rm sci ranking

8/4/2019 RM SCI Ranking

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Ranking Countriesby Spiritual Capital

Alex Liu, Ph.D.

The SPI Team

The RM Institute

Pasadena, CA, USA

[email protected]

Copyright © 2008 The RM Institute



Our definition of Spiritual Capital

• Spiritual capital refers to the power,

influence and dispositions created by an

organization or a country’s collective

spiritual belief, knowledge and practice.

• Copyright © the RM Institute 2007, 2008



Our operationalization of the spiritual capital concept

• Everyone has some spiritual assets.

• The materialization and use of spiritual assets is

spiritual capital.• This type of materialization creates power and

advantage that are observable and can be

measured.• In other words, we can observe spiritual capital

from studying its indicators.



Measuring Spiritual Capitalat country level

• A composite index approach

• Spiritual Capital is a latent variable.

• Structural Equation Modeling will be used.• Spiritual Capital has more than what is covered by religious capital.

• Our Spiritual Capital measure consists of three sub-measures of (1)spiritual belief, (2) spiritual knowledge and (3) spiritual practice inbusiness.

• For (1) spiritual belief and (2) spiritual knowledge, we use generalindicators including religious freedom.

• For (3) spiritual practice in business, we use indicators related tobusiness ethics and corporate social responsibilities.



Data sources forindicators at the country level

• World Economic Forum competitiveness index

• Corruption Index by Transparency International

• Religious Freedom Index by Freedom House• Cross-national religious data by ARDA

• World Value Survey

• and datasets on ethical behavior of firms and nations



Data Challenges

• For many of our indicators such as that of spiritualknowledge, no data is available.

• Many of the current available datasets contain wrongand inaccurate information.

• In other words, we need to estimate spiritual capitalfrom incomplete and inaccurate data.

• Therefore, we decide only to launch a pilot list for2008.

• After publishing this pilot list, we will make effort tocollect more data and use more advanced estimationmethods to improve our list.



The SCI 2008

For more, please visit www.rminst.org/sci

65 countries listed

in alphabetical order.

Country SCI Country SCI Country SCI

Argentine 73 Guatemala 79 Morocco 63

Australia 83 Hungary 87 Namibia 81

Austria 82 India 58 Nepal 54

Bangladesh 48 Indonesia 59 Nicaragua 74Belgium 76 Ireland 91 Nigeria 58

Botswana 81 Israel 73 Pakistan 48

Brazil 80 Italy 82 Peru 74

Bulgaria 73 Japan 80 Philippines 73

Canada 82 Jordan 66 Portugal 83

Chad 56 Kazakhstan 58 Romania 73

Chile 81 Kuwait 59 Russia 63China 48 Kyrgyz Rep 63 Slovak Republic 67

Colombia 60 Latvia 81 South Africa 82

Denmark 84 Lithuania 82 Spain 74

Ecuador 80 Macedonia FYR 66 Sri Lanka 59

Egypt 59 Malaysia 67 Sweden 84

Estonia 89 Mali 79 Thailand 73

Ethiopia 56 Mauritania 51 Turkey 60

France 75 Mexico 66 Ukraine 76

Georgia 67 Moldova 67 United States 86

Germany 75 Mongolia 70 Venezuela 73

Greece 76 Zimbabwe 46



For more, please visit www.rminst.org/sci

Ireland, Estonia, Hungary,

United States, Sweden,

and Denmark top our list.

Zimbabwe, Bangladesh,

Pakistan and China have

the lowest SPI in our list.

The SCI 2008Country SCI Country SCI Country SCI

Ireland 91 Ukraine 76 Jordan 66

Estonia 89 Greece 76 Russia 63

Hungary 87 Belgium 76 Morocco 63

United States 86 Germany 75 Kyrgyz Rep 63

Sweden 84 France 75 Turkey 60

Denmark 84 Spain 74 Colombia 60

Portugal 83 Peru 74 Sri Lanka 59

Australia 83 Nicaragua 74 Kuwait 59

South Africa 82 Venezuela 73 Indonesia 59

Lithuania 82 Thailand 73 Egypt 59Italy 82 Romania 73 Nigeria 58

Canada 82 Philippines 73 Kazakhstan 58

Austria 82 Israel 73 India 58

Namibia 81 Bulgaria 73 Ethiopia 56

Latvia 81 Argentine 73 Chad 56

Chile 81 Mongolia 70 Nepal 54

Botswana 81 Slovak Republic 67 Mauritania 51Japan 80 Moldova 67 China 48

Ecuador 80 Malaysia 67 Pakistan 48

Brazil 80 Georgia 67 Bangladesh 48

Mali 79 Mexico 66 Zimbabwe 46

Guatemala 79 Macedonia FYR 66



Validity of SCI

• Our SCI is strongly correlated with

AccountAbility’s Responsible competitiveness

at 0.70, while less correlated with WEF’s global

competitiveness at 0.55.

• SCI is also highly correlated with the religious

freedom index of the Freedom House and the

corruption index of the Transparency

International.



Reliability of SCI

• We use the same methodology toconstruct SCIs for year 2004 and 2006

and found the resulted 2004 & 2006 SCIsare highly correlated with the SCIs in2008.

• In other words, our method producesconsistent results and is very reliable.



Comments

• As this SCI is the first ever published spiritual capital measurement, weunderstand that there are a lot of areas for us to make improvements andwe do welcome suggestions.

• We will continue to improve our datasets and work to produce a completecountry list in 2009, while we plan to complete a SCI ranking of Global500 corporations by May of 2009.

• We at the RM Institute believe it takes four capital – material capital,intellectual capital, social capital and spiritual capital – for a country toachieve optimal and sustainable development. Our preliminary empiricalresults are confirming this hypothesis.

• Our results show that spiritual capital index has more impacts onsustainability and democracy, than indices of material capital.

• Our results also show that difference between the spiritual capital indexvalue and the economic competitiveness value at country level hassignificant negative impacts on country’s average satisfaction with life.This confirms our hypothesis that the imbalance between spiritual capitaland material capital is the main source of personal unhappiness andnational crisis.



References

• A Liu 2003 Index Correlation, Measurement Reliability and Biased

Estimation http://www.researchmethods.org/democracy-indicators.pdf

• Lawrence M. Miller 2006 Competing in the New Capitalism, Author

House

• Metanexus Institute 2003 Defining Spiritual Capital

http://www.spiritualcapitalresearchprogram.com/What_is.asp

• Wolfgang Ocehl & Oliver Rohn 2006 Ranking of Countries – the WEF,

IMD, Fraser and Heritage Indices, CESifo DICE Report

• Danah Zohar & Ian Marshall 2004 Spiritual Capital, Berrett-koehlar

Publishing

• A Liu 2005 Building Structural Equation Models

http://www.researchmethods.org/sem



About the

RM Institute

• The RM Institute is a non-profit organization based in LosAngeles.

• The RM Institute developed innovative RM4Es andResearchMap methods, and has provided analyticsconsultation and training to many well-known organizationssuch as the IBM and Ingram Micro since 2001.

• The RM Institute developed the 4Capital framework, and hasprovided consultation on regional sustainable development

and corporate social responsibility in USA and overseas since2003.

• More info on the RM Institute can be founded atwww.ResearchMethods.org and www.Rminst.org

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