Transformation Index BTI Human Rights Development and Economic

Transformation Index BTI Human Rights, Development and Economic Growth – Metrics, New Ways of Thinking and New Strategies Washington, D. C. - April 7 -8, 2011 Sabine Donner

Transformation Index BTI Field of Study: 128 Countries

Transformation Index BTI Dimensions of Analysis Status Index State of democracy 2009 Management Index State of market economy 2009 Political management performance (2007 to 2009) allowing for the Trend indicator degree of difficulty

Holistic Approach Democracy | Economy | Governance Criteria of Status and Management Evaluation Criteria Political Transformation Stateness Political Participation Rule of Law Stability of Democratic Institutions Political and Social Integration Criteria Economic Transformation Socioeconomic Development Organization of Market and Competition Currency and Price Stability Private Property Welfare Regime Economic Performance Sustainability Criteria Management Performance Steering Capability Resource Efficiency Consensus-Building International Cooperation

Independent and expert-based study Expert Assessments: Translating Context into Scores expert poll, 6500 words-length country reports coding manual with four response options per item 52 item ratings, evaluated by text (country report) and score (ranking) based on a standardized codebook double review two independent base ratings intra- and interregional calibration of ratings

Holistic Approach Democracy | Economy | Governance Democracy under the Rule of Law Stateness Political Participation Rule of Law - Monopoly on the use of force - State identity - No interference of religious dogmas - Basic administration - General, free and fair elections - Effective power to govern - Association / assembly rights - Freedom of expression - Separation of powers - Independent judiciary - Prosecution of office abuse - Civil rights Stability of Democratic Institutions Political and Social Integration - Performance of and commitment to democratic institutions - Party system - Interest groups - Consent to democratic norms - Associational activities

Status of Democracy Overview of Political Systems Democracies Defective and highly defective democracies Moderate autocracies, autocracies and failing states

Quality of Democracy - BTI 2010 Findings Detailed Quality Assessment of Political Transformation Erosion of the rule of law and lack of political and social integration constitute major weaknesses in defective democracies. Stateness Monopoly on the use of force State identity No religious dogmas Basic administration Political Participation Free and fair elections Effective power to govern Association / assembly rights Freedom of expression 10 9 8 Rule of Law Separations of powers Independent judiciary Prosecution of office abuse Civil rights ensured 7 6 5 4 Stability of Demo. Institutions Democracy performs Democracy accepted 3 2 1 0 Stateness Political Participation Defective democracies Democracies Rule of Law Autocracies Stability of Democratic Institutions Political and Social Integration Party system Interest groups Consent to democratic norms Social capital

Quality of Democracy - BTI 2010 Findings Detailed Quality Assessment of Political Transformation The largest decrease in average indicator scores in consolidated and defective democracies during the last four years is notable in the field of political participation, with regard to association and assembly rights as well as concerning the freedom of expression. Stateness Monopoly on the use of force State identity No religious dogmas Basic administration Political Participation Free and fair elections Effective power to govern Association / assembly rights Freedom of expression 10 9 8 Rule of Law Separations of powers Independent judiciary Prosecution of office abuse Civil rights ensured 7 6 5 4 Stability of Demo. Institutions Democracy performs Democracy accepted 3 2 1 0 Stateness Political Participation Defective democracies Democracies Rule of Law Autocracies Stability of Democratic Institutions Political and Social Integration Party system Interest groups Consent to democratic norms Social capital

Quality of Democracy – BTI 2010 Findings …and on Assembly / Association Rights Freedom of expression Association/assembly rights

Holistic Approach Democracy | Economy | Governance Market Economy Flanked by Sociopolitical Safeguards Level of Socioeconomic Development Organization of the Market and Competition Currency and Price Stability - Prevention of fundamental social exclusion due to poverty, gender, ethnicity or religion - Market-based competition - Anti-monopoly policy - Liberalization of foreign Trade - Banking system - Anti-inflation / forex policy - Macrostability (fiscal and debt policy) Welfare Regime Economic Performance Sustainability - Social safety nets - Equal opportunity - Output strength of the economy (GDP, employment, price stability, budget deficit, balance of trade) - Environmental Policy - Education Policy, Investment in Research and Development Private Property - Property rights - Private enterprise

Economic Performance and Social Inclusion Distribution of Countries and Scores for each Economic Transformation Criterion Socioeconomic Development Organization of the Market Currency and Price Stability Private Property Welfare Regime Economic Performance Sustainability

Economic Performance and Social Inclusion Distribution of Countries and Scores for each Economic Transformation Criterion 8 Socioeconomic Development 12 Organization of the Market 18 Currency and Price Stability 16 Private Property 7 Welfare Regime 15 Economic Performance Sustainability 4 10 – 9 (very good)

