- Canada ranks 12th on the EIU's Democracy Index 2022, among the highest of the world's top oil and gas exporters
- Democracies are better places for private investment than autocracies by all metrics
- Canada is a global leader in Environmental, Social and Governance indices, and should be recognized for it
Canada has once again outranked other major global energy exports on the Economist Intelligence Unit's Democracy Index, placing 12th out of 165 independent states and territories on the 2022 annual edition.
First published in 2006, the index sets out each year since to measure the "state of democracy" in these countries using 60 different indicators across five categories, including:
- Electoral process and pluralism
- Functioning of government
- Political participation
- Political culture
- Civil liberties
While Canada's rank has dropped over the past few years, the country remains one of the 24 nations evaluated as a "full democracy" with a score of 8.88 out of a perfect 10. According to the report, just 8% of the world's population lives in a country considered a full democracy.
Here are the top 15 most democratic nations on the EIU's Democracy Index 2022, along with their corresponding score.
Democracy Index 2022: Top 15 Nations
#1 – Norway – 9.81
#2 – New Zealand – 9.61
#3 – Iceland – 9.52
#4 – Sweden – 9.39
#5 – Finland – 9.29
#6 – Denmark – 9.28
#7 – Switzerland – 9.14
#8 – Ireland – 9.13
#9 – Netherlands – 9.00
#10 – Taiwan – 8.99
#11 – Uruguay – 8.91
#12 – Canada – 8.88
#13 – Luxembourg – 8.81
#14 – Germany – 8.80
#15 – Australia – 8.71
Why is the Democracy Index Important?
Stable and transparent governments are built on a strong foundation of civil rights and rule of law conducive to the creation and unrestricted operation of private businesses.
On the other hand, authoritarian regimes that suppress the rights and liberties of their population tend to have the opposite effect, limiting business opportunities for individuals and enterprises not owned by the state.
While democracy isn't the only factor in determining good economic performance, it is integral in providing individuals and companies with the political stability and business environment required to build a foundation for steady growth and investment over the long term.
According to the EIU, Canada is the 12th most democratic nation in the world and one of the few still considered a full democracy. We also are the sole "full democracy" in North America.
Canada's position as a world-class leader on Environmental, Social and Governance (ESG) indices like the Democracy Index 2022 indicates the opportunity we have to expand our global market share for critical commodities such as oil, natural gas and minerals.
Canada has the ability to displace natural resource supplies from less stable and responsible producer nations while continuing to promote democratic values, environmental protection and resource security abroad.
More Canadian resources on global markets is good for our families, good for human rights and social progress, AND good the climate.
Global Energy Demand is Growing
Canada is a leading global producer of energy. We are the:
• third largest producer of hydropower
• fourth-largest producer of oil
• fifth-largest producer of natural gas
We also are home to the world's eighth-largest biofuel capacity and eighth-largest wind power generation capacity.
In 2020, Canada was the world's top electricity exporter, accounting for about 9% of global exports. We generate 83% of our electricity from non-emission sources such as hydro, nuclear, wind and solar, some of which are exported to displace higher GHG-intensive forms of electricity generation in the United States.
Canada is also a top 10 oil exporter that consistently ranks first among the top oil exporting nations and reserve holders on ESG indices.
With global energy demand for fossil fuels and renewables projected to grow over the next few decades, Canada is ideally situated to be a go-to supplier. However, we still face some export capacity issues which are blocking responsibly produced Canadian energy from reaching global markets in dire need.
The World Needs More Canadian Energy – Not Less
End/ Natural resources are a huge contributor to our national economy.— Canada Action (@CanadaAction) January 8, 2023
As long as the world needs oil, natural gas, mining or the resources and expertise to build renewables, it should be coming from #Canada
Maximizing the benefits for our families is the right thing to do. pic.twitter.com/fsxt1KgEQM
Most investors today consider ESG criteria when choosing where to put their money. For example, in 2018, over 80% of the world's largest corporations adhered to standards closely aligned with ESG criteria in some way or another, taking four main factors very seriously:
- treatment of workers
- company image and innovation
- supply chain management
- climate change
Canadian resource companies are taking ESG investor criteria to heart across the country. For example, more than 75 statistics show exactly how Canadian energy is already a leader in environmental protection, new innovation and clean technology.
As the 12th most democratic country on Earth – a supposed pre-requisite for a healthy business environment – Canadians need to start asking why so much capital investment and investor confidence has fled our country over the past several years. Canadians also must start to closely examine why we have difficulty building new natural resource projects like LNG export facilities when there is a clear business case for these projects and other countries in the world are full speed ahead.
It's time that all Canadians recognize we are one of the most stable, responsible and democratic natural resource producers on Earth, and understand the immense socio-economic benefits this industry creates for our country from coast to coast.
Join Us Today!
Canada is one of the few remaining full democracies with an abundance of natural resources ranging from minerals and softwood to food and energy. We are also global leaders on environmental, social, and governance (ESG) metrics and should be a destination of choice for new investment into the world's natural resource sectors.
Thank a farmer, rancher, grower and all the people who make our family meals possible.— Canada Action (@CanadaAction) February 11, 2023
From the fertilizer, to the machinery, to the production, processing, logistics and grocery store.
Thank you. #CanadianAG #CanadianFood #MadeInCanada pic.twitter.com/MrKaDW0elq
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