| Code | IQ.CPA.PRES.XQ |
| Indicator Name | CPIA equity of public resource use rating (1=low to 6=high) |
| Short definition | Equity of public resource use assesses the extent to which the pattern of public expenditures and revenue collection affects the poor and is consistent with national poverty reduction priorities. |
| Long definition | Equity of public resource use assesses the extent to which the pattern of public expenditures and revenue collection affects the poor and is consistent with national poverty reduction priorities. |
| Source | CPIA database, World Bank Group (WBG), uri: https://datacatalog.worldbank.org/int/search/dataset/0038988 |
| Topic | Public Sector: Policy & institutions |
| Dataset | WDI |
| Periodicity | Annual |
| Reference period | 2005-2024 |
| Aggregation method | Unweighted average |
| Statistical concept and methodology | Methodology: All criteria within each cluster receive equal weight, and each cluster has a 25 percent weight in the overall score, which is obtained by averaging the average scores of the four clusters. For each of the 16 criteria countries are rated on a scale of 1 (low) to 6 (high). The scores depend on the level of performance in a given year assessed against the criteria, rather than on changes in performance compared with the previous year. All 16 CPIA criteria contain a detailed description of each rating level. In assessing country performance, World Bank staff evaluate the country's performance on each of the criteria and assign a rating. The ratings reflect a variety of indicators, observations, and judgments based on country knowledge and on relevant publicly available indicators. In interpreting the assessment scores, it should be noted that the criteria are designed in a developmentally neutral manner. Accordingly, higher scores can be attained by a country that, given its stage of development, has a policy and institutional framework that more strongly fosters growth and poverty reduction.
The country teams that prepare the ratings are very familiar with the country, and their assessments are based on country diagnostic studies prepared by the World Bank or other development organizations and on their own professional judgment. An early consultation is conducted with country authorities to make sure that the assessments are informed by up-to-date information. To ensure that scores are consistent across countries, the process involves two key phases. In the benchmarking phase a small representative sample of countries drawn from all regions is rated. Country teams prepare proposals that are reviewed first at the regional level and then in a Bankwide review process. A similar process is followed to assess the performance of the remaining countries, using the benchmark countries' scores as guideposts. The final ratings are determined following a Bankwide review. The overall numerical IRAI score and the separate criteria scores were first publicly disclosed in June 2006. |
| Development relevance | The CPIA measures the extent to which a country’s policy and institutional framework supports sustainable growth and poverty reduction, and consequently the effective use of development assistance. The outcome of the exercise yields both an overall score and scores for all of the sixteen criteria that compose the CPIA. Experience has taught the development community that good policies and institutions lead, over time, to favorable growth and poverty reduction outcomes, notwithstanding possible yearly fluctuations arising from internal and external factors. The CPIA ratings help determine the relative sizes of the Bank’s concessional lending (lending by the World Bank Group’s International Development Association (IDA) on terms with significant grace periods, long repayments periods, and very low-interest rates) and grants to low-income countries. IDA resources are allocated in per capita terms based on a country’s IDA country performance rating (CPR) and, to a limited extent, per capita gross national income (GNI). Use of the CPR ensures that good performers receive, in per capita terms, a higher IDA allocation — allocations are performance based. A country’s overall score is the main element of the CPR. To fully underscore this role, the overall CPIA country score is referred to as the IDA Resource Allocation Index (IRAI). |
| Limitations and exceptions | The CPIA exercise is intended to capture the quality of a country's policies and institutional arrangements, focusing on key elements that are within the country's control, rather than on outcomes (such as economic growth rates) that are influenced by events beyond the country's control. More specifically, the CPIA measures the extent to which a country's policy and institutional framework supports sustainable growth and poverty reduction and, consequently, the effective use of development assistance. |
| License URL | https://datacatalog.worldbank.org/public-licenses#cc-by |
| License Type | CC BY-4.0 |
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