Bertelsmann transformation index
The Bertelsmann Transformation Index (BTI) aims to measure the effectiveness of the transformation to democracy and an equitable market economy of non-liberal countries. Developped by Bertelmann Stiftung, this index assesses the quality of political and economic liberalism of 128 countries in the world (non-liberal or in a democratic transition, and mostly from the developing world) and offers a ranking that combines qualitative, in-depth evaluations with quantitative scores for their performance.. The analysis of setbacks and successes, through a comparative method, is part of the goal of the BTI to determine:
- Through which strategic orientation and under which circumstances it is possible to successfully manage development and transformation?
- Which countries are undergoing development and transformation processes and to what degree of success?
- Which best practices can be identified?
- How can external support of these processes be optimized?
The BTI is updated every 2 years, so as to highlight the evolution of the democratic transition and market economy, and assess the quality of the governance of the country’s leadership.
The BTI consists of two sub-indexes: the Status Index and the Management Index.
The Status Index measures the progress towards democracy and market liberalism of the countries.
- Political Participation
- Rule of Law
- Stability of democratic institutions
- Political and Social Integration
Assesses the path towards a socially responsible market economy of the 128 countries
- Level of Socioeconomic Development
- Organization of the Market and Competition
- Currency and Price Stability
- Private Property
- Welfare Regime
- Economic Performance
The Management Index
This index ranks the countries according to their leadership’s political management performance between 2009 and 2011.
The indicators are
- Level of difficulty
- Management Performance
- Steering Capability
- Resource Efficiency
- Consensus Building
- International Cooperation
BTI 2012 Rankings
The 2012 Bertelsmann Transformation Index found that political freedoms are being curtailed around the world, particularly in Eastern Europe and South America.. “[Despite] many successes in overcoming the global financial and economic crisis, socioeconomic conditions in more than half of the world’s less-developed nations are inadequate or even catastrophic. As the findings suggest, when economic growth is not channeled into greater social justice and political freedom, the chances of political repression, reactionary populism and social uprisings increase”.
The countries in the top 10 of the 2012 status index of the BTI are:
1 Czech Republic
10 Costa Rica
The countries in the top 10 of the 2012 Management index of the BTI are:
7 South Korea
9 Costa Rica
- Bertelsmann Stiftung Index Project
- BTI Taxonomy