This Report is about the state of governance. Few would doubt that the conditions of governance have changed -- and continue to change -- as the early 21st century seems to enter a period of profound uncertainty. Yet, at the same time, the world seems alive with a cacophony of approaches -- old and new -- on how to improve governance and, ultimately, policy outcomes. This Report -- the first in a series of annual editions produced by the Hertie School of Governance -- seeks to address the implications of the current state of the world in terms of "good governance," that is, the effective, efficient, and reliable set of legitimate institutions and actors dedicated to dealing with matters of public concern, be it in the field of financial markets, health care, security, or migration, and across local, national, and international levels. Following an introduction that offers a framework of basic concepts and models, The Governance Report 2013 then goes on to explore a number of global challenges and the reasons behind seemingly lacklustre responses and highlight the need for responsible sovereignty; examine in depth the challenges of financial and fiscal governance with a focus on the trade-offs and ways to address them; analyse key governance innovations and their potential for success; and assess existing indicators of governance, while proposing a new framework for collecting, interpreting, and applying governance-related information. The findings lead to a set of concrete proposals on the way ahead.

• 1: Helmut K. Anheier: Governance: What are the Issues?


• 2: Inge Kaul: Meeting Global Challenges: Assessing Governance Readiness


• 3: William Roberts Clark, Mark Copelovitch, Mark Hallerberg, Lucia Quaglia, and Stefanie Walter: Governance Challenge in Focus: Financial and Fiscal Governance


• 4: Helmut K. Anheier and Sabrina Korreck: Governance Innovations


• 5: Helmut K. Anheier, Helmut K Anheier and Mark Kayser: Introducing a New Generation of Governance Indicators


• 6: Helmut K. Anheier: Policy Recommendations

The Hertie School in Berlin prepares exceptional students for leadership positions in government, business, and civil society. The school offers master's, doctoral and executive education programmes distinguished by interdisciplinary and practice-oriented teaching, as well as outstanding research. Its extensive international network positions it as an ambassador of good governance, characterised by public debate and engagement. The school was founded in 2003 by the Hertie Foundation, which remains its major funder. The Hertie School is accredited by the state and the German Science Council.