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Page 1: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

2013INSIGHT ON AFRICA: SPECIAL REPORT

www.li.comwww.prosperity.com

THE LEGATUM PROSPERITY INDEX | 2013

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©2013 Legatum Limited. All rights reserved. This document may not be reproduced or transmitted, in whole or in part, by any means or in any media, without the prior written permission of Legatum Limited. The Legatum Prosperity Index and its underlying methodologies comprise the exclusive intellectual property of Legatum and/or its affiliates. ‘Legatum’, the Legatum logo and ‘Legatum Prosperity Index’ are the subjects of Community trade mark registrations of affiliates of Legatum Limited. Whilst every care has been taken in the preparation of this report, no responsibility can be taken for any error or omission contained herein.

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PREFACE

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 2

PREFACE BY DANIEL CHIROT

ost sub-Saharan African states gained independence from their colonial rulers between 1957 and the early 1960s, except for a few countries in southern Africa where bloody confrontations and wars were necessary to obtain the same result later on. In the 1960s most Westerners who went to work there (myself included) were full of

optimism. It was only the racist colonialists, we believed, who thought that it was going to go badly. �e few warning words by real experts were brushed aside.

Africa then broke our hearts. Violent coups, corruption, and failure to deliver even basic services plunged the region into chaos. �ere were exceptions, most famously Botswana, and for a while in West Africa, Côte d’Ivoire, but there were many more deceptions.

Nigeria, the largest African state, sank into ethno-religious con�icts, corruption, and civil war, followed by years of military rule. Despite its enormous oil wealth it never lived up to its promise. �e former Belgian Congo with a dreadful colonial legacy got o� to a bad start and has never recovered despite its huge mineral wealth. Jomo Kenyatta of Kenya, a sophisticated anthropologist and inspiring leader became a corrupt dictator who left a legacy in Kenya of increased ethnic rivalries. His successor was far worse. Ghana began in 1957 with a per capita income roughly equal to South Korea’s and a sound economy, but was derailed by the socialist schemes of vainglorious independence hero Kwame Nkrumah that led to economic collapse. In Tanzania, Julius Nyerere, one of the most honest and benevolent African dictators, also led the country into economic stagnation with his socialist development blueprint ”Ujamaa”, which was modelled on Mao’s collective farming communes and the creation of a one-party system. �at said, both leaders are seen as key �gures of peace and unity in their countries and the legacies of their education and health policies are more positive than the economic ones.

In too many other places inexperienced and corrupt military men took power. �ey had the guns, and often simply wound up looting their countries. Idi Amin was the worst, but hardly the only case.

Outsiders were hardly blameless. France supported any dictator who played along with France’s imperial delusions about “Francophonie” and bought into a system of mutual backscratching and exchanges of corrupt money. �e United States happily paid o� corrupt dictators who were supposedly anti-Communist, like Mobutu of the Congo. �e Soviets poured in aid for those dictators who claimed to be “Marxist,” including the equally corrupt ruling elite of oil-rich Angola, where, to counterbalance the Soviets, the US long supported a homicidal Maoist guerrilla leader who kept a major civil war going for a quarter of a century.

�en with the fall of European communism in 1989, it began to look as if Africa, too, would turn around by becoming more democratic and open to market-based reforms. In Mali and Côte d’Ivoire, this was an illusion. Rwanda was the worst case in the 1990s, where the democratization process and ensuing assassination of the president, combined with the civil war, led among other factors to the genocide between Hutus and Tutsis. On the other hand, there was also real progress in many other cases. Also the South African, peaceful miracle and its great leader, Nelson Mandela, served as an inspiration throughout the continent.

MDANIEL CHIROT IS THE HERBERT

J. ELLISON PROFESSOR OF

RUSSIAN AND EURASIAN

STUDIES AT THE UNIVERSITY OF

WASHINGTON IN SEATTLE AND

A MEMBER OF THE LEGATUM

INSTITUTE INTERNATIONAL

ADVISORY GROUP.

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PREFACE

3 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

CONTENTS

2 | Preface

4 | The Legatum Prosperity Index™ Africa Rankings 2012–2013

5 | Introduction

6 | Prosperity in Africa 2013

6 | About the Prosperity Index

69 | Footnotes to Graphs

71 | Acknowledgements

FEATURES

7 | Changing Demographics: The Youth Bulge

11 | The Nigerian Balancing Act

15 | Corruption vs. Ease of Doing Business

19 | African Growth and Asian Investment

23 | Millennium Development Goals: The Post-2015 Development Agenda

COUNTRY FACTSHEETS

28 | Algeria to Zimbabwe

METHODOLOGY

67 | How We Build the Index

Now, over the past decade or so, there has been sustained economic growth in many countries. �e reports that follow present a strong, realistic case for optimism. �ere is still too much corruption and civil strife, but the changing general situation augurs well as these reports guardedly show.

A generation of working-age adults with relatively few old people and a falling birth rate behind them means that the ratio of workers to dependents will be excellent for at least a couple of generations. In Asia, this kind of demographic change contributed signi�cantly to rapid economic progress. Some of the Millennium Development Goals are being met, and health standards have been improving for some time as infant and childhood mortality drops, HIV/AIDS is increasingly being combated successfully, and malaria is likely to be brought under control soon.

Raw commodities still make up most exports, but Foreign Direct Investment is starting to branch out. �e in�uence of the West is waning as Asia, and particularly China steps in to invest; but China is not the former Soviet Union. It wants economic bene�ts for itself, not ideological alliances, so it favours market-based realism over wasteful socialist schemes.

Doing business is still a challenge, but there are real improvements in Kenya, Uganda, Ghana, Rwanda, and even Nigeria. Small improvements do attract investments, both foreign and domestic (for a long time corrupt African elites actually exported more capital than was brought in by foreign aid). �is can start a self-sustaining “virtuous circle” of economic growth and greater transparency.

Democracy has taken hold in Ghana, and perhaps, �nally, in Kenya and other cases. Tanzania has abandoned its unrealistic socialism. South Africa, for all of its problems, is still an admired source of knowledge and capital.

Finally, it has become clear that to continue their progress African states need to undertake serious reforms, build better institutions, and improve education as well as general infrastructure. But these are things they must do themselves. Foreign aid, so abundant for so long in Africa, has often been counterproductive. It fostered corruption, created the sense that reform was unnecessary, and propped up incapable leaders. Instead, actual investment based on market values can and will provide capital, while growing prosperity will empower populations to demand and obtain better governance.

As these reports conclude, the optimistic scenario is not assured, and there could be a reversion, but at least right now a far sounder base is being built than was the case in the past. And that is cause for hope.

The views expressed in this Preface are those of the author and not necessarily those of the Legatum Institute.

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PROSPERITY INDEX RANKINGS

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 4

2013

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LTH

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1 Botswana 10 3 1 4 7 5 5 242 South Africa 6 1 4 3 8 16 16 73 Morocco 1 4 6 8 4 13 22 174 Tunisia 7 2 12 2 1 2 32 345 Namibia 11 7 2 6 13 9 3 226 Algeria 3 6 17 1 2 18 35 197 Ghana 27 9 5 10 5 4 15 268 Senegal 9 17 10 20 10 11 6 189 Rwanda 17 10 3 12 6 10 25 3010 Zambia 13 12 13 11 31 23 9 511 Egypt 12 5 18 5 3 22 38 1612 Niger 5 35 9 35 11 6 7 1413 Mali 25 23 21 36 20 3 10 114 Burkina Faso 18 22 11 28 23 8 4 2115 Benin 30 28 8 17 12 1 1 3616 Uganda 15 13 19 16 24 33 20 417 Cameroon 8 16 28 13 22 15 21 2518 Kenya 31 8 20 14 15 28 24 919 Tanzania 19 20 16 18 21 21 28 220 Congo (Republic) 2 19 31 9 25 14 19 3221 Malawi 32 26 7 15 9 20 23 2322 Djibouti 29 31 14 29 14 7 26 1523 Mozambique 16 15 15 25 32 19 12 2724 Nigeria 20 14 29 24 19 34 27 625 Zimbabwe 24 21 38 7 18 32 30 826 Mauritania 33 18 30 26 16 12 33 1127 Ethiopia 26 32 24 21 27 29 14 2928 Liberia 38 27 27 32 33 26 11 1029 Sudan 21 11 33 23 17 36 37 330 Sierra Leone 34 30 22 33 37 27 8 1231 Cote d'Ivoire 4 25 34 34 30 31 2 3332 Angola 22 24 32 27 28 30 36 2033 Guinea 35 34 35 31 29 24 17 3134 Togo 36 29 26 19 26 17 18 3835 Burundi 37 33 23 22 34 25 29 3536 Congo (DR) 23 37 36 30 35 38 34 1337 Central African Republic 28 38 25 38 36 35 13 3738 Chad 14 36 37 37 38 37 31 28

THE LEGATUM PROSPERITY INDEX™ AFRICA RANKINGS 2012–2013

HIGH RANKING COUNTRIES MIDDLE RANKING COUNTRIES LOW RANKING COUNTRIES

2012

CO

UN

TRY

OV

ERA

LL 2

012

PR

OSP

ERIT

Y RA

NK

Botswana 1Morocco 2South Africa 3Tunisia 4Namibia 5Ghana 6Algeria 7Mali 8Malawi 9Egypt 10Tanzania 11Zambia 12Rwanda 13Burkina Faso 14Niger 15Cameroon 16Kenya 17Uganda 18Senegal 19Benin 20Congo (Republic) 21Djibouti 22Mauritania 23Nigeria 24Mozambique 25Sudan 26Côte d'Ivoire 27Guinea 28Sierra Leone 29Angola 30Liberia 31Ethiopia 32Zimbabwe 33Togo 34Burundi 35Chad 36Congo (DR) 37Central African Republic 38

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INTRODUCTION

5 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

INTRODUCTION

oday’s conversations about African development and prosperity are increasingly optimistic. From world leaders to journalists and from economists to academics, the world is realizing that Africa is a continent on the rise.

�is shift from pessimism to optimism has happened quickly. Consider, for example, the front cover of The Economist magazine in May 2000, which described Africa as “�e

Hopeless Continent”. What a contrast to the magazine’s front cover in September 2011 that proclaimed: “Africa Rising”. Or consider the assertion made by Ko� Annan in May 2012 that “Africa is on its way to becoming a preferred investment destination, a potential pole of global growth, and a place of immense innovation and creativity”.1

�is optimism is supported by evidence. High growth rates, declining poverty, substantial improvements in health, improved educational enrolment and attainment, a reduction in con�ict (internal and cross-border), and an increase in the number of democracies (of various shades) over the past 20 years all point towards a continent that has reached a tipping point.

At the same time, however, there exists a competing narrative that is more pessimistic. It suggests Africa’s growth cannot be sustained, that necessary economic reforms have not been undertaken to protect the continent from a future downturn, and that political instability and accompanying violence remain too commonplace. It suggests that many African countries lack basic infrastructure, that corruption in business and government is worryingly high, and that Africa’s manufacturing sector is underdeveloped (in sub-Saharan Africa, for example, manufacturing contributes to the same share of overall GDP as it did in the 1970s).2

Within the debate between the optimists and pessimists, it can be challenging to disentangle opinions from objective facts. �is report attempts to provide the reader with the data and the context required to understand both the challenges and opportunities facing the world’s most dynamic continent. Where possible, to illustrate the arguments, examples have been drawn from speci�c countries so as to avoid a monolithic depiction of Africa.

�is report explores �ve big themes relating to the prospects of African development. Firstly, it looks at how demographic changes, especially the issue of ‘youth bulge’, present huge economic opportunities for African nations but also huge risks. Secondly, it uses Nigeria as a case study to look at how the challenges of conflict, violence, and instability pose a major roadblock to future growth. Thirdly, it looks at the e�ect of corruption on the ease of doing business. Fourthly, it looks at the e�ect of Asian investment into Africa, and considers whether the resulting growth is sustainable. Fifthly, this report looks at the progress made against the Millennium Development Goals and considers what themes should be the focus of post-2015 development goals.

I hope you �nd this special report stimulating and engaging.

Nathan Gamester Programme Director, Legatum Prosperity Index™

1. Africa Progress Panel, Africa Progress Report 2012, (Geneva: Africa Progress Panel, 2012), http://www.africaprogresspanel.org/en/publications/annual-reports/annual-report-2012/

2. Shantayanan Devarajan and Wolfgang Fengler, “Africa’s Economic Boom”, Foreign Affairs, April 3, 2013, http://www.foreignaffairs.com/articles/139109/shantayanan-devarajan-and-wolfgang-fengler/africas-economic-boom

T

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PROSPERITY IN AFRICA

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 6

PROSPERITY IN AFRICA 2013

�e majority of data and analysis within this report is taken from the Legatum Prosperity Index™, an annual report that explores the foundations of prosperity in 142 countries around the world. �e Index incorporates traditional economic measures of prosperity with measurements of wellbeing and life satisfaction. Indeed, it remains the only global index to provide an empirical basis for the intuitive sense that true prosperity is a complex blend of income and wellbeing.

�is holistic approach is necessary because a nation’s prosperity is determined by many di�erent and complementary factors rather than by economic factors alone.

Each country must chart its own course to success. The Prosperity Index and its accompanying reports (such as this one) seek to identify the important pillars on which prosperity is built. �e 2013 edition of the Prosperity Index will be published later this year. For more information, visit www.prosperity.com

ABOUT THE PROSPERITY INDEX

HIGH RANKING COUNTRIES MIDDLE RANKING COUNTRIES LOW RANKING COUNTRIES INSUFFICIENT DATA

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CHANGING DEMOGRAPHICS

7 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

The Youth Bulge

n the colonial era, Africa was land rich and people poor. Now, the total population of Africa is thought to have broken the 1 billion mark and it is projected to grow at a rate of 3% per year.1 Moreover, the ‘youth bulge’

evident in most African countries—particularly those in West Africa—means that today, 40% of the continent’s population is under the age of 15, and it is estimated that young adults (15-29) make up a further 28% of the population in a decade.2

These rapidly changing demographics present significant economic opportunities as well as serious political challenges. �e result is that “two Africas” may evolve over the coming years: one which is able to cope with the influx of young workers into its economy, and one which is not.

Population growth owes much to an improvement in public health. Despite the challenges posed by malaria and HIV/AIDS, better healthcare and medicine led to falling death rates by the end of the twentieth century. Data available from the Prosperity Index con�rms this positive trend in Health across Africa. �is trend continues in crucial measures of health such as infant mortality rates, which have fallen in all African countries included in the Index over the last four years. In addition to this, Africans are both living longer as adults and are less likely to die within the �rst �ve years of life—it is the latter fact, combined with the continuation of high birth rates, that explains the ‘youth bulge’.

In the short term, larger populations will be an economic drain on scarce government resources. �e continent cannot generate su¯cient jobs as things stand. According to the International Institute for Labour Studies, the unemployment rate in sub-Saharan Africa stood at 35% in 2012 and has remained relatively stable over time, which can force young workers to engage in negative activities or to switch to the informal sector.3

Of course, African governments are aware of this impending problem. Nigeria’s �nance minister, Ngozi Okonjo-Iweala, has estimated that the country will need to grow its economy at 8–10% annually simply to meet the growing need for employment.4 �e extent of the problem illustrates that the di�erence in terms of prospects between those countries who can create jobs and those who can’t is likely to be vast.

Larger populations will mean more people to educate, more competition for jobs and greater pressure on healthcare facilities. For example, one reason that Africans are living longer is that individuals with HIV/AIDS are being provided with anti-retroviral drugs, which also means that the risk of infecting others is reduced. �is positive development will increase healthcare costs and will therefore require larger public budgets.

Population growth also intensi�es the pressure on land and natural resources. Greater competition over land—especially in some central and southern African countries where the soil is not just an economic resource but is also central to ethnic and spiritual identity—could trigger rising ethnic tension and

I

THE YOUTH BULGE IS A REALITY IN AFRICA, AND IT CAN BE SEEN AS AN OPPORTUNITY OR A THREAT. IN ORDER TO CREATE A DEMOGRAPHIC DIVIDEND AND TO ENSURE THAT YOUNG AFRICANS REMAIN OPTIMISTIC ABOUT THEIR FUTURE, PROGRESS IN BOTH EDUCATION AND EMPLOYMENT OPPORTUNITES IS CRUCIAL.

CHANGING DEMOGRAPHICS:

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CHANGING DEMOGRAPHICS

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 8

DEMOGRAPHIC TRENDS IN AFRICA*

2011•••2007

AVERAGE FERTILITY RATE (BIRTHS PER WOMAN)

Average fertility rate: World Bank data

4.8

4.5

AVERAGE PROSPERITY INDEXHEALTH SCORES

Health scores: Prosperity Index data

-2.15

-3.14

2009 2013••• 2010 2013••

50

100

2011•••2007Fertility rate

Average Health Scores, Africa only

(Births per woman)

4.8

4.5

-2.15

-3.136

2009 2009•••

Average Infant mortality rate per 1000 live births

2010 2013••

50

100

AVERAGE INFANT MORTALITY (PER 1000 LIVE BIRTHS)

Average infant mortality: Prosperity Index data

The Youth Bulge

65+

60-64

55-59

50-54

45-49

40-44

35-3930-34

25-29

20-24

15-19

10-14

5-9

0-4

33

20

26

32

38

4555 69

84

97

108

120

136

155

age

AVERAGE AGE

40%OF THE AFRICAN

POPULATION AGED 0-15 YEARS

*See footnotes p69-70

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CHANGING DEMOGRAPHICS

9 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

political instability. This risk will be particularly pronounced in parts of the continent in which climate change is already beginning to undermine traditional ways of making a living.

Population growth has resulted in a sharp rise in population density over the last two decades in Africa. However, this broad trend masks considerable variation across the continent. Countries such as Botswana and Namibia have small populations and low population densities, which could be part of the reason why they have proved to be more politically stable states. In parallel, people are competing for space in countries such as Rwanda, Nigeria and Uganda. The Prosperity Index also reveals exceptionally high levels of displacement and demographic pressures in DR Congo, Chad, and other states in the centre of the continent.

However, there is nothing inevitable about the relationship between population growth and conflict, and talk of a ‘Malthusian’ catastrophe, where population pressures escalate conflicts over limited resources, is misleading for two reasons. First, competition over land and natural resources will most commonly spill over into conflict due to mismanagement. While land shortages contributed to ethnic clashes and genocide in Burundi and Rwanda, these extreme examples have not been registered anywhere else in Africa.

Second, population growth will not continue unabated. Recently, fertility has started a slow decline, confirming that Africa is no exception to population trends elsewhere. The UN Population Division forecasts that by 2030, Africa’s overall fertility rate will have halved from its 1990 level of 6.0 (births per woman) to 3.0, and that by 2050 it will have fallen below 2.5. As a result, population growth will not continue to rise but will plateau and decrease.

Significantly, as Africa shifts from high to low birth rates, experiences elsewhere suggest that there will be a potential ‘demographic dividend’,5 boosting consumer demand and raising household incomes and savings (and therefore wellbeing). In contrast to the West, where aging societies are worrying about how to fund pensions, in Africa the rising ratio of workers to dependents has the potential to strengthen the capacity of the government to provide public services and to generate economic growth.

