Sustainable Governance Indicators
Encyclopedia
The Sustainable Governance Indicators (SGI), first published in spring 2009 and updated in 2011, analyze and compare the need for reform in Organisation for Economic Co-operation and Development
(OECD) member countries, as well as each country's ability to respond to current social and political challenges. The project is designed to create a comprehensive data pool on government
-related activities in the countries considered the world's most developed free-market
democracies. In addition, it uses international comparisons to provide evidence-based input for reform-related public discourse taking place in these countries. The SGI are updated every two or three years.
is an operational think tank that encourages social change and aims to foster sustainability by identifying nascent challenges early on and by developing strategies to face these issues.
’s Transformation Index (BTI). The Transformation Index focuses on 128 countries—all of which are transitioning to a market-based democracy or potentially headed in that direction—and assesses the extent to which political management fulfils criteria regarding sustainability
, democracy founded on the rule of law, social integration
and welfare
. Since 2002, the BTI has been documenting the progress 128 transformation countries have been making toward democracy and a market economy.
Using a similar approach to BTI, the SGI evaluate the extent to which OECD member states are in a position, given changing domestic and international conditions, to implement the reforms necessary for ensuring their future viability. By measuring the need for reform along with the effectiveness of existing initiatives, the SGI aims to identify the best policy solutions for promoting democracy and a market economy.
and qualitative assessments. The democracy category counts for half of the index score, while the four policy-specific categories collectively provide the remainder.
The Status Index analyzes the need for reform through two principle dimensions:
" and "Institutional Learning" collectively count for half of the index score, while the Executive Accountability dimension provides the remaining half. The Management Index considers, in relative terms, how capable governments and societies are of effective reform.
The Management Index examines government performance and analyzes a country's reform capacity through two dimensions:
countries. At the same time, the leading group also includes New Zealand
, with its Anglo-saxon heritage, and continental European Switzerland
, two nations with different political and state welfare traditions.
The group of mid-range scorers (Canada
, Australia
, Germany
, Iceland
, Luxembourg
, Netherlands
, USA, Ireland
, United Kingdom
, Belgium
, Austria
, Czech Republic
, France
, Portugal
, Japan
, Chile
, Spain
, and Poland
) and the lowest-ranking group (South Korea
, Italy
, Slovakia
, Mexico
, Greece
, and Turkey
) are geographically and culturally just as heterogeneous as the top group.
Standard typologies in comparative political science
are insufficient to explain the Status Index ranking of the OECD nations. For example, majoritarian democracies do not systematically score better or worse than consensus democracies. Classifying the countries as ederalism|federalist] and centralist
states also fails to help explain the differences in reform capacity.
The top group includes, above all, social democratic
welfare states such as the Scandinavian countries
. However, liberal
welfare states also achieve high scores, with New Zealand, Switzerland and Canada in the upper mid-range. In general, the findings of the Status Index reveal higher scores among long-term, established OECD members – although there are exceptions: Chile, a new member, places in the lower midrange, while Italy and Greece rank significantly lower than some Eastern European
countries. This suggests that the smaller, more open national economies tend to pursue especially sustainable policies.
The SGI Management Indicators are clearly led by Sweden and Norway, each with average scores exceeded 8 points. Next come Denmark, Finland, New Zealand and Australia. While the overall ranking of northern European countries is again outstanding, as observed in the Status Index, this sequence also underscores the fact that no particular system type is favored in the Management Index. This top group is followed by a broad mid-range in which the changes in index scores are incremental, leaving no discernable clusters. Clearly bringing up the rear of the survey are Greece and Slovakia. Both countries trail Italy, which is 29th in the ranking, by nearly an entire point. The new OECD member Chile stands out positively, already scoring higher than some established, longstanding OECD states.
Organisation for Economic Co-operation and Development
The Organisation for Economic Co-operation and Development is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade...
(OECD) member countries, as well as each country's ability to respond to current social and political challenges. The project is designed to create a comprehensive data pool on government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
-related activities in the countries considered the world's most developed free-market
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
democracies. In addition, it uses international comparisons to provide evidence-based input for reform-related public discourse taking place in these countries. The SGI are updated every two or three years.
Behind the project
The Bertelsmann FoundationBertelsmann Foundation
The Bertelsmann Foundation is the largest private operating non-profit foundation in Germany, created in 1977 by Reinhard Mohn. The Bertelsmann Foundation holds 77.4 percent of Bertelsmann AG....
is an operational think tank that encourages social change and aims to foster sustainability by identifying nascent challenges early on and by developing strategies to face these issues.
