The Regional Impacts of the Asian Crisis on Governance

In this study, we examine the regional impacts of the 1997 Asian Crisis on Governance. We use World Bank’s Worldwide Governance Indicators (i.e. WGI) which includes six dimensions of governance. These six dimensions are “Voice and Accountability”, “Political Stability and Absence of Violence”, “Government Effectiveness”, “Regulatory Quality”, “Rule of Law”, and “Control of Corruption”. The seven regions that we examine are North America, Europe and Central Asia, Latin America and Caribbean, East Asia and Pacific, South Asia, Sub-Saharan Africa, and Middle East and North Africa. Our findings show that, due to the crisis, while the overall rankings of Latin America and Caribbean, and Sub-Saharan Africa improved, the overall rankings of Europe and Central Asia, East Asia and Pacific, South Asia, and Middle East and North Africa declined. There was no change in the ranking of North America due to the crisis. Both pre- and post-crisis, North America has the highest ranking in all six measures of governance.