This paper presents the latest update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories from 1996 to 2007. The WGI measure six dimensions of governance: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. The indicators are based on hundreds of individual variables from 35 data sources provided by 32 organizations. These variables reflect the views of public sector, private sector, and NGO experts, as well as thousands of citizen and firm survey respondents. The authors report margins of error for each country estimate, which reflect the inherent difficulties in measuring governance. The margins of error have declined over time, and the WGI permit meaningful cross-country comparisons and monitoring of progress over time. The authors find that a substantial number of countries exhibit statistically significant improvements in at least one dimension of governance, while others exhibit deterioration in some dimensions. The aggregate indicators, along with the disaggregated individual indicators, are available at www.govindicators.org. The WGI are based on subjective or perceptions-based data reflecting the views of a diverse range of stakeholders. The authors emphasize the importance of considering margins of error when making comparisons of governance across countries. The WGI have evolved over the past decade, with an increased number of data sources and more precise measures of governance. The authors also discuss the importance of considering the precision of governance indicators and the need for caution in making cross-country comparisons. The WGI are useful for broad cross-country comparisons and evaluating trends over time, but are often too blunt to be useful in formulating specific governance reforms. The authors also discuss the importance of using detailed and country-specific data to identify constraints on governance in particular country circumstances. The WGI are based on a wide range of data sources, including surveys of firms and individuals, assessments by commercial risk rating agencies, non-governmental organizations, and public sector organizations. The authors also discuss the importance of considering the precision of governance indicators and the need for caution in making cross-country comparisons. The WGI are useful for broad cross-country comparisons and evaluating trends over time, but are often too blunt to be useful in formulating specific governance reforms. The authors also discuss the importance of using detailed and country-specific data to identify constraints on governance in particular country circumstances.This paper presents the latest update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories from 1996 to 2007. The WGI measure six dimensions of governance: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. The indicators are based on hundreds of individual variables from 35 data sources provided by 32 organizations. These variables reflect the views of public sector, private sector, and NGO experts, as well as thousands of citizen and firm survey respondents. The authors report margins of error for each country estimate, which reflect the inherent difficulties in measuring governance. The margins of error have declined over time, and the WGI permit meaningful cross-country comparisons and monitoring of progress over time. The authors find that a substantial number of countries exhibit statistically significant improvements in at least one dimension of governance, while others exhibit deterioration in some dimensions. The aggregate indicators, along with the disaggregated individual indicators, are available at www.govindicators.org. The WGI are based on subjective or perceptions-based data reflecting the views of a diverse range of stakeholders. The authors emphasize the importance of considering margins of error when making comparisons of governance across countries. The WGI have evolved over the past decade, with an increased number of data sources and more precise measures of governance. The authors also discuss the importance of considering the precision of governance indicators and the need for caution in making cross-country comparisons. The WGI are useful for broad cross-country comparisons and evaluating trends over time, but are often too blunt to be useful in formulating specific governance reforms. The authors also discuss the importance of using detailed and country-specific data to identify constraints on governance in particular country circumstances. The WGI are based on a wide range of data sources, including surveys of firms and individuals, assessments by commercial risk rating agencies, non-governmental organizations, and public sector organizations. The authors also discuss the importance of considering the precision of governance indicators and the need for caution in making cross-country comparisons. The WGI are useful for broad cross-country comparisons and evaluating trends over time, but are often too blunt to be useful in formulating specific governance reforms. The authors also discuss the importance of using detailed and country-specific data to identify constraints on governance in particular country circumstances.