In this report, we created a composite political power index designed to aid policymakers in assessing the evolution of political power across the world, particularly focusing on freedom of speech, press, and assembly. We quantified these freedoms and examined how their fluctuations impact government budgets during national transitions. Utilizing a combination of indices, the study applies several econometric models, including a Granger Causality test and a 2SLS approach, to analyze the causal relationships between these freedoms and budget compositions.

Ultimately, we found a statistically significant correlation between the index of freedoms and government budget allocations when using EU ascension as an instrument, although we were unable to definitively prove causality.