1. 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

2. Transformation Index BTI Field of Study: 128 Countries

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

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

5. 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

6. Holistic Approach Democracy | Economy | Governance Democracy under the Rule of Law StatenessPolitical ParticipationRule of Law Stability of Democratic Institutions -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 -Performance of and commitment to democratic institutions Political and Social Integration -Party system -Interest groups -Consent to democratic norms -Associational activities

7. Holistic Approach Democracy | Economy | Governance Democracy under the Rule of Law StatenessPolitical ParticipationRule of Law Stability of Democratic Institutions -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 -Performance of and commitment to democratic institutions Political and Social Integration -Party system -Interest groups -Consent to democratic norms -Associational activities

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

9. 10 9 8 7 6 5 4 3 2 1 0 StatenessPolitical ParticipationRule of LawStability of Democratic Institutions Political and Social Integration Quality of Democracy - BTI 2010 Findings Detailed Quality Assessment of Political Transformation 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 Rule of Law Separations of powers Independent judiciary Prosecution of office abuse Civil rights ensured Stability of Demo. Institutions Democracy performs Democracy accepted Political and Social Integration Party system Interest groups Consent to democratic norms Social capital Defective democraciesDemocraciesAutocracies Erosion of the rule of law and lack of political and social integration constitute major weaknesses in defective democracies.

10. 10 9 8 7 6 5 4 3 2 1 0 StatenessPolitical ParticipationRule of LawStability of Democratic Institutions Political and Social Integration Quality of Democracy - BTI 2010 Findings 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 Rule of Law Separations of powers Independent judiciary Prosecution of office abuse Civil rights ensured Stability of Demo. Institutions Democracy performs Democracy accepted Political and Social Integration Party system Interest groups Consent to democratic norms Social capital Defective democraciesDemocraciesAutocracies 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. Detailed Quality Assessment of Political Transformation

11. Quality of Democracy – BTI 2010 Findings Growing Restrictions on Freedom of Expression… Freedom of expression East-Central and Southeast Europe: BOSNIA HERZEGOVINA | CROATIA | LITHUANIA MACEDONIA | SERBIA | SLOVAKIA Latin America and the Caribbean: ECUADOR | EL SALVADOR | NICARAGUA VENEZUELA Subsahara Africa: BENIN | BOTSWANA | BURUNDI | CENTRAL AFRICAN REP | CONGO DR | CONGO REP GHANA | KENYA | MADAGASCAR | MALI MAURITANIA | MOZAMBIQUE | NAMIBIA | NIGER NIGERA | SOMALIA | SOUTH AFRICA | TANZANIA UGANDA Asia and Oceania: SRI LANKA | MALAYSIA | PHILIPPINES SOUTH KOREA Former Soviet Union and Mongolia: AZERBAIJAN | GEORGIA | KYRGYZSTAN MOLDOVA | TAJIKISTAN Middle East and North Africa BAHRAIN | EGYPT | JORDAN | LEBANON

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

13. 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 Private PropertyWelfare RegimeEconomic PerformanceSustainability -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) -Property rights -Private enterprise -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

14. 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 Private PropertyWelfare RegimeEconomic PerformanceSustainability -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) -Property rights -Private enterprise -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

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

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

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

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

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

20. Economic Performance and Social Inclusion Favorable Conditions at the Outset of the Global Financial and Economic Crisis Economic Performance highlow 31 % 56 % 13 % moderate

21. Economic Performance and Social Inclusion Best Economic Performers 31 %

22. 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

23. Holistic Approach Democracy | Economy | Governance Political Management Performance, allowing for the Degree of Difficulty Steering CapabilityResource EfficiencyConsensus-BuildingInternational 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 -Structural Constraints i.e. extreme poverty, low educational level, infrastructural deficiencies, natural disasters etc. -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

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

25. 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

26. BTI 2010 www.bertelsmann-transformation-index.de

27. 1 Review-Process Standardized codebook (52 Indicators) Assessment Procedure 2 3 4 Detailed written country assessment with scores Commentary and scores by local reviewer Regional and interregional check by coordinators Final decision by BTI-Board

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

29. 1 Review-Process Standardized codebook (52 Indicators) Assessment Procedure Detailed written country assessment with scores 128 Country Experts 2 3 4 1 Commentary and scores by local reviewer 128 Reviewers from the respective countries 2 Detailed written country assessment with scores Commentary and scores by local reviewer Regional and interregional check by coordinators Final decision by BTI-Board

30. 1 Review-Process Standardized codebook (52 Indicators) Assessment Procedure Detailed written country assessment with scores 128 Country Experts 2 3 4 1 Commentary and scores by local reviewer 128 Reviewers from the respective countries 2 Regional and interregional check by coordinators Regional Coordinators 3 Detailed written country assessment with scores Commentary and scores by local reviewer Regional and interregional check by coordinators Final decision by BTI-Board

31. 1 Review-Process Standardized codebook (52 Indicators) Assessment Procedure Detailed written country assessment with scores 128 Country Experts 2 3 4 1 Commentary and scores by local reviewer 128 Reviewers from the respective countries 2 Regional and interregional check by coordinators Regional Coordinators 3 Final decision by BTI-Board BTI-Board 4 Detailed written country assessment with scores Commentary and scores by local reviewer Regional and interregional check by coordinators Final decision by BTI-Board