3.7×
GDP Multiplier Free vs Not Free
+10 yrs
Life Expectancy Gap
16×
Poverty Multiplier
−4.8
Mean Liberty Since 2010
−46
US Liberty Decline
Section I

The Compounding Divergence: 1900–2023

Free societies didn't just start richer. They compounded faster. Over 120 years, the GDP gap between Free and Not Free nations widened from 2.5× to 3.7×. The life expectancy gap narrowed — but a full decade still separates them.

GDP per Capita by Governance Band
Mean GDP (PPP, constant 2017$) · Countries classified at each time point
Free (L ≥ 70)
Partly Free (40–69)
Not Free (< 40)
Sources: Maddison Project · World Bank WDI · Freedom House
Life Expectancy by Governance Band
Mean life expectancy at birth (years) · by Liberty classification at each era
Free
Partly Free
Not Free
Sources: UN Population Prospects · Gapminder · Freedom House
Infant Mortality by Governance Band
Deaths per 1,000 live births · The gap that closed fastest — but not fast enough
Free
Partly Free
Not Free
Sources: WHO · Gapminder · Freedom House
Extreme Poverty by Governance Band
% population below $2.15/day · 1990–2023
Free
Partly Free
Not Free
Sources: World Bank PIP · Freedom House
The divergence is structural, not cyclical. In 1945, the 6 Free countries averaged $7,733 GDP per capita. By 2023, 31 Free countries average $39,368 — a 5.1× increase. Not Free nations went from $2,503 to $10,750 — a 4.3× increase. Both grew, but the GDP ratio widened from 3.1× to 3.7× over eight decades. Freedom doesn't just create wealth. It creates the institutions that create more wealth. Infant mortality converged more than GDP did — from 29 vs 128 in 1945 to 4 vs 21 today — suggesting that basic public health transfers across governance types more easily than sustained economic growth does.
Section II

The Democratic Recession

After peaking in 2010, global freedom has declined for 15 consecutive years. Mean Liberty dropped from 52.8 to 48. The share of Free countries fell from 42% to 34%. This is the longest sustained retreat since the 1930s.

Source: Governance Topology Master Dataset · 91 polities · Freedom House methodology
The 2010 Peak. Global mean Liberty reached 52.8 — the highest in recorded history. 38 of 91 countries (42%) were Free. Since then, 7 countries have dropped below the Free threshold. The number of Not Free states rose from 38 to 41. The percentage of Free nations fell 7.7 points in 15 years — the fastest sustained retreat since the interwar collapse of European democracies. This is not a correction. It is a reversal.
Section III

Trajectories: Success Stories and Decliners

Since 1960, some countries climbed from autocracy to freedom. Others fell. The trajectories reveal that democratic consolidation takes decades — but erosion can happen in a single generation.

Source: Governance Topology Snapshots · 10 key country trajectories
South Korea
2883
Military dictatorship → vibrant democracy. +55 points in 65 years. The gold standard for democratic transition.
Poland
1182
Communist satellite → EU democracy. +71 points. Survived PiS erosion, now recovering.
Venezuela
548
Latin America's richest democracy → authoritarian petrostate. −46 points. GDP collapsed with liberty.
Turkey
2818
Rose to 52 under EU accession hopes, then collapsed under Erdoğan. A cautionary tale of reversible gains.
United States
589448
Long ascent to 94 (2010), then unprecedented collapse. −46 points in 15 years. The anomaly.
Hungary
98463
Post-communist success story → Orbán's illiberal model. −21 points since peak. EU's governance crisis.
Brazil
387972
Military rule → democratic consolidation. Survived Bolsonaro's erosion attempt. Institutions held — barely.
China
35
Flat autocracy. GDP rose 50× while Liberty barely moved. The "capable autocracy" at scale — and its limits.
Section IV

The American Anomaly: 94 → 48

The steepest Liberty decline in the dataset. No other country fell this far, this fast, without a coup or civil war. The US trajectory has no modern precedent.

METHODOLOGY NOTE: The PTI score of L≈48 reflects the author's real-time institutional assessment incorporating executive action pace through early 2026. Published indices score the US higher: Freedom House 83/100 (2024 report), V-Dem LDI ≈0.65–0.72 (scaled: ~65–72). The divergence reflects the PTI's faster update cycle, weighting toward institutional constraint erosion, and incorporation of events post-dating published index coverage. All claims should be evaluated under both the author's PTI and established indices.
1900
45
Partly Free
1960
58
Partly Free
1975
72
Free
2000
92
Free
2010
94
Free ★
2025
48
Partly Free
Sources: Governance Topology · Maddison Project · World Bank WDI
−46
Liberty Points Lost
−3.1/yr
Annual Decline Rate
$59.1k
GDP/Cap (2023)
90.8
HCI Score (Lagging)
The velocity is unprecedented. The US dropped 46 Liberty points in 15 years — annualised at −3.1/year. Hungary under Orbán declined ~21 points over 15 years (−1.4/yr). Venezuela under Chávez/Maduro fell 60 points over 25 years (−2.4/yr). The US trajectory is steeper than both. GDP per capita continues to rise ($59,100 in 2023), but HCI (90.8) and life expectancy (79 yrs) are already lagging peers — Canada: 82, UK: 82, Germany: 81. The question is how long economic momentum survives when the institutional substrate decays. Evidence from Venezuela, Turkey, and Hungary suggests: not long.
Section V

Eight Theatres of Governance

The Liberty–prosperity nexus plays out differently across regions. Europe leads on both axes. Sub-Saharan Africa pays the steepest price. MENA proves petrodollar wealth can coexist with deep unfreedom — but not with satisfaction.

