The Bertelsmann Stiftung’s Transformation Index (BTI) analyzes and evaluates the quality of democracy, a market economy and political management in 129 developing and transition countries. It measures successes and setbacks on the path toward a democracy based on the rule of law and a socially responsible market economy. In-depth country reports provide the basis for assessing the state of transformation and persistent challenges, and to evaluate the ability of policymakers to carry out consistent and targeted reforms. The BTI is the first cross-national comparative index that uses self-collected data to comprehensively measure the quality of governance during processes of transition. All around the world, wecan indeed see some signs of progress in countries undergoing political and economic transformation. But success in targeting the dual goals of a democracy under the rule of law and a market economy equipped with sociopolitical safeguards is by no means guaranteed. In many countries, change in this direction is jeopardized by stymied reforms, power struggles and state failure. Good governance is key to ensuring that a country stay the course to sustainable development. Shaping Change – Strategies of Development and Transformation is a project that aims to help improve political management by analyzing the strengths and weaknesses of existing processes while facilitating the knowledge transfer of good practices.