• Industry: Government & Public Sector
  • Type: KPMG information, White paper
  • Date: 1/12/2011

Managing change and cultivating opportunity 

Countries are constantly confronted with economic shocks – short-term changes such as financial crises or natural disasters – and long-term, widespread processes of change that evolve a country’s fundamental structure over time. Those countries that manage such changes effectively and identify new opportunities arising from change, can help proactively stimulate structural change to achieve greater economic prosperity. The ability of a developing country to respond to and manage change will play an important role in determining its economic prospects, both in the short and long-term.
Managing change and cultivating opportunity
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During the 2010 World Economic Forum (WEF), there was an informal discussion around the apparent lack of a reliable measure to assess the capabilities of a country to successfully manage and respond to change. This prompted KPMG International, in collaboration with researchers from the Overseas Development Institute (ODI), to begin evaluating the need and opportunity for a new index to:


  • measure a country’s ability to adapt to structural changes and shocks, and capitalize on opportunities in a changing environment.
  • provide a measure to inform policy development and influence donor action toward strengthening government capabilities.


This paper discusses the need for a reliable method to measure the capability of governments to manage global change. It analyzes the state of available country indices to measure the capability of economies and societies to adapt to change, and discusses the rationale for a new Capability Index and what it would look like.



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