Declining U.S. Rankings in Important International Socio-Political Indices

There are many international rankings of socio-political characteristics of the countries of the world. Here are at least six in which the U.S. ranking is declining.[1]

Freedom of the Press Index. The U.S. ranking has declined from 41 in 2016 to 48 in 2019in this index by Reporters Without Borders. Despite the importance of freedom of press in the First Amendment to the U.S. Constitution, the U.S. this year is behind all of Europe, Australia, Canada and New Zealand as well as far below Papua New Guinea and right below Romania.

This Index is “determined by pooling the responses of experts to a questionnaire devised by RSF [Reporters Sans Borders]. This qualitative analysis is combined with quantitative data on abuses and acts of violence against journalists during the period evaluated. The criteria evaluated in the questionnaire are pluralism, media independence, media environment and self-censorship, legislative framework, transparency, and the quality of the infrastructure that supports the production of news and information.”

Human Development Index. This index from the U.N. measures life expectancy, education and per capita income. For the most recent year (2018), the U.S. is 13th behind most of our European friends, Australia and Canada.

Level of Corruption Index. Compiled by Transparency International, this Index for 2018 (the most recent year) has the U.S. as 22nd in 2018 with a score of 71/100 versus 18th in 2016. The U.S. is far below Denmark, Sweden, Australia and Canada as well as below Estonia and just a little less corrupt than the United Arab Emirates and Uruguay.

The U.S. along with Brazil and the Czech Republic was listed as a “country to watch” in 2019. According to Transparency International, “With a score of 71, the United States lost four points since last year, dropping out of the top 20 countries on the CPI for the first time since 2011. The low score comes at a time when the US is experiencing threats to its system of checks and balances as well as an erosion of ethical norms at the highest levels of power.”

Income Inequality Index.  The Gini Coefficient measures perfect equality as 0 and perfect inequality as 1. In the mid-1970s the U.S. had a coefficient of 0.406 and in the mid-2000s as 0.486. Other reports of this Index by the CIA had the U.S. at 39th with a score of 0.450 (2017) while the World Bank said 59th with 0.410 (2013).

Global Peace Index. This Index is produced by the Institute for Economics and Peace (IEP) as the world’s leading measure of global peacefulness. This report presents the most comprehensive data-driven analysis to date on peace, its economic value, trends, and how to develop peaceful societies.” From a ranking of 124th in 2018, the U.S. has declined to 128th out of 163 in 2019.

Social Progress Index. This ranks countries by their average score for scores for three broad dimensions: Basic Human Needs, Foundations of Wellbeing, and Opportunity. For 2019 the U.S. had a score of 84.78 for a ranking of 25 out of 146 countries after declining since 2014. All of the G7 countries are ahead of the U.S. in health and education.

Conclusion

These indices are examples of contemporary efforts to reduce complex socio-political phenomena to digital numbers and thereby enable the construction of tables and rankings. Theoretically one could make a detailed analysis of the assumptions and sources of the data used to make these tables and rankings in order to make an informed conclusion about the validity of the indices. But the overall conclusion of these indices that the U.S. is not Number One would be shocking to many Americans.

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[1] Kennedy, The U.S. Is Falling, World View (Summer 2019) ;Reporters without Borders, World Press Freedom 2019; UN Development Programme, Human Development Indices and Indicators (2018) Transparency International, Corruption Perceptions Index 2018 ;World Bank, GINI Index (World Bank Estimate)–Country Rankings; CIA, Distribution of Family Income—GINI Index ;Institute for Economic and Peace, Peace Index 2019; Social Progress Imperative, Social Progress Index (2018); Kristof, Keynote Address, American Oxonian (Winter/Spring 2018).

 

Cuba Pays $60 Million of Indebtedness to Major Creditor Nations     

The week of October 15 Cuba paid $60 million of indebtiness to 14 wealthy creditor nations. Last year Cuba paid $40 million to the same group. The total debt is $2.6 billion after the creditors in 2015 forgave $8.5 billion of $11.1 billion upon which Cuba had defaulted through 1986 plus charges.[1]

These creditor nations known as the Club of Paris are the following: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom.

Under the 2015 agreement, Cuba agreed for the first time to grant the creditors equity in development projects, in areas like manufacturing and agriculture, in exchange for a portion of their debt holdings. Many of these restructuring agreements include the establishment of so-called counter-value funds, under which a percentage of debt is discounted in exchange for the potential profits stemming from participation by a creditor country’s firms in Cuba joint-development projects.

The counter-value funds have an estimated combined value of around $750 million of the $2.6 billion owed. Japan, Spain, France and Italy – Cuba’s largest Paris Club creditors – are furthest along in negotiating swaps.

  • For example, a $46 million French project to develop cattle ranching and dairy products in central Camaguey province is ready to sign, according to France’s ambassador to Cuba, Jean-Marie Bruno.
  • Another example is Spain which has a project ready to manufacture cardboard and another aluminium structures for construction capable of resisting earthquakes and hurricanes, both involving Spanish companies.

This access to Cuban development projects gives the European countries and companies an advantage over U.S. companies who are banned by various U.S. laws from such projects.

This payment happened during dire economic times for Cuba due to the political and economic crisis in its ally Venezuela, declines in Cuban exports and tourism due, in part, to the damages caused by Hurricane Irma.

Cuba’s payment in these circumstances showed the importance Cuba attaches to the 2015 agreement with this group of major creditor nations.

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[1] Reuters, Cash-Strapped Cuba Makes Debt Payment to Major Creditors-Diplomats, N.Y. Times (Oct. 18, 2017); Chow, Cuba Reaches Deal to Pay $2.6 Billion in Arrears to Paris Club, W.S.J. (Dec. 12, 2015); Paris Club, Agreement on the Debt Between Cuba and the Group of Creditors of Cuba (Dec. 12, 2015).