Progress and setback in graft fight - World Bank

WASHINGTON, June 29 (Reuters) - Developing countries have made significant gains in controlling corruption but overall the quality of governance worldwide has not improved over the past decade, the World Bank said on Monday.

The Bank's 2009 Worldwide Governance Indicators, which cover 212 countries and are drawn from 35 different sources, show that countries like Norway and New Zealand are strong performers, while Zimbabwe, Ivory Coast, Belarus, Eritrea and Venezuela are among the weakest.

The data show improvements in controlling corruption in Indonesia, Tanzania, Estonia, Georgia, Rwanda, Serbia and Liberia, but also declines in countries such as Zimbabwe, Eritrea and Ivory Coast and Greece, illustrating that graft is not only a problem in least developed nations.

"The good news is that some countries are recognizing and responding to governance challenges and are showing strong improvements that reflect concerted efforts by political leaders, policymakers, civil society and the private sector," said lead economist Aart Kraay.

"At the same time it highlights the serious challenges that remain for rich and poor countries alike, and draws attention to the well-established link between better governance and improved development results," he added.

The indicators show declines in Eritrea, Thailand, Zimbabwe, Belarus, Singapore, Venezuela and Iran when it comes to freedom of expression and accountability, with progress in Ghana, Indonesia, Kenya, Nigeria and Peru.

Meanwhile, there have been improvements in violence and political stability in Algeria, Angola, Sierra Leone and Serbia but increasing problems in Ivory Coast, Thailand, Nepal, Philippines, Lebanon, Zimbabwe, Bangladesh and Bolivia.

Kraay said political stability indicators usually improved in countries that had recently emerged from conflict, such as in Angola and Sierra Leone.

In rule of law, the indicators show gains in countries such as Georgia, Liberia, Rwanda and Estonia, contrasting with declines in Zimbabwe, Ecuador, Bolivia and Ivory Coast.

Also, when it comes to government effectiveness, Spain and Italy are among countries that have suffered setbacks.

"We should not presume that rich and powerful countries have the very best levels of governance and corruption control," said Daniel Kaufmann, co-author of the report and a senior fellow at the Brookings Institution. "The financial crisis reminds us that the quality of governance in G8 countries is not always exemplary," he added.

The report is available at www.govindicators.org. (Reporting by Lesley Wroughton; Editing by James Dalgleish)