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.
An executive summary of this document is also available: