Category: Economy

In my capacity as a globetrotting Asianist, I frequently encounter people from the United States who want to brag about democracy. They are often surprised to discover how healthy it is in many Asian countries.

The United States as the world’s longest standing democracy stands in contrast with its great geopolitical rival, China, one of the world’s most authoritarian political regimes. The U.S. Constitution came into effect in 1789, and famously begins with “We the people…” affirming that a government must serve its citizens.

What’s more, U.S. law declares the promotion and protection of democracy, human rights and fundamental freedoms to be “principal” and “fundamental” goals of U.S. foreign policy. 

But over the years, politics has evolved across both sides of the Pacific Ocean. By the measure of democracy set by the Economist Intelligence Unit (EIU) the United States now falls short.

The EIU considers it a “flawed democracy” and ranks it 29th out of the 167 jurisdictions surveyed. The demotion from “full democracy” to a “flawed democracy” came in 2016, the year Donald Trump was elected to his first term as president.

The EIU assesses democracy worldwide based on five criteria: electoral process and pluralism, functioning of government, political participation, political culture and civil liberties. In other words, there is a lot more to democracy than simply having elections.  

Measuring democracy by world standards

In this context, the United States scores poorly for its political culture. “The U.S. score is weighed down by intense political and cultural polarisation,” its report noted. “Social cohesion and consensus have collapsed in recent years as disagreements over an expanding list of issues have fuelled the country’s ‘culture wars’.” 

Fault lines have deepened in particular over LGBTQ+ rights, climate policy and reproductive health. 

Polarisation has long compromised the functioning of government in the United States and the country’s score for this category is also particularly low.  

“Pluralism and competing alternatives are essential for a functioning democracy, but differences of opinion in the U.S. have hardened into political sectarianism and almost permanent institutional gridlock,” the EIU reported.

Freedom House, a think tank which analyses freedom across the world, has also observed that democratic institutions in the United States have eroded. It cites: “Rising political polarisation and extremism, partisan pressure on the electoral process, mistreatment and dysfunction in the criminal justice and immigration systems and growing disparities in wealth, economic opportunity and political influence.”

Democracy in Asia and the Pacific

Across the Pacific, we find five “full democracies”: Australia, Japan, South Korea, New Zealand and Taiwan, although the EIU’s report preceded the current political turmoil in South Korea. The region also has 10 “flawed democracies,” including Malaysia, India, The Philippines and Indonesia.

Singapore, a country which is often criticised for its soft authoritarian political system, is also assessed to be a flawed democracy. But there can be little doubt about the government’s effectiveness in delivering services to its citizens. Singapore’s technocratic and managerial style governance have generated one of the world’s most prosperous and efficient economies. 

Its GDP per capita, which is a way of measuring the economic wellbeing of a country, is $148,000 — among the very highest in the world, and ahead of the United States, Germany or Japan.  

When it comes to economic freedom, Singapore leads the world according to the Heritage Foundation, while the United States ranks a mere 25th out of the 176 jurisdictions surveyed. Other Asia-Pacific economies which rank well are Taiwan (4th) New Zealand (6th), Australia (13th) and South Korea (14th). 

Human capital has long been a key ingredient in Singapore’s economic success story. Singapore’s students topped the OECD’s 2022 Programme for Student Assessment which assessed the capabilities for 15-year-old students from 81 countries and economies for reading, science and maths. Indeed, Japan and South Korea are also ranked in the top 10 countries. The United States was ranked 34th with a similar score to Vietnam.

Education is key to democracy.

When it comes to universities, the United States is still the world leader, with the Massachusetts Institute of Technology, Harvard University, Princeton University, Stanford University, the California Institute of Technology, the University of California, Berkeley and Yale University all being ranked in the top 10 by Times Higher Education.  

But Asian universities are now climbing the ladder, with China’s Tsinghua University now number 12, Peking University 13th, National University of Singapore 17th, the University of Tokyo 28th and Nanyang Technological University Singapore 30th.

Asian citizens also enjoy much higher life expectancies than U.S. citizens or those of most other developed countries. Hong Kong tops the list of the world’s highest life expectancy at 86 years, with Japan, South Korea, Australia and Singapore all being in the top 10.  

In comparison, the United States ranks just 48th in the world; Americans live on average some six years less than Hong Kongers. 

And while Singapore and many other Asian countries are notorious for restrictions on personal freedoms, the trade-off is a safe society and an efficient economy. For example, Singapore is estimated by research group Numbeo to have a much better crime index and safety scale than the United States or France.  

No monopoly on democratic values

My American friends seem insistent that their open and free-wheeling society represents a unique source of creativity and innovation.  

There is no doubt some truth in this perception — U.S. companies dominate Forbes list of the world’s most innovative companies. At the same time, companies from India, South Korea, Indonesia, Thailand, China and Japan are now climbing up the Forbes list.  

And while Switzerland, Sweden and the United States might top the Global Innovation Index, Singapore, South Korea, China and Japan are not far behind.

Comparing the quality of democracy and governance is a complex exercise, something that a short article like this cannot sufficiently tackle.  

But it is clear, based on a number of factors, that many Asian countries are doing quite well in developing systems of democracy and governance. The United States faces many deep challenges in contrast and could draw lessons from its Asian friends across the ocean.

Three questions to consider:

1. What is one common measure of democracy?
2. In what way does the United States fall short on measures of democratic strength?
3. What do you think is the most important characteristic of a democracy?