Q. With reference to the World Governance Index (WGI), which of the following statements are correct?
1.It assesses nations by their adherence to a universal set of criteria for good governance, including aspects such as democracy, human rights, and economic progress.
2.The WGI is one of the criteria used to select countries for membership in the United Nations.
3.WGI plays a key role in deciding the sovereign credit rating of any country.
Select the correct statements using the codes given below:
Explanation –
Statements 1 and 2 are incorrect. The WGI evaluates countries based on criteria related to good governance, however, those criteria are not universal. The WGI’s criteria are based on a particular set of values and ideals, but they are not universally accepted as the only criteria for good governance.
The WGI is not one of the criteria used to select countries for membership in the United Nations. The UN has its own criteria for membership, which are based on things like a country’s political stability, its ability to contribute to the work of the UN, and its commitment to the UN Charter.
Statement 3 is correct. The World Governance Indicators (WGI) play a significant role in determining a country’s sovereign credit rating. Credit rating agencies, such as Moody’s, Standard & Poor’s, and Fitch, consider the WGI data when assessing a country’s creditworthiness.
The WGI provide insights into a country’s political stability, economic governance, and rule of law, all of which are crucial factors in determining its ability to repay its debts.
Source: ForumIAS
