Cyprus Faces Democratic Headwinds: A Closer Look At The 2024 Global Democracy Index

Cyprus has slipped three places to rank 40th out of 167 countries in the 2024 Global Democracy Index, a stark signal of the challenges facing modern democracies worldwide. Developed by the Economist Intelligence Unit, the index classifies Cyprus as a “flawed democracy”—a label shared with nations like Malta, France, the US, Israel, and Serbia. While Cypriots enjoy robust electoral processes and civil liberties—with scores of 9.17 and 8.82, respectively—there are glaring weaknesses. Cyprus’ functioning of government languishes at just 5.36, the lowest among the top 50 nations, reflecting persistent gridlock, corruption, and a growing disconnect between elected officials and the public.

The Anatomy of Democratic Decline

The index, which evaluates countries across five dimensions—electoral process and pluralism, functioning of government, political participation, political culture, and civil liberties—reveals that despite high scores in voting and individual rights, Cyprus faces significant hurdles in governmental performance. Experts warn that outsourcing decision-making to non-elected bodies, from central banks to courts, has further eroded public trust. As citizens feel increasingly disenfranchised, confidence in democratic institutions continues to wane, casting doubts on the ability of traditional systems to deliver effective governance.

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Global Context and Regional Comparisons

The broader global picture is equally concerning. Out of 167 countries, 83 registered declines in democratic performance in 2024, while only 37 showed improvement. With over 39% of the world’s population now living under authoritarian regimes—a figure on the rise—many advanced democracies are struggling to meet citizens’ expectations. Western Europe, despite boasting the highest average scores and a quick recovery to pre-pandemic levels, is not immune. Recent elections across the region have highlighted a backlash against incumbents, as voters increasingly lean towards anti-establishment and populist parties.

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Norway, New Zealand, Sweden, Iceland, and Switzerland continue to set the gold standard as “full democracies,” while at the opposite end, conflict-ridden and authoritarian states like Afghanistan, Myanmar, North Korea, the Central African Republic, and Syria illustrate the extremes of democratic decay.

Implications for Cyprus

For Cyprus, the numbers are a mixed bag. With an overall score of 7.38—down three places from last year—and a rank of 22nd among the 27 EU member states, the country excels in electoral processes but lags in effective governance. This imbalance could further undermine public trust, especially if political leaders fail to engage citizens meaningfully in decision-making processes. The report underscores that formal democratic institutions alone are insufficient; a vibrant, responsive democracy demands an active, engaged electorate and leadership that genuinely addresses the concerns of its people.

Looking Forward

The 2024 Democracy Index serves as a wake-up call: while Cyprus retains strengths in ensuring free and fair elections, urgent reforms are needed to enhance governmental performance and restore public confidence. As the global democratic fabric continues to fray—with more than one-third of the world’s population under authoritarian rule—the challenge for Cyprus is clear. Addressing inefficiencies, increasing transparency, and fostering genuine citizen participation are not just ideals but imperatives for a resilient future.

Cyprus’ democratic journey, much like its economic and technological endeavors, will depend on its ability to evolve and meet the expectations of a modern society. In a rapidly changing world, ensuring that democracy delivers tangible benefits to citizens is the ultimate measure of success.

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Nvidia’s CEO Exit Puts AI Valuations And U.S. Debt In Focus

by THEFUTURE.TEAM

November 13, 2026

The sudden departure of Nvidia CEO Jensen Huang, mounting concern about an AI investment bubble and the growing cost of U.S. government debt dominated the final day of Web Summit in Lisbon on Thursday. Speakers at one of Europe’s largest technology conferences warned that strain in public debt markets could become a catalyst for the next financial crisis.

The discussion, moderated by Euronews, brought together Adam Kobeissi, founder and editor-in-chief of capital markets publication The Kobeissi Letter, and economist James Galbraith, a professor at the University of Texas at Austin.

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Thursday’s packed schedule followed the cancellation of Wednesday’s programme on Portuguese government advice, ahead of Storm Charles. The storm ultimately brought Lisbon heavy rain and minor flooding, rather than the severe conditions authorities had anticipated.

Why Huang’s Departure Matters To Investors

Huang stepped down on Thursday after revelations of two extramarital affairs. U.S. intelligence reportedly suspects one of the women of spying for China, an allegation Beijing has rejected. Nvidia chief financial officer Colette Kress is serving as interim CEO while the board seeks a permanent successor.

Nvidia shares fell about 15% at the opening bell before recovering some ground. At the time of writing, the stock was down a little more than 5% for the day, at approximately $164 a share. That leaves it more than 30% below its October 5 all-time high of $243.

Kobeissi said Huang should not have resigned, arguing that his exit would be “a net negative for investors” over the next couple of years. He nevertheless remained bullish on Nvidia’s longer-term prospects.

He does not expect the leadership change to affect next week’s planned stock market debut of Anthropic, the company behind the Claude AI models, which is seeking a valuation of up to $1.4 trillion. Nvidia is among seven technology companies that have agreed to buy shares at the offering price.

The AI Race May Test Big Tech’s Spending

Galbraith said Chinese technology could eventually undercut Nvidia’s, raising questions about the hundreds of billions of dollars Microsoft, Alphabet, Amazon, Meta and other hyperscalers are investing in AI infrastructure.

He described the competition as a contest between different economic systems. The United States makes it easier to raise private capital quickly, but can be slower to set policy and make decisions. China, by contrast, can centralize research, technology development and deployment, while intervening more directly in its economy.

Given those differences, Galbraith said he would “tentatively bet on China” in the AI race—and suggested the country could become the world’s largest economy in the coming decades. His assessment underscores a strategic risk for U.S. technology companies: heavy investment in AI does not guarantee that American firms will retain a lasting competitive advantage.

Debt Interest Is A Growing Economic Risk

The panel also pointed to the U.S. government’s interest bill as a vulnerability. Kobeissi said roughly one in every five dollars the government spends goes toward interest on its debt, rather than reducing the principal. U.S. Treasury data show net interest costs reached $1.1 trillion in the fiscal year ending in September—about 19% of federal revenue.

“U.S. debt to GDP ratio is at World War II levels,” Kobeissi said, adding that the debt market was signaling a “higher for longer” interest-rate environment. He warned that, on the current trajectory, the United States faced a “100% chance of bankruptcy,” and argued that central banks could not bring rates down in the prevailing conditions.

Kobeissi tempered that warning: He said the United States was not facing an imminent 2008-style crisis, while cautioning that trends over the next 10 to 20 years were concerning. He also described himself as “a huge bull” on the country, citing the resilience of its economy and the pace of innovation.

Political Divisions Could Complicate A Response

Galbraith recalled that during the COVID-19 pandemic, President Donald Trump and a Democratic-controlled House cooperated on relief measures to stabilize markets. He questioned whether the same degree of political cohesion would be available in a future crisis.

In the recent U.S. midterm elections, Democrats won 255 House seats to Republicans’ 169, according to the Associated Press count cited at the time, with some races still being tabulated. The unresolved contests added uncertainty to an already divided political landscape.

Asked to predict when a financial crisis might occur, Galbraith said the defining feature of such events is that they cannot be foreseen. The panel’s broader message was less about timing than vulnerability: elevated debt costs, questions about AI investment returns and geopolitical competition are risks that markets and policymakers cannot afford to treat in isolation.