But the effects of this ‘youth bulge’ will not all be positive. There is a danger that young Africans will become frustrated at the limited economic opportunities available to them. With the notable exceptions of Botswana, Rwanda and Angola, the vast majority of sub-Saharan African citizens, and in particular in West Africa, feel their country is not doing enough to address poverty. For example, according to Prosperity Index data, 92% feel this way in Cote d’Ivoire, while the figure is nearly 90% in both Guinea and Togo. Moreover, just 35% of people across the continent think it is a good time to find a job, while in Liberia and Angola, the proportion is over half.6 Evidence shows that this frustration can lead to highly undesirable outcomes such as high levels of social unrest and even increases in the number of people joining extremist movements and terrorist organisations. In the World Development Report in 2011,7 the predominant reason stated by young people for joining rebel groups and gangs was found to be the lack of opportunities. The devil makes work for idle hands.

Young Africans therefore face a major bottleneck. Managing the hopes and expectations of a generation will be a major test, even for the most effective African governments: in countries such as Ethiopia, Kenya, Liberia, Nigeria, and Uganda, over 70% of the population are under 30.8

Again, the ability of governments to make the best of demographic change will depend on the quality of economic and political institutions. Preventing wasteful expenditures and corruption will be essential to ensuring that the economy continues

35%ACROSS THE

CONTINENT THINK IT IS A GOOD TIME TO

FIND A JOB

DISSATISFIED wITH GOvERNMENT EFFORTS TO ADDRESS POvERTY*

92% Cote D’ivoire

90% guinea

26% Botswana

34% rwanDa

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CHANGING DEMOGRAPHICS

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 10

to grow. Inclusive political institutions can ensure that the bene�ts of economic growth are widely shared. Prosperity Index data on the evenness of economic development shows that many Central African countries, including DR Congo, Sudan and the Central African Republic, rank among the worst in the world on this measure. A more equal distribution of wealth is essential if young people are to feel that they have a stake in the system.

Given this, the next twenty years may well be characterised by the emergence of two Africas: one that is able to take advantage of demographic changes to make further economic and political gains, and one that fails to cope with its larger and younger population and falls further behind. Currently, the data suggests that DR Congo and the Central African Republic have the furthest to go on this score, with Rwanda, Botswana and Kenya more likely to achieve relative advantage. Job- and skill-creation schemes take time to implement, and the African demographic clock is ticking, which indicates the urgency to take measures for building long-term prosperity.

1. African Development Bank Group, African Economic Outlook 2012: Promoting Youth Employment, Special Theme Promoting Youth Employment, pp. 125-126, (Tunis: OECD Publishing, 2012),http://www.oecd-ilibrary.org/development/african-economic-outlook-2012_aeo-2012-en

2. Justin Yifu Lin, “Youth Bulge: A Demographic Dividend or a Demographic Bomb in Developing Countries?”, World Bank blogs, May 1, 2012, http://www.vanguardngr.com/2013/04/nigeria-to-delay-gdp-rebasing-till-2013-nbs/

3. International Institute for Labour Studies,”World of work report 2013: Repairing the economic and social fabric”, (Geneva: ILO, 2013), http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_214476.pdf

4. Xan Rice, “Nigeria: Hungry for progress”, Financial Times, July 7, 2013, http://www.ft.com/cms/s/0/6a900674-d9b3-11e2-98fa-00144feab7de. html#axzz2c332F0HK

5. Ronald Lee and Andrew Mason, “Back to Basics: What Is the Demographic Dividend?”, Finance & Development 43. No. 3 (2006): 16–17

6. Legatum Prosperity Index 20137. World Bank, World Development Report 2011, (Washington

DC: World Bank, 2011), http://siteresources.worldbank.org/INTWDRS/Resources/WDR2011_Full_Text.pdf

8. “World Population Prospects: the 2012 Revision”, United Nations, Department of Economic and Social Affairs, Population Division, last modified June 2013, http://esa.un.org/wpp/Excel-Data/population.htm).

UNEMPLOYMENT AND JOB MARKET OPTIMISM*

TunisiaLiberiaAngola

AFRICAAVERAGE

Nigeria

10

20

30

40

%

50

UNEMPLOYMENTPercentage of labour force not employed

JOB MARKET OPTIMISMSurvey question "Is now a good time to find a job?" (% yes)

PERHAPS COUNTERINTUITIVELY,

A HIGH LEVEL OF OPTIMISM

ABOUT THE JOB MARKET DOES NOT ALWAYS STEM FROM

LOW UNEMPLOYMENT, SUCH AS IN THE CASE OF ANGOLA.

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THE NIGERIAN BALANCING ACT

11 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

The Nigerian

BALANCING ACTWHERE VIOLENCE CONTINUES TO FUEL INSTABILITY, ECONOMIC GROWTH CANNOT ADVANCE UNABATED. DESPITE BEING A RISING ECONOMIC SUCCESS STORY, NIGERIA’S FUTURE PROSPERITY IS IN JEOPARDY FROM SERIOUS CHALLENGES TO SAFETY AND SECURITY.

igeria’s fate rests upon the shoulders of two opposing narratives. �e �rst is a story of impressive economic growth that has propelled Nigeria into a position of global economic signi�cance. �e second is a tale of violence, rising con�ict and instability. In this respect, Nigeria embodies a struggle that characterises many African nations. Securing a more prosperous future rests on which of these narratives wins out.

Nigeria has emerged as a ‘good news’ story for global investors despite the global economic turmoil of the past �ve years. �is is re�ected in the country’s Economy ranking (20) in the Legatum Prosperity Index™, which compares favourably to its overall ranking of 24 out of 38 African countries. Nigeria is also included in Goldman Sachs’ “Next 11” index of emerging economies and is considered worth watching for investment purposes in light of the high level of likely growth in the medium term.

For a country whose reputation had been synonymous with corruption and economic mismanagement—indeed, the country ranks as the fifth most corrupt in Africa within the Prosperity Index—such external perceptions can be considered a measure of success by reformers in Abuja. Lagos is now �rmly considered an essential aspect of any African investment strategy, from its �nancial sector to other aspects of the service economy, and increasingly due to increasing consumer spending power.

Nevertheless, while the country’s economic fundamentals have improved and cities such as Lagos and Abuja experience vigorous expansion, there is another side to Nigeria’s story. Instability caused by ethnic and religious con�ict as well as high levels of violence fuelled by con�icts over natural resources threaten to undermine much of the country’s economic progress.

Nigeria is Africa’s largest country both in terms of its population of 170 million1 —nearly double that of Ethiopia, the next most populous country—and its GDP, estimated by the IMF to reach $284 billion this year (second only to South Africa), but understood to be undervalued signi�cantly. A rebasing of the country’s GDP, which will put greater weight for example on the telecommunications and banking sectors, is estimated to raise GDP by at least 40%, vaulting it well past South Africa in the league table.2

In an important sense, this rebasing exercise will merely rea¯rm what has been a changing perception of Nigeria as an economic story for several years. Since the country’s latest return to civilian rule in 1999, it has weathered four rounds of multi-party elections, which—while serving only to entrench the dominance of the ruling People’s Democratic Party—appear to have all but eliminated the country’s experience of military intervention in politics. While Nigeria still ranks poorly on many Governance variables, the relative stability of the governmental system, as well as the increasing level of political rights a�orded to its citizens, illustrates the country’s progress in this area in recent years.

N

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THE NIGERIAN BALANCING ACT

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 12

DRIVERS OF LOW SAFETY & SECURITY IN NIGERIA*

ECONOMY RANKINGS VS. SAFETY & SECURITY RANKINGS*

STRONG FOUNDATIONS FOR ENTREPRENEURSHIP IN NIGERIA*Percentage Change 2010-2013 (Prosperity Index Data)

Propertystolen

32.325.2

%

Assaulted

%

19.212.4

Groupgrievances

/10

9.77.0

Humanflight

/10

7.6

6.7

Tolerance ofminorities

%

62.167.0

Politicalrights

/10

/7

43.5 AFRICA AVERAGE

NIGERIA

BENIN

DJIBOUTI

CÔTE D’IVOIRENIGERIA

UGANDA

3420

31

4

1

30

1533

729

Start-up costs(% of GNI per capita)

-16.30%

60.40%

Mobile phones per 100 people

67.68

+26.05

Working hard gets you ahead? (% yes)

+12.69%

95.29%

Good environment for Entrepreneurs? (% yes)

+17.21%

79.41%

*See footnotes p69-70

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THE NIGERIAN BALANCING ACT

13 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

Moreover, economic reforms, particularly at the federal level, have brought forth many benefits including the accumulation of significant foreign exchange reserves and the clearing of crippling foreign debt all while maintaining a fairly stable exchange rate. Furthermore, the Central Bank of Nigeria has been instrumental in shaking out several bad apples3 from the banking sector. Institutions in the sector had been caught out in the global economic downturn after unwise (and in some cases corrupt) investments in the Nigerian Stock Exchange.

However, the gains from this economic progress have been unequally distributed and the country ranks among the most unequal countries in the world, with a Gini coe¯cient of 48.8 according to World Bank data. Furthermore, Nigeria places second to last (above only Angola) on the measure of inequality used in the Prosperity Index. Moreover, territorial political marginalisation has been a signi�cant part of Nigeria’s history, and is a trend that has not been erased.

This has manifested most visibly in regional militancy, and in episodic communal violence, which intensi�ed in the late 1990s. Although militancy tailed o� sharply following a government amnesty programme in late 2009, the economic incentives driving the criminal activities of the gangs did not disappear (nor did their linkages to local community economies or to regional political dynamics). As such, there has been an intensi�cation of oil theft (or bunkering) in the last few years, some of which becomes a source of supply for illegal small-scale re�neries. �e remainder �nds its way onto regional or international markets—fuelling the Niger Delta region’s political economy. Oil theft is now estimated at 250,000 barrels per day in Nigeria as a whole.4

Another long-standing side-e�ect of political and economic marginalisation has been the persistence of occasional bouts of inter-communal violence in parts of Nigeria’s ‘Middle Belt’. Nigeria ranks a lowly 27th out of 38 African countries for ethnic tolerance, with only 62% of the population reporting that Nigeria is a good place to live for ethnic minorities. Groups clash over which is genuinely indigenous, and which are the settlers—even when such settlement may have happened in the nineteenth century or earlier.

Middle Belt violence has taken ethnic and religious overtones, with ‘locals’ being from one (predominantly Christian) ethnic group, and the ‘settlers’ being from another (predominantly Muslim). However, the more recent insurgency, which has shaken north-eastern Nigeria (led by the Boko Haram militant Islamist group) has seen religion emerge as the new motivator for a con�ict whose roots lie mainly in economic and political marginalisation.

Populations in northern Nigeria generally have seen their livelihoods deteriorate in recent decades, as the oil sector undermined the rest of the country’s export economy. Little of the vast oil wealth has found its way to the north, fuelling perceptions of bias (despite a history of northern political elites dominating national level politics in Abuja). �e Boko Haram insurgency has raised safety and security fears even outside the core areas a�ected by the insurgency, after attacks have taken place as far a�eld as the outskirts of Abuja.

�ese persistent security issues are re�ected in Nigeria’s low Safety & Security rank (34), most notably due to high theft rates, group grievances, and human emigration, according to the Prosperity Index. �is underscores the sense of there being ‘two Nigerias’. Ultimately, these two narratives will

PERCEPTIONS OF CORRUPTION*

KenyaTanzania

GhanaCote d'Ivoire

NIGERIA

Sudan

Djibouti

Rwanda

20%

40%

60%

80%

NIGERIA IS THE

5TH MOST CORRUPT

OF AFRICAN COUNTRIES MEASURED

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THE NIGERIAN BALANCING ACT

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 14

need to meet and be reconciled for progress to be made on the broader question of prosperity. Moreover, Nigeria’s case is not unique, although the acuteness of the disjuncture is not as pronounced elsewhere.

In the west of the continent, Cote d’Ivoire presents another contradictory case. Its very high Economy rank (4) contrasts sharply with a very low Safety & Security ranking (31). The latter undoubtedly reflects the 2010–11 violence around the presidential election, which itself ended a long transitional period following an electoral conflict and civil war. The perception of southern political and economic dominance and the exclusion from power of populations who allegedly immigrated from northern neighbours echoes the communal violence in Nigeria. Cote d’Ivoire was considered the economic capital of West Africa until the late 1990s—indeed, Abidjan is the host of the African Development Bank headquarters.

On the contrary, Nigeria’s neighbouring country Benin ranks first in 2013 for Safety & Security and Personal Freedom, while ranking poorly for the Economy (30). This contrast between two countries with similar ethnic diversity5 could indicate that the oil curse plays a crucial role in explaining the dichotomy of progress in Nigeria.

In the east, two other opposing examples appear. Uganda demonstrates a relatively poor Safety & Security rank (33), compared with an Economy rank of 15. It has an urban, historical core around which significant strides have been made economically—especially in the last decade—but there remain significant populations left politically and economically marginalised. The roots of the northern Ugandan insurgency of the Lord’s Resistance Army lie in a history of economic and political exclusion by successive governments in Kampala.

The second example is Djibouti, a small country neighbouring Somalia that ranks 7th on the Safety & Security sub-index, and 29th on the Economy sub-index. The multi-ethnic nation is well-known for its political stability and attracts many refugees from neighbouring countries searching for peace.6 However, the limited capacity to provide for these refugees (in a country with an unemployment rate of over 30%, and not long after a conflict with Eritrea in June 20087) could be pointing towards a drop in its Safety & Security rank in the future.

Similar to other African countries, Nigeria has made much progress on economic and political indicators in the past decade. However, the region scores lower on Safety & Security and inequality measures and the marginalisation of certain ethnic and cultural groups could potentially be a threat for future prosperity. Hope lies in the improvement of governance variables that are still lagging behind in Africa. These will be essential to sustain the rise of the continent.

1. Tim Cocks, “Will Nigerian boom babies feed prosperity or entrench poverty?”, Reuters, April 9, 2013, http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/African%20Development%20Report%202012.pdf

2. “Nigeria to delay GDP rebasing till 2013 - NBS”, Vanguard Nigeria, April 9, 2013, http://www.upi.com/Business_News/2013/03/20/China-investments-in-Africa-boom/UPI-68541363778204/

3. Tom Burgis, “Nigeria takes control of five banks”, Financial Times, August 14, 2009, http://www.ft.com/cms/s/0/0b233cf4-8905-11de-b50f-00144feabdc0.html

4. Joe Brock, “Analysis - Oil majors to stay onshore Nigeria despite grumbles”, Reuters, August 8, 2013, http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-6311

5. Daniel N. Posner, “Measuring ethnic fractionalization in Africa”, American Journal of Political Science 48, no. 4 (2004): 849–863, doi: 10.1111/j.0092-5853.2004.00105.x

6. “2013 UNHCR country operations profile – Djibouti”, UNHCR, last modified September 11, 2013, http://www.unhcr.org/pages/49e483836.html

7. “Djibouti: Current conflicts”, Rule of Law in Armed Conflicts Project, Geneva Academy of International Humanitarian Law and Human Rights, last modified September 11, 2013, http://www.geneva-academy.ch/RULAC/current_conflict.php?id_state=56

250,000BARRELS OF OIL

ARE STOLEN DAILY IN NIGERIA

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15 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

PERCEIVED CORRUPTION LEVELS IN BUSINESS AND GOVERNMENT*Survey question: Is corruption widespread within businesses and throughout the government, or not? (% yes)

AVERAGE CHANGE IN SCORE ACROSS AFRICA (2010–2013)*

CORRUPTION* ENTREPRENEURSHIP*

RWANDAIS PERCEIVED AS THE LEAST

CORRUPT COUNTRY IN AFRICA

20

40

60

80

%

South Africa

Congo, Dem. Rep.

Djibouti

Rwanda

no data

CORRUPTION Kenya

75% 74%

74% of people believe that the city or area where they live is a good place for entrepreneurs setting up a business

75% of peoplebelieve that corruption is widespread within the government& business

Average change in scoreacross Africa(2010-2013)

Regulation+1.10

-0.03

E&O SUB-INDEX

75% 74%

74% of people believe that the city or area where they live is a good place for entrepreneurs setting up a business

75% of peoplebelieve that corruption is widespread within the government& business

*See footnotes p69-70

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CORRUPTION

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 16

CORRUPTIONVS. EASE OF DOING BUSINESS

n the past few years, Africa has been thriving as a continent known for its business opportunities and is being increasingly seen by investors as the continent with the highest future growth potential. On average, according to the 2013 Legatum Prosperity Index™, three-quarters of the African population perceive that theirs is a good environment for

entrepreneurs. However, despite the hopes of donors and anti-corruption campaigners, there has been no noticeable change in corruption levels in the past �ve years in Africa. �is is despite an increase in democracy levels and an improvement in certain governance-related variables in the continent.1

�e fact that countries that perform worst on measures of perceived corruption—including Kenya, South Africa and Namibia—are democratic countries, scoring among the highest in Africa on governance indicators including the rule of law, suggests that there are likely to be factors other than institutional weakness fuelling corruption. However, the higher scores for corruption in democratic countries with sound governance than in authoritarian countries—such as Guinea, Angola and the DRC—can be explained partly by a key feature of perception surveys, namely that they are often assumed to be conducted by or for the government, meaning that individuals may feel less comfortable to voice their concerns in authoritarian countries.

As the drivers of corruption across Africa are very di�erent, anti-corruption measures must be tailored to each speci�c situation if they are to be successful and must comprise measures beyond simply passing new legislation or appointing anti-corruption bodies. Two countries o�er good examples of this need to make distinctions. In Ghana, the recent discovery of oil has created new opportunities for misappropriation, while in South Africa the rise of Jacob Zuma and a di�erent style of politics have undermined the norm of restraint that constrained previous ANC governments. �e challenge there is how to identify and remove corrupt political networks, and restore the integrity of the bureaucracy. �ere is no quick �x; long-term change will depend on a change of personnel and the adoption and implementation of new codes of conduct.

In Ghana, the government is attempting to create a sustainable future from its oil revenues by creating two ring-fenced funds that will only be used to smooth the impact of future variations in the price of oil.2 �is will have the bene�t of providing a level of control over the strength of the country’s currency, and is intended to help Ghana avoid the so-called ‘Dutch disease’, in which high levels of income from natural resources push up a country’s currency to the point where its agricultural or manufacturing exports cease to be regionally competitive. A similar approach was adopted by Norway in the 1970s, which subsidised manufacturing output to keep it competitive as revenues surged from North Sea oil.3 Time will tell whether Accra’s funds are su¯ciently insulated from political manipulation to work as intended, but the degree of success is important

IMEASURES DESIGNED TO TACKLE CORRUPTION MUST BE TAILORED TO EACH INDIVIDUAL COUNTRY. THIS PRESENTS MANY POLITICAL CHALLENGES. IF SUCCESSFUL, HOWEVER, THE ECONOMIC REWARDS COULD BE VAST.

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17 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

because Kenya, Uganda and Tanzania have all recently found commercially viable amounts of oil and gas, and will face similar issues to Ghana.

Corruption matters not only because of its corrosive e�ect on a country’s political system and its impact on everyday life but also because of the extent to which it can complicate the business process. In so doing it adds an additional deterrent to external investment in a region that is already at the bottom of the global table for ease of doing business.4

High levels of political risk form a key part of the continent’s backdrop, even among those economies traditionally seen as more stable. In South Africa, which places 4th of 38 countries in the Governance sub-index, unrealistic private-sector union wage demands may see output disruptions on a signi�cant scale. In Uganda, the relatively low level of political constraints on the executive—the country places just 22nd in Africa (out of 38) on this measure of governance—may jeopardise development of the country’s nascent energy sector.