Bubble size = number of countries in sample

Europe: The Compound Return Engine

Mean Liberty 85 · GDP $41k · LE 81 yrs · Poverty 0.4%

Europe's 23 tracked countries form the strongest case that liberty compounds. The Nordic cluster (Norway 97, Finland 96, Denmark 95) achieves the highest Liberty scores and the highest life satisfaction globally (7.3–7.7). Even the lower end — Bulgaria (66), Hungary (63), Serbia (48) — enjoys GDP above $18k and near-universal literacy. The EU creates a governance floor that autocratic gravity struggles to breach. Hungary's Orbán has pushed it down 21 points but can't go further without leaving the EU — and the economic cost of doing so acts as a structural brake.

Asia: The Great Variance

Mean Liberty 38 · GDP $21k · LE 75 yrs · Poverty 2.6%

Asia contains the full spectrum. Taiwan (91) and Japan (89) sit alongside Afghanistan (3) and Myanmar (5). Singapore (L: 47, GDP: $87.9k) is the global outlier — extraordinary prosperity with restricted liberty — but it remains the exception among 17 countries. The more common pattern is China (L: 5, GDP: $19.1k): impressive growth that hits a ceiling. No Asian autocracy exceeds $26k GDP except Singapore and the petrostates. South Korea's trajectory — from 28 to 83 — remains the region's most compelling proof that democratic transition can unlock sustained growth beyond the middle-income trap.

MENA: Wealth Without Freedom

Mean Liberty 19 · GDP $18k · LE 76 yrs · Poverty 1.0%

MENA defies the simple liberty=prosperity equation — on the surface. UAE ($60k, L: 22) and Saudi Arabia ($44.3k, L: 7) show that commodity wealth can inflate GDP without freedom. But beneath the headline numbers, life satisfaction tells a different story: Saudi scores 6.5, below Costa Rica (7.1, GDP: $16.2k). Lebanon (2.7) and Egypt (4.3) reveal what happens when petrodollars don't reach the population. Israel (60) is the region's only partly-free economy and also its most diversified. The MENA model works for elites — not citizens.

Sub-Saharan Africa: The Heaviest Price

Mean Liberty 32 · GDP $4.3k · LE 64 yrs · Poverty 30%

This region bears the steepest cost of governance failure. DRC (L: 15, GDP: $900, Poverty: 72%) is the dataset's floor. Somalia (L: 8, LE: 57) represents near-total state collapse. The pattern is consistent: every 10-point increase in Liberty correlates with roughly $2,000 more GDP, 3 more years of life, and 8 fewer percentage points of extreme poverty. Botswana (L: 71, GDP: $15.4k) stands as proof that African countries can break out — but it required decades of institutional investment, diamond revenue management, and democratic continuity that most neighbours lack.

Latin America: The Fragile Middle

Mean Liberty 47 · GDP $13k · LE 76 yrs · Poverty 10.3%

Latin America clusters in the volatile middle of the Liberty spectrum. Chile (82), Costa Rica (86), and Uruguay (91) demonstrate that sustained freedom yields first-world human development outcomes — Costa Rica's life satisfaction (7.1) exceeds most European nations. But the region's gravity pulls toward instability: Venezuela's collapse from 68 to 8 destroyed $30k+ in per-capita GDP. Haiti (8, GDP: $1.4k, Poverty: 48%) shows the basement. Brazil (72) and Colombia (53) are the critical swing states — their trajectories will determine whether Latin America converges upward or fragments further.

Eurasia: Soviet Legacy, Authoritarian Present

Mean Liberty 26 · GDP $16k · LE 73 yrs · HCI 85

Post-Soviet states share a distinctive signature: high human capital (HCI 85) with low liberty (mean 26). Russia (L: 10, HCI: 87.4) and Belarus (L: 5, HCI: 86.4) have nearly Western-level education and literacy — but their GDP ($26k, $18k) lags far behind equally educated European peers (Estonia: L: 93, GDP: $35k). The Soviet educational inheritance is real but depreciating: without institutional reform, human capital produces diminishing returns. Moldova (55), Georgia (38), and Ukraine (35) sit in the hybrid trap — their tilt toward EU or Russian orbit will determine whether the Soviet legacy compounds or decays.


Section VI

Ten Stakeholder Stories: Who Pays, Who Gains

Behind every aggregate is a named consequence for a named group. The returns on governance decomposed by the people who actually experience them.

Sources: Freedom House 2025 · World Bank WDI · Maddison Project · UN HDR · WHO · UNESCO · Gallup · V-Dem
Governance Labs · Governance Topology · Part II · 2025