Insight of the Day

Large Disparity Between Governance Gradings of High And Low Income Countries


 
4 July 2026
 
There is a noticeable disparity between the overall Governance gradings of low-income versus high-income countries. While over half of high-income countries are rated a premium A-grade on the World Economics Governance Index, there is not a single country in the low-income category now rated A-grade or even B-grade.

Percentage of Gradings In Different Income Groups
Index: 0-100. 0=Poor, 100=As good as it gets

Country

 

 

A

 

B

 

C

 

D

 

E

High Income Countries

 

 

60%

 

29%

 

11%

 

0%

 

0%

Middle Income Countries

 

 

0%

 

17%

 

52%

 

15%

 

16%

Low Income Countries

 

 

0%

 

0%

 

21%

 

21%

 

58%

Country

A

B

C

D

E

High Income Countries

60%

29%

11%

0%

0%

Middle Income Countries

0%

17%

52%

15%

16%

Low Income Countries

0%

0%

21%

21%

58%
Source: World Economics Governance Index, 2025


Note: Table uses the World Bank’s definition of low-, mid- and high-income countries and for those which World Economics has available data.

High-income countries Governance ratings have remained broadly stable across the past decade. In comparison, the ratings of low-income countries were low a decade ago and have declined even further since then for 16 out of the 19 countries that constitute the grouping. This betrays a further decline in data reflecting corruption, the rule of law, press freedom and political rights in low-income countries. This is an alarming trend for investors, for whom Good Governance should be vital.

More for subscribers:  
See more...See more data for High-Income Countries...
See more...See more data for Low-Income Countries...
See more...See more Governance Ratings data...
See more...Read: Places for Investors to Avoid...
 


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