Governance Capacity vs. Governance Effectiveness

Governance capacity is having the tools to govern. Governance effectiveness is whether governance actually works.

Capacity includes: strategies, dedicated bodies, ethical principles, legislation, technical standards, and international cooperation mechanisms. These are inputs to governance, what a country has built.

Effectiveness includes: public trust in AI, algorithm transparency, research on governance practices, and AI applications advancing sustainable development. These are outputs of governance, what actually happens.

A country can have sophisticated governance instruments but low public trust. Another can lack formal structures but achieve strong acceptance and inclusivity outcomes. The distinction matters because governance investments often focus on capacity (passing laws, creating bodies) while neglecting effectiveness measurement.

Related: 05-atom—development-governance-gap-pattern, 05-atom—governance-development-matching-principle