Emirates Costa Rica Malaysia Morocco Eritrea Burkina Faso Bhutan Spain Belgium Australia Denmark USA Iceland Norway Switzerland Secondary Education Enrollment (Female) vs. R²=0.45 Sources: UNESCO ( ), World Bank ( )

26 Homicide rate vs. 26 Homicide rate (per 100,000 population) Venezuela South Africa Burundi Jamaica Democratic Republic of the Congo Guatemala Central African Republic Sudan Brazil Angola Russia Belize Haiti Zambia Rwanda Mali Eritrea Botswana Afghanistan Myanmar Iraq Nigeria Cote d'ivoire Comoros Colombia El Salvador TongaChina Indonesia Egypt Cuba Brunei Estonia Mauritius Malta Bahamas Barbados Chile USA Australia Liechtenstein Singapore R²=0.13 Sources: UN Data (2010), World Bank ( )

27 27 Number of Police Officers (per 100,000 population) High Brunei Bahrain Kuwait Mauritius Italy Cyprus Macedonia Lebanon Latvia Barbados Kazakhstan Mexico Uruguay Kyrgyzstan Belgium Singapore Slovakia Paraguay USA Austria Israel Myanmar Zimbabwe Morocco South Africa India Jordan Estonia Japan Chile Canada Venezuela Syria Number of Police Officers vs. R²=0.01 Sources: UN Data (2010), World Bank ( )

28 Number of Prisoners vs. 28 Number of Prisoners (per 100,000 population) Russia Belarus Kazakhstan Ukraine South Africa Georgia Kyrgyzstan Latvia Estonia Israel Turkmenistan Moldova Poland Azerbaijan Malaysia Zambia Macedonia Romania Mexico Italy Egypt Bahrain Venezuela Bolivia Myanmar Nepal Saudi Arabia Qatar USA United Arab Emirates Chile Singapore Australia New Zealand Belgium Iceland R²=0.02 Sources: UNODC ( ), World Bank ( )

29 29 Most People Can Be Trusted (%) High Interpersonal Trust vs. Norway Iran Netherlands China Indonesia Saudi Arabia New Zealand Iraq Australia India Belarus Japan Iceland Ireland Vietnam Egypt USA Spain Pakistan Jordan Italy Belgium United Kingdom Ukraine Israel Bangladesh Chile Luxembourg Serbia Romania Hungary Slovenia Venezuela South Africa Cyprus Singapore Portugal Zimbabwe Uganda Brazil Rwanda Trinidad and Tobago R²=0.20 Sources: World Values Survey ( ), World Bank ( )

30 Confidence in Parliament vs. 30 Confidence in Parliament Vietnam Bangladesh China Uganda Rwanda Azerbaijan Iran Jordan Iceland Philippines Norway India South Africa Luxembourg Zimbabwe Cyprus Nigeria Spain AlbaniaThailand Slovakia Uruguay Turkey USA New Zealand Serbia Georgia Bosnia Latvia Greece Japan Chile Russia Morocco Argentina Taiwan South Korea Macedonia R²=0.00 Sources: World Values Survey ( ), World Bank ( )

31 Confidence in Parliament vs. 31 Confidence in Parliament Indonesia Ghana Philippines Mali India South Africa Cyprus Malta Albania Uruguay Zambia Thailand Slovakia Turkey Italy France Moldova Georgia Venezuela Latvia Colombia Greece Japan Serbia Ukraine Slovenia Brazil Dominican Republic Czech Republic Mexico Poland Argentina Taiwan South Korea Guatemala Macedonia Norway Netherlands Spain Austria Iceland Luxembourg USA New Zealand Chile United Kingdom R²=0.00 Sources: World Values Survey ( ), World Bank ( ) N.B. Only democracies (countries with a FreedomHouse/Polity rating above 6) are included. Bangladesh is also excluded.

