New Cyber Index Ranks Ability of G20 Nations to Withstand Cyber Attacks, Harness Digital Environment

United Kingdom and United States Cyber Power Leaders, Other Major Economies Unprepared

McLean, VA – A new benchmarking study of 19 of the world’s 20 leading economies found that the United Kingdom and the United States lead Group of 20 (G20) countries in their ability to withstand cyber attacks and to deploy the digital infrastructure necessary for a productive and secure economy. The index also found that several major economies—Argentina, Indonesia, Russia and Saudi Arabia—do not have cybersecurity plans and do not appear to be developing them. The index is at www.cyberhub.com.

The Cyber Power Index, developed by the Economist Intelligence Unit and sponsored by Booz Allen Hamilton, measures both the success of digital adoption and cyber security, and the degree to which the economic and regulatory environment in G20 nations promote national cyber power.

The Index allows visitors to compare the cyber power rankings of the G20 countries on a scale of 0-100 with 100 being most favorable.  Each country's ranking is a weighted mean of scores from four categories: Legal and Regulatory Environment; Economic and Social Context; Technology Infrastructure; and Industry Application. Each category features at least four underlying indicators, many of which are composed of sub-indicators. The European Union, the newest member of the G20, was not included in the study.

“The Cyber Power Index identifies those countries that understand what it takes to operate in a digital era…and those that don’t,” said Booz Allen Hamilton Vice Chairman Mike McConnell. “Many define a nation’s cyber power simply like other domains such as land, air or space. While cyber is a domain, a nation’s capabilities must be measured by more than their military might alone. The countries able to master the uses and security requirements of emerging technologies and societal shifts brought on by the cyber revolution will emerge as the cyber powers and the winners of the 21st century.”

Overall, the top five countries exhibiting cyber power, as measured by the index—the UK; the US; Australia; Germany; and Canada—illustrate that developed Western countries are leading the way into the digital era. The top five performers also rate highly across the board, ranking in the top seven in all four categories. The G20’s last member, the EU, was not analyzed.

The leading emerging market countries, Brazil, Russia, India and China (the BRICs), have some room for improvement; out of the 19 economies, they rank 10th, 14th, 17th, and 13th, respectively. There is also a wide discrepancy between the top and the bottom of the index. The UK, the top performer, scores around three times the amount of points on a scale of 0 to 100 as the worst performer, Saudi Arabia.  Among other conclusions from the data:

• Cyber power relies on a solid foundation that includes technical skills for security and effective use of the cyber environment, high educational attainment levels, open trade policies, and an innovative business environment. The US has the most supportive economic and social context for fostering cyber power according to the index. This is driven by high tertiary education enrollment, research and development (R&D) investment, and an open trade environment. Asia’s rising influence is also apparent in this category, as China leads the trade indicator, while Japan and South Korea fill the number one and two positions, respectively, in technical skills.
• The gap in cyber capability between the U.S. and other countries is closing.  While the U.S. has a broad and deep cyber power base, other nations such as South Korea and Japan are aggressively adopting greater levels of bandwidth and communications stability.
• Big does not always mean powerful. China has a large population and a powerful military. As a result the nation is often considered to be a cyber power.  In reality, the Cyber Index found that the country’s true level of cyber power is in reality quite modest. Going forward, other countries are expected to be added to the Index, which could show the power of small countries such as Estonia. In contrast to China, Estonia is relatively tiny and hosts a modest military, yet that country’s well known ability to integrate advanced technology into its society could make a telling comparison.
• Germany’s comprehensive cyber policies are a key to its success. Germany leads the legal and regulatory framework category with a near perfect score (99.3 out of 100), followed by other Western countries that also performed well in the overall index. Germany is one of only five countries (the others being the UK; the US; France; and Japan) to have both a comprehensive national cyber plan and a comprehensive cybersecurity plan
• Prioritisation of ICT access is higher in the developed world. There is still a clear divide between developed countries and emerging markets as measured by access to internet, mobile phones, and WiFi. The UK, US, and Germany lead Information Communications Technology (ICT) access, while Mexico, Indonesia, India, China, and South Africa have the lowest access scores. An exception is South Korea, which is fifth, despite having strong government policy towards improving access.
• The G20 countries have made limited technological progress within key industries.  Australia is the top performer within the industry application category, which measures the ability of different industries (energy, health, transportation, government, and e-commerce) to leverage ICT developments, including security advancements. As an indication of uneven technological development across industries, Australia ranks first in the category overall, but only scores well within the electronic health indicator.

The Cyber Power Index anchors the Cyber Hub, a new platform also developed by the Economist Intelligence Unit and sponsored by Booz Allen Hamilton intended to help governments and businesses remain competitive in today’s cyber landscape. The Cyber Hub features a series of research papers and expert points of view examining cyber’s implications for the business community. Much of the content will focus on specific industry verticals: health, finance, transportation, energy, open government, and defense-security.

About Booz Allen Hamilton

Booz Allen Hamilton is a leading provider of strategy and technology consulting services to the US government in defense, intelligence, and civil markets, and to major corporations, institutions, and not-for-profit organizations. Booz Allen is headquartered in McLean, Virginia, employs more than 25,000 people, and had revenue of $5.59bn for the 12 months to March 31st 2011. To learn more, visit www.boozallen.com. (NYSE: BAH)

About the Economist Intelligence Unit

The Economist Intelligence Unit is part of the Economist Group, the leading source of analysis on international business and world affairs. Founded in 1946 as an in-house research unit for The Economist newspaper, we deliver business intelligence, forecasting and advice to over 1.5m decision-makers from the world's leading companies, financial institutions, governments and universities. Our analysts are known for the rigour, accuracy and consistency of their analysis and forecasts, and their commitment to objectivity, clarity and timeliness.