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Fiscal strength doesn't guarantee public goods delivery, US study finds

Asia Pacific

Fiscal strength doesn't guarantee public goods delivery, US study finds
Asia Pacific

Asia Pacific

Fiscal strength doesn't guarantee public goods delivery, US study finds

2026-10-21 16:00 Last Updated At:16:12

LOS ANGELES, USA – Newsaktuell – 21 October 2026 - A newly released study of US state government performance found strong partisan and regional patterns within three pillars of governance: democratic accountability, state capacity and public goods provision. Yet, the US states' outcomes differ in important ways from international comparisons, as the three governance dimensions show limited correlation, the researchers found.

Panel discussion at Columbia University in New York: Speaking about the study "The Governance Performance of the Fifty States: The U.S. Berggruen Governance Index" were (from left): Prof. Helmut K. Anheier (UCLA), Prof. Robert Y. Shapiro, Prof. Adam Tooze (both Columbia), and Joseph C. Saraceno (UCLA). (Picture: Jason DeCrow/AP Content Services for DNA)

Panel discussion at Columbia University in New York: Speaking about the study "The Governance Performance of the Fifty States: The U.S. Berggruen Governance Index" were (from left): Prof. Helmut K. Anheier (UCLA), Prof. Robert Y. Shapiro, Prof. Adam Tooze (both Columbia), and Joseph C. Saraceno (UCLA). (Picture: Jason DeCrow/AP Content Services for DNA)

The report, "The Governance Performance of the Fifty States: The U.S. Berggruen Governance Index", applies the research team's "governance triangle" from past global country rankings to the 50 US states. The report has now been presented to the public at Columbia University in New York.

"Unlike in the Berggruen Governance Index's cross-national comparisons, where the three dimensions are broadly correlated, in the 50 U.S. states they often run counter to each other," the authors conclude. "This may seem counterintuitive, as one might expect a well-governed state to finish high on all three and a poorly governed one to place low across all three."

The report concluded that state capacity and public goods provision are "essentially uncorrelated." Massachusetts, which has among the highest per capita incomes, was third in public goods but 49th in state capacity. Mining and agriculture-dependent Wyoming was 36th in public goods provision but No. 1 in state capacity.

  • Public goods provision, which combines quality-of-life metrics such as health and educational outcomes with infrastructure and quasi-public goods that are often delivered by the private sector, saw four of the top five from the Northeast, while the bottom seven were in the South. All but one of the top 16 states were won by Democratic nominee Kamala Harris in the 2024 US presidential election. Nineteen of the bottom 20 went to Donald Trump.
  • Democratic accountability measures election procedures, which vary widely among states, along with scores for civil society activity and government openness. These include among others lobbying disclosures and state auditor independence. The top 12 states were a geographical mix of the West, Northeast and Midwest. Nine of that dozen voted for Harris, though the state with the highest score was reliably Republican Montana. The 10 lowest-ranked states were all Southern, and the bottom 20 were all won by Trump in 2024.
  • State capacity foremost indicates debt levels, along with budget processes and effective welfare-state delivery such as unemployment insurance. The top-ranked states were geographically diversified, but no Northeastern state was among the top 12. All major regions were represented in the bottom 10, including notoriously debt-laden Rhode Island, Illinois, Connecticut and New Jersey.

The three components produce four state groupings identified by the authors:

  • 14 fiscally sound and delivering states, which are half Republican and half Democratic and swing states, based on the 2024 presidential race.
  • 16 strained but delivering states, which are mostly Democratic.
  • Nine fiscally strong but poorly served states, almost entirely Republican.
  • 11 low performing states, including only one Democratic state.

The report was written by principal investigator Helmut K. Anheier with co-authors Joseph C. Saraceno and Edward L. Knudsen, all of the UCLA Luskin School of Public Affairs, and produced as a collaboration of the Luskin School with the Berlin-based Hertie School, supported by the Berggruen Institute, a Los Angeles think tank.

During a panel discussion held with the release of the report at Columbia University, economic historian Adam Tooze focused on the states with poor scores for provision of public goods. He pointed out that for many public goods that in Europe are assumed to be state-led, such as health care, education and utilities, in the US the private sector has a greater role.

"If you look at all of the states which are underperforming, it's the South, and the variable that's operating here is race," said Tooze, a Columbia professor. "The reason why these states don't have large-scale public services is that white people who are richer don't want to pay taxes to redistribute income to black people. And it's not a secret; it's the logic of American politics."

Among the 11 low performing states, the very worst performers are in the South: Louisiana, Mississippi, Alabama and Kentucky.

Joseph C. Saraceno said that the 14 states classified in the report as fiscally sound and delivering "provide a moderate level of public goods while also having state capacity, or this measure of fiscal room that they find to be comfortable, or have a rainy day fund as needed."

The group of fiscally strong, poorly served states have strong balance sheets but little to show for it in quality of life. Arkansas, for example, ranks seventh in state capacity but 46th in public goods provision. Tooze said those states have better fiscal resilience and "rank high on their capacity score because basically they've never done anything. So unsurprisingly, when push comes to shove, they could do something if one supposed they had politics that would allow them to."

Edward Knudsen, another researcher who worked on the previous global versions of the Berggruen Governance Index, pointed out that the strained but delivering states are heavily traditionally Democratic Party states that also score higher for democratic accountability. "In a lot of the Democratic leaning states, you have more ability for the population to demand public goods. They in turn are able to receive them. That places this fiscal stress," Knudsen said.