Economic Performance and Social Inclusion Distribution of Countries and Scores for each Economic Transformation Criterion 8 33 Socioeconomic Development 12 58 Organization of the Market 18 83 Currency and Price Stability 16 63 Private Property 7 39 Welfare Regime 15 86 Economic Performance Sustainability 4 29 10 – 9 (very good) 8 – 6 (good)

Economic Performance and Social Inclusion Distribution of Countries and Scores for each Economic Transformation Criterion 8 33 56 Socioeconomic Development 12 58 47 Organization of the Market 18 83 23 Currency and Price Stability 16 63 42 Private Property 7 39 69 Welfare Regime 15 86 24 Economic Performance Sustainability 4 29 82 10 – 9 (very good) 8 – 6 (good) 5 – 3 (weak)

Economic Performance and Social Inclusion Distribution of Countries and Scores for each Economic Transformation Criterion 8 33 56 31 Socioeconomic Development 12 58 47 11 Organization of the Market 18 83 23 4 Currency and Price Stability 16 63 42 7 Private Property 7 39 69 13 Welfare Regime 15 86 24 3 Economic Performance Sustainability 4 29 82 13 10 – 9 (very good) 5 – 3 (weak) 8 – 6 (good) 2 – 1 (very weak)

Economic Performance and Social Inclusion Favorable Conditions at the Outset of the Global Financial and Economic Crisis 13 % 31 % 56 % Economic Performance high moderate low

Economic Performance and Social Inclusion Best Economic Performers 31 %

Economic Performance and Social Inclusion Level of Socioeconomic Development, Equality of Opportunity and Social Safety Nets 27 % 35 % 38 % Level of Social Inclusion high moderate low

Holistic Approach Democracy | Economy | Governance Political Management Performance, allowing for the Degree of Difficulty Steering Capability Resource Efficiency Consensus-Building International Cooperation - Strategic priority setting - Implementation - Policy learning - Efficient use of economic and human resources - Policy coordination - Anti-corruption policy - Consensus on goals - Exclusion / integration of veto actors - Conflict management - Civil society participation - Reconciliation - Effective use of support - Credibility - Regional cooperation - Civil Society Traditions - Level of Ethnic, Religious or Social Conflicts - Per Capita GNI PPP - UN Education Index - Stateness and Rule of Law (Average of BTI Criteria Scores) Level of Difficulty - Structural Constraints i. e. extreme poverty, low educational level, infrastructural deficiencies, natural disasters etc.

BTI 2010 Management Index Political Management in International Comparison Political leadership toward democracy and a market economy successful with weaknesses moderate weak failed or non-existent

Transparency and Accessibility Ranking Table (Online, BTI-Book) Overview on results including the 17 criteria scores per country In addition: All 52 indicator scores per country accessible via CD-Rom (in BTI-Book) and on www. bertelsmann-transformation-index. de Country Reports (Online, BTI-Book) Detailed analysis and information on all 17 criteria, in addition: Executive Summary, History and Characteristics, Strategic Outlook Also: 7 regional reports (BTI-Book) Transformation Atlas (Online) Interactive application to visualize 6, 656 individual scores by world maps (global views), radars (country views), data comparison (cross-checks) and explanatory texts Transformation Index 2010 Political Management in International Comparison

www. bertelsmann-transformation-index. de BTI 2010

Assessment Procedure Standardized codebook (52 Indicators) 1 Detailed written country assessment with scores Review-Process 2 Commentary and scores by local reviewer 3 Regional and interregional check by coordinators 4 Final decision by BTI-Board

Assessment Procedure Standardized codebook (52 Indicators) 1 1 128 Country Experts Detailed written country assessment with scores Review-Process 2 Commentary and scores by local reviewer 3 Regional and interregional check by coordinators 4 Final decision by BTI-Board Detailed written country assessment with scores

Assessment Procedure Standardized codebook (52 Indicators) 1 1 128 Country Experts 2 128 Reviewers from the respective countries Detailed written country assessment with scores Review-Process 2 Commentary and scores by local reviewer 3 Regional and interregional check by coordinators 4 Final decision by BTI-Board Detailed written country assessment with scores Commentary and scores by local reviewer

Assessment Procedure Standardized codebook (52 Indicators) 1 1 128 Country Experts 2 128 Reviewers from the respective countries Detailed written country assessment with scores Review-Process 2 Commentary and scores by local reviewer 3 4 Commentary and scores by local reviewer Regional and interregional check by coordinators Final decision by BTI-Board Detailed written country assessment with scores 3 Regional Coordinators Regional and interregional check by coordinators

Assessment Procedure Standardized codebook (52 Indicators) 1 1 128 Country Experts 2 128 Reviewers from the respective countries Detailed written country assessment with scores Review-Process 2 Commentary and scores by local reviewer 3 Regional and interregional check by coordinators 4 Final decision by BTI-Board Commentary and scores by local reviewer 4 BTI-Board Final decision by BTI-Board 3 Regional Coordinators Regional and interregional check by coordinators