�at said, the situation has been steadily improving over the last decade. �is is especially true within sub-Saharan Africa as more governments pursue reforms designed to improve their domestic investment climates and so enable the private sector to harness the region’s long-term economic growth potential. Sub-Saharan Africa, along with South America, was one of only two regions in the world that attracted increased FDI �ows in 2012, a year when total global FDI �ows fell by 18%.5

Africa’s extractive sector remains by far the most important magnet for FDI in�ows into the continent, although this is something of a mixed blessing. �e Democratic Republic of Congo (DRC) succeeded in doubling FDI in�ows to $3.4 billion in 2012 despite Kinshasa’s minimal e�orts to improve its business climate. �e DRC is currently ranked 181 out of 185 countries in the World Bank’s annual Doing Business survey, and 37 out of 38 among African countries in the Legatum Institute’s Entrepreneurship & Opportunity sub-index, but extractive sector �rms have little choice but to invest where natural resources are located.

More signi�cantly, FDI in�ows into the continent’s manufacturing and services sectors have been rising steadily on the back of its increased purchasing power, accelerating urbanisation and strong population growth. Between 2008 and 2012, for example, Africa’s consumer-related industries’ share of total investment in green�eld projects rose from 7% to 23%, 6 a trend that con�rms both the rising domestic component of growth trajectory and improvements in the overall ease of doing business. Of the 50 economies around the world that have made the most improvement in business regulation since 2005, more than one-third were in sub-Saharan Africa.7

A country’s ease of doing business ranking has become a broad signal to investors about the overall attractiveness of the business environment. As a result, more countries are now pushing through regulatory reforms speci�cally designed to address the issues covered by this particular ranking and so boost their

HIGH CORRUPTION, GOOD GOVERNANCE*

SOUTH AFRICA

GHANA

Corruption

Democracy

Confidencein judiciary

BY RANKINGSRule of law

CONGO, DEM. REP.

GUINEA

Corruption

Democracy

Confidencein judiciary

BY RANKINGSRule of law

HIGH RANK MIDDLE RANK LOW RANK

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LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 18

rankings in the World Bank’s annual survey.8 �is strategy has helped Rwanda rank among Africa’s top regulatory reformers, placing third in Africa on the e�ectiveness of its regulation in the Legatum Prosperity Index™. It also places in the top ten of the Entrepreneurship & Opportunity sub-index.

Alarmingly, most Francophone countries continue to seriously under-perform in the rankings; a situation that broadly re�ects their positions within the global Prosperity Index. For example, the bottom �ve countries in Africa on the Entrepreneurship & Opportunity sub-index—Central African Republic, DR Congo, Chad, Niger and Guinea—are all Francophone countries, suggesting the more centralised, bureaucratic systems implemented in many former French colonies are ine�ective.

What these rankings are unable to capture is the series of regional and inter-regional initiatives that aim to enhance the appeal of investing in sub-Saharan Africa as a whole, by building bigger markets and bringing the region broadly into line with other emerging market regions. After decades of under-investment, budgetary allocations for infrastructure renewal and expansion are now increasing in an e�ort to address the region’s infrastructure de�cit.

�e burden of a political and economic environment that is perceived as corrupt, however, is a di¯cult one to dislodge. Democratization and the development of a more accountable institutional framework will certainly help to tackle the problem at its roots, although they will also lead to a spike in popular perceptions of the extent of corruption. E�orts to achieve reforms have already led to a considerable improvement in the ease of doing business in certain countries such as Ghana, and will be crucial to make yields from natural resource extraction sustainable in the future.

LOW CORRUPTION, POOR GOVERNANCE*

SOUTH AFRICA

GHANA

Corruption

Democracy

Confidencein judiciary

BY RANKINGSRule of law

CONGO, DEM. REP.

GUINEA

Corruption

Democracy

Confidencein judiciary

BY RANKINGSRule of law

1. Legatum Prosperity Index 20132. “Ghana Petroleum Funds”, Sovereign Wealth Fund

Institute, last modified September 11, 2013, http://www.swfinstitute.org/swfs/ghana-petroleum-funds/

3. Hilde C. Bjørnland, “The economic effects of North Sea oil on the manufacturing sector”, Scottish Journal of Political Economy 45, no. 5 (1998): 553-585.

4. “Global foreign direct investment declined by 18% in 2012, annual report says”, UNCTAD, Geneva, June 26, 2013, http://unctad.org/en/pages/PressRelease.aspx?OriginalVersionID=143

5. World Bank: Ease of Doing Business Index 2013. The sub-Saharan African region was by far the least attractive on this measure in the 2013 Index, with just seven of 46 countries covered in the Index placing above the global median. Additionally, 30 sub-Saharan African countries rank in the bottom quartile globally.

6. “Foreign direct investment to Africa increases, defying global trend for 2012”, UNCTAD, Geneva, June 26, 2013, http://unctad.org/en/pages/PressRelease.aspx?OriginalVersionID=136

7. “African Economies Make Consistent Progress in Improving Business Regulation, Report Finds”, World Bank, October 23, 2012, http://go.worldbank.org/8E0Z5QFLR0

8. Bjørn Høyland, Karl Moene and Fredrik Willumsen, “The tyranny of international index rankings”, Journal of Development Economics 97, no. 1 (2012): 1-14

HIGH RANK MIDDLE RANK LOW RANK

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ASIA AND AFRICA

19 |

AFRICAN GROWTH and ASIAN INVESTMENT

ORIGINAL ILLUSTRATION BY ANDY SCREEN

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ASIA AND AFRICA

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 20

CHINA: CHANGES IN PROSPERITY INDEX RANK2009–2013

ASIAN INVESTMENT IN AFRICA IS VAST AND WELL DOCUMENTED. TO REAP LONG-TERM, TANGIBLE BENEFITS FROM ASIAN INVESTMENT, AFRICAN GOVERNMENTS SHOULD AIM TO DIVERSIFY THEIR ECONOMIES AND FOSTER LOCAL BUSINESS.

n the wake of the global �nancial crisis, African nations have recovered faster than any other region in the world. In fact, over the last decade, average GDP growth across Africa has stood at 5%.1 Driven by high commodity prices

and a political climate that is seen as becoming more stable, consistent growth in the past years has created a virtuous circle in which investment has boosted growth and encouraged yet more investment, much of it from East Asia. China speci�cally has served as a source of investment, although investment from Japan and South Korea is not insubstantial.

However, many African economies—particularly those reliant on commodity exports—will be unlikely to meet investor expectations should they be exposed to a major downturn in, or even shock to, the broader economic situation. Indeed, recent o¯cial projections of the continent’s near-term prospects rely on relatively optimistic assumptions about the global environment. Forecasts from the African Economic Outlook—produced by the African Development Bank, among others—estimate that growth will peak above 5% in 2014 across sub-Saharan Africa, but these projections are heavily contingent on a more expansive global rebound than currently seems likely. �e Legatum Prosperity Index™ shows that economic expectations for the future are also high in many African countries, including Rwanda, Angola and Namibia.

Global demand for a wide range of commodities has remained weak throughout 2013, and with the potential for prices to fall further, many African countries face the prospect that the resulting reduction in value of their main exports will hit growth rates. In particular, Nigeria and Angola both remain heavily exposed to any negative oil-price shocks.

Any deterioration in global sentiment could just as easily shift portfolio risk calculations towards traditional ‘safe havens’, leading to an unravelling of the ‘Africa rising’ narrative as investors become wary. Against this background, Chinese investment in Africa becomes even more signi�cant as ties are underpinned by consistent growth in trade �ows, which topped $200 billion in 2012.2 Links are particularly strong in the infrastructure and energy sectors.

China has performed well within the Prosperity Index over the last �ve years, rising from 58th to 48th on the Index. �e country’s rise has been driven principally by its economic performance, although it has also performed well on the Social Capital and Governance sub-indices. Since 2009, China has climbed 27 places on the Economy sub-index and now ranks seventh. �e country’s very strong economic performance,

I

Chinese Prosperity Index ranking over five years out of 110 countries

SocialCapital

Economy

China, changes in Prosperity Index

Governance

OVERALLPROSPERITY

58

48

7

34

74

61

36

23

2009 2013

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21 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

including maintaining a gross domestic savings rate of over 50% of GDP, has allowed a high level of investment, both at home and abroad.

Chinese investment stock alone is estimated at about $20 billion,3 of which mining comprises one-third. In net value terms, state-owned Chinese �rms continue to dominate investment, largely due to their prominence in the extractive industries (China Non-Ferrous Metal Mining, which has a large presence in Zambia, is a key example). However, private Chinese �rms of all sizes increasingly drive Chinese commercial expansion in Africa,4 and Chinese provinces and municipalities are sending their own companies overseas (Shanghai Construction Group, for example) and are implementing independent aid projects.

While among Asian countries China is the largest investor in Africa, it is important to recognise that it is not alone. Japan, for example, although much less signi�cant in terms of overall trade �ows, has embassies in 32 African countries and more than 300 companies operating across the continent in metals, telecommunications, healthcare, agriculture, environmental technologies, and o¯cial development assistance (ODA) projects. Japanese companies have traditionally approached Africa through the giant Japanese commodity trading houses: Mitsui, Mitsubishi and Sumitomo. Most have yet to devise strategies for establishing themselves in situ, although the Japanese External Trade Organization ( JETRO) has identi�ed Africa as a new economic growth pole.5 Other important investors in Africa include South Korea, which through its chaebol conglomerates (principally Samsung), is reportedly looking to increase its regional investment to $10 billion by 2015.6

Asian investment, in particular from China, is attractive to some African governments as an important counterweight to Western �rms, whose investments are often conditional on the absence or mitigation of political or reputational risk within the speci�c country.

China-Africa debates have often characterised African governments as acquiescent to Chinese interests, but this perspective can overlook their frequent adeptness at using foreign relations to pursue domestic goals. In future, African leaders may not be above the scapegoating of China and Chinese nationals, should it be bene�cial to their domestic political prospects.7 In particular, the issue of perceived quality shortcomings has made Chinese �rms unpopular with some local communities, notably in Angola and South Africa, while the growing presence of Chinese traders prompted restrictive legislation in both Kenya and Nigeria in 2012.

Additionally, Chinese investments in the extractive industries tend to employ relatively few people in comparison to the bene�ts they accrue; many Chinese �rms also tend to bring in Chinese labour, either for cultural reasons or to aid communication. For this reason, the bene�ts to the country’s economy are often largely intangible to the local population.

However, Zambia provides an interesting case study in this area. Many Zambians hold largely positive attitudes towards foreign investment generally (and China speci�cally), despite occasional attacks against Chinese nationals. Indeed, Zambia is more tolerant than many of its neighbours to immigrants, with seven in ten Zambians saying they would welcome immigrants in their area according to Prosperity Index data. An Afrobarometer survey conducted in 2009 also revealed that three-quarters of the Zambian population believed that China has helped Zambia

AVERAGE GDP GROWTH RATES 2007—2012 (%)*

ASIA-PACIFIC

AFRICA

AMERICAS

AFRICA AVERAGE

Angola

Morocco

Nigeria Mozambique

Rwanda

Zambia

China

South Korea

Argentina

10

8

77

5 63

7

4

Brazil

4Taiwan

2

9

AverageGrowthRates2007-2012(%)

Japan0.2

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LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 22

“a lot” or “somewhat”. 8 Zambians instead tended to blame their own politicians for economic di¯culties.

In 2012, the murder of a Chinese mine supervisor in Zambia did not lead to a backlash signi�cant enough to a�ect investor con�dence. Zambia is currently booming; real GDP in 2013 is likely to grow by around 8% according to the IMF (from 7.3% in 2012), with �scal policy and mining activity the key drivers. Zambia’s consistently high placing within the Economy sub-index (13th out of 38 within Africa in 2013) illustrates its strong recent performance, driven by its impressive level of high-tech exports (over 24.8% of the country’s manufactured exports are high-tech, the third-highest proportion in Africa) and strong GDP per capita growth, which averaged 3.5% between 2007-2011.

However, an interesting counterpoint to the narrative presented so far involves Kenya, which has managed average per capita GDP growth of 1.5% since 2007, (according to World Bank data) despite the post-electoral violence of early 2008. Its growth is not tied to the extractive sector or primary commodities generally. Rather, services are at the heart of its story. �is is re�ected in the relatively high ranking for Entrepreneurship & Opportunity (8), compared with an overall Prosperity rank of 18 of 38.

Although Kenya ranks low on Safety & Security (28), the country’s ranking for Education (14), Health (15) and Social Capital (9) underscore the broad opportunities opening up in the medium term for its economy. China has invested heavily in Kenya over the past few years9 in the usual economic sectors and infrastructure, but also in education and 63% of Kenyans have a positive view of Chinese in�uence.

�e Kenyan model may provide an example for other African countries looking to harness the high levels of investment in the country to produce sustainable, longer-term growth. The development of strong institutions, along with an educated workforce capable of sustaining a service-based economy, can allow continued growth, as well as consequent improvements in wellbeing. While investment from Asia and elsewhere can provide the capital for such development, the impetus must come from strong governance and committed leadership.

Kenya Zambia

Economy rank

E&O rank

Education rank

Health rank

Hi-techexports

Perceptions thatChina helped

somewhat or a lot74%

24.8%5.7%

63%

1331

8

14

15

11

12

31

1. African Development Bank Group, African Development Report 2012: Towards Green Growth in Africa, (Tunis-Belvedere: African Development Bank, 2013), http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/African%20 Development%20Report%202012.pdf

2. “China investments in Africa boom”, United Press International, March 20, 2013 , http://www.upi.com/Business_News/2013/03/20/China-investments-in-Africa-boom/UPI-68541363778204/

3. “Insight and Strategy - Chinese private sector investment is understated, undercover”, Standard Bank Research Portal, last modified May 22, 2013, https://m.research. standardbank.com/Research?view=1671-CF40C461C65E4A8F9D6A2BF66916A27D-1last modified

4. Xiaofang Shen, “Private Chinese investment in Africa: myths and realities”, (working paper, The World Bank, Development Economics Vice Presidency, 2013), http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-6311

5. “The Private Sector, Trade and Investment as Engines of Development” (Tokyo International Conference on African Development, Thematic Session 1, Yokohama, Japan, June 1-3, 2013, http://www.mofa.go.jp/files/000007153.pdf

6. Eleanor Whitehead, “South Korea: Africa’s unsung Asian partner”, This is Africa, February 26, 2013, http://www.thisisafricaonline.com/News/South- Korea-Africa-s-unsung-Asian-partner3?ct=true

7. Ian Taylor, China’s New Role in Africa, Boulder (CO: Lynne Rienner Publishers, 2009)

8. Aleksandra Gadzala and Marek Hanush, “African Perspectives on Africa-China: Gauging Popular Perceptions and their Economic and Political Determinants”, (working paper, Afrobarometer, 2010), http://www.isn.ethz.ch/Digital-Library/Publications/Detail/?id=112383&lng=en

9. Kenya signs 10 bilateral deals with China”, Reuters, April 21, 2011, http://www.reuters.com/article/2011/04/21/ozatp-kenya-china-aid-idAFJOE73K0O020110421

KENYA AND ZAMBIA COMPARISON* *See footnotes p69-70

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MDGs POST-2015

23 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

MILLENNIUM DEVELOPMENT GOALS

Post–2015 Development Agenda

n Wednesday 6th September 2000, New York City played host to the Millennium Summit, the biggest meeting of global leaders in history at that time. It was at this summit that the United Nations Millennium Declaration1 was adopted, endorsed by 189 countries, which asserts that every individual has the right to dignity, freedom, equality, a basic

standard of living that includes freedom from hunger and violence, and encourages tolerance and solidarity. It is from this declaration that the Millennium Development Goals (MDGs) were derived. �ere are eight goals with a total of 21 targets.

As we move towards the expiration of the MDGs (2015), now is a good time to re�ect on the progress that has been made as well as the challenges that have been faced. While the MDGs are global, for the purposes of this report, our focus will be on Africa.

Although none of the goals has been fully achieved and only four (universal primary education, gender equality, combat of diseases and global partnership) are on track for completion, the region has experienced substantial progress on many of the MDG targets.2 For example, the spread of AIDS, malaria and tuberculosis has been reversed and gender equality in school enrolment will likely be achieved soon.

�e goals themselves have certainly drawn attention to African development and have helped focus e�orts and funds towards the important issues highlighted by the goals. A closer look at the continent reveals a mixed picture, with more targets having been met in northern Africa compared with sub-Saharan Africa.

The MDGs have, however, been criticised for underestimating the progress of African countries given the way they were formulated.3 Moreover, the overemphasis on “outcomes”, rather than on development “processes” has been described as a major drawback to the e�ectiveness of the MDG agenda, as it focuses more on short-term results than building the correct institutions for long-term sustainable development.4

With the 2015 deadline for the goals looming, the crucial questions to be asked are: 1) what did the original development goals miss out? And 2) what should the next set of development goals be focused on?

Goal 1 aimed to eradicate poverty and hunger before 2015. According to the 2013 MDG report, however, sub-Saharan African countries made the least progress to halve the proportion of people su�ering from hunger. �is slow progress is explained in the report by the recurrence of droughts, exacerbated by climate change, but also price hikes and variability.

�e Legatum Prosperity Index™ shows that certain countries have managed to achieve very large improvements since 2005, most notably Nigeria, the Central African Republic and Rwanda. However, after the 2008 global food crisis there was a common trend of an increase in the prevalence of undernourishment.

OTHE GOALS

1. Eradicate extreme poverty and hunger

2. Achieve universal primary education

3. Promote gender equality and empower women

4. Reduce child mortality

5. Improve maternal health

6. Combat HIV/AIDS, malaria and other diseases

7. Ensure environmental sustainability

8. Create a global partnership for development with targets for aid, trade and debt relief

MD

G ic

ons

© th

e U

nite

d N

atio

ns

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MDGs POST-2015

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 24

2005 2007 2008 2011

24 23

AFRICA AVERAGE

21

Sudan

39

21 22

Rwanda

40

2932

Nigeria

29

9

6

Namibia

19

34

18

Central African Republic

43

30

40

Uganda15

35

22

Africa Avg. 82 1151

Liberia 41 3345

Djibouti 54 539

Nigeria 58 1044

Cote d'Ivoire 61 861

Mali 63 639

Burkina Faso 64 425

Niger 65 215

Central African Republic 69 318

Sierra Leone 69 2158

Zambia 95 2175

Egypt, Arab Rep. 96 2872

Morocco 96 1470

Algeria 96 32102

Malawi 97 134

Tanzania 98 435

Rwanda 99 736

Tunisia 99 3793

Primary

Enrolement rates in educationProsperity Index data 2013(%)

Secondary Tertiary

95%+PRIMARY EDUCATION

ENROLMENT RATES ACHIEVED IN EIGHT

AFRICAN COUNTRIES IN 2013

(PROSPERITY INDEX)

1 2SHARE OF THE POPULATION WHOSE CALORY INTAKE IS CONSISTENTLY LESS THAN THE DAILY MINIMUM STANDARDS*

ENROLMENT RATES IN PRIMARY, SECONDARY AND TERTIARY EDUCATION*

*All data are from the Legatum Prosperity Index

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MDGs POST-2015

25 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

INFA

NT

MO

RTA

LITY

RA

TE (P

ER 1

000

LIV

E BI

RTH

S)

Infant Mortality

Botswana

Kenya

Mozambique

Namibia

Rwanda

Zambia REGIONAL AVERAGE

2007 2009 2010 2011

60

120

20

-25 -20 -10 0 10 20 30 40

Change in the rate of immunisation against infectious disease (children aged 1-2 years) 2007-2011

35 -15 -5 5 15 25

Change in the rate of immunisation against measles(children aged 1-2 years), 2007-2011

Uganda

Zimbabwe

Nigeria

Sudan

Kenya

Namibia

Ghana

South Africa

Ethiopia

Mali

4

4

INFANT MORTALITY RATES (PER 1000 LIVE BIRTHS )*

IMMUNISATION RATES*

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MDGs POST-2015

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 26

There has been progress in primary school education in Africa in the past decade. In fact, eight African countries included in the Prosperity Index achieved primary education enrolment rates above 95% in 20135 (for comparison, India and Brazil have respective enrolment rates of 93% and 94%). However, completion rates are still very low and score weakly by international comparison.6 Moreover, enrolment rates in secondary and tertiary education, 79% and 39% respectively, are still very low compared to the global average. The Prosperity Index also shows that in the majority of African countries, the average worker has received less than a year of secondary education.

