Gütersloh, 28.05.2025 – As the world faces a shifting geopolitical landscape, sluggish growth, digital transformation, the climate crisis, and demographic change, the capacity of OECD and EU countries to innovate and adapt is being tested like never before. While countries like Denmark, Finland, Sweden, and Norway are among the best positioned, a comprehensive analysis of 144 indicators from the Bertelsmann Stiftung’s Sustainable Governance Indicators (SGI) reveals a troubling pattern: most advanced economies are still not adequately equipped to deliver sustainable policy.
According to the SGI report, most OECD and EU countries lack the institutional frameworks and long-term policy strategies needed to tackle their most pressing challenges. This includes strengthening democratic resilience, boosting economic adaptability, crafting socially viable responses to the climate crisis, and managing demographic change. In 11 of the 30 OECD countries analyzed, a fragmented policy mix combined with weak democratic oversight poses a serious threat to sustainable governance. Even among the G7 economies, Japan, Italy, the United States, and Canada are at risk of losing sight of the interests of future generations.
“The Nordic states are far better prepared. They offer strong democratic checks and public participation opportunities, comprehensive economic, social, and environmental policies, and forward-looking administrative structures,” says Christof Schiller, sustainable governance expert at the Bertelsmann Stiftung.
The report also highlights the importance of sustainable policymaking and a healthy democracy going hand in hand. This includes strengthening the integrity of elections, guaranteeing unrestricted access to official information, and building coalitions to counter anti-democratic forces. The top performers in democratic oversight are Sweden, Norway, Denmark, and Finland. For example, the SGI data reveals how Norway has successfully limited the influence of political extremism.
In addition to democratic oversight, the daily workings of government are also in need of a structural upgrade. This includes breaking down ministerial silos, increasing transparency, and strengthening the capacity for strategic foresight. Finland and Denmark top the ranking for anticipatory governance. In Finland, the Prime Minister’s Office reviews legislative proposals on behalf of the head of government, with the aim of improving the quality of draft legislation through enhanced impact assessments and optimized timing and planning of new proposals.
When it comes to aligning national economic, social, and environmental policies with the demands of sustainability, all OECD and EU countries face major challenges. This includes designing coherent strategies for economic transformation, accelerating the shift to a circular economy, and advancing mission-oriented innovation policies. The top performers in this area are Sweden, Denmark, Norway, and Finland. “In Denmark, policy design is guided by evaluations and sustainability assessments. Impact assessments for new laws are publicly available, which increases transparency. If a policy falls short of expectations, adjustments are typically made,” says Thorsten Hellmann, economic policy expert at the Bertelsmann Stiftung.
For more information, please contact:
Christof Schiller, phone: +49 30 275 78 81 26, christof.schiller@bertelsmann-stiftung.de
Thorsten Hellmann, phone: +49 52 41 81 81 236, thorsten.hellmann@bertelsmann-stiftung.de
About the Bertelsmann Stiftung:
The Bertelsmann Stiftung is committed to ensuring that everyone in society can participate in political, economic, and cultural life. Their programs include Education and Next Generation, Democracy and Social Cohesion, Digitalization and the Common Good, Europe’s Future, Health, and Sustainable Social Market Economies. The Bertelsmann Stiftung was established in 1977 by Reinhard Mohn. For more information, please visit www.bertelsmann-stiftung.de/en/home.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.