The Bertelsmann Foundation is a highly respected German non-profit organization that focuses on research related to global socioeconomic and political stability. Bertelsmann recently published its BTI 2012 Political and Economic Transformation Index, a comprehensive report that looks at how democracy and socially-responsible market economy measures are developing in 128 countries around the world.

Between January of 2009 and January of 2011, Costa Rica once again obtained the highest score in the Central American region. Costa Rica scored 9.4 points out of a maximum score of 10. Two years ago, our country obtained the same score, and it is second to Uruguay in Latin America.

The report highlights that the past administration of former President Oscar Arias, as well as the current presidency of Laura Chinchilla, have managed to keep corruption from expanding. The BTI 2012 also explained that Costa Rica’s fair participation in Free Trade Agreements with Central and North America have also helped the country maintain stability.

El Salvador was the only Central American nation that managed to improve since the last BTI report. The current left-of-center administration of Mauricio Funes has come a long way in achieving consensus in regard to social welfare and its relation to free market policies.

The rest of the countries in the region have lost ground, particularly Guatemala and her ongoing conflict with drug cartels and organized crime. Honduras improved slightly, but the mercurial political climate that ended up in the violent ouster of former President Manuel Zalaya hangs in the air. Panama scored a respectable 7.9 on the democratic scale, although it has lost 0.20 points with the current administration due to what Bertelsmann considers undue presidential power-grabbing and the dubious handling of democratic institutions.

Democratic Participation and the Rule of Law

The press release preceding the BTI 2012 indicated that not all is well in Latin America. Argentina, Ecuador, Guatemala, Mexico, and Panama have experienced setbacks to their democratic systems. This is a worrying trend, since the Bertelsmann Institute explains that some Latin American nations may be reluctant to change their status quo due to the influence of oligarchic systems and political elites.

Two countries in Latin America that stand out for their improved quality of governance along with direct intervention to fight poverty and improve social conditions are Brazil and Uruguay. Both countries are also currently enjoying periods of economic prosperity.

Source: La Prensa Grafica (El Salvador)