32 Confidence in Government vs. 32 Confidence in Government Vietnam Bangladesh Tanzania China Jordan Uganda Mali Malaysia Switzerland Albania Egypt Uruguay Venezuela South Africa Chile Norway Nigeria Zambia Burkina Faso Spain USA Russia Thailand Lithuania Iraq Bosnia Italy Andorra Ukraine Peru Japan France Netherlands Serbia Poland Germany Argentina Dominican Republic Macedonia R²=0.02 Sources: World Values Survey ( ), World Bank ( )

33 Confidence in Government vs. 33 Confidence in Government Mali Ghana Switzerland Venezuela AlbaniaIndia Uruguay Indonesia South Africa Chile Philippines Norway Colombia Croatia Zambia Estonia Thailand Brazil Lithuania Spain USA MoldovaGuatemalaMexico Latvia Andorra Taiwan United Kingdom Serbia Czech Republic Italy Ukraine Japan Netherlands Romania Peru Slovenia France Germany Poland Argentina Dominican Republic Macedonia R²=0.02 Sources: World Values Survey ( ), World Bank ( ) N.B. Only democracies (countries with a FreedomHouse/Polity rating above 6) are included. Bangladesh is also excluded.

34 Feeling of Happiness vs. 34 Feeling of Happiness Nigeria Mexico Tanzania El Salvador Venezuela Vietnam Colombia Thailand Saudi Arabia Guatemala Brazil Cyprus Mali Indonesia Poland Egypt Kyrgyzstan Morocco Italy Uganda Burkina Faso Slovenia Bangladesh India Jordan Greece Azerbaijan China Serbia Hungary Iran Zambia Lithuania Slovakia Belarus Estonia Iraq Zimbabwe Armenia Latvia Romania Ukraine Russia Bulgaria United Kingdom Ireland Iceland USA New Zealand France Chile Portugal Austria Germany R²=0.21 Sources: World Values Survey ( ), World Bank ( )

35 Life Satisfaction vs. High 35 Life Satisfaction Colombia Mexico Malta Guatemala Brazil Venezuela El Salvador Saudi Arabia Uruguay Argentina Dominican Republic Nigeria Indonesia Israel China Croatia Kyrgyzstan Iran Greece Japan South Korea Zambia Slovakia Estonia Bangladesh Romania Turkey Azerbaijan Egypt Latvia Iraq Albania India Lithuania Georgia Ethiopia Ukraine Russia Armenia Zimbabwe Tanzania Ireland Denmark Austria Iceland USA United Kingdom Chile Australia Singapore Spain R²=0.46 Sources: World Values Survey ( ), World Bank ( )

36 Level of Democracy vs. 36 Level of Democracy Kiribati Tuvalu Cyprus Belgium USA Marshall Islands Vanuatu Estonia Japan France Israel Bolivia South Korea Croatia Ecuador Ghana Namibia Paraguay Turkey Antigua and Barbuda Colombia Seychelles Armenia Fiji Solomon Islands Russia Burkina Faso Nigeria Djibouti Malaysia Ethiopia Iran Congo, Dem. Rep. Tajikistan Singapore Jordan Brunei Haiti Somalia Kuwait Pakistan Morocco Bahrain Azerbaijan Rwanda Myanmar China Eritrea Bhutan Libya Cuba Qatar Iraq North Korea Saudi Arabia R²=0.27 Sources: Freedom House/Polity ( ), World Bank ( )

37 Government Effectiveness vs. 37 Government Effectiveness Haiti Nigeria Iraq Indonesia Afghanistan Turkey Russia North Korea Hungary Czech Republic Maldives Mexico Togo Sierra Leone Cuba Syria Eritrea Switzerland Spain Canada USA New Zealand France Australia Cyprus Chile Israel United Arab Emirates Oman Dominica Kuwait Seychelles Saudi Arabia R²=0.88 Sources: Freedom House/Polity ( ), World Bank ( )