The full report "The Governance Performance of the Fifty States: The U.S. Berggruen Governance Index" can be downloaded here: https://ucla.app.box.com/s/hcruhr43fyhfw0uondid2e6fviqopmww

Frank Fuhrig, DNA

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At MAG Payments Summit Singapore, YeahPay and Fynix demonstrated how AI, payments and merchant services are coming together to support the next generation of commerce.

SINGAPORE – Media OutReach Newswire – 21 October 2026 – AI-driven commerce is pushing payment providers to expand their role beyond transaction processing and connect more closely with merchant operations, according to YeahPay, the international payments brand of Yeahka Limited (9923.HK), at MAG Payments Summit Singapore 2026.


"Consumers are starting to discover products, ask questions and place orders within the same conversation," said David Tay, Global Vice President of YeahPay. "Payment needs to work naturally within that journey, rather than as a separate step that interrupts it. This changes what merchants need from their payment providers."

From AI Assistance to Autonomous Commerce

During the session "Agentic Commerce: From Chat to Checkout," Tay outlined three stages in the evolution of AI-driven commerce:

  1. Assist. AI recommends, the consumer checks out as usual.
  2. Converse. Discovery, ordering and payment happen inside one conversation, with the consumer confirming each payment.
  3. Delegate. An agent completes purchases on its own, within limits the consumer has pre-approved.

While AI-assisted shopping is already widely adopted, conversational commerce is creating new opportunities for merchants to connect customer engagement directly with transactions.

The next stage, where AI agents initiate payments autonomously, will require new capabilities from payment providers, including verifiable agent identities, secure delegated authorisation and payment infrastructure designed to support agent-initiated transactions.

To prepare for this shift, YeahPay is exploring emerging agentic payment protocols, identity verification and delegated authorisation mechanisms. It has also begun proof-of-concept collaborations with international financial institutions to support the next generation of AI-driven transactions.

From Customer Enquiries to Completed Transactions: AI Delivers Real Business Value

The commercial value of this shift is already becoming evident in real-world merchant operations.

Amit Wakharkar, Director of Pre-Sales & Solutions at Fynix, an AI services brand of Fushi Technology under Yeahka, presented an AI-powered conversational commerce solution deployed at Vintage Studio, a Singapore-based beauty business.

Addressing common challenges in the beauty industry, including delayed customer responses, repetitive enquiries and labour-intensive booking processes, Fynix developed a solution that connects customer enquiries, recommendations, appointments and payments.

Through messaging platforms like WhatsApp, customers can interact with an AI agent to enquire about services, receive personalised recommendations, book appointments or purchase prepaid packages. The system automatically generates orders and secure payment requests, integrating with YeahPay's payment capabilities to support transaction completion.

During the pilot, the solution has served 97 customers who made enquiries, with a total of 221 conversation turns were recorded over the past 30 days. Merchants using its AI Shop solution have seen an average increase of approximately 15% in customer repeat purchase rates and a reduction of approximately 30% in new customer acquisition costs.

"Merchants don't need another system that simply answers customer questions. What matters is turning customer interactions into real business outcomes," said Wakharkar. "By connecting AI-powered recommendations, bookings and payments, we can help merchants respond faster, improve enquiry conversion and manage customer relationships more efficiently."

These applications demonstrate how AI is moving beyond customer service to become part of everyday merchant operations, connecting customer engagement, sales conversion and ongoing customer relationship management.

Building Integrated Capabilities for the Next Generation of Commerce

For Yeahka, the evolution of agentic commerce underscores the growing importance of integrating payment infrastructure with merchant software and AI capabilities.

Through YeahPay, the company continues to expand its online and in-store payment capabilities across international markets. Meanwhile, Fynix provides SaaS and AI-powered solutions spanning digital ordering, customer relationship management (CRM) and intelligent customer service.

Together, these capabilities enable Yeahka to address a broader range of merchant needs, from initial customer engagement and payments to ongoing business operations.

"The future of payments is not just about how transactions are completed, but how payments connect with the broader commerce experience," Tay said. "As AI becomes increasingly involved in how consumers discover products, make decisions and complete purchases, payment providers need to bring together secure payment infrastructure, merchant technology and intelligent services."

From conversational commerce applications already deployed in real-world merchant settings to its ongoing development of agentic payment capabilities, Yeahka is extending its role beyond traditional payment processing towards a more integrated merchant services model.

By combining payment infrastructure, merchant operating experience and AI capabilities, Yeahka is well-positioned to respond to evolving consumer expectations and capture new growth opportunities as AI-driven commerce develops across international markets.

Hashtag: #Yeahka

The issuer is solely responsible for the content of this announcement.

About Yeahka

Yeahka Limited is a leading payment-based technology platform, dedicated to creating value for merchants and consumers. The company was listed on the Hong Kong Stock Exchange in 2020 under stock code 9923.HK. Yeahka serves approximately 9.2 million merchants and nearly 1 billion consumers.

About YeahPay

YeahPay is the international payment brand of Yeahka, offering secure, seamless, and efficient digital financial services to global clients, spanning global acquiring, global collection, foreign exchange, global remittance, and beyond. It onboards and acquires for merchants across seven markets, supporting multi-currency processing, local payment methods, and integration options from payment links to ecommerce plugins and platform onboarding.

About Fynix

Fynix, a brand of Fushi Technology under Yeahka, is a global AI service provider to merchants, currently serving clients across Singapore, Malaysia, Vietnam, Indonesia, Japan, Australia, etc., providing store operations, membership management, and payment management.

** This press release is distributed by Media OutReach Newswire through automated distribution system, for which the client assumes full responsibility. **

YeahPay at MAG Singapore: AI Is Redefining the Role of Payment Providers

YeahPay at MAG Singapore: AI Is Redefining the Role of Payment Providers

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