Interestingly, not all countries follow the pattern of high primary but low secondary and tertiary enrolment rates. For example, Liberia and Sierra Leone have much higher tertiary enrolment rates than, for example, Morocco or Malawi but lower primary enrolment rates. Given the above, and to enable a shift from agrarian to service economies, it is crucial that targets are set for secondary and tertiary education in the 2015 MDGs.

Goal 3 targeted gender equality in primary and secondary education. Big improvements were seen in countries such as Nigeria, Ethiopia, Mali and Mozambique. Despite these successes, drops in the ratio in countries such as Ghana, where it fell from 0.97 to 0.93, have meant that the regional average ratio has only increased slightly between 2010 and 2013, from 0.94 to 0.95.

The picture for Goal 4, which aimed at tackling child mortality by an ambitious two thirds, is more encouraging. While the goal has not been achieved worldwide, Africa infant mortality decreased by one third between 1990 and 2011.7 Moreover, Prosperity Index data shows that in countries such as Mozambique, Rwanda, and Zambia where infant mortality rates were above the regional average in 2007, highly impressive drops have been achieved in the past few years.

Another indicator under Goal 4 that has been widely met in Africa is immunization against measles: more than 21 countries managed to immunise 90% of their population against measles between 1990 and 2010.7 Within the ten top countries that have increased immunization rates are Mali, Ethiopia, Ghana and Sudan. However, we can see from the graphic below that apart from Sudan, there has been a reverse in trend in these countries since 2007, while Zimbabwe has made the most progress in the past four years. Moreover, measles vaccination is a one-dose immunization and therefore easier to achieve than other healthcare indicators. It is interesting to see that although in general immunization rates against measles and against infectious diseases (which require recalls eg for diphtheria, pertussis, and tetanus) change together, there are exceptions such as Nigeria and Namibia.

Significant progress has already been made in health, education, and poverty. These are vital areas for development and new post-2015 targets should be set for them. Looking beyond these themes, however, an important field for the further development in the region must be Safety & Security, where the region has actually lost ground over the past five years.

As the graph shows (overleaf ), the improvement in the region’s average score for Governance has also been minimal. These two fields are vital for obvious reasons: for any real long-term development to begin, safety and stability is crucial, and once that stability has been established, it is effective governance through stable institutions that will allow it to continue.

There has been considerable debate about whether to include variables on human rights, governance and safety in the post-MDG agenda. Some have questioned whether these targets

would be politically feasible;8 there is a debate about the role these issues play at different levels of development, and there are significant challenges relating to measuring them.9 However, there has been increasing awareness and agreement that the rule of law is a crucial factor required to achieve lasting development. Indeed the UN Secretary-General’s High-level Panel’s recent report10 outlined specific Sustainable Development Goals (SDGs), which included Goal 10 to “ensure good governance and stable institutions” and Goal 11 to “ensure stable and peaceful societies”.

If we look at important variables relating to Safety & Security in the Prosperity Index, we can see why this needs to be an important area of focus. As many as 12% of those surveyed in sub-Saharan Africa reported having been assaulted or mugged in the past year, while the world average was just 7.5%. If we look into specific countries, this number goes as high as 38% (in Angola). Over a quarter of those surveyed across the region reported having property stolen in the past year, while only 56% reported feeling safe walking alone at night. In Namibia, Chad and South Africa, less than a third of people felt this basic perception of safety.

A similar story presents itself when we look at issues of Governance. It has been on average only 12 years since the last regime change in a sub-Saharan country, while this number is 30 years for the world as a whole. It is not hard to see how consistent development is a difficult goal with such regular—and often violent—changes of regime. Sub-Saharan Africa is also far below the world average in terms of rule of law and government effectiveness. The rampant corruption in the region also stands out: over three-quarters of those surveyed in sub-Saharan Africa reported believing that corruption was widespread in business and in the government of their countries.

IMPROvING GOvERNANCE AND SAFETY & SECURITY

SHOULD BE INTEGRAL TO POST-2015 DEvELOPMENT

GOALS

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MDG

27 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

On Governance variables, Ghana and Rwanda show signs for optimism: Ghana places 3rd and Rwanda places 7th (out of 38 African nations) on the quality of its regulation, and Rwandan citizens have a high level of con�dence in both the military and the government. Senegal and Botswana show similar good scores in governance variables. Over the coming years, we are likely to see a growing wedge between these countries and those unable to develop and implement policies to sustain economic growth and support the huge potential of a young population. States like Cameroon, Chad, the Democratic Republic of Congo, and Zimbabwe, appear destined to struggle.

Across Africa, measures relating to Governance and Safety & Security remain very low. �ese factors that are vital for future development should form part of the post-2015 discussion on development goals. �e formulation of the targets and the degree to which they will require international intervention will be important for their political acceptance. Although much of Africa has not yet been able to achieve the targets set out in the MDGs, much progress has been made. �e focus now should be on goals and targets that aim to establish stable, democratic governance and increased peace across the continent. Only then will the foundations be laid for long-term development and prosperity.

Changes in Prosperity Index sub-indices for Africa 2009-2013

Entrepreneurship& Opportunity

+1.10Health

+0.98 Economy

+0.57 Education

+0.42Social

Capital

+0.13

PersonalFreedom

+0.11Governance

+0.01 Safety &Security

-0.13

CHANGES IN PROSPERITY INDEX SUB-INDICES FOR AFRICA 2009–2013*

1. United Nations General Assembly, “United Nations Millennium Declaration”, Resolution 55/2, September 18, 2000, http://www.un.org/ga/search/view_doc.asp?symbol=A/RES/55/2&referer=/english/&Lang=E

2. UNDP, MDG Report 2013: Assessing progress in Africa toward the Millennium Development Goals, (Addis Ababa: UNDP, 2013), http://www.afdb.org/fileadmin/ uploads/afdb/Documents/Publications/Millennium%20Development%20Goals%20(MDGs)%20Report%202013.pdf

3. William Easterly, “How the Millennium Development Goals are unfair to Africa”, World Development 37, no. 1 (2009):26-35

4. Clive Gabay, “The MDG legacy: social, cultural and spatial engineering”, (Briefing Paper 36, International NGO Training and Research Centre, 2013), http://www.intrac.org/data/files/resources/762/Briefing-Paper-36-The-MDG-legacy-social-cultural-and-spatial-engineering.pdf

5. 2013 Prosperity Index data6. Net primary enrolment rate: Ratio of children of official school age who are

enrolled in school to the population of the corresponding official school age. Gross secondary (tertiary) enrolment: The ratio of total enrolment, regardless of age, to the population of the age group that officially corresponds to the level of secondary (tertiary) education.

7. UNDP, MDG Report 2013: Assessing progress in Africa toward the Millennium Development Goals, (Addis Ababa: UNDP, 2013), http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Millennium%20Development%20Goals%20(MDGs)%20Report%202013.pdf

8. Mark Tran, “Human rights could befaultline in post-2015 development agenda”, The Guardian, November 21 , 2012, http://www.theguardian.com/global-development/2012/nov/21/human-rights-faultline-development-agenda

9. Lisa Denney, “Security: The missing bottom of the Millennium Development Goals?”, (Research Report, Overseas Development Institute, August 2012), http://www.odi.org.uk/sites/odi.org.uk/files/odi-assets/publications-opinion-files/7788.pdf

10. UN Secretary-General’s High-level Panel of Eminent Persons on the Post-2015 Development Agenda, A New Global Partnership: Eradicate Poverty and Transform Economies Through Sustainable Development, (New York: UN Secretary-General’s High-level Panel of Eminent Persons on the Post-2015 Development Agenda, May 2013), http://www.post2015hlp. org/wp-content/uploads/2013/05/UN-Report.pdf

The graph shows average changes in sub-index scores over five years (2009–2013). All data are from the Prosperity Index.

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COUNTRY FACTSHEETS

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 28

Country faCtsheets:Africa

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29 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

3EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20110.9%

2.7%

Confidence in financial institutions?* (% yes)

201267.2%

66.7%

Satisfaction with living standards?* (%

yes) 2012

66.3%40.8%

6EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110.5%

0.2%

Mobile phones (per 100 ppl)

2011103.3

70.1

Will w

orking hard get you ahead?* (% yes)

201290.8%

88.2%

17G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2009

54.8%55.1%

Confidence in the judiciary?* (% yes)

201064.7%

55%

Governm

ent effectiveness 1 2011

-0.7-0.7

1ED

UC

ATION

Gross secondary enrolm

ent rate 2011

101.6%50.6%

Satisfaction with education quality?* (%

yes)2012

65.9%51.8%

Perception children are learning?* (% yes)

201271.4%

62.2%

2H

EALTH

Self-reported health problems?* (%

yes)2012

10.9%25%

Hospital beds* (per 1000 people)

-2.3

1.2

Satisfaction with health?* (%

yes) 2011

84.1%75.8%

18SA

FETY & SEC

URITY

Hum

an flight 22012

5.46.7

Safe walking alone at night?* (%

yes) 2012

53.5%55.7%

Property stolen in past 12 months?* (%

yes) 2012

20.2%25.2%

35PERSO

NA

L FREEDO

MCivil liberties 3

20123

3.7

Tolerance for ethnic groups?* (% yes)

201231.4%

67%

Satisfaction with freedom

of choice?* (% yes)

201258.7%

66.3%

19SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

20128.4%

17.1%

Donated to charity in past m

onth?* (% yes)

201212.1%

15%

Helped strangers in past m

onth?* (% yes)

201245%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

ALG

ERIA

SUB-IN

DIC

ES6

OV

ERALL RA

NKIN

G: (TO

TAL 38)

84%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

26%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

55%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:23

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

66%

20132012

12.1%

110203038

UP1

»A

lgeria has moved up one place to 6th in overall Prosperity.

»The country ranks first in the Education sub-index, as a result of an increase in the girls to boys enrolm

ent ratio, net prim

ary enrolment rate, and gross secondary and tertiary

enrolment rates.

»The Econom

y sub-index registers a one place decline, to 3rd, because of decreasing high-tech exports and a slow

down

in the 5-year GD

P per capita growth rate.

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LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 30

22EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

5.7%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1155

.8%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1150

.3%

40.8

%

24EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110%

0.2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1148

.670

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2011

59.4

%88

.2%

32G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1124

.4%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2011

37.8

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-1.2

-0.7

27ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1031

.3%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1144

.5%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2011

62.5

%62

.2%

28H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2011

21.1%

25%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2005

0.8

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2011

74.4

%75

.8%

30SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

125.

66.

7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2011

45.5

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1128

.7%

25.2

%

36PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

123

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2011

29.8

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2011

58.4

%66

.3%

20SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1134

.4%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2011

32.2

%15

%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2011

57.5

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

AN

GO

LASU

B-IN

DIC

ES32

OV

ERA

LL R

AN

KIN

G: (

TOTA

L 38

)

72%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

57%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

50%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:46

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

87%

2013

2012

105.

4%

1 10 20 30 38

DOW

N 2

»A

ngol

a ha

s mov

ed d

own

two

plac

es to

32n

d ov

eral

l.

»Th

e G

over

nanc

e su

b-in

dex

has r

egis

tere

d th

e bi

gges

t de

crea

se, d

ropp

ing

dow

n ni

ne p

lace

s to

32nd

. Th

is d

rop

is th

e re

sult

of a

n in

crea

se in

per

cept

ions

of

busi

ness

and

gov

ernm

ent c

orru

ptio

n, a

nd a

dec

line

in

confi

denc

e in

gov

ernm

ent a

nd in

the

hone

sty

of e

lect

ions

.

»Th

e co

untr

y ha

s mov

ed u

p fo

ur p

lace

s to

22nd

in th

e Ec

onom

y su

b-in

dex.

Thi

s rise

is d

ue to

an

incr

ease

in g

ross

do

mes

tic sa

ving

s, m

arke

t size

and

hig

h-te

ch e

xpor

ts.

Page 32: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

31 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

30EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20110.7%

2.7%

Confidence in financial institutions?* (% yes)

201264.8%

66.7%

Satisfaction with living standards?* (%

yes) 2012

20.2%40.8%

28EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110%

0.2%

Mobile phones (per 100 ppl)

201189.9

70.1

Will w

orking hard get you ahead?* (% yes)

201288.2%

88.2%

8G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

58.6%55.1%

Confidence in the judiciary?* (% yes)

201256.3%

55%

Governm

ent effectiveness 1 2011

-0.5-0.7

17ED

UC

ATION

Gross secondary enrolm

ent rate 2011

51.4%50.6%

Satisfaction with education quality?* (%

yes)2012

52.1%51.8%

Perception children are learning?* (% yes)

201266%

62.2%

12H

EALTH

Self-reported health problems?* (%

yes)2012

29.1%25%

Hospital beds* (per 1000 people)

20100.5

1.2

Satisfaction with health?* (%

yes) 2012

68.8%75.8%

1SA

FETY & SEC

URITY

Hum

an flight 22012

6.36.7

Safe walking alone at night?* (%

yes) 2012

71.7%55.7%

Property stolen in past 12 months?* (%

yes) 2012

19.3%25.2%

1PERSO

NA

L FREEDO

MCivil liberties 3

20126

3.7

Tolerance for ethnic groups?* (% yes)

201279.6%

67%

Satisfaction with freedom

of choice?* (% yes)

201276.9%

66.3%

36SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201211.6%

17.1%

Donated to charity in past m

onth?* (% yes)

20128.2%

15%

Helped strangers in past m

onth?* (% yes)

201237.4%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

BENIN

SUB-IN

DIC

ES15

OV

ERALL RA

NKIN

G: (TO

TAL 38)

52%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

76%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

27%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:44

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

75%

20132012

126.8%

110203038

UP5

»Benin’s overall Prosperity ranking rose by five places to 15th in Africa betw

een 2012 and 2013.

»In the Econom

y sub-index the nation fell seven places. A decrease in foreign direct investm

ent, and gross domestic

savings drove the country down from

23rd to 30th.

»It has risen by four places in the H

ealth sub-index (from

16th to 12th). This increase was caused m

ainly by a decrease in tuberculosis rates, undernourishm

ent, and infant mortality.

»Benin ranks 1st in A

frica in both the Personal Freedom and

Safety & Security sub-indices, but finds itself in the bottom

5 for Social Capital, w

here it is ranked 36th.

Page 33: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 32

10EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

3.2%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1271

.5%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1236

%40

.8%

3EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110.

2%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1115

0.1

70.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

95.4

%88

.2%

1G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1269

.2%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2011

81.8

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

0.5

-0.7

4ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

0882

.1%50

.6%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1164

.3%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2011

91.5

%62

.2%

7H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

29.3

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2010

1.8

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

67.9

%75

.8%

5SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

125.

36.

7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

34.6

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1229

.9%

25.2

%

5PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

126

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

68%

67%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

79.9

%66

.3%

24SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1218

.7%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2011

6.4%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

51.1%

50.2

%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

BOTS

WA

NA

SUB-

IND

ICES

1O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

84%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

76%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

34%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:25

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

73%

2013

2012

1.6%

1 10 20 30 38

NO C

HANG

E

»Bo

tsw

ana

has r

emai

ned

at 1

st in

its o

vera

ll Pr

ospe

rity

rank

bet

wee

n 20

12 a

nd 2

013.

»Th

e co

untr

y ha

s mov

ed u

p by

seve

n pl

aces

to 1

0th

in th

e Ec

onom

y su

b-in

dex

due

to in

crea

ses i

n its

em

ploy

men

t rat

e,

an in

crea

se in

hig

h-te

ch e

xpor

ts a

nd in

crea

ses i

n th

e gr

oss

dom

estic

savi

ngs r

ate.

»It

is in

the

top

10 fo

r eve

ry su

b-in

dex

in A

fric

a ex

cept

for

Soci

al C

apita

l, do

wn

by si

x pl

aces

, to

24th

as a

resu

lt of

de

crea

ses i

n th

e le

vels

of c

harit

able

don

atio

ns.

Page 34: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

33 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

18EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20111.9%

2.7%

Confidence in financial institutions?* (% yes)

201272.8%

66.7%

Satisfaction with living standards?* (%

yes) 2012

27%40.8%

22EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110%

0.2%

Mobile phones (per 100 ppl)

201157.1

70.1

Will w

orking hard get you ahead?* (% yes)

201287.3%

88.2%

11G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

62.1%55.1%

Confidence in the judiciary?* (% yes)

201259.3%

55%

Governm

ent effectiveness 1 2011

-0.5-0.7

28ED

UC

ATION

Gross secondary enrolm

ent rate 2012

24.7%50.6%

Satisfaction with education quality?* (%

yes)2012

66.4%51.8%

Perception children are learning?* (% yes)

201264.4%

62.2%

23H

EALTH

Self-reported health problems?* (%

yes)2012

25.1%25%

Hospital beds* (per 1000 people)

20100.4

1.2

Satisfaction with health?* (%

yes) 2012

76.5%75.8%

8SA

FETY & SEC

URITY

Hum

an flight 22012

66.7

Safe walking alone at night?* (%

yes) 2012

69.9%55.7%

Property stolen in past 12 months?* (%

yes) 2012

16.4%25.2%

4PERSO

NA

L FREEDO

MCivil liberties 3

20125

3.7

Tolerance for ethnic groups?* (% yes)

201292.2%

67%

Satisfaction with freedom

of choice?* (% yes)

201262.2%

66.3%

21SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

20128.2%

17.1%

Donated to charity in past m

onth?* (% yes)

20129.5%

15%

Helped strangers in past m

onth?* (% yes)

201246.2%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

BUR

KIN

A FA

SOSU

B-IND

ICES

14O

VERA

LL RAN

KING

: (TOTA

L 38)

74%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

61%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

27%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:48

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

70%

20132012

46.8%

110203038

NO CHANGE

»Burkina Faso ranks 14th in overall Prosperity rankings, w

ith no m

ovement from

2012.

»The H

ealth sub-index went dow

n fourteen places to 23rd. This is the result of a decrease in m

easles imm

unisation rates and per capita health expenditure, alongside an increase in undernourishm

ent.

»Burkina Faso saw

the largest improvem

ent in Africa for

Entrepreneurship & O

pportunity, moving up nine places, to

22nd in the region.

»The Education sub-index rose by seven places to 28th as a result of im

provements in the girl to boy ratio in prim

ary schools and the num

ber of years of secondary education per worker.

Page 35: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 34

37EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

0.8%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1182

%66

.7%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1126

.2%

40.8

%

33EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110%

0.2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1125

.770

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2011

91.9

%88

.2%

23G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1185

.2%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2011

56.5

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-1.1

-0.7

22ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1128

%50

.6%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1171

%51

.8%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2011

42.5

%62

.2%

34H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2011

31.2

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2011

1.9

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2011

70.3

%75

.8%

25SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

125.

