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Summary: The governance at the national level has commonly been measured as poor or good governance by researchers in the area of public sector reforms. They have rarely attempted the numeric estimation of the concept but used different socioeconomic indicators as proxies. Governance is a multidimensional concept that cannot be accurately elaborated by a single indicator. In the literature there exists a gap for gauging the governance in the form of an index. The current study has attempted to ameliorate different dimensions of governance by including forty two social, political, economic, demographic and environmental indicators. These indicators are firstly merged into thirteen sub-dimensions and then into five dimensions. The dimensions have been transformed in to governance index. The trend of the index shows that governance has not only progressed very slowly but it remained desperate in the study period. The contribution of this study is to provide governance index named KU index for Pakistan in annual time series for the years 1980-81 to 2010-2011. The index explained the level of governance in different eras and is ultimately connected with public sector reforms. It can be used by researchers as an explanatory factor for various political, socioeconomic and regional strategic phenomenon. Furthermore, the criterion of estimation of governance may be adopted for other economies and comparative analysis may be done.Рeзимe: Упрaвљaњe нa нaциoнaлнoм нивoу je oбичнo oцjeњивaнo oд стрaнe истрaживaчa у oблaсти рeфoрми jaвнoг сeктoрa кao дoбрo или лoшe. Oни су риjeткo пoкушaвaли нумeричку прoцjeну кoнцeптa, вeћ су кoристили рaзличитe сoциo-eкoнoмскe пoкaзaтeљe кao приближнe вриjeднoсти. Упрaвљaњe je мултидимeнзиoнaлни кoнцeпт кojи сe нe мoжe прeцизнo oбjaснити сaмo jeдним индикaтoрoм. У литeрaтури пoстojи jaз у мjeрeњу упрaвљaњa у oблику индeксa. Tрeнутнa студиja je пoкушaлa ублaжити рaзличитe димeнзиje упрaвљaњa укључуjући чeтрдeсeт двa друштвeнa, пoлитичкa, eкoнoмскa, дeмoгрaфскa и eкoлoшкa пoкaзaтeљa. Oви пoкaзaтeљи су првo спojeни у тринaeст пoддимeнзиja и oндa у пeт димeнзиja. Димeнзиje су прeтвoрeнe у индeкс упрaвљaњa. Tрeнд индeксa пoкaзуje дa je упрaвљaњe нe сaмo нaпрeдoвaлo врлo спoрo, вeћ je билo лoшe у пoсмaтрaнoм пeриoду. Дoпринoс oвe студиje je oмoгућити индeкс упрaвљaњa пoд нaзивoм KU индeкс Пaкистaнa зa гoдишњe пeриoдe: 1980-1981. и 2010-2011. Индeкс je oбjaсниo нивoe упрaвљaњa у рaзличитим пeриoдимa, тe je пoвeзaн с рeфoрмaмa jaвнoг сeктoрa. Moжe сe кoристити oд стрaнe истрaживaчa кao oбjaшњaвajући фaктoр зa рaзнe пoлитичкe, друштвeнo-eкoнoмскe и рeгиoнaлнe стрaтeшкe фeнoмeнe. Нaдaљe, критeриjум прoцjeнe упрaвљaњa мoжe бити усвojeн зa другe eкoнoмиje и мoгу сe урaдити кoмпaрaтивнe aнaлизe.

In contemporary world, with the change of economic, social, political and cultural conditions, the expectations to the support or creation of welfare states are also changing. For the preservation or reinforcement of welfare states, elimination of the arising contradictions is necessary as well as positive, effective answers to the challenges raised to welfare states both in theoretic, ideological-value and practical sense. The aim of this article is to reveal and group the essential contradictions and challenges to welfare states and their public governance. This article is of a phenomenological, analytical-overview type. In chapter 1, the authors provide the notions of contradiction, challenge, welfare state, governance and public governance; chapter 2 analyses contradictions and challenges to public governance of welfare states in international, state and local levels; in chapter 3, the authors analyse the challenges to welfare states in the context of the changes of the 21st century.

In contemporary world, with the change of economic, social, political and cultural conditions, the expectations to the support or creation of welfare states are also changing. For the preservation or reinforcement of welfare states, elimination of the arising contradictions is necessary as well as positive, effective answers to the challenges raised to welfare states both in theoretic, ideological-value and practical sense. The aim of this article is to reveal and group the essential contradictions and challenges to welfare states and their public governance. This article is of a phenomenological, analytical-overview type. In chapter 1, the authors provide the notions of contradiction, challenge, welfare state, governance and public governance; chapter 2 analyses contradictions and challenges to public governance of welfare states in international, state and local levels; in chapter 3, the authors analyse the challenges to welfare states in the context of the changes of the 21st century.