Constructing a Governance Index for Cook Islands, 1985-2005

This article presents an index of governance performance for Cook Islands for the period 1985 to 2005. Three dimensions of governance (rule of law, government effectiveness, and regulatory quality) are measured using various indicators. The constructed index indicates that Cook Islands' governance performance improved between 1996 and 1999 but stagnated from 2000 to 2005. The improvement was largely due to fiscal austerity measures resulting in better economic management, competition in the essential services sector, and an expansion of the private sector. The stagnation in the post 1999 period is largely attributable to increased political instability and rising corruption. The governance index provides a useful basis from which to monitor future changes in governance performance.