Index of Governance Chapter: 9 INDEX OF GOVERNANCE Good governance is a fundamental prerequisite for human security. This is amply demonstrated in the Pakistani context. The failure of economic management over the last many years has brought Pakistan perilously close to sovereign default in its external debt repayments. This has already resulted in the rate of inflation rising to historically unprecedented levels due primarily to the quantum depreciation of the value of the rupee and the cost-push impact on prices due to rising energy and other input costs. This has led to growing unemployment and a big increase in the number of poor in the country. The focus of governance has to be on promoting inclusive growth, achieving greater equity through progressive fiscal policy, effective functioning of institutions related to the rule of law, social protection, market regulation and efficient and well-targeted provision of basic economic and social services, and so on. These achievements lead to more human security for the bulk of the population. 9.1 Index of Governance We have placed reliance on international agencies’ assessment of the relative governance in Pakistan as compared to other countries at different levels of development. In addition, there is a need for such assessment to be available from 2000 onwards so as to be able to judge the evolution of governance over time according to different assessments. Five indices have been obtained which satisfy these requirements as follows: 79