96.

7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2011

65.2

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1124

.3%

25.2

%

29PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

123

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2011

76.6

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2011

49%

66.3

%

35SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

117.7

%17

.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2011

4.8%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2011

27.8

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

BUR

UN

DI

SUB-

IND

ICES

35O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

42%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

78%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

17%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:48

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

67%

2013

2012

18.3

%

1 10 20 30 38

NO C

HANG

E

»Bu

rund

i has

seen

no

chan

ge in

ove

rall

Pros

perit

y st

ayin

g at

35t

h ov

eral

l.

»Th

e Ec

onom

y su

b-in

dex

expe

rienc

ed th

e bi

gges

t dec

reas

e by

thre

e pl

aces

, dro

ppin

g to

37t

h. T

his i

s bec

ause

of a

n in

crea

se in

infla

tion,

and

a d

eclin

e in

gro

ss d

omes

tic sa

ving

s.

»Th

e co

untr

y ha

s mov

ed u

p th

ree

plac

es to

33r

d in

the

Entr

epre

neur

ship

& O

ppor

tuni

ty su

b-in

dex.

A d

ecre

ase

in b

usin

ess s

tart

-up

cost

s, an

incr

ease

in in

tern

et b

andw

idth

, an

d in

mob

ile p

hone

s per

100

peop

le, h

elpe

d im

prov

e th

is su

b-in

dex.

Page 36: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

35 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

8EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20110.5%

2.7%

Confidence in financial institutions?* (% yes)

201259.4%

66.7%

Satisfaction with living standards?* (%

yes) 2012

39.3%40.8%

16EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110%

0.2%

Mobile phones (per 100 ppl)

201164

70.1

Will w

orking hard get you ahead?* (% yes)

201293.5%

88.2%

28G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

53.8%55.1%

Confidence in the judiciary?* (% yes)

201241.3%

55%

Governm

ent effectiveness 1 2011

-0.9-0.7

13ED

UC

ATION

Gross secondary enrolm

ent rate 2011

51.3%50.6%

Satisfaction with education quality?* (%

yes)2012

66.9%51.8%

Perception children are learning?* (% yes)

201270.3%

62.2%

22H

EALTH

Self-reported health problems?* (%

yes)2012

29.1%25%

Hospital beds* (per 1000 people)

20101.3

1.2

Satisfaction with health?* (%

yes) 2012

73%75.8%

15SA

FETY & SEC

URITY

Hum

an flight 22012

7.56.7

Safe walking alone at night?* (%

yes) 2012

60.8%55.7%

Property stolen in past 12 months?* (%

yes) 2012

13.9%25.2%

21PERSO

NA

L FREEDO

MCivil liberties 3

20122

3.7

Tolerance for ethnic groups?* (% yes)

201270.8%

67%

Satisfaction with freedom

of choice?* (% yes)

201276.6%

66.3%

25SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201212.5%

17.1%

Donated to charity in past m

onth?* (% yes)

201217.2%

15%

Helped strangers in past m

onth?* (% yes)

201266.7%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

CA

MERO

ON

SUB-IN

DIC

ES17

OV

ERALL RA

NKIN

G: (TO

TAL 38)

74%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

59%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

35%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:45

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

87%

20132012

35.8%

110203038

DOWN

1

»C

ameroon has fallen from

16th to 17th in overall Prosperity rank.

»The Personal Freedom

sub-index has gone down nine

places, to 21st. This decline is the result of decreases in tolerance for im

migrants and ethnic m

inorities.

»The Safety &

Security sub-index has has improved seven

places, to 15th due to decreases the incidences of property being stolen and an increased perception in being able to safely w

alk home alone at night.

»C

ameroon’s best perform

ance is in the Economy sub-index,

ranking 8th in the region.

Page 37: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 36

28EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

0.8%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1172

.3%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1133

.8%

40.8

%

38EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110%

0.2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1123

.470

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2011

90.6

%88

.2%

25G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1180

.3%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2011

69.2

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-1.4

-0.7

38ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1118

%50

.6%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1139

.3%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2011

53.5

%62

.2%

36H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2011

25.1%

25%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2011

11.

2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2011

70.1%

75.8

%

35SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

125.

66.

7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2011

59.8

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1130

.4%

25.2

%

13PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

123

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2011

74.5

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2011

78%

66.3

%

37SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1114

.6%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2011

12.1%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2011

43.1%

50.2

%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cen

tral

Afr

ican

Rep

ublic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

CEN

TRA

L A

FRIC

AN

REP

UBL

ICSU

B-IN

DIC

ES37

OV

ERA

LL R

AN

KIN

G: (

TOTA

L 38

)

39%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

90%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

38%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:81

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

75%

2013

2012

172.

6%

1 10 20 30 38

UP 1

»Ce

ntra

l Afr

ican

Rep

ublic

has

mov

ed u

p on

e pl

ace

to 3

7th

over

all,

regi

ster

ing

incr

ease

s in

the

Econ

omy

(now

28t

h) a

nd

Gov

erna

nce

(25t

h) su

b-in

dexe

s.

»Pe

rson

al F

reed

om p

rese

nts

the

bigg

est

rise

—m

ovin

g up

13

pla

ces

to 1

3th—

due

to a

n in

crea

se in

the

guar

ante

e of

civ

il lib

ertie

s an

d to

lera

nce

tow

ards

imm

igra

nts

and

ethn

ic m

inor

ities

.

»So

cial

Cap

ital r

egis

ters

the

bigg

est d

ecre

ase,

goi

ng d

own

five

plac

es to

37t

h in

201

3. C

ompa

red

to la

st y

ear,

the

coun

try

pres

ents

low

er sc

ores

on

perc

eptio

ns o

f soc

ial s

uppo

rt, l

ess

peop

le v

olun

teer

ed th

eir t

ime

to o

rgan

isatio

ns, a

nd a

smal

ler

perc

enta

ge o

f peo

ple

have

hel

ped

stra

nger

s thi

s yea

r.

Page 38: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

37 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

14EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20110.5%

2.7%

Confidence in financial institutions?* (% yes)

201266.3%

66.7%

Satisfaction with living standards?* (%

yes) 2012

41.9%40.8%

36EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110%

0.2%

Mobile phones (per 100 ppl)

201135.5

70.1

Will w

orking hard get you ahead?* (% yes)

201280.1%

88.2%

37G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

30.7%55.1%

Confidence in the judiciary?* (% yes)

201231.7%

55%

Governm

ent effectiveness 1 2011

-1.4-0.7

37ED

UC

ATION

Gross secondary enrolm

ent rate 2011

25.4%50.6%

Satisfaction with education quality?* (%

yes)2012

58.8%51.8%

Perception children are learning?* (% yes)

201253.7%

62.2%

38H

EALTH

Self-reported health problems?* (%

yes)2012

29.7%25%

Hospital beds* (per 1000 people)

20050.4

1.2

Satisfaction with health?* (%

yes) 2012

67.4%75.8%

37SA

FETY & SEC

URITY

Hum

an flight 22012

7.76.7

Safe walking alone at night?* (%

yes) 2012

32.9%55.7%

Property stolen in past 12 months?* (%

yes) 2012

19.5%25.2%

31PERSO

NA

L FREEDO

MCivil liberties 3

20122

3.7

Tolerance for ethnic groups?* (% yes)

201270.1%

67%

Satisfaction with freedom

of choice?* (% yes)

201256.3%

66.3%

28SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201211.7%

17.1%

Donated to charity in past m

onth?* (% yes)

201212.8%

15%

Helped strangers in past m

onth?* (% yes)

201250.4%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

CH

AD

SUB-IN

DIC

ES38

OV

ERALL RA

NKIN

G: (TO

TAL 38)

67%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

72%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

39%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:63

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

87%

20132012

202%

110203038

DOWN

2

»C

had moves dow

n two places to the bottom

of the ranking in overall Prosperity (38th).

»The Econom

y sub-index registers the biggest increase in ranking, m

oving up six places to 14th. This is mainly due to

a big increase in gross domestic savings.

»Social C

apital sub-index has fallen the most, dow

n fourteen places to 28th, due to a decline in perceptions of social support and in m

oney donations to charity.

»Rankings for Entrepreneurship &

Opportunity (36th),

Governance (37th), Education (37th), H

ealth (38th) and Social Capital (28th) sub-indexes have all decreased.

Page 39: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 38

23EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

2.9%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1262

.3%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1242

.2%

40.8

%

37EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110.

3%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1128

70.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

81.3

%88

.2%

36G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1248

.7%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2012

40.8

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-1.7

-0.7

30ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1139

.8%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1240

.3%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

38.7

%62

.2%

35H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

23.8

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2006

0.8

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

71.6

%75

.8%

38SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

127.4

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

48.5

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1217

.6%

25.2

%

34PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

122

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

61.5

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

55.7

%66

.3%

13SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1210

.6%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

8.1%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

29.8

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Con

go (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

CO

NG

O (D

EMO

CR

ATIC

REP

UBL

IC)

SUB-

IND

ICES

36O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

77%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

72%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

40%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:37

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

71%

2013

2012

284.

7%

1 10 20 30 38

UP 1

»Th

e D

emoc

ratic

Rep

ublic

of C

ongo

has

mov

ed u

p on

e pl

ace

to 3

6th

in o

vera

ll Pr

ospe

rity.

»Th

e Ec

onom

y su

b-in

dex

regi

ster

s a

ten

plac

e in

crea

se

in ra

nkin

g, ri

sing

to 2

3rd.

Thi

s is

ass

ocia

ted

with

a ri

se

in g

ross

dom

estic

sav

ings

, inc

reas

e in

mar

ket s

ize,

hig

her

expe

ctat

ions

of t

he e

cono

my

and

a gr

eate

r sat

isfac

tion

with

st

anda

rds o

f liv

ing.

»Th

e Pe

rson

al F

reed

om d

ropp

ed fo

ur p

lace

s (to

34t

h)

driv

en b

y a

decr

ease

in p

erce

ptio

ns o

f civ

ic c

hoic

e, fr

eedo

m o

f ch

oice

, tol

eran

ce to

war

ds im

mig

rant

s and

min

oriti

es.

»Sa

fety

& S

ecur

ity’s

drop

by

one

plac

e (t

o 38

th) i

s the

resu

lt of

incr

ease

s in

stat

e-sp

onso

red

polit

ical

vio

lenc

e, re

fuge

es a

nd

inte

rnal

ly d

ispla

ced

pers

ons,

and

dem

ogra

phic

inst

abili

ty.

Page 40: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

39 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

2EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20111.7%

2.7%

Confidence in financial institutions?* (% yes)

201272.7%

66.7%

Satisfaction with living standards?* (%

yes) 2012

41.8%40.8%

19EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110%

0.2%

Mobile phones (per 100 ppl)

2011101.2

70.1

Will w

orking hard get you ahead?* (% yes)

201282.5%

88.2%

31G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

54.3%55.1%

Confidence in the judiciary?* (% yes)

201256.6%

55%

Governm

ent effectiveness 1 2011

-1.2-0.7

9ED

UC

ATION

Gross secondary enrolm

ent rate -

83.8%50.6%

Satisfaction with education quality?* (%

yes)2012

55.9%51.8%

Perception children are learning?* (% yes)

201253.4%

62.2%

25H

EALTH

Self-reported health problems?* (%

yes)2012

28.6%25%

Hospital beds* (per 1000 people)

20051.6

1.2

Satisfaction with health?* (%

yes) 2012

73.7%75.8%

14SA

FETY & SEC

URITY

Hum

an flight 22012

6.56.7

Safe walking alone at night?* (%

yes) 2012

51.3%55.7%

Property stolen in past 12 months?* (%

yes) 2012

14.9%25.2%

19PERSO

NA

L FREEDO

MCivil liberties 3

20123

3.7

Tolerance for ethnic groups?* (% yes)

201265.9%

67%

Satisfaction with freedom

of choice?* (% yes)

201277.2%

66.3%

32SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201210.5%

17.1%

Donated to charity in past m

onth?* (% yes)

201210.1%

15%

Helped strangers in past m

onth?* (% yes)

201255.1%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic)

20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

CO

NG

O (R

EPUBLIC

)SU

B-IND

ICES

20O

VERA

LL RAN

KING

: (TOTA

L 38)

62%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

58%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

54%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:49

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

78%

20132012

55.3%

110203038

UP1

»The Republic of Congo is now

in the top 20 countries in overall Prosperity, rising one place to 20th.

»The Econom

y sub-index registers the biggest increase, a four place rise to 2nd in 2013. An increase in the capital per w

orker and gross domestic savings, com

bined with dim

inishing unem

ployment figures, contributes to this increase.

»The biggest decline is seen in the H

ealth sub-index, dropping three places, to 25th. This is the result of a drop in health expenditure per person, com

bined with an increase in

infant mortality rates and undernourishm

ent figures.

Page 41: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 40

4EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

0.8%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

0967

.7%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

0917

.5%

40.8

%

25EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110%

0.2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1196

.370

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2009

86.8

%88

.2%

34G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

0942

.7%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2009

49.5

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-1.2

-0.7

34ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e -

61%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

0925

.9%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2009

57.9

%62

.2%

30H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2009

27.8

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2006

0.4

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2009

68%

75.8

%

31SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

127.6

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2009

47.1%

55.7

%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

0912

.2%

25.2

%

2PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

123

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2009

90.5

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2009

76%

66.3

%

33SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

096.

6%17

.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2009

6.1%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2009

45%

50.2

%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côt

e d’

Ivoi

re

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

CO

TE D

’IVO

IRE

SUB-

IND

ICES

31O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

67%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

73%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

25%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:49

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

88%

2013

2012

130%

1 10 20 30 38

DOW

N 4

»Co

te d

’Ivoi

re h

as m

oved

dow

n fo

ur p

lace

s to

31st

in o

vera

ll Pr

ospe

rity,

driv

en b

y de

crea

ses i

n th

e En

trep

rene

ursh

ip &

O

ppor

tuni

ty (2

5th)

, Edu

catio

n (3

4th)

, Saf

ety

& S

ecur

ity (3

1st)

an

d H

ealth

(30t

h) su

b-in

dice

s.

»H

ealt

h ha

s see

n th

e bi

gges

t dec

reas

e in

rank

ing,

mov

ing

dow

n ni

ne p

lace

s, to

30t

h du

e to

a d

eclin

e in

the

rate

of

imm

unisa

tion

agai

nst i

nfec

tious

dise

ases

and

mea

sles

, in

crea

ses i

n th

e un

dern

ouris

hmen

t rat

es a

nd h

ighe

r inc

iden

ts

of tu

berc

ulos

is.

»Th

e Ec

onom

y su

b-in

dex

has m

oved

up

seve

n pl

aces

to

4th

in th

e re

gion

. Thi

s inc

reas

e is

the

resu

lt of

a d

ecre

ase

in

unem

ploy

men

t rat

e, a

n in

crea

se in

cap

ital p

er w

orke

r and

hi

gh-t

ech

expo

rts.

Page 42: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

41 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

29EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20113.3%

2.7%

Confidence in financial institutions?* (% yes)

201163.1%

66.7%

Satisfaction with living standards?* (%

yes) 2011

63.2%40.8%

31EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110%

0.2%

Mobile phones (per 100 ppl)

201122.7

70.1

Will w

orking hard get you ahead?* (% yes)

201173.8%

88.2%

14G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2011

71.4%55.1%

Confidence in the judiciary?* (% yes)

201160%

55%

Governm

ent effectiveness 1 2011

-1-0.7

29ED

UC

ATION

Gross secondary enrolm

ent rate 2012

39.1%50.6%

Satisfaction with education quality?* (%

yes)2011

69.3%51.8%

Perception children are learning?* (% yes)

201178.5%

62.2%

14H

EALTH

Self-reported health problems?* (%

yes)2011

20.3%25%

Hospital beds* (per 1000 people)

20101.4

1.2

Satisfaction with health?* (%

yes) 2011

87.3%75.8%

7SA

FETY & SEC

URITY

Hum

an flight 22012

4.96.7

Safe walking alone at night?* (%

yes) 2011

72.4%55.7%

Property stolen in past 12 months?* (%

yes) 2011

8.5%25.2%

26PERSO

NA

L FREEDO

MCivil liberties 3

20123

3.7

Tolerance for ethnic groups?* (% yes)

201161.2%

67%

Satisfaction with freedom

of choice?* (% yes)

201174.6%

66.3%

15SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

20118.2%

17.1%

Donated to charity in past m

onth?* (% yes)

201113.3%

15%

Helped strangers in past m

onth?* (% yes)

201140.9%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

DJIBO

UTI

SUB-IN

DIC

ES22

OV

ERALL RA

NKIN

G: (TO

TAL 38)

63%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

54%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

59%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:35

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

44%

20132012

150.7%

110203038

NO CHANGE

»D

jibouti retains its position at 22nd in overall Prosperity since 2012.

»The Safety &

Security sub-index registers the biggest decline, m

oving down three places, to 7th. This is because

of increased demographic instability and state-sponsored

political violence.

»The country has m

oved up five places in the Health

sub-index, to 14th. This is due to an increase in the rate of im

munisation against m

easles and in health public expenditure per person, alongside a decrease rates of infant m

ortality and undernourishment.

Page 43: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 42

12EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

3.4%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1269

%66

.7%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1263

%40

.8%

5EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110.

8%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1111

5.3

70.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

92.8

%88

.2%

18G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1265

%55

.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2012

76%

55%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-0.6

-0.7

5ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1072

.5%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1240

.8%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

48.5

%62

.2%

3H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

20.7

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2010

1.7

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2011

90%

75.8

%

22SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

125.

76.

7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

57.2

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1212

.9%

25.2

%

38PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

123

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2011

22%

67%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

45.2

%66

.3%

16SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

126.

6%17

.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

15%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

47.4

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

EGY

PT (

AR

AB

REP

UBL

IC)

SUB-

IND

ICES

11O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

74%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

80%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

10%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:28

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

79%

2013

2012

10.2

%

1 10 20 30 38

DOW

N 1

»Eg

ypt’s

ove

rall

Pros

perit

y ra

nk is

11t

h, d

ropp

ing

one

plac

e si

nce

2012

.

»Th

e la

rges

t dro

p is

foun

d in

the

Gov

erna

nce

sub-

inde

x,

drop

ping

by

seve

n pl

aces

, to

18th

. Thi

s is t

he re

sult

of a

de

crea

se in

gov

ernm

ent e

ffect

iven

ess,

a gu

aran

tee

of th

e ru

le o

f law

, dec

lines

in th

e co

nstr

aint

s on

the

exec

utiv

e, a

nd a

de

crea

se in

effe

ctiv

e re

gula

tion.

»Th

e Sa

fety

& S

ecur

ity su

b-in

dex

has d

ropp

ed b

y th

ree

plac

es, t

o 22

nd. T

his d

rop

is at

trib

uted

to a

n in

crea

se in

pe

ople

repo

rtin

g pr

oper

ty b

eing

stol

en a

nd g

roup

grie

vanc

es.

