Institutional Performance

The concept of institutional performance refers to the quality of public service provision. It focuses on the performance of various types of formal organizations that formulate, implement, or regulate public-sector activities and private provision of goods for the public. Therefore, institutional performance is often referred to as “governmental performance” or “quality of government,” and excludes other types of social institutions, such as family or religion. To perform well, institutions have to be responsive to citizens' demands and expectations and to be able to effectively design and implement policies reflecting these demands and expectations. Therefore, quality of institutional performance is assessed in reference to two broadly defined issues: responsiveness and efficiency.

Institutional performance is a matter of primary importance in democratic regimes because this is where accountability is necessary to maintain a government's legitimacy. Responsiveness, accountability, and impartiality of governmental agencies and equality of all citizens are among the main definitional features of democracy, whereas in nondemocratic regimes, coercion, religion, or tradition may serve as primary sources of regime reinforcement and legitimacy. Research shows that, indeed, nondemocratic regimes tend to have much worse performing institutions (i.e., less transparent, responsive, and efficient).