38 2009 vs Denmark New Zealand Australia Qatar Liechtenstein Ireland Norway Antigua and Barbuda United Kingdom France Belgium St Lucia Uruguay USA Brunei Estonia Spain Cape Verde Israel Slovakia Taiwan Vanuatu Kuwait Cuba Lithuania Italy Bahrain Macedonia Georgia Tuvalu Solomon Islands Senegal Indonesia Mauritania Nigeria Syria Mongolia Haiti Togo Iraq Papua New Guinea Afghanistan Myanmar Somalia 2002 R²=0.88 Sources: World Bank (2009), World Bank (2002)

39 Correlates of Corruption Description of Variables 1 World Bank Governance Indicators public power for private gain. The particular aspect of corruption measured by the various sources differs ical arena or in the GDP / Capita Gleditsch Trade and GDP Data Aten), Gleditsch has imputed missing data by using an alternative source of data (the CIA World Fact Book), and through extrapolation beyond available time-series. This is his estimate of GDP per Capita in US dollars at current year international prices. Economic Equality (Gini index) World Development Indicators Gini measure of economic inequality, where greater values represent greater inequality. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are from the Luxembourg Income Study database. Economic Freedom Heritage Foundation The Economic Freedom index uses 10 specific freedoms, some as composites of even further detailed and quantifiable components: Business freedom (hf_business) Trade freedom (hf_trade) Fiscal freedom (hf_fiscal) Freedom from government (hf_govt) Monetary freedom (hf_monetary) Investment freedom (hf_invest) Financial freedom (hf_financ) Property rights (hf_prights) Freedom from corruption (hf_corrupt) Labor freedom (hf_labor) Each of these freedoms is weighted equally and turned into an index ranging from 0 to 100, where 100 represents the maximum economic freedom. Although changes in methodology have been undertaken throughout the measurement period, continuous backtracking has been used to maximize comparability over time. GDP / Capita growth World Development Indicators Annual percentage growth rate of GDP per capita based on constant local currency. Sources: World Bank and OECD. 1 Some of the variables have been reversed in the scatterplots in order to make the interpretation more intuitive 39

40 Population below $2 a Day (%) World Development Indicators Percentage of the population living on less than $2.00 a day at 2005 international prices. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are from the Luxembourg Income Study database. Foreign Credit Rating Credit ratings are forward- express the government, to meet its financial obligations in full and on time. Credit ratings can also speak to the credit quality of an individual debt issue, such as a corporate note, a municipal bond or a mortgage-backed security, and the relative likelihood that the issue may default. agencies, which specialize in evaluating credit risk. Each agency applies its own methodology in measuring creditworthiness and uses a specific rating scale to publish its ratings opinions. Typically, ratings are expressed as letter grades that range, for example, Human Development Index UNDP Human Development Report The Human Development Index (HDI) is a composite index that measures the average achievements in a country in three basic dimensions of human development: a long and healthy life, as measured by life expectancy at birth;; knowledge, as measured by the adult literacy rate and the combined gross enrolment ratio for primary, secondary and tertiary schools;; and a decent standard of living, as measured by GDP per capita in purchasing power parity (PPP) US dollars. Government Revenue (% of GDP) World Development Indicators Revenue is cash receipts from taxes, social contributions and other revenues. Grants are excluded here. Measured as a percentage of GDP. Source: International Monetary Fund. (World Bank and OECD for GDP estimates.) Tax Revenue (% of GDP) World Development Indicators Tax revenue refers to compulsory transfers to the central government for public purposes. Certain compulsory transfers such as fines, penalties, and most social security contributions are excluded. Measured as a percentage of GDP. Source: International Monetary Fund. (World Bank and OECD for GDP estimates.) Social Security Laws Botero, Djankov, La Porta, López-de-Silanes & Shleifer Regulation of Labor Measures social security benefits as the average of the three variables: Old Age, Disability and Death Benefit Index Sickness and Health Benefits Index Unemployment Benefits Index Average Schooling Years Barro & Lee Average schooling years in the total population aged 25 and over. 40