Page 44: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

43 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

26EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20116.8%

2.7%

Confidence in financial institutions?* (% yes)

200746.9%

66.7%

Satisfaction with living standards?* (%

yes) 2012

56.1%40.8%

32EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20100.2%

0.2%

Mobile phones (per 100 ppl)

201123.7

70.1

Will w

orking hard get you ahead?* (% yes)

201294.6%

88.2%

24G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2007

36.8%55.1%

Confidence in the judiciary?* (% yes)

200730.7%

55%

Governm

ent effectiveness 1 2011

-0.4-0.7

21ED

UC

ATION

Gross secondary enrolm

ent rate 2011

37.6%50.6%

Satisfaction with education quality?* (%

yes)2007

47.7%51.8%

Perception children are learning?* (% yes)

201273.2%

62.2%

27H

EALTH

Self-reported health problems?* (%

yes)2012

22%25%

Hospital beds* (per 1000 people)

20116.3

1.2

Satisfaction with health?* (%

yes) 2012

85.3%75.8%

29SA

FETY & SEC

URITY

Hum

an flight 22012

76.7

Safe walking alone at night?* (%

yes) 2012

69.9%55.7%

Property stolen in past 12 months?* (%

yes) 2012

15.7%25.2%

14PERSO

NA

L FREEDO

MCivil liberties 3

20122

3.7

Tolerance for ethnic groups?* (% yes)

201284.6%

67%

Satisfaction with freedom

of choice?* (% yes)

201277.6%

66.3%

29SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201210.8%

17.1%

Donated to charity in past m

onth?* (% yes)

201210.4%

15%

Helped strangers in past m

onth?* (% yes)

201243.2%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

ETHIO

PIASU

B-IND

ICES

27O

VERA

LL RAN

KING

: (TOTA

L 38)

66%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

59%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

44%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:55

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

76%

20132012

135.3%

110203038

UP5

»Ethiopia has m

oved up five places to 27th in overall Prosperity.

»Personal Freedom

saw the biggest increase, m

oving up 23 places, to 14th. An increase in perceptions of freedom

of choice, and tolerance tow

ards imm

igrants and minorities has

driven this shift.

»In the H

ealth sub-index, the country has decreased four places, to 27th, due to a drop in the rate of im

munisation

against infectious diseases and measles.

Page 45: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 44

27EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

5.7%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1270

.9%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1235

%40

.8%

9EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110.

3%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1110

0.3

70.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

96.2

%88

.2%

5G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1258

.4%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2012

74.9

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

0-0

.7

10ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1259

.2%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1259

.2%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

77.2

%62

.2%

5H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

27.5

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2011

0.9

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

75.3

%75

.8%

4SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

127.6

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

73%

55.7

%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1227

.3%

25.2

%

15PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

126

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

55.1%

67%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

67.9

%66

.3%

26SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1220

.9%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

26.8

%15

%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

49.9

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

GH

AN

ASU

B-IN

DIC

ES7

OV

ERA

LL R

AN

KIN

G: (

TOTA

L 38

)

69%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

76%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

29%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:33

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

88%

2013

2012

18.5

%

1 10 20 30 38

DOW

N 1

»G

hana

’s ov

eral

l Pro

sper

ity ra

nkin

g ha

s mov

ed d

own

one

plac

e fr

om 6

th to

7th

in A

frica

sinc

e 20

12.

»Th

e Ec

onom

y su

b-in

dex

has m

oved

dow

n by

eig

ht p

lace

s to

27t

h, th

e re

sult

of a

larg

e de

crea

se in

gro

ss d

omes

tic

savi

ngs,

high

tech

exp

orts

and

a fa

ll in

repo

rted

acc

ess t

o ad

equa

te fo

od a

nd s

helte

r.

»Pe

rson

al F

reed

om h

as d

ropp

ed b

y el

even

pla

ces (

to 1

5th)

be

caus

e of

a d

rop

in to

lera

nce

for i

mm

igra

nts a

nd p

erce

ived

fre

edom

of c

hoic

e.

»G

hana

is in

the

top

5 fo

r Hea

lth,

Gov

erna

nce

and

Safe

ty

& S

ecur

ity.

Page 46: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

45 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

35EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20110.2%

2.7%

Confidence in financial institutions?* (% yes)

201261.9%

66.7%

Satisfaction with living standards?* (%

yes) 2012

20.1%40.8%

34EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110%

0.2%

Mobile phones (per 100 ppl)

201145.6

70.1

Will w

orking hard get you ahead?* (% yes)

201283.5%

88.2%

35G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

56.8%55.1%

Confidence in the judiciary?* (% yes)

201244.4%

55%

Governm

ent effectiveness 1 2011

-1.2-0.7

31ED

UC

ATION

Gross secondary enrolm

ent rate 2012

42.7%50.6%

Satisfaction with education quality?* (%

yes)2012

22.6%51.8%

Perception children are learning?* (% yes)

201232.6%

62.2%

29H

EALTH

Self-reported health problems?* (%

yes)2012

28.1%25%

Hospital beds* (per 1000 people)

20110.3

1.2

Satisfaction with health?* (%

yes) 2012

69.5%75.8%

24SA

FETY & SEC

URITY

Hum

an flight 22012

86.7

Safe walking alone at night?* (%

yes) 2012

50.7%55.7%

Property stolen in past 12 months?* (%

yes) 2012

16.2%25.2%

17PERSO

NA

L FREEDO

MCivil liberties 3

20123

3.7

Tolerance for ethnic groups?* (% yes)

201280.2%

67%

Satisfaction with freedom

of choice?* (% yes)

201264.6%

65.4%

31SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201218.2%

17.1%

Donated to charity in past m

onth?* (% yes)

201217.2%

15%

Helped strangers in past m

onth?* (% yes)

201251.4%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

GU

INEA

SUB-IN

DIC

ES33

OV

ERALL RA

NKIN

G: (TO

TAL 38)

54%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

56%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

48%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:44

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

69%

20132012

96.9%

110203038

DOWN

5

»G

uinea registers a decline by five places to 33rd in overall Prosperity due to a decrease in all sub-indices.

»The country ranks in the bottom

10 for overall Prosperity.

»The Personal freedom

sub-index registers the biggest drop, m

oving down eleven places to 17th. This is due to a

decrease in freedom of choice and reported tolerance tow

ards im

migrants and m

inorities.

Page 47: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 46

31EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

1.5%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1272

.2%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1233

.7%

40.8

%

8EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110.

5%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1171

.970

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

94.5

%88

.2%

20G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1241

.3%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2012

48.1%

55%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-0.5

-0.7

14ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

0960

.2%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1269

.5%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

65%

62.2

%

15H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

30.9

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2010

1.4

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

74.7

%75

.8%

28SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

127.7

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

50.4

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1238

.3%

25.2

%

24PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

124

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

72.2

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

62.8

%66

.3%

9SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1228

.3%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

27.7

%15

%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

65.3

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

KEN

YASU

B-IN

DIC

ES18

OV

ERA

LL R

AN

KIN

G: (

TOTA

L 38

)

83%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

72%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

35%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:47

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

89%

2013

2012

40.4

%

1 10 20 30 38

DOW

N 1

»Ke

nya

has f

alle

n on

e pl

ace

to 1

8th

in o

vera

ll Pr

ospe

rity.

»Th

e Pe

rson

al F

reed

om su

b-in

dex

has m

oved

dow

n se

ven

plac

es to

24t

h.

»Th

e Ec

onom

y su

b-in

dex

has m

oved

dow

n by

six

plac

es to

31

st b

ecau

se o

f an

incr

ease

in in

flatio

n, a

dec

reas

e in

gro

ss

dom

estic

savi

ngs.

»Pe

rson

al F

reed

om d

ropp

ed b

y se

ven

plac

es (t

o 24

th)

beca

use

of a

dec

reas

e in

tole

ranc

e fo

r im

mig

rant

s.

»Ke

nya

is ra

nked

in th

e to

p 10

for b

oth

Entr

epre

neur

ship

&

Opp

ortu

nity

(8th

) and

Soc

ial C

apita

l (9t

h).

Page 48: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

47 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

38EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20118%

2.7%

Confidence in financial institutions?* (% yes)

201165.8%

66.7%

Satisfaction with living standards?* (%

yes) 2011

42.8%40.8%

27EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110.1%

0.2%

Mobile phones (per 100 ppl)

201156.4

70.1

Will w

orking hard get you ahead?* (% yes)

201196.3%

88.2%

27G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2011

53.4%55.1%

Confidence in the judiciary?* (% yes)

201133.5%

55%

Governm

ent effectiveness 1 2011

-1.2-0.7

32ED

UC

ATION

Gross secondary enrolm

ent rate 2011

44.8%50.6%

Satisfaction with education quality?* (%

yes)2011

46.9%51.8%

Perception children are learning?* (% yes)

201147.2%

62.2%

33H

EALTH

Self-reported health problems?* (%

yes)2011

34.7%25%

Hospital beds* (per 1000 people)

20100.8

1.2

Satisfaction with health?* (%

yes) 2011

76.1%75.8%

26SA

FETY & SEC

URITY

Hum

an flight 22012

6.76.7

Safe walking alone at night?* (%

yes) 2011

42.7%55.7%

Property stolen in past 12 months?* (%

yes) 2011

56.4%25.2%

11PERSO

NA

L FREEDO

MCivil liberties 3

20124

3.7

Tolerance for ethnic groups?* (% yes)

201153.7%

67%

Satisfaction with freedom

of choice?* (% yes)

201187.3%

66.3%

10SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201153.1%

17.1%

Donated to charity in past m

onth?* (% yes)

201111.9%

15%

Helped strangers in past m

onth?* (% yes)

201180.8%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

LIBERIA

SUB-IN

DIC

ES28

OV

ERALL RA

NKIN

G: (TO

TAL 38)

80%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

51%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

54%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:27

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

83%

20132012

52.7%

110203038

UP3

»Liberia has m

oved up three places to 28th in overall Prosperity.

»The Education sub-index saw

the biggest drop in ranking, going dow

n fifteen places to 32nd because of a decrease in net prim

ary enrolment rates and in gross secondary enrolm

ent.

»The biggest increase cam

e in the Personal freedom

sub-index, moving up eleven places, to 11th because of

increased perceptions of tolerance towards m

inorities and an increase in freedom

of choice.

Page 49: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 48

32EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

4.4%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1265

.9%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1237

.3%

40.8

%

26EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110.

2%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1127

.870

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

95%

88.2

%

7G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1248

.2%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2011

62.5

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-0.4

-0.7

15ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1134

.2%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1166

.2%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2011

77.1%

62.2

%

9H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

27%

25%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2011

1.3

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

75.1%

75.8

%

20SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

127.8

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

48.7

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1238

.7%

25.2

%

23PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

124

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

73.3

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

63.7

%66

.3%

23SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1229

.6%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2011

21.9

%15

%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

56%

50.2

%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

MA

LAW

ISU

B-IN

DIC

ES21

OV

ERA

LL R

AN

KIN

G: (

TOTA

L 38

)

60%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

58%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

32%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:76

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

87%

2013

2012

83.7

%

1 10 20 30 38

DOW

N

12

»M

alaw

i’s tw

elve

pla

ce d

rop

in o

vera

ll Pr

ospe

rity

rank

is

the

larg

est i

n A

fric

a, fa

lling

from

9th

in la

st y

ear’s

inde

x to

21

st th

is ye

ar.

»Th

e Ec

onom

y su

b-in

dex

has f

alle

n by

sixt

een

plac

es. A

n in

crea

se in

non

-per

form

ing

loan

s and

infla

tion

alon

g w

ith fa

lls

in g

ross

dom

estic

savi

ngs d

rove

the

coun

try

dow

n to

32n

d.

»Th

e de

crea

se in

the

Soci

al C

apita

l sco

re, w

hich

mov

ed

dow

n si

xtee

n pl

aces

to 2

3rd,

was

cau

sed

by a

dro

p in

do

natio

ns a

nd v

olun

teer

ism.

»M

alaw

i has

mov

ed d

own

to 7

th in

Afr

ica

for G

over

nanc

e bu

t stil

l rem

ains

in th

e to

p 10

coun

trie

s for

this

sub-

inde

x.

Page 50: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

49 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

25EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20111.2%

2.7%

Confidence in financial institutions?* (% yes)

201275.3%

66.7%

Satisfaction with living standards?* (%

yes) 2012

26.1%40.8%

23EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110%

0.2%

Mobile phones (per 100 ppl)

201189.6

70.1

Will w

orking hard get you ahead?* (% yes)

201287.5%

88.2%

21G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

49.4%55.1%

Confidence in the judiciary?* (% yes)

201238.2%

55%

Governm

ent effectiveness 1 2011

-0.8-0.7

36ED

UC

ATION

Gross secondary enrolm

ent rate 2011

39.5%50.6%

Satisfaction with education quality?* (%

yes)2012

34.7%51.8%

Perception children are learning?* (% yes)

201252%

62.2%

20H

EALTH

Self-reported health problems?* (%

yes)2012

21.8%25%

Hospital beds* (per 1000 people)

20100.1

1.2

Satisfaction with health?* (%

yes) 2012

69.4%75.8%

3SA

FETY & SEC

URITY

Hum

an flight 22012

7.36.7

Safe walking alone at night?* (%

yes) 2012

67.1%55.7%

Property stolen in past 12 months?* (%

yes) 2012

14.5%25.2%

10PERSO

NA

L FREEDO

MCivil liberties 3

20123

3.7

Tolerance for ethnic groups?* (% yes)

201282.6%

67%

Satisfaction with freedom

of choice?* (% yes)

201270.4%

66.3%

1SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

20126.4%

17.1%

Donated to charity in past m

onth?* (% yes)

20128.3%

15%

Helped strangers in past m

onth?* (% yes)

201241.7%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

MA

LISU

B-IND

ICES

13O

VERA

LL RAN

KING

: (TOTA

L 38)

82%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

77%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

31%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:48

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

76%

20132012

86.2%

110203038

DOWN

5

»M

ali has moved dow

n 5 places to 13th (from 8th) in

overall Prosperity rankings.

»The Econom

y sub-index has moved dow

n by 15 places to 25th, the result of a large decrease in the em

ployment rate

and satisfaction with living standards, alongside an increase

in inflation.

»Personal Freedom

sub-index has moved dow

n 7 places to 10th driven by a drop in civil liberties and perceived freedom

to choose the course of one’s life.

»M

ali ranks 1st in Africa for Social C

apital this year, up from

5th in 2012.

Page 51: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 50

33EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

0.1%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1260

.9%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1242

.9%

40.8

%

18EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110%

0.2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1111

1.170

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

76.7

%88

.2%

30G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1239

.5%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2012

35.7

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-0.9

-0.7

26ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1127

%50

.6%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1231

%51

.8%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

55.7

%62

.2%

16H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

19.3

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2006

0.4

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

77.3

%75

.8%

12SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

125.

46.

7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

64.6

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1231

.1%25

.2%

33PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

123

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

68.4

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

48.7

%66

.3%

11SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1212

.5%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

21.3

%15

%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

42.6

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

rita

nia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

MA

UR

ITA

NIA

SUB-

IND

ICES

26O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

76%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

56%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

35%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:39

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

64%

2013

2012

47.6

%

1 10 20 30 38

DOW

N 3

»M

aurit

ania

has

dec

lined

thre

e pl

aces

to 2

3rd

in o

vera

ll Pr

ospe

rity.

»Th

e Ec

onom

y su

b-in

dex

has d

eclin

ed fi

ve p

lace

s to

33rd

. Th

is de

clin

e is

the

resu

lt of

a d

ecre

ase

in g

ross

dom

estic

sa

ving

s and

a d

ecre

ase

in th

e pe

rcep

tion

of li

ving

stan

dard

s.

»Th

e G

over

nanc

e su

b-in

dex

has m

oved

up

two

plac

es,

to 3

0th.

Thi

s inc

reas

e is

prim

arily

bec

ause

of i

ncre

ased

se

para

tion

of p

ower

s and

low

er c

orru

ptio

n le

vels.

Page 52: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

51 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

1EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20113.2%

2.7%

Confidence in financial institutions?* (% yes)

201260.3%

66.7%

Satisfaction with living standards?* (%

yes) 2012

73.7%40.8%

4EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110.8%

0.2%

Mobile phones (per 100 ppl)

2011119.7

70.1

Will w

orking hard get you ahead?* (% yes)

201295.1%

88.2%

6G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

65.7%55.1%

Confidence in the judiciary?* (% yes)

201254.9%

55%

Governm

ent effectiveness 1 2011

-0.2-0.7

8ED

UC

ATION

Gross secondary enrolm

ent rate 2012

69.8%50.6%

Satisfaction with education quality?* (%

yes)2012

42.5%51.8%

Perception children are learning?* (% yes)

201267.8%

62.2%

4H

EALTH

Self-reported health problems?* (%

yes)2012

23.2%25%

Hospital beds* (per 1000 people)

20091.1

1.2

Satisfaction with health?* (%

yes) 2011

90.4%75.8%

13SA

FETY & SEC

URITY

Hum

an flight 22012

6.76.7

Safe walking alone at night?* (%

yes) 2012

57.6%55.7%

Property stolen in past 12 months?* (%

yes) 2012

19%25.2%

22PERSO

NA

L FREEDO

MCivil liberties 3

20124

3.7

Tolerance for ethnic groups?* (% yes)

201159.3%

67%

Satisfaction with freedom

of choice?* (% yes)

201278.3%

66.3%

17SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

20127.1%

17.1%

Donated to charity in past m

onth?* (% yes)

20126%

15%

Helped strangers in past m

onth?* (% yes)

201247.4%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

MO

ROC

CO

SUB-IN

DIC

ES3

OV

ERALL RA

NKIN

G: (TO

TAL 38)

60%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

81%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

23%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:26

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

71%

20132012

15.5%

110203038

DOWN

1

»M

orocco has dropped one place in overall Prosperity, to 2nd in part due to the poor Social Capital perform

ance.

»A

sixteen place drop in the Social Capital sub-index (to

17th) is the result of far less people being able to rely on others and a large drop in volunteerism

rates.

»G

overnance improved by four places, to 6th in the region

due to a decrease in perceptions of corruption, and an increased confidence in elections.

Page 53: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 52

16EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

4.2%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1181

.7%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1137

.9%

40.8

%

15EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110%

0.2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1133

.170

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2011

79.9

%88

.2%

15G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1163

.7%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2011

62%

55%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-0.6

-0.7

25ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1226

%50

.6%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1164

.7%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2011

53.4

%62

.2%

32H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2011

21.6

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2011

0.7

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2011

84.7

%75

.8%

19SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

127.5

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2011

41.9

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1130

.9%

25.2

%

12PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

125

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2011

65.4

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2011

63.9

%66

.3%

27SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1117

.3%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2011

10.2

%15

%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2011

36.5

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

MO

ZAM

BIQ

UE

SUB-

IND

ICES

23O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

82%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

58%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

46%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:55

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

72%

2013

2012

19.7

%

1 10 20 30 38

UP 2

»M

ozam

biqu

e ha

s mov

ed u

p tw

o pl

aces

to 2

3rd

in o

vera

ll Pr

ospe

rity

in p

art t

hank

s to

an e

leve

n pl

ace

rise

in th

e Ec

onom

y su

b-in

dex.

»Th

e Ec

onom

y su

b-in

dex

saw

had

the

bigg

est i

ncre

ase,

cl

imbi

ng to

16t

h. In

crea

sing

capi

tal p

er w

orke

r, gr

oss

dom

estic

savi

ngs,

mar

ket s

ize, a

nd h

igh-

tech

exp

orts

co

ntrib

uted

to th

is ris

e in

rank

ing.

»Th

e En

trep

rene

ursh

ip &

Opp

ortu

nity

dec

lined

four

pla

ces,

to

15t

h, re

sulti

ng fr

om in

crea

sing

star

t-up

cos

ts a

nd u

neve

n ec

onom

ic d

evel

opm

ent l

evel

s.