Method
Three scholars with established country expertise are involved in the analysis of each OECD state under review. In an attempt to identify and reduce subjective bias, the SGI project selects experts representing both domestic and external views as well as the viewpoints of political scientists and economists. Comparative political scientists with area expertise then integrate the two expert reports into a single country report, and select information according to certain validity and objectivity criteria.SGI and the Transformation Index
The SGI concept is inspired by the Bertelsmann FoundationBertelsmann Foundation
The Bertelsmann Foundation is the largest private operating non-profit foundation in Germany, created in 1977 by Reinhard Mohn. The Bertelsmann Foundation holds 77.4 percent of Bertelsmann AG....
’s Transformation Index (BTI). The Transformation Index focuses on 128 countries—all of which are transitioning to a market-based democracy or potentially headed in that direction—and assesses the extent to which political management fulfils criteria regarding sustainability
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
, democracy founded on the rule of law, social integration
Social integration
Social integration, in sociology and other social sciences, is the movement of minority groups such as ethnic minorities, refugees and underprivileged sections of a society into the mainstream of societies...
and welfare
Welfare
Welfare refers to a broad discourse which may hold certain implications regarding the provision of a minimal level of wellbeing and social support for all citizens without the stigma of charity. This is termed "social solidarity"...
. Since 2002, the BTI has been documenting the progress 128 transformation countries have been making toward democracy and a market economy.
Using a similar approach to BTI, the SGI evaluate the extent to which OECD member states are in a position, given changing domestic and international conditions, to implement the reforms necessary for ensuring their future viability. By measuring the need for reform along with the effectiveness of existing initiatives, the SGI aims to identify the best policy solutions for promoting democracy and a market economy.
Infrastructure of the SGI
The need for reform within a country is analyzed in the Sustainable Governance Indicators in the Status Index, while the capacity for reform is analyzed in the Management Index.Status Index
Status Index scores are composite measures, based on numerous quantitativeNumerical data
Numerical data is data measured or identified on a numerical scale. Numerical data can be analyzed using statistical methods, and results can be displayed using tables, charts, histograms and graphs. For example, a researcher will ask a questions to a participant that include words how often, how...
and qualitative assessments. The democracy category counts for half of the index score, while the four policy-specific categories collectively provide the remainder.
The Status Index analyzes the need for reform through two principle dimensions:
- The first dimension of the Status Index maps the quality of democracy within a country and examines four criteria: "Electoral ProcessElectionAn election is a formal decision-making process by which a population chooses an individual to hold public office. Elections have been the usual mechanism by which modern representative democracy operates since the 17th century. Elections may fill offices in the legislature, sometimes in the...
," "Access to Information," "Civil RightsCivil rightsCivil and political rights are a class of rights that protect individuals' freedom from unwarranted infringement by governments and private organizations, and ensure one's ability to participate in the civil and political life of the state without discrimination or repression.Civil rights include...
," and "Rule of LawRule of lawThe rule of law, sometimes called supremacy of law, is a legal maxim that says that governmental decisions should be made by applying known principles or laws with minimal discretion in their application...
." - The second dimension of the Status Index corresponds to the OECD states' competencies in policy fields that are highly relevant for future viability. The index examines fields such as "EconomyEconomyAn economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
and EmploymentEmploymentEmployment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...
," "Social AffairsSocial workSocial Work is a professional and academic discipline that seeks to improve the quality of life and wellbeing of an individual, group, or community by intervening through research, policy, community organizing, direct practice, and teaching on behalf of those afflicted with poverty or any real or...
," "SecuritySecuritySecurity is the degree of protection against danger, damage, loss, and crime. Security as a form of protection are structures and processes that provide or improve security as a condition. The Institute for Security and Open Methodologies in the OSSTMM 3 defines security as "a form of protection...
," and "Resources," which include 15 different policy areas.
Management Index
Management Index scores are composite measures, based on numerous quantitative and qualitative assessments. The three categories "Steering Capability," "Policy ImplementationImplementation
Implementation is the realization of an application, or execution of a plan, idea, model, design, specification, standard, algorithm, or policy.-Computer Science:...
" and "Institutional Learning" collectively count for half of the index score, while the Executive Accountability dimension provides the remaining half. The Management Index considers, in relative terms, how capable governments and societies are of effective reform.
The Management Index examines government performance and analyzes a country's reform capacity through two dimensions:
- The first dimension, Executive Capacity, measures the strategic steering and problem solving capabilities of the respective OECD states. Thus, Executive Capacity analyzes a government's organizational structures and processes. The main analytical categories used were "Steering Capability," "Policy Implementation" and "Institutional Learning."
- The second dimension, Executive Accountability, looks at how the government interacts with external state and non-state actors (CitizensCitizenshipCitizenship is the state of being a citizen of a particular social, political, national, or human resource community. Citizenship status, under social contract theory, carries with it both rights and responsibilities...
, parliamentsParliamentA parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French , the action of parler : a parlement is a discussion. The term came to mean a meeting at which...
