Peaceful transformation of oppressive regimes as they move towards democracy and market economy poses enormous challenges for the citizens and politicians alike. Throughout the world, though with varying degrees and varying levels of success, groups are yearning for reform and democratization of their countries and their economies. But good governance remains the decisive factor in the success or failure of any transformation process. This book is a translation of the third edition of the Bertelsmann Transformation Index which is published biannually, in accordance with the international standard and classification to measure and compare processes of transformation in the world based on detailed reports from almost each country. This Bertelsmann Transformation Index measures in a comprehensive manner the state of democracy and market economy in the world. It provides comprehensive information about the quality of political administrations in 125 developing countries where change has taken place between 2005 and 2007. This Arabic edition also contains an additional section which covers the state of democratic transformation and market economy in some of the GCC countries.