Page 54: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

53 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

11EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20112.1%

2.7%

Confidence in financial institutions?* (% yes)

200775.7%

66.7%

Satisfaction with living standards?* (%

yes) 2007

61.4%40.8%

7EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110.2%

0.2%

Mobile phones (per 100 ppl)

2011103

70.1

Will w

orking hard get you ahead?* (% yes)

200796.2%

88.2%

2G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2007

83.9%55.1%

Confidence in the judiciary?* (% yes)

200778.4%

55%

Governm

ent effectiveness 1 2011

0.1-0.7

6ED

UC

ATION

Gross secondary enrolm

ent rate 2007

64%50.6%

Satisfaction with education quality?* (%

yes)2007

75.3%51.8%

Perception children are learning?* (% yes)

200778.7%

62.2%

13H

EALTH

Self-reported health problems?* (%

yes)2007

17.1%25%

Hospital beds* (per 1000 people)

20092.7

1.2

Satisfaction with health?* (%

yes) 2007

87.3%75.8%

9SA

FETY & SEC

URITY

Hum

an flight 22012

6.86.7

Safe walking alone at night?* (%

yes) 2007

32.9%55.7%

Property stolen in past 12 months?* (%

yes) 2007

22.5%25.2%

3PERSO

NA

L FREEDO

MCivil liberties 3

20126

3.7

Tolerance for ethnic groups?* (% yes)

200775.9%

67%

Satisfaction with freedom

of choice?* (% yes)

200778.1%

66.3%

22SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

200716.6%

17.1%

Donated to charity in past m

onth?* (% yes)

200717.4%

15%

Helped strangers in past m

onth?* (% yes)

200748.9%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

NA

MIBIA

SUB-IN

DIC

ES5

OV

ERALL RA

NKIN

G: (TO

TAL 38)

83%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

72%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

34%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:30

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

80%

20132012

18.5%

110203038

NO CHANGE

»N

amibia has rem

ained ranked 5th in Africa for overall

Prosperity.

»The Econom

y sub-index has decreased by three places to 11th, caused m

ainly by a big decrease in gross domestic

savings.

»The H

ealth sub-index has fallen by seven places to 13th driven by an increase in cases of tuberculosis, alongside a large spike in undernourishm

ent.

»N

amibia is in the top five for both G

overnance (2nd) and Personal Freedom

(3rd).

Page 55: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 54

5EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

2.5%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1255

.1%66

.7%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1256

.8%

40.8

%

35EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110%

0.2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1132

.470

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

85%

88.2

%

9G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1254

.1%55

.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2012

63.6

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-0.7

-0.7

35ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1215

.2%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1247

.4%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

65.4

%62

.2%

11H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

21.2

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2005

0.3

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

83.3

%75

.8%

6SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

126

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

86.7

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

128.

1%25

.2%

7PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

124

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

86.8

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

73.4

%66

.3%

14SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1211

%17

.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

6.3%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

49%

50.2

%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

NIG

ERSU

B-IN

DIC

ES12

OV

ERA

LL R

AN

KIN

G: (

TOTA

L 38

)

70%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

67%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

46%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:39

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

71%

2013

2012

112.

8%

1 10 20 30 38

UP 3

»N

iger

’s ov

eral

l Pro

sper

ity ra

nkin

g ro

se fr

om 1

5th

to 1

2th

in A

frica

bet

wee

n 20

12 a

nd 2

013.

»An

incr

ease

in p

erce

ptio

n of

safe

ty a

nd a

dec

reas

e in

thef

t and

as

saul

t rat

es d

rove

the

coun

try

up fr

om 1

1th

to 6

th in

the

Safe

ty &

Sec

urity

sub-

inde

x.

»So

cial

Cap

ital s

core

has

rise

n by

eig

ht p

lace

s (t

o 14

th)

caus

ed b

y a

repo

rted

incr

ease

in v

olun

teer

ism a

nd p

erce

ptio

ns

of so

cial

supp

ort.

»N

iger

is ra

nked

in th

e bo

ttom

five

cou

ntrie

s in

Afr

ica

for

Educ

atio

n an

d fo

r Ent

repr

eneu

rshi

p &

Opp

ortu

nity

, with

a

rank

of 3

5th.

Page 56: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

55 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

20EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20114.1%

2.7%

Confidence in financial institutions?* (% yes)

201266.1%

66.7%

Satisfaction with living standards?* (%

yes) 2012

49.8%40.8%

14EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110.6%

0.2%

Mobile phones (per 100 ppl)

201167.7

70.1

Will w

orking hard get you ahead?* (% yes)

201295.3%

88.2%

29G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

32.1%55.1%

Confidence in the judiciary?* (% yes)

201248.6%

55%

Governm

ent effectiveness 1 2011

-1.1-0.7

24ED

UC

ATION

Gross secondary enrolm

ent rate 2010

44.1%50.6%

Satisfaction with education quality?* (%

yes)2012

56.3%51.8%

Perception children are learning?* (% yes)

201267.3%

62.2%

19H

EALTH

Self-reported health problems?* (%

yes)2012

17.3%25%

Hospital beds* (per 1000 people)

-0.1

1.2

Satisfaction with health?* (%

yes) 2012

84.4%75.8%

34SA

FETY & SEC

URITY

Hum

an flight 22012

7.66.7

Safe walking alone at night?* (%

yes) 2012

61.5%55.7%

Property stolen in past 12 months?* (%

yes) 2012

32.3%25.2%

27PERSO

NA

L FREEDO

MCivil liberties 3

20123

3.7

Tolerance for ethnic groups?* (% yes)

201262.1%

67%

Satisfaction with freedom

of choice?* (% yes)

201265.2%

66.3%

6SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201236.7%

17.1%

Donated to charity in past m

onth?* (% yes)

201230.4%

15%

Helped strangers in past m

onth?* (% yes)

201266.1%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

NIG

ERIA

SUB-IN

DIC

ES24

OV

ERALL RA

NKIN

G: (TO

TAL 38)

82%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

57%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

33%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:36

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

87%

20132012

60.4%

110203038

NO CHANGE

»N

igeria retains its place at 24th in overall Prosperity in 2013.

»The Personal Freedom

sub-index registers the biggest decline, going dow

n nine places to 27th, with less people

satisfied with freedom

of choice, and reported lower tolerance

towards im

migrants.

»The country has m

oved up four places to 20th in the Econom

y sub-index as a result of increasing capital per w

orker, market size, satisfaction w

ith standards of living and adequate access to food and shelter, alongside decreasing non-perform

ing loans and inflation rate.

Page 57: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 56

17EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

5.1%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1292

.3%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1229

.8%

40.8

%

10EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

050%

0.2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1150

.570

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

93.7

%88

.2%

3G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

0995

%55

.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2012

91.2

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

0.1

-0.7

12ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1135

.8%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1275

.9%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

96.5

%62

.2%

6H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

18.5

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2007

1.6

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

64.9

%75

.8%

10SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

127

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

86.1%

55.7

%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

128.

6%25

.2%

25PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

122

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2006

72.8

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

83.5

%66

.3%

30SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1210

%17

.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

14.7

%15

%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

27.3

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

RWA

ND

ASU

B-IN

DIC

ES9

OV

ERA

LL R

AN

KIN

G: (

TOTA

L 38

)

64%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

55%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

45%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:58

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

8%

2013

2012

4.3%

1 10 20 30 38

UP 4

»Rw

anda

has

rise

n fo

ur p

lace

s to

9th

in o

vera

ll Pr

ospe

rity.

»It

rank

s in

the

top

ten

for f

our o

ut o

f the

eig

ht su

b-in

dice

s,

but l

ow fo

r Soc

ial C

apita

l (30

th) a

nd P

erso

nal F

reed

om (2

5th)

.

»Th

e H

ealt

h su

b-in

dex

has m

oved

up

by se

ven

plac

es to

6th

w

ith b

ig in

crea

ses i

n he

alth

exp

endi

ture

, mea

sles i

mm

uniza

tion

rate

s, an

d th

e im

mun

izatio

n ra

te fo

r inf

ectio

us d

iseas

es.

»Th

e in

crea

se in

the

Econ

omy

scor

e, u

p fiv

e to

17t

h, w

as

caus

ed b

y an

enl

arge

men

t of m

arke

t size

, an

incr

ease

in

fore

ign

dire

ct in

vest

men

t, an

d hi

gher

GD

P pe

r cap

ita g

row

th

than

last

yea

r’s.

Page 58: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

57 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

9EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20110.6%

2.7%

Confidence in financial institutions?* (% yes)

201265.3%

66.7%

Satisfaction with living standards?* (%

yes) 2012

37.5%40.8%

17EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110%

0.2%

Mobile phones (per 100 ppl)

201187.5

70.1

Will w

orking hard get you ahead?* (% yes)

201286.2%

88.2%

10G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

64.8%55.1%

Confidence in the judiciary?* (% yes)

201267.9%

55%

Governm

ent effectiveness 1 2011

-0.4-0.7

20ED

UC

ATION

Gross secondary enrolm

ent rate 2011

42.1%50.6%

Satisfaction with education quality?* (%

yes)2012

31.3%51.8%

Perception children are learning?* (% yes)

201253.9%

62.2%

10H

EALTH

Self-reported health problems?* (%

yes)2012

21.8%25%

Hospital beds* (per 1000 people)

20080.3

1.2

Satisfaction with health?* (%

yes) 2012

76.1%75.8%

11SA

FETY & SEC

URITY

Hum

an flight 22012

6.36.7

Safe walking alone at night?* (%

yes) 2012

56.9%55.7%

Property stolen in past 12 months?* (%

yes) 2012

27.5%25.2%

6PERSO

NA

L FREEDO

MCivil liberties 3

20125

3.7

Tolerance for ethnic groups?* (% yes)

201283.3%

67%

Satisfaction with freedom

of choice?* (% yes)

201266.8%

66.3%

18SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201215.2%

17.1%

Donated to charity in past m

onth?* (% yes)

201215.8%

15%

Helped strangers in past m

onth?* (% yes)

201267.9%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

SENEG

AL

SUB-IN

DIC

ES8

OV

ERALL RA

NKIN

G: (TO

TAL 38)

71%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

73%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

41%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:33

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

84%

20132012

64.4%

110203038

UP

11

»Senegal has risen eleven places to 8th—

the most

improved A

frican nation between 2012 and 2013 in overall

Prosperity rankings.

»It has m

oved up by twelve places to 10th in the H

ealth sub-index due to big increases in health expenditure and im

munisation rates for m

easles and infectious diseases, along w

ith a drop in incidences of tuberculosis.

»Social C

apital has risen by thirteen places to 18th caused by a reported increase in volunteering rates and charitable donations.

Page 59: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 58

34EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

3.4%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1168

.6%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1131

.5%

40.8

%

30EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

090.

1%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1136

.170

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2011

87.2

%88

.2%

22G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1158

.5%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2011

44%

55%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-1.2

-0.7

33ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e -

57.9

%50

.6%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1133

.1%51

.8%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2011

42.8

%62

.2%

37H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2011

31.1%

25%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2006

0.4

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2011

67.9

%75

.8%

27SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

127.7

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2011

50.5

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1152

.9%

25.2

%

8PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

125

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2011

55.9

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2011

77%

66.3

%

12SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1130

.4%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2011

15.3

%15

%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2011

71.3

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

SIER

RA

LEO

NE

SUB-

IND

ICES

30O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

78%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

62%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

31%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:31

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

84%

2013

2012

80.4

%

1 10 20 30 38

DOW

N 1

»Si

erra

Leo

ne h

as d

eclin

ed o

ne p

lace

to 3

0th

in o

vera

ll Pr

ospe

rity,

reta

inin

g its

pla

ce in

the

bott

om te

n.

»Th

e co

untr

y’s r

anki

ngs h

ave

decl

ined

in E

duca

tion,

(its

bi

gges

t dec

reas

e) a

nd H

ealt

h (3

7th)

whe

re g

irls t

o bo

ys

enro

lmen

t rat

io a

nd ra

te o

f im

mun

isatio

n ag

ains

t inf

ectio

us

dise

ases

are

the

bigg

est i

ssue

s, re

spec

tivel

y.

»Th

e Ec

onom

y su

b-in

dex

regi

ster

s a tw

o pl

ace

incr

ease

to

34t

h du

e to

an

incr

ease

in c

apita

l per

wor

ker,

high

-tec

h ex

port

s and

5-y

ear G

DP

per c

apita

gro

wth

rate

.

Page 60: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

59 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

6EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20111.6%

2.7%

Confidence in financial institutions?* (% yes)

201267.2%

66.7%

Satisfaction with living standards?* (%

yes) 2012

43%40.8%

1EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110.9%

0.2%

Mobile phones (per 100 ppl)

2011134.8

70.1

Will w

orking hard get you ahead?* (% yes)

201288.1%

88.2%

4G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

43.4%55.1%

Confidence in the judiciary?* (% yes)

201265.6%

55%

Governm

ent effectiveness 1 2011

0.4-0.7

3ED

UC

ATION

Gross secondary enrolm

ent rate 2009

93.8%50.6%

Satisfaction with education quality?* (%

yes)2012

69.4%51.8%

Perception children are learning?* (% yes)

201280.2%

62.2%

8H

EALTH

Self-reported health problems?* (%

yes)2012

20.3%25%

Hospital beds* (per 1000 people)

20052.8

1.2

Satisfaction with health?* (%

yes) 2012

80.2%75.8%

16SA

FETY & SEC

URITY

Hum

an flight 22012

46.7

Safe walking alone at night?* (%

yes) 2012

26.9%55.7%

Property stolen in past 12 months?* (%

yes) 2012

35%25.2%

16PERSO

NA

L FREEDO

MCivil liberties 3

20126

3.7

Tolerance for ethnic groups?* (% yes)

201271.8%

67%

Satisfaction with freedom

of choice?* (% yes)

201259%

66.3%

7SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201221.2%

17.1%

Donated to charity in past m

onth?* (% yes)

201212.1%

15%

Helped strangers in past m

onth?* (% yes)

201254%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

SOU

TH A

FRIC

ASU

B-IND

ICES

2O

VERA

LL RAN

KING

: (TOTA

L 38)

91%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

71%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

31%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:31

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

83%

20132012

0.3%

110203038

UP1

»South A

frica has moved up one place to 2nd in overall

Prosperity.

»The H

ealth sub-index moved up four places to 8th because

of a large increase in its per capita health expenditure, alongside a decrease in infant m

ortality.

»Personal Freedom

fell by seven places to 16th caused by a reported decrease in perceived freedom

to choose the course of one’s life.

»South A

frica is in the top ten for six out of the eight sub-indices except Personal Freedom

and Safety and Security.

Page 61: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 60

21EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

3.1%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1261

.3%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1244

.2%

40.8

%

11EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110.

4%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1160

.570

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

94.2

%88

.2%

33G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

0757

%55

.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2011

70.1%

55%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-1.4

-0.7

23ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

0939

%50

.6%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1238

.5%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

42.5

%62

.2%

17H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

26.1%

25%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2009

0.7

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

81.3

%75

.8%

36SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

128.

36.

7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

68.9

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1228

.7%

25.2

%

37PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

121

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

64.4

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

41.2

%66

.3%

3SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1219

%17

.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

16.5

%15

%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

65.1%

50.2

%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

SUD

AN

SUB-

IND

ICES

29O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

81%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

77%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

18%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:38

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

64%

2013

2012

20%

1 10 20 30 38

DOW

N 3

»Su

dan

mov

es d

own

thre

e pl

aces

to 2

9th—

in th

e bo

ttom

te

n co

untr

ies f

or o

vera

ll Pr

ospe

rity.

»Ec

onom

y (2

1st)

, Edu

catio

n (2

3rd)

, Per

sona

l Fre

edom

(3

7th)

are

all

in d

eclin

e.

»Th

e H

ealt

h su

b-in

dex

(17t

h) re

gist

ers t

he b

igge

st fa

ll du

e to

a d

ecre

ase

in th

e ra

te o

f im

mun

isatio

n ag

ains

t mea

sles a

nd

unde

rnou

rishm

ent a

ffect

ing

a hi

gher

shar

e of

the

popu

latio

n.

»Th

e En

trep

rene

ursh

ip &

Opp

ortu

nity

sub-

inde

x m

oves

up

four

pla

ces t

o 11

th, a

s a re

sult

of a

n in

crea

se in

the

num

ber o

f m

obile

pho

nes p

er 10

0 pe

ople

, ICT

exp

orts

and

exp

endi

ture

s fo

r res

earc

h an

d de

velo

pmen

t, al

ongs

ide

a de

crea

se in

star

t-up

cos

ts a

nd u

neve

n ec

onom

ic d

evel

opm

ent l

evel

s.

Page 62: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

61 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

19EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20113.7%

2.7%

Confidence in financial institutions?* (% yes)

201261.2%

66.7%

Satisfaction with living standards?* (%

yes) 2012

39.5%40.8%

20EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110.3%

0.2%

Mobile phones (per 100 ppl)

201157.1

70.1

Will w

orking hard get you ahead?* (% yes)

201280.6%

88.2%

16G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

41.8%55.1%

Confidence in the judiciary?* (% yes)

201240.7%

55%

Governm

ent effectiveness 1 2011

-0.5-0.7

18ED

UC

ATION

Gross secondary enrolm

ent rate 2012

35.1%50.6%

Satisfaction with education quality?* (%

yes)2012

35.8%51.8%

Perception children are learning?* (% yes)

201250.1%

62.2%

21H

EALTH

Self-reported health problems?* (%

yes)2012

26.8%25%

Hospital beds* (per 1000 people)

20100.7

1.2

Satisfaction with health?* (%

yes) 2012

69.9%75.8%

21SA

FETY & SEC

URITY

Hum

an flight 22012

6.16.7

Safe walking alone at night?* (%

yes) 2012

57.9%55.7%

Property stolen in past 12 months?* (%

yes) 2012

33.6%25.2%

28PERSO

NA

L FREEDO

MCivil liberties 3

20125

3.7

Tolerance for ethnic groups?* (% yes)

201254.6%

67%

Satisfaction with freedom

of choice?* (% yes)

201257.7%

66.3%

2SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201219.4%

17.1%

Donated to charity in past m

onth?* (% yes)

201238.9%

15%

Helped strangers in past m

onth?* (% yes)

201249.5%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

TAN

ZAN

IASU

B-IND

ICES

19O

VERA

LL RAN

KING

: (TOTA

L 38)

83%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

64%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

33%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:46

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

88%

20132012

28.2%

110203038

DOWN

8

»Tanzania has m

oved down eight places to 19th in overall

Prosperity.

»The Econom

y sub-index has moved dow

n by twelve

places to 19th, due to a large decrease in perceived job availability and access to adequate food and shelter.

»Personal Freedom

has fallen four places to 28th because of a drop in tolerance for im

migrants and perceived freedom

to choose the course of one’s life.

»Tanzania’s best perform

ance is in Social Capital, w

here it ranks 2nd this year, up from

6th in 2012.

Page 63: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 62

36EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

0.7%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1162

.2%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1116

.4%

40.8

%

29EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110%

0.2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1156

70.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2011

74.2

%88

.2%

26G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1154

.4%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2011

49.7

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-1.4

-0.7

19ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

1156

.5%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1145

.5%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2011

51.4

%62

.2%

26H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2011

35.5

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2011

0.7

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2011

55.2

%75

.8%

17SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

126.

