The “democratic fallacy” assumes that democracy is sufficient for improved government performance, but fails to recognize that improved and sustainable public goods scores require highly capable state institutions.

Twenty-five years ago, President Nelson Mandela marked the end of Apartheid when he signed the country's new democratic constitution into law. As the country celebrates this significant milestone, lauded around the world as a model of democratic values and fundamental human rights, the country's democratic accountability is at its strongest yet.

However, its public goods score ranks among the lowest in the world.

What accounts for this paradox?

Despite having relatively free and fair elections and independent courts, South Africa’s state capacity is weak. An incompetent bureaucracy and influence of special interests prevent the government from effectively serving its people.

While its quality of democracy score is one of the highest in the world, its overall state capacity as seen in the BGI (fiscal capacity, coordination capacity, and delivery capacity) has declined due to increasing corruption. Despite an increase in fiscal capacity, its overall state capacity score has decreased due to a sharp decline in both coordination capacity and delivery capacity. In 2022, the Judicial Commission of Inquiry Into Allegations of State Capture found that from 2009-2018, former President Jacob Zuma, his close friends, and other officials siphoned millions of dollars from government institutions and state-owned corporations, diverting money that could have paid for social services.

During this same time, South Africa’s quality of life score barely rose, famously illustrated by its struggle to provide clean water to its people. Drought and climate change are in part responsible, but water shortages across the country are aggravated by corruption. A report on Corruption in South Africa's Water Sector says that “Where funds are scarce, any corruption that diverts money from public purposes to private pockets directly reduces the provision and quality of service.” Dry taps, lost jobs, and polluted rivers are just some of the consequences of limited infrastructure, the misuse of financial resources, and poor management. The report says that in 2018 alone, the state auditor found that the South African Water and Sanitation Department had misappropriated billions of rand.

The “autocratic fallacy” assumes that state capacity alone matters for the delivery of public goods, but disregards the need for democratic accountability in setting priorities for state capacity to deliver public goods at higher levels.

Brazil is one country where a regression in democratic accountability is coinciding with a noticeable decrease in quality of life.

With the election of President Michel Temer in 2016 and President Jair Bolsonaro in 2019, Brazil’s quality of democracy score began a steep decline, ending nearly two decades of relative stability. The cause of this decline is a waning of transparency and feedback between the government and Brazilians. For instance, President Bolsonaro’s hostility towards the press is making it difficult for journalists to hold the government accountable. Soon after he took office, Bolsonaro eliminated government transparency requirements which journalists rely upon to inform the public.

Over this same period of time, Brazil’s quality of life score took a downward turn, especially in health and human development. Bolsonaro's administration has slashed the budget for education. In 2019, he blocked scholarships for graduate students, citing fiscal necessity. Yet his widely publicized vows to oust leftist ideology from schools suggest an ulterior motive.

Bolsonaro's forthcoming exit from power may impact quality of life for Brazilians in the years to come – and people around the world. The progressive new president Luiz Inácio Lula da Silva's promise to end illegal deforestation may play a large part in the fight against climate change. With destruction of the world's largest rainforest at 15-year highs under Bolsonaro, the outcome of the October 2022 election offers hope to people everywhere.

While Brazil's democratic backsliding is harming its quality of life, Kenya shows how increased democratic accountability can lead to greater levels of public goods for citizens.

Between 2000 and 2019, Kenya's quality of democracy score increased significantly. In 2010, Kenya adopted a new constitution with more checks on executive authority, and underwent consecutive peaceful transfers of power. The new constitution created Africa's only operating court dedicated to environmental issues and has delivered public goods improvements in the area of environmental protection and climate resilience.

For example, 80 percent of Kenyans stopped using plastic bags after the government banned their use in 2017.

This brings us back to the United States. Despite its wealth, the level of public goods provision in the U.S. is notably lower than other comparably wealthy countries.

Its declining Quality of Democracy and Quality of Government scores underscore the point that GDP is not enough to provide a continuing high quality of life for its citizens—a country needs strong governance too.