Which Populations Feel Their Country is on the Wrong Track?
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Which Populations Feel Their Country is on the Wrong Track?

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countries on the wrong track

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Which Populations Feel Their Country is on the Wrong Track?

Plato once used the allegory of a Ship of Fools to push for his vision of a wise philosopher-king as the ideal pilot for a ship of state.

Looking at the most recent numbers from Morning Consult Political Intelligence’s Projections of Country Trajectories, you would be forgiven for thinking that a great many people believe that their ship of state is piloted by fools.

With the impact of the pandemic, rising inflation, and growing geopolitical instability, it’s probably not surprising that most respondents feel their countries are on the wrong track; India and Switzerland were notable exceptions.

Below are some of the stand-out stories that we found digging through the data.

United States

Midterm elections have rarely been kind to the incumbent party in U.S. politics and the cost of living crisis, an unpopular president, and the aftermath of the global pandemic pointed towards an electoral bloodbath. This year’s election was also expected to set a new spending record, with over $9 billion raised.

Even so, despite 72% of respondents thinking that the country is on the wrong track, the governing Democrats have defied expectations and posted a historic performance during the November 8, 2022, midterm elections. To put this into context, in a president’s first term, there have been three previous instances (since 1922) of the incumbent’s party gaining (or not losing) Senate seats and losing fewer than 10 seats in the House.

u.s. sentiment trajectory 2020-2022

Also worth noting is the large spike in negative sentiment in January 2021, following the U.S. Capitol attack, followed by the convergence of negative and positive sentiments as the peaceful transition of power became more assured.

Brazil

Horace, in Odes 1.14, describes a ship of state that is flailing at sea that eventually rights itself, claiming towards the end of the poem that “it’s my longing and no light love you carry.”

Something like that may be happening in Brazil following the loss of the often turbulent, COVID-19-denying President Jair Bolsonaro to political rival Luiz Inácio Lula da Silva in an Oct. 20, 2022, election runoff.

Brazil sentiment trajectory 2020-2022

However, with respondents evenly split on where the country is going and the presidential election results being so close (50.9% vs. 49.1%), Lula will have his hands full governing a divided country.

India

While sentiment was overwhelmingly negative in almost every country tracked in this survey, India stood out as an outlier. India has consistently maintained a positive sentiment of between 60% and 80%, which is something only Switzerland comes close to.

india sentiment trajectory 2020-2022

The only blip was a brief period during the spring of 2021. This coincided with a deadly second wave of COVID-19 infections in the country, on top of country-wide protests against the Narendra Modi government’s deeply unpopular farm bill.

United Kingdom

The data here covers the three most recent UK Prime Ministers: Boris Johnson, Liz Truss, and now Rishi Sunak, the first South Asian to hold the post.

uk sentiment trajectory 2020-2022

In January 2020, Johnson had just won a Tory majority and succeeded in “Getting Brexit Done.” Political scandals and the government’s pandemic response pushed the trendline down. It only recovered briefly in the spring of 2021, following Russia’s invasion of the Donbas region of Ukraine, which Johnson was widely seen as handling well. A personal visit to Kyiv on April 9, 2022, helped cement this.

Then followed Prime Minister Liz Truss’ disastrous mini-budget of Sept. 23, 2022, which saw the pound fall to the lowest-ever level against the dollar and the Bank of England intervene in the bond markets. The ascension of Rishi Sunak to No. 10 Downing Street has only just begun to turn around the low of 89% negative sentiment reported on Oct 23-25, 2022.

To quote the BBC comedy series, Yes, Minister, in another context, “the ship of state is the only ship that leaks from the top.”

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Politics

Mapped: Geopolitical Risk by Economy

Prior to invading Ukraine, Russia had one of the highest levels of geopolitical risk. How does geopolitical uncertainty vary around the world?

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World map with countries coloured according to their level of geopolitical risk. Pakistan has the most geopolitical risk while New Zealand has the least.
The following content is sponsored by The Hinrich Foundation

Geopolitical Risk by Economy

The Russia-Ukraine war highlighted how geopolitical risk can up-end supply chains and weaponize trade. More precisely, the war led to trade sanctions, a food crisis, and energy shortages.

This graphic from The Hinrich Foundation, the third in a five-part series on the sustainability of trade, explores how geopolitical risk differs by economy. It pulls data from the 2022 Sustainable Trade Index, which The Hinrich Foundation produced in collaboration with the IMD World Competitiveness Center.

Breaking Down Geopolitical Risk

Geopolitical risk has a strong correlation with GDP per capita, meaning that developing economies typically have less stability.

The following table shows how geopolitical risk breaks down for select economies that are covered in the 2022 Sustainable Trade Index. A lower number indicates less stability, while a higher number indicates more stability.

EconomyGeopolitical Stability
Pakistan5.2
Myanmar9.9
Bangladesh16.0
India17.0
Mexico17.9
Philippines18.9
Papua New Guinea20.3
Russia20.8
Thailand24.5
Indonesia28.3
Ecuador34.4
China37.7
Peru38.7
Cambodia41.0
Vietnam44.8
Sri Lanka45.3
U.S.46.2
Chile49.1
Hong Kong50.0
Malaysia50.9
UK61.3
South Korea62.7
Laos69.3
Taiwan72.2
Australia73.1
Japan87.3
Canada90.1
Brunei90.6
Singapore97.2
New Zealand97.6

Source: World Bank, based on the latest available data from 2020. Values measure perceptions of political instability and violence, which are a proxy and precursor to geopolitical risk.

New Zealand has the highest level of stability, likely supported by the fact that it is a small nation with no direct neighbors. The country has taken steps to repair relationships with Indigenous peoples, through land and monetary settlements, though challenges remain. 

The U.S. has moderate stability. It has been impacted by increasing political polarization that has led to people having lower trust in institutions and more negative views of people from the opposing party. As the world’s largest economy, the U.S. also faces geopolitical risk such as escalating tariffs in the U.S.-China trade war. 

Want more insights into trade sustainability?

Sustainable Trade Index 2022 Report Cover

Download the 2022 Sustainable Trade Index for free.

Russia has one of the lowest levels of stability. The country’s invasion of Ukraine has led to war along with economic roadblocks that restrict normal trade activity. For instance, sanctions against Russia and blocked Ukrainian ports led to a food shortage. The two countries supply a third of the world’s wheat and 75% of the sunflower oil supply. 

The Impact of Geopolitical Uncertainty on Trade

Geopolitical risk can lead to civil unrest and war. It also has economic consequences including trade disruptions. As a result of the Russia-Ukraine war, the World Bank estimates that “world trade will drop by 1%, lowering global GDP by 0.7% and GDP of low-income economies by 1%.” A separate study found that Pakistan’s history of political instability has negatively affected trade in the country.

Of course, geopolitical risk is just one component of an economy’s trade sustainability. The Sustainable Trade Index uses a number of other metrics to measure economies’ ability to trade in a way that balances economic growth, societal development, and environmental protection. To learn more, visit the STI landing page where you can download the report for free.

The fourth piece in this series will explore air pollution by economy, and how it is influenced by economic activity such as trade.

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