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The Bertelsmann Stiftung’s Transformation Index (BTI) analyzes and evaluates the quality of democracy, a market economy and political management in 128 developing and transition countries. It measures successes and setbacks on the path toward a democracy based on the rule of law and a market economy flanked by sociopolitical safeguards. Within this framework, the BTI publishes two rankings, the Status Index and the Management Index. Countries are further categorized on the basis of these status index and management rankings/scores.
For instance, countries are categorized in to 5 groups – viz; 5 or failed, 4 or very limited, 3 or limited, 2 or advanced, and 1 or highly advanced—based on their status index score of 1 to 10. A country with a high score, 8.5 and above, is categorized as highly advanced. A country with a low score, below 4, is categorized as failed. A country is categorized as ‘very limited’ if it has a status index score between 4 and 5.5. A score between 5.5 and 7 means the country is categorized as ‘limited’ and a country is categorized as ‘advanced’ for a score between 7.1 and 8.5.
On the basis of the democratic status ranking, countries are further categorized as 5 or ‘hard - line autocracies,’ 4 or ‘moderate autocracies,’ 3 or ‘highly defective democracies,’ 2 or ‘defective democracies,’ and 1 or ‘democracies in consolidation.’ A country with a democratic status ranking below 4 is categorized as a hard line autocracy. A democratic status score between 4 and 5 means that the country is part of the ‘moderate autocracy’ group. A country is grouped as a ‘highly defective democracy’ for a score between 5 and 6. A country is recognized as a ‘defective democracy’ for a score between 6 and 8, and a score of 8 and above earns a country the status of a ‘democracy in consolidation.’
Countries are also categorized in to 5 groups based on their market economy status ranking. The countries are categorized as ‘rudimentary’ or group 5, ‘poorly functioning’ or group 4, ‘functional flaws’ or group 3, ‘functioning’ or group 2, and ‘developed’ or group 1. A country is recognized as a member of the ‘developed’ group with a market economy status ranking/score of 8 and above. A country is grouped as ‘functioning’ if it has a score between 7 and 8. A market economy status ranking between 5 and 7 means the country is categorized to group 3 or the ‘functional flaws’ group. A score between 3 and 5 means that the country is ‘poorly functioning’ and a score below 3 means the country enjoys a ‘rudimentary’ status.
Based on the management index ranking, countries are categorized as 5 or failed, 4 or weak, 3 or moderate, 2 or good, and1 or very good. A country is categorized as ‘very good’ for a score of 7 and above. It is categorized as ‘good’ for a score between 5.6 and 7, and as ‘moderate’ for a score between 4.4 and 5.5. A score between 3 and 4.3 means a country is categorized as ‘weak,’ and a score below 3 means the categorization of a country as ‘failed.’
Countries are ranked between 1 and 10 on the basis of the level of difficulty they face. The level of difficulty is further categorized as 5 or negligible, 4 or minor, 3 or moderate, 2 or substantial, and 1 or massive. A score of 8.5 and above means the categorization of the country’s level of difficulty as ‘massive, and a score below 2.5 means the categorization of the level of difficulty faced by the country as ‘negligible.’ The level of difficulty score of 2.5 to 4.4 means a country faces a ‘minor’ level of difficulty and a score between 4.5 and 6.4 means the level of difficulty faced by a country is ‘moderate.’ A country with a score of 6.5 to 8.4 faces a ‘substantial’ level of difficulty.