41 Life Expectancy World Development Indicators Life expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life. Sources: United Nations Population Division, national statistical offices, Eurostat, Secretariat of the Pacific Community, and U.S. Census Bureau. Healthy Life Years WHO Statistical Information System Average number of years that a person can expect to live in "full health" by taking into account years lived in less than full health due to disease and/or injury. Infant Mortality Rate World Development Indicators Infant mortality rate is the number of infants dying before reaching one year of age, per 1,000 live births in a given year. Source: Inter-agency Group for Child Mortality Estimation (UNICEF, WHO, World Bank, UNPD, universities and research institutions). Maternal Mortality Rate Institute for Health Metrics and Evaluation University of Washington Number of maternal deaths per 100,000 live Births. Government Expenditure on Health (% of total health) WHO Statistical Information System Government expenditure on health care services and goods as a percentage of total expenditure on health. Expenditures on health include final consumption, subsidies to producers, and transfers to households (chiefly reimbursements for medical and pharmaceutical bills). Besides domestic funds it also includes external resources (mainly as grants passing through the government or loans channeled through the national budget). Private Expenditure on Health (% of total health) WHO Statistical Information System Private expenditure on health-care services and goods as a percentage of total expenditure on health. CO 2 Emissions / Capita Environmental Performance Index Emissions of greenhouse gases per capita, measured in tons of carbon dioxide equivalents. Access to Improved Drinking Water Environmental Performance Index The percentage of population with an access to an improved water source. Original source is WHO. Access to Adequate Sanitation Environmental Performance Index The percentage of population with an access to an improved source of sanitation. Original source is WHO. Gender Equality World Economic Forum All scores are reported on a scale of 0 to 1, with 1 representing maximum gender equality. The study measures the extent to which women have achieved full equality with men in five critical areas: - Economic participation - Economic opportunity - Political empowerment - Educational Attainment - Health and well-being Secondary Education Enrollment (female) UNESCO Institute for Statistics All values given are gross enrollment rate (GER). GER is defined as the number of pupils enrolled at a given level of education, regardless of age, expressed as a percentage of the population in the theoretical age 41

42 group for the same level of education. Gross enrollment rate can be over 100% due to the inclusion of over-aged and under-aged pupils/students because of early or late entrants, and grade repetition. In this case, a rigorous interpretation of GER needs additional information to assess the extent of repetition, late entrants, etc. Homicide Rate UNODC Intentional homicide, rate per 100,000 population. Intentional homicide is defined as unlawful death purposefully inflicted on a person by another person. Number of Police Officers UNODC Police officers per 100,000 population. Number of Prisoners UNODC Sentenced incarcerated persons per 100,000 population Interpersonal Trust World Values Survey very careful in dealing with people? (1) Most people can be trusted (2) Confidence in Parliament World Values Survey have in them: is it a great deal of confidence, quite a lot of confidence, not very much confidence or none at all? (1) A great deal (2) Quite a lot (3) Not very much (4) Confidence in Government World Values Survey organizations. For each one, could you tell me how much confidence you have in them: is it a great deal of confidence, quite a lot of confidence, not very much confidence or none at all? (1) A great deal (2) Quite a lot (3) Not very much (4) Feeling of Happiness World Values Survey (1) Very happy (2) Quite happy (3) Not very happy (4) Life Satisfaction World Values Survey are you with your life as a whole these days? (1) Dissatisfied (2) 42

43 (3) (4) (5) (6) (7) (8) (9) (10) Level of Democracy Freedom House / Polity Scale ranges from 0-10 where 0 is least democratic and 10 most democratic. Average of Freedom House (fh_pr and fh_cl) is transformed to a scale 0-10 and Polity (p_polity2) is transformed to a scale These variables are averaged into fh_polity2. The imputed version has imputed values for countries where data on Polity is missing by regressing Polity on the average Freedom House measure. Hadenius & Teorell (2005) show that this average index performs better both in terms of validity and reliability than its constituent parts. Government Effectiveness World Bank Governance Indicators provision, the quality of the bureaucracy, the competence of civil servants, the independence of the civil service from political pressures, and the credibility of th policies and deliver public goods. 43

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