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BTI 2026 Index assesses quality of democracy, economy and governance; Albania ranks first in the region for political transformation
The Bertelsmann Stiftung's 2026 Transformation Index concludes that democracy is losing ground globally. According to the data, 56 percent of the 137 countries included in the analysis are governed in autocratic forms, including Serbia. The report notes that "governments in these systems are becoming increasingly repressive towards opposition forces, the media and civil society."
In the Western Balkans, countries are classified as “democracies with deficiencies” or “democracies with severe deficiencies”. The assessment is based on an analysis of progress towards constitutional democracy and a socially responsible market economy. The index measures the quality of democracy, economic development and the level of governance, highlighting achievements and problems in each area. The scores for each indicator range from 1 to 10.
Albania ranks first in the region for political transformation, with 7.70 points and is classified as a “flawed democracy”. It receives 7.11 points for economic transformation, while 6.71 points for governance. During the assessment period, the country advanced in the European integration process by opening negotiations for Cluster 1 (Fundamentals) and Cluster 6 (External Relations). However, the report notes that “since the beginning of 2025, worrying signs have emerged for the future of reforms”. “These include inconsistent judicial decisions in high-profile investigations, stagnation in important cases, lack of accountability for members of the justice system who have been found to have unjustified assets, as well as leaks of sensitive investigative data to certain political and media organizations ”, the report highlights.
North Macedonia scores 7.65 for political transformation and is classified as a “flawed democracy.” It scores 7.18 for economic transformation and 6.07 for governance. According to the report, “the system of governance has been affected by the stalled EU accession negotiations, which remained blocked due to the unresolved dispute with Bulgaria. Accusations of corruption against former ruling elites continue to undermine institutional trust.”
Montenegro scores 7.40 for political transformation and is classified as a “flawed democracy.” It scores 7.50 for economic transformation and 5.90 for governance. According to the report, governance has improved through delayed judicial appointments and anti-corruption reforms, enabling progress in EU negotiations. However, legislative procedures have often sidelined civil society, while tensions with Croatia have temporarily hampered regional cooperation and the European integration process.
Kosovo is rated 6.90 for political transformation and is classified as a “flawed democracy.” It receives 6.21 points for economic transformation and 4.81 points for governance. The report states that “Governance has been increasingly affected by security tensions and tense international relations. The unresolved dialogue with Serbia, boycotts by Kosovo Serbs, and violent incidents in the north have weakened social integration and diverted attention from politics. Kosovo’s more assertive approach to the north has damaged relations with the EU and the United States, delayed international integration, and intensified contestation of statehood . ”
Bosnia and Herzegovina is classified as a “very flawed democracy.” It scores 5.95 points for political transformation, 6.57 points for economic transformation, and 4.03 points for governance. According to the report, “Governance remains constrained by entrenched clientelistic networks across all major parties, weakening institutional effectiveness and holding back reform implementation. However, improved legislative output, partial implementation of key EU priorities, and increased international engagement contributed to the opening of EU accession negotiations in March 2024.”
Serbia ranks last in the region with 5.18 points for political transformation and is classified as a “moderate autocracy”. It receives 6.79 points for economic transformation and 3.96 points for governance. The report highlights that the rule of law and media freedom have deteriorated in the country, while political polarization has increased. “President Aleksandar Vučić and the Serbian Progressive Party dominate the political system, effectively controlling the government, parliament and judiciary, despite the largely ceremonial role of the president under the Constitution. The regime’s manipulation of elections has intensified, leading to boycotts by the opposition. Parliamentary oversight is weak, as it largely adopts legislation in accordance with the president’s will, while the opposition remains fragmented and under constant pressure ,” the report says.
BTI 2026 also highlights that in Serbia, civil society and independent media face ongoing pressures, including smear campaigns, strategic lawsuits, and surveillance, while mass protests during 2024–2025 have been delegitimized as externally supported destabilizing efforts.
According to the Bertelsmann Stiftung, “governance remains highly centralized and personalized. Policymaking serves political consolidation and international cooperation has stalled, with the EU accession process blocked and the growing importance of economic ties with China.”
"There is no political will to prosecute corruption, as a culture of impunity prevails in government and public administration," the report states.
The 2026 report presents a picture where the Western Balkan countries continue the process of rapprochement with the European Union, but face ongoing challenges in the functioning of democratic institutions and the implementation of reforms. /Pamphlet/
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