Democracy in Decline: Global Report Reveals Alarming Trends
A new report by the International Institute for Democracy and Electoral Assistance (IDEA) has sounded a warning bell for democracy worldwide. The Global State of Democracy 2025, released on September 11, 2025, reveals that 94 countries have experienced a decline in democratic performance between 2019 and 2024.
Financial Impact:
The report's findings have significant implications for the global economy. A weakening of democratic institutions can lead to increased uncertainty, reduced investor confidence, and decreased economic growth. According to IDEA, the regions with the largest declines in democratic performance are Africa (33 countries) and Europe (25 countries).
Market Implications:
The decline of democracy is likely to have far-reaching consequences for businesses operating globally. Companies that rely on stable and predictable regulatory environments may face increased risks due to the erosion of democratic institutions. The report highlights the importance of transparency, accountability, and good governance in maintaining investor confidence.
Stakeholder Perspectives:
Kevin Casas-Zamora, Secretary General of IDEA, expressed concern about the state of democracy worldwide. "The current state of democracy is concerning," he said. "We need to address these issues collectively to ensure that democratic institutions are strengthened."
Regional Breakdown:
Africa: 33 countries experienced a decline in democratic performance
Europe: 25 countries saw a decline
West Asia: ranked lowest on democratic performance
Future Outlook:
The report's findings have significant implications for policymakers, businesses, and civil society organizations. To address the decline of democracy, IDEA recommends strengthening democratic institutions, promoting transparency and accountability, and supporting civic engagement.
Next Steps:
As the global community grapples with these challenges, it is essential to prioritize democratic reform and good governance. Businesses can play a critical role in promoting democratic values by advocating for transparent and accountable practices. Policymakers must work together to strengthen democratic institutions and promote civic engagement.
In conclusion, the decline of democracy worldwide has significant financial implications for businesses and economies globally. It is crucial that stakeholders work collectively to address these challenges and promote democratic reform.
*Financial data compiled from Dw reporting.*