, political partiesPolitical PartiesPolitical Parties: A Sociological Study of the Oligarchical Tendencies of Modern Democracy is a book by sociologist Robert Michels, published in 1911 , and first introducing the concept of iron law of oligarchy...
, trade associationsTrade associationA trade association, also known as an industry trade group, business association or sector association, is an organization founded and funded by businesses that operate in a specific industry...
and mediaNews mediaThe news media are those elements of the mass media that focus on delivering news to the general public or a target public.These include print media , broadcast news , and more recently the Internet .-Etymology:A medium is a carrier of something...
) and measures to what extent these actors positively influence the executive branch.
Status Index 2011
The top rankings of the Status Index are dominated by northern EuropeanNordic countries
The Nordic countries make up a region in Northern Europe and the North Atlantic which consists of Denmark, Finland, Iceland, Norway and Sweden and their associated territories, the Faroe Islands, Greenland and Åland...
countries. At the same time, the leading group also includes New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, with its Anglo-saxon heritage, and continental European Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, two nations with different political and state welfare traditions.
The group of mid-range scorers (Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
, Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
, Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, USA, Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, and Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
) and the lowest-ranking group (South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
, Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
, and Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
) are geographically and culturally just as heterogeneous as the top group.
Standard typologies in comparative political science
Comparative politics
Comparative politics is a subfield of political science, characterized by an empirical approach based on the comparative method. Arend Lijphart argues that comparative politics does not have a substantive focus in itself, but rather a methodological one: it focuses on "the how but does not specify...
are insufficient to explain the Status Index ranking of the OECD nations. For example, majoritarian democracies do not systematically score better or worse than consensus democracies. Classifying the countries as ederalism|federalist] and centralist
Centralized government
A centralized or centralised government is one in which power or legal authority is exerted or coordinated by a de facto political executive to which federal states, local authorities, and smaller units are considered subject...
states also fails to help explain the differences in reform capacity.
The top group includes, above all, social democratic
Social democracy
Social democracy is a political ideology of the center-left on the political spectrum. Social democracy is officially a form of evolutionary reformist socialism. It supports class collaboration as the course to achieve socialism...
welfare states such as the Scandinavian countries
Scandinavia
Scandinavia is a cultural, historical and ethno-linguistic region in northern Europe that includes the three kingdoms of Denmark, Norway and Sweden, characterized by their common ethno-cultural heritage and language. Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,...
. However, liberal
Liberalism
Liberalism is the belief in the importance of liberty and equal rights. Liberals espouse a wide array of views depending on their understanding of these principles, but generally, liberals support ideas such as constitutionalism, liberal democracy, free and fair elections, human rights,...
welfare states also achieve high scores, with New Zealand, Switzerland and Canada in the upper mid-range. In general, the findings of the Status Index reveal higher scores among long-term, established OECD members – although there are exceptions: Chile, a new member, places in the lower midrange, while Italy and Greece rank significantly lower than some Eastern European
East-Central Europe
East-Central Europe – a term defining the countries located between German-speaking countries and Russia. Those lands are described as situated “between two”: between two worlds, between two stages, between two futures...
countries. This suggests that the smaller, more open national economies tend to pursue especially sustainable policies.
Management Index 2011
At the highest level of aggregation in the Management Index, the overview provides important initial indications of which countries exhibit the best performance of governance overall and which countries show deficiencies. Background information in greater depth on the performance of a given country can be found in the country reports on the SGI website . These include substantiated, qualitative information right down to the level of individual indicators.The SGI Management Indicators are clearly led by Sweden and Norway, each with average scores exceeded 8 points. Next come Denmark, Finland, New Zealand and Australia. While the overall ranking of northern European countries is again outstanding, as observed in the Status Index, this sequence also underscores the fact that no particular system type is favored in the Management Index. This top group is followed by a broad mid-range in which the changes in index scores are incremental, leaving no discernable clusters. Clearly bringing up the rear of the survey are Greece and Slovakia. Both countries trail Italy, which is 29th in the ranking, by nearly an entire point. The new OECD member Chile stands out positively, already scoring higher than some established, longstanding OECD states.
Summary of results
The central finding of the SGI is that the quality of governance is most important in ensuring sustainable policy outcomes. Countries with "good executive management performance, a sound democratic order and an effective inclusion of societal actors into policymaking processes are more successful in terms of sustainability and also in terms of social justice."See also
- Bertelsmann Stiftung
- Good GovernanceGood governanceGood governance is an indeterminate term used in development literature to describe how public institutions conduct public affairs and manage public resources in order to guarantee the realization of human rights. Governance describes "the process of decision-making and the process by which...
- SustainabilitySustainabilitySustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
- Sustainability measurementSustainability measurementSustainability measurement is a term that denotes the measurements used as the quantitative basis for the informed management of sustainability...