Global democracy sees improvement while U.S. rating slips, Economist Intelligence Unit report finds

Key Concepts

• Democracy Index: A measurement tool developed by the Economist Intelligence Unit (EIU) to assess the state of democracy globally.
• Democratic Recession: A period of global decline in democratic standards, which the 2025 report suggests may be ending.
• Hybrid Regimes: Political systems that combine democratic and authoritarian elements; often characterized by flawed elections and limited civil liberties.
• Governmental Transparency: The degree to which government actions, decision-making processes, and information are accessible to the public and the press.
• Civil Liberties: Fundamental rights and freedoms protected by law, such as freedom of speech and the press.

The State of Global Democracy: 2025 EIU Report

The Economist Intelligence Unit (EIU) has released its annual report on global democracy, signaling a potential end to the "democratic recession." Data indicates that 85% of the world’s democracies—representing approximately 40% of the global population—either maintained or improved their democratic standing over the past year.

Methodology: The Four-Pillar Index

The EIU measures democratic health using a specific framework consisting of five key categories:

1. Electoral process and pluralism: The fairness and competitiveness of elections.
2. Functioning of government: The effectiveness and transparency of state institutions.
3. Political participation: The level of citizen engagement in the political process.
4. Political culture: The societal support for democratic norms.
5. Civil liberties: The protection of individual rights and freedoms.

The report attributes the global improvement to gains in "political culture" and the "functioning of government." Notably, five countries previously classified as "hybrid regimes" transitioned into the "flawed democracy" category, a positive shift not observed in recent years.

The United States: A Decline in Ranking

Despite global improvements, the United States dropped six places in the 2025 index, now ranking 34th globally. The EIU identifies two primary drivers for this decline:

• Decline in Civil Liberties: Increased pressure on democratic norms and individual freedoms.
• Reduced Effectiveness of Government: A decrease in governmental transparency.

Constant Hunter, Chief Economist at the EIU, highlighted that the U.S. currently shares a similar democratic score with Poland, ranking just below Latvia and above Botswana.

Transparency and the Trump Administration

The EIU’s assessment of the U.S. government’s "functioning" is heavily influenced by transparency metrics. Hunter noted several factors contributing to the lower score under the current administration:

• Institutional Changes: The mass firing of personnel within the Department of Justice (DOJ).
• Media Access: The removal of journalists from the Department of Defense and broader rhetoric perceived as attacks on the press.
• Information Access: A reduction in the type and volume of information made available to the public.

The "Mandate" Argument vs. Democratic Health

The discussion addressed the defense often used by the Trump administration: that their actions are legitimate because they were promised during the campaign and subsequently validated by voters. Hunter acknowledged this as a "valid defense" regarding the democratic mandate. However, she emphasized that the EIU index focuses on the mechanisms of democracy—such as transparency and institutional integrity—rather than the popularity of specific policy outcomes.

Future Outlook: Political Participation

Hunter anticipates that political participation in the U.S. will remain high, particularly in upcoming midterm elections. She suggests that economic factors, such as price increases driven by tariffs (e.g., PCE price data), will serve as a catalyst for voter turnout. This high participation will ultimately serve as a referendum on whether the public supports the administration's specific policy agenda.

Synthesis

The 2025 EIU report offers a cautiously optimistic view of global democracy, noting that the long-standing "democratic recession" is showing signs of stabilization. While many nations are improving, the United States is an outlier, experiencing a decline in its ranking due to concerns regarding civil liberties and government transparency. The report underscores that while electoral mandates provide a basis for governance, the health of a democracy is fundamentally tied to the transparency of its institutions and the protection of the press and civil rights.