When it comes to testing English in ways that really address practical proficiency with the language, I personally believe the Cambridge ESOL (English for Speakers of Other Languages) suite of tests are the best option for teachers, institutions and governments.
Below you can see how the Cambridge tests are actually aligned to something called the Common European Framework of Reference (CEPR) for languages - a special level system to measure the proficiency in any foreign language. Below that, you can see an example CEFR "can do" descriptions by skill and level.
Following in this thread you will see a variety of test materials from some of the Cambridge ESOL levels. Examine them and think about how or why they could be appropriate as tests of practical language ability. Also consider how they are different from the standardized tests used in your country (if Cambridge ESOL is not used in your country).
[Please note that all materials uploaded here are free and public samples from Cambridge ESOL, and they are copyright protected. They are distributed here in this forum for the purposes of research and discussion only.]
http://www.cambridgeesol.org