How well do OECD and EU countries deliver sustainable governance?

Geopolitical instability, rapid technological change, shifting centers of economic power, accelerating climate change, ecosystem degradation, and massive sociodemographic change demand constant adaptation and learning efforts from governments. These challenges are deeply interconnected, with numerous trade-offs and cascading effects. They are also accompanied by high levels of uncertainty about the impact and long-term consequences of certain policy measures.

Effective policymaking should take this complexity into account. It should integrate cross-sectoral and interdisciplinary approaches and be developed and implemented with input from key societal stakeholders. Coordination across multiple political levels –  local, regional, supranational or international – is essential. There are many examples of policy complementarities. When effectively implemented, for example, an investment-oriented, forward-looking welfare state can contribute both to political stability and to a realignment of the economic model in response to new challenges. Sustainable governance models are not only critical for trust and planning certainty among citizens and businesses; they also underpin a state’s capacity for learning and adaptability.

Ideally, governments should tackle these challenges holistically, guided by long-term thinking, evidence and proven practices. They should strive to avoid shifting burdens unfairly to future generations. In practice, however, governments frequently prioritize short-term gains over long-term solutions. Growing mountains of debt, unequal access to core public services like education and healthcare, and inefficient resource use have far-reaching consequences for present and future generations.  These developments undermine the sustainability of governance in OECD and EU countries. In many cases, trust in democratic institutions is weakening, while societal and political polarization is on the rise.

The SGI project has developed a monitoring instrument that offers both critical guidance and practical knowledge for political decision-makers within core executive bodies and democratic institutions across the OECD and EU. It also serves civil society actors, international organizations, researchers and the broader public by providing evidence-based analyses.

Using the SGI framework, we systematically compare and assess the progress of industrialized countries in implementing economic, social, and ecological sustainability in a total of 20 key areas. The evaluations consider policy inputs, throughputs, outputs and outcomes. When combined with an analysis of how internal processes and institutional structures facilitate forward-looking governance, this approach enables a robust assessment of the sustainability of political steering. In addition, by evaluating the quality of democratic accountability mechanisms, we can assess the long-term viability of specific governance architectures.

By identifying strengths and weaknesses across countries, the SGI project facilitates (international) learning processes and raises awareness among decision-makers for the need for reform. For us, sustainable governance means governing in a way that ensures human well-being within planetary boundaries while creating resilient and socially embedded democratic institutions. This vision is grounded in the conviction that it is indeed possible to build a social and political order that is sustainable for both current and future generations.

To identify effective models of sustainable governance, the instrument is based on three pillars: the Sustainable Policymaking Index, the Governing with Foresight Index, and the Democratic Government Index. Cross-country comparisons are based on 144 indicators and comprehensive country reports. Country performance is determined through a rigorous multi-stage review process conducted by an international network of experts. Each survey round involves more than 100 economists, environmental scientists, political scientists and social scientists, who contribute their international, comparative, methodological, regional and country-specific and sectoral expertise.

All data, rankings and country reports can be accessed free of charge via the project’s interactive website: www.sgi-network.org