Post on 07-Apr-2018
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Ranking Countriesby Spiritual Capital
Alex Liu, Ph.D.
The SPI Team
The RM Institute
Pasadena, CA, USA
Alex@Rminst.org
Copyright © 2008 The RM Institute
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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
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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.
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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.
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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
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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.
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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
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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
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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.
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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.
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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.
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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
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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