The Asia Foundation

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Measuring Economic Governance at the Local Level

THE EXPERIENCE OF THE ASIA FOUNDATION IN INDONESIA, CAMBODIA, VIETNAM, SRI LANKA, AND BANGLADESH

The Asia Foundation’s approach to effective economic governance builds on the knowledge that the engine for sustainable growth is the formal and informal MSME sector, the major source of employment for most countries in Asia. However, the growth and job-generation performance of MSMEs are often constrained by a wide spectrum of institutional obstacles. To address the constraints to MSME growth, the Foundation has developed specialized tools to analyze local business environments, measure the quality of local economic governance, assess progress through a set of quantitative and qualitative indicators, and support policy reforms. Local Economic Governance Indexes (EGIs), developed in collaboration with local and international partners, are one of these tools.

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