96.

7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2011

52.5

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1132

.4%

25.2

%

18PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

124

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2011

77.9

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2011

58.4

%66

.3%

38SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1112

.5%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2011

6.9%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2011

21.6

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

TOG

OSU

B-IN

DIC

ES34

OV

ERA

LL R

AN

KIN

G: (

TOTA

L 38

)

30%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

66%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

26%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:42

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

71%

2013

2012

119.

4%

1 10 20 30 38

NO C

HANG

E

»To

go re

tain

s its

pos

ition

at 3

4th

in o

vera

ll Pr

ospe

rity.

»It

is n

ow in

the

Top

20 fo

r Edu

catio

n (1

9th)

, due

to b

ig

incr

ease

s in

gros

s sec

onda

ry a

nd te

rtia

ry e

nrol

men

t rat

es.

»Th

e Sa

fety

& S

ecur

ity su

b-in

dex

has g

one

dow

n tw

o pl

aces

to 1

7th.

The

dec

line

in th

is su

b-in

dex

is th

e re

sult

of a

n in

crea

se in

refu

gees

and

inte

rnal

ly d

ispla

ced

pers

ons,

and

an

incr

ease

in re

port

ed st

ate-

spon

sore

d vi

olen

ce.

Page 64: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

63 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

7EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20111.9%

2.7%

Confidence in financial institutions?* (% yes)

201262.2%

66.7%

Satisfaction with living standards?* (%

yes) 2012

54.6%40.8%

2EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110.7%

0.2%

Mobile phones (per 100 ppl)

2011120

70.1

Will w

orking hard get you ahead?* (% yes)

201292.7%

88.2%

12G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

48.5%55.1%

Confidence in the judiciary?* (% yes)

201258.3%

55%

Governm

ent effectiveness 1 2011

0-0.7

2ED

UC

ATION

Gross secondary enrolm

ent rate 2011

92.6%50.6%

Satisfaction with education quality?* (%

yes)2012

47.3%51.8%

Perception children are learning?* (% yes)

201263.6%

62.2%

1H

EALTH

Self-reported health problems?* (%

yes)2012

26.2%25%

Hospital beds* (per 1000 people)

20102.1

1.2

Satisfaction with health?* (%

yes) 2011

82.5%75.8%

2SA

FETY & SEC

URITY

Hum

an flight 22012

5.26.7

Safe walking alone at night?* (%

yes) 2012

60.1%55.7%

Property stolen in past 12 months?* (%

yes) 2012

17.7%25.2%

32PERSO

NA

L FREEDO

MCivil liberties 3

20124

3.7

Tolerance for ethnic groups?* (% yes)

201235.5%

67%

Satisfaction with freedom

of choice?* (% yes)

201256.8%

66.3%

34SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

20124.2%

17.1%

Donated to charity in past m

onth?* (% yes)

201211%

15%

Helped strangers in past m

onth?* (% yes)

201255.9%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

TUN

ISIASU

B-IND

ICES

4O

VERA

LL RAN

KING

: (TOTA

L 38)

61%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

44%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

25%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:17

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

76%

20132012

4.1%

110203038

NO CHANGE

»Tunisia retains its position at 4th in overall Prosperity.

»The country has declined five places to 12th in the G

overnance sub-index as a result of a decline in government

stability, government effectiveness, regulation quality and

reported confidence in the government—

in spite of an increase in separation of pow

ers and registered lower levels

of corruption.

»The Safety &

Security sub-index presents the biggest increase, m

oving up four places to 2nd. This is due to a reported decrease in property being stolen and registered dem

ographic instability, alongside with people feeling safer

walking alone at night.

Page 65: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 64

15EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

3.8%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1261

.3%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1238

.6%

40.8

%

13EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

110.

4%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1145

.970

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

92.3

%88

.2%

19G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1240

.5%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2012

33.8

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-0.5

-0.7

16ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e 20

0928

.4%

50.6

%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1248

.2%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

66.4

%62

.2%

24H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

26.8

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2010

0.5

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

73.2

%75

.8%

33SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

126.

96.

7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

41.5

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1244

%25

.2%

20PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

124

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

68.5

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

64.9

%66

.3%

4SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1222

.7%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

25.1%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

61.1%

50.2

%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

UG

AN

DA

SUB-

IND

ICES

16O

VER

ALL

RA

NKI

NG

: (TO

TAL

38)

88%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

56%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

23%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:48

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

82%

2013

2012

76.7

%

1 10 20 30 38

UP 2

»U

gand

a ha

s im

prov

ed tw

o pl

aces

in o

vera

ll Pr

ospe

rity

to 1

6th.

»Th

e G

over

nanc

e su

b-in

dex

has m

oved

dow

n th

ree

plac

es.

A de

crea

se in

cou

rt a

nd g

over

nmen

t app

rova

l rat

ings

and

in

repo

rted

con

fiden

ce in

ele

ctio

ns d

rove

the

rank

ing

dow

n.

»U

gand

a’s b

est p

erfo

rman

ce is

in th

e So

cial

Cap

ital s

ub-

inde

x, w

here

it is

rank

ed 4

th.

»Th

e H

ealt

h sc

ore

is u

p by

thre

e pl

aces

to 2

4th,

bec

ause

of

an

incr

ease

in th

e im

mun

isatio

n ra

tes f

or m

easle

s and

in

fect

ious

dise

ases

and

a d

ecre

ase

in in

fant

mor

talit

y.

»Sa

fety

& S

ecur

ity is

the

wor

st p

erfo

rmer

, ran

ked

33rd

.

Page 66: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

65 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

13EC

ON

OM

YYear

Data

Africa Av.

5 year growth rate

20113.5%

2.7%

Confidence in financial institutions?* (% yes)

201269.6%

66.7%

Satisfaction with living standards?* (%

yes) 2012

34.1%40.8%

12EN

TREPRENEU

RSHIP &

OPPO

RTUN

ITY

R&D

expenditure (% of G

DP)

20110.3%

0.2%

Mobile phones (per 100 ppl)

201175.8

70.1

Will w

orking hard get you ahead?* (% yes)

201296.2%

88.2%

13G

OV

ERNA

NC

E

Confidence in the government?* (%

yes) 2012

63.1%55.1%

Confidence in the judiciary?* (% yes)

201258.7%

55%

Governm

ent effectiveness 1 2011

-0.7-0.7

11ED

UC

ATION

Gross secondary enrolm

ent rate -

74.9%50.6%

Satisfaction with education quality?* (%

yes)2012

54%51.8%

Perception children are learning?* (% yes)

201266.6%

62.2%

31H

EALTH

Self-reported health problems?* (%

yes)2012

29.3%25%

Hospital beds* (per 1000 people)

20102

1.2

Satisfaction with health?* (%

yes) 2012

76.2%75.8%

23SA

FETY & SEC

URITY

Hum

an flight 22012

7.16.7

Safe walking alone at night?* (%

yes) 2012

45.8%55.7%

Property stolen in past 12 months?* (%

yes) 2012

32.7%25.2%

9PERSO

NA

L FREEDO

MCivil liberties 3

20124

3.7

Tolerance for ethnic groups?* (% yes)

201271%

67%

Satisfaction with freedom

of choice?* (% yes)

201278.8%

66.3%

5SO

CIA

L CA

PITAL

Volunteered time in past m

onth?* (% yes)

201227.2%

17.1%

Donated to charity in past m

onth?* (% yes)

201221.5%

15%

Helped strangers in past m

onth?* (% yes)

201263.2%

50.2%

LEGATU

M IN

STITUTE | TH

E 2013 LEGATU

M PRO

SPERITY IND

EX™

CO

UN

TRY FAC

TSHEET

Botswana

1

South Africa

2

Morocco

3

Tunisia 4

Nam

ibia 5

Algeria

6

Ghana

7

Senegal 8

Rwanda

9

Zambia

10

Egypt 11

Niger

12

Mali

13

Burkina Faso 14

Benin 15

Uganda

16

Cam

eroon 17

Kenya 18

Tanzania 19

Congo (Republic) 20

Malaw

i 21

Djibouti

22

Mozam

bique 23

Nigeria

24

Zimbabw

e 25

Mauritania

26

Ethiopia 27

Liberia 28

Sudan 29

Sierra Leone 30

Côte d’Ivoire 31

Angola

32

Guinea

33

Togo 34

Burundi 35

Congo (DR)

36

Central African Republic

37

Chad

38

AFR

ICA

RA

NK

ING

NO

TES: 1Gov. effectiveness: values range from

-1.66 to 2.25, higher values indicate higher effectiveness. 2Hum

an flight: values range from

1 to 10, higher values indicate higher levels of human flight. 3Civil liberties: values range from

1 to 7, lower values indicate lack of civil

liberties. *Survey data are taken from G

allup World Poll .

ZAM

BIASU

B-IND

ICES

10O

VERA

LL RAN

KING

: (TOTA

L 38)

78%

SAY

THEY

CA

N R

ELY O

N

OTH

ERS IN

TIMES O

F NEED

BELIEVE IT’S A

GO

OD

PLAC

E TO

LIVE FO

R IM

MIG

RA

NTS

68%

THIN

KS IT’S A

GO

OD

TIM

E TO FIN

D A

JOB

35%

BUSIN

ESS START-U

P CO

STS (%

OF G

NI PER

CA

PITA)

PUPIL TO

TEAC

HER

RATIO

1:63

DATA

IN FO

CU

S:

PERFO

RM

AN

CE

BELIEVE BU

SINESS/G

OV

ERN

MEN

T C

OR

RU

PTION

IS WID

ESPREA

D

75%

20132012

26.6%

110203038

UP2

»Zam

bia has moved up tw

o places to 10th in overall Prosperity.

»The increase in its Econom

y score, which m

oved Zambia

up eight places to 13th, was due to an increase in high tech

exports and a rise in the employm

ent rate.

»Personal Freedom

climbed tw

elve places to 9th. This is the result of increases in tolerance for ethnic m

inorities and perceived freedom

to choose the course of one’s life.

Page 67: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 66

24EC

ON

OM

YYe

arD

ata

Afr

ica

Av.

5 ye

ar g

row

th ra

te

2011

0.3%

2.7%

Confi

denc

e in

fina

ncia

l ins

titut

ions

?* (%

yes

)20

1257

.9%

66.7

%

Satis

fact

ion

with

livi

ng st

anda

rds?

* (%

yes

) 20

1240

.1%40

.8%

21EN

TREP

REN

EURS

HIP

& O

PPO

RTU

NIT

Y

R&D

exp

endi

ture

(% o

f GD

P)20

060.

3%0.

2%

Mob

ile p

hone

s (pe

r 100

ppl

) 20

1196

.970

.1

Will

wor

king

har

d ge

t you

ahe

ad?*

(% y

es)

2012

94.4

%88

.2%

38G

OV

ERN

AN

CE

Confi

denc

e in

the

gove

rnm

ent?

* (%

yes

) 20

1243

.2%

55.1%

Confi

denc

e in

the

judi

ciar

y?*

(% y

es)

2012

45.9

%55

%

Gov

ernm

ent e

ffect

iven

ess 1

2011

-1.4

-0.7

7ED

UC

ATIO

N

Gro

ss se

cond

ary

enro

lmen

t rat

e -

92.7

%50

.6%

Satis

fact

ion

with

edu

catio

n qu

ality

?* (%

yes

)20

1262

.7%

51.8

%

Perc

eptio

n ch

ildre

n ar

e le

arni

ng?*

(% y

es)

2012

83.6

%62

.2%

18H

EALT

HSe

lf-re

port

ed h

ealth

pro

blem

s?*

(% y

es)

2012

23.7

%25

%

Hos

pita

l bed

s* (p

er 1

000

peop

le)

2011

1.7

1.2

Satis

fact

ion

with

hea

lth?*

(% y

es)

2012

77.8

%75

.8%

32SA

FETY

& S

ECU

RITY

Hum

an fl

ight

220

129

6.7

Safe

wal

king

alo

ne a

t nig

ht?*

(% y

es)

2012

52.5

%55

.7%

Prop

erty

stol

en in

pas

t 12

mon

ths?

* (%

yes

) 20

1223

.2%

25.2

%

30PE

RSO

NA

L FR

EED

OM

Civi

l lib

ertie

s 3 20

122

3.7

Tole

ranc

e fo

r eth

nic

grou

ps?*

(% y

es)

2012

76.6

%67

%

Satis

fact

ion

with

free

dom

of c

hoic

e?*

(% y

es)

2012

47%

66.3

%

8SO

CIA

L C

API

TAL

Volu

ntee

red

time

in p

ast m

onth

?* (%

yes

)20

1222

.7%

17.1%

Don

ated

to c

harit

y in

pas

t mon

th?*

(% y

es)

2012

9.6%

15%

Hel

ped

stra

nger

s in

past

mon

th?*

(% y

es)

2012

48.7

%50

.2%

LEG

ATU

M IN

STIT

UTE

| TH

E 20

13 L

EGAT

UM

PRO

SPER

ITY

IND

EX™

CO

UN

TRY

FAC

TSH

EET

Bots

wan

a 1

Sout

h A

fric

a 2

Mor

occo

3

Tuni

sia

4

Nam

ibia

5

Alg

eria

6

Gha

na

7

Sene

gal

8

Rwan

da

9

Zam

bia

10

Egyp

t 11

Nig

er

12

Mal

i 13

Burk

ina

Faso

14

Beni

n 15

Uga

nda

16

Cam

eroo

n 17

Keny

a 18

Tanz

ania

19

Cong

o (R

epub

lic)

20

Mal

awi

21

Djib

outi

22

Moz

ambi

que

23

Nig

eria

24

Zim

babw

e 25

Mau

ritan

ia

26

Ethi

opia

27

Libe

ria

28

Suda

n 29

Sier

ra L

eone

30

Côte

d’Iv

oire

31

Ang

ola

32

Gui

nea

33

Togo

34

Buru

ndi

35

Cong

o (D

R)

36

Cent

ral A

fric

an R

epub

lic

37

Cha

d 38

AFR

ICA

RA

NK

ING

NO

TES:

1 Gov

. effe

ctive

ness

: val

ues r

ange

from

-1.6

6 to

2.2

5, h

ighe

r val

ues i

ndica

te h

ighe

r effe

ctive

ness

. 2H

uman

flig

ht: v

alue

s ran

ge

from

1 to

10, h

ighe

r val

ues i

ndica

te h

ighe

r lev

els o

f hum

an fl

ight

. 3Ci

vil lib

ertie

s: va

lues

rang

e fro

m 1

to 7,

low

er va

lues

indi

cate

lack

of c

ivil

liber

ties.

*Sur

vey d

ata a

re ta

ken

from

Gal

lup W

orld

Pol

l .

ZIM

BABW

ESU

B-IN

DIC

ES25

OV

ERA

LL R

AN

KIN

G: (

TOTA

L 38

)

90%

SAY

TH

EY C

AN

REL

Y O

N

OTH

ERS

IN T

IMES

OF

NEE

D

BELI

EVE

IT’S

A G

OO

D P

LAC

E TO

LIV

E FO

R IM

MIG

RA

NTS

65%

THIN

KS

IT’S

A G

OO

D

TIM

E TO

FIN

D A

JOB

35%

BUSI

NES

S ST

ART

-UP

CO

STS

(% O

F G

NI P

ER C

API

TA)

PUPI

L TO

TEA

CH

ER R

ATIO

1:39

DAT

A IN

FO

CU

S:

PER

FOR

MA

NC

E

BELI

EVE

BUSI

NES

S/G

OV

ERN

MEN

T C

OR

RU

PTIO

N IS

WID

ESPR

EAD

78%

2013

2012

107%

1 10 20 30 38

UP 8

»Zi

mba

bwe

has m

oved

up

eigh

t pla

ces t

o 25

th in

ove

rall

Pros

perit

y.

»Th

e Ec

onom

y su

b-in

dex

regi

ster

s the

big

gest

im

prov

emen

t, g

oing

up

four

teen

pla

ces t

o 24

th. A

big

in

crea

se in

gro

ss d

omes

tic sa

ving

s and

a d

rop

in th

e co

untr

y’s

infla

tion

rate

exp

lain

the

rise

in th

is su

b-in

dex.

»Th

e co

untr

y ha

s inc

reas

ed in

eve

ry su

b-in

dex,

exc

ept

in P

erso

nal F

reed

om (d

own

two

plac

es to

30t

h), w

ith

decl

inin

g pe

rcep

tions

of f

reed

om o

f cho

ice,

and

tole

ranc

e to

war

ds im

mig

rant

s.

Page 68: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

METHODOLOGY

67 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

HealthSatisfaction with Health

Level of Worrying

Satisfaction with Environmental Beauty

Hospital Beds

Health Expenditure per person

Water Quality

Infant Mortality Rate

HALE

Sanitation

Death from Respiratory Diseases

Under-nourishment

Well-Rested

Health Problems

Infant Mortality Rate

Life Expectancy

DPT Immunisation Rate

Incidence of TB

Undernourishment

Measles Immunisation Rate

Health Expenditure per Person

Wellbeing

Personal FreedomTolerance for Immigrants

Tolerance for Minorities

Civil Liberty & Free Choice

Satisfaction with Freedom of Choice

Tolerance for Immigrants

Civil Liberties

Tolerance for Minorities

E&OBusiness Start-up Costs

Secure Internet Servers

R&D Expenditure

Internet Bandwidth

Uneven Economic Development

Mobile Phones

Royalty Receipts

ICT Exports

Secure Internet Servers

Mobile Phones per Household

Working Hard gets you ahead

Environment for Entrepreneurship

Business Start-up Costs

EconomyCapital per Worker

Market Size

High-tech Exports

Gross Domestic Savings

Unemployment

Non-performing Loans

Inflation

FDI Size & Volatility

Satisfaction with Living Standard

Inflation

Adequate Food & Shelter

Perceived Job Availability

Gross Domestic Savings

Expectations of the Economy

Employed

Confidence Financial Institutions

5-year Rate of Growth

Social CapitalReliability of Others

Volunteering

Helping Strangers

Donations

Variable

Reliability of Others

Trust Others

Marriage

Donations

Volunteering

Helping Strangers

Religious Attendance

Safety & SecurityGroup Grievances

Refugees & Internally Displaced Persons

State Sponsored Political Violence

Theft

Assault

Safe Walking Alone at Night

Safe Walking Alone at Night

Express Political Opinion without Fear

Group Grievances

State Sponsored Political Violence

Demographic Instability

Refugees & Internally Displaced Persons

Human Flight

Assault

Civil War

GovernanceRegime Stability

Government Effectiveness

Rule of Law

Regulation

Separation of Powers

Political Rights

Government Type

Political Constraint

Efforts to Address Poverty

Confidence in the Judicial System

Business and Government Corruption

Government Effectiveness

Rule of Law Regulation

Environmental Preservation

Separation of Powers

Government Approval

Voiced Concern

Confidence in Military

Confidence in Honesty of Elections

Confidence Financial Institutions

5-year Rate of Growth

Gross Secondary Enrolment

Pupils-to-Teacher Ratio

Net Primary Enrolment

Girls-to-Boys Enrolment

Gross Tertiary Enrolment

Secondary Education per Worker

Tertiary Education per Worker

Satisfaction with Educational Quality

Perception that Children are Learning in Society

Gross Secondary Enrolment

Gross Tertiary Enrolment

Tertiary Education per Worker

Net Primary Enrolment

Girls-to-Boys Enrolment

Secondary Education per Worker

Education

6

Prosperity IndexOverall Score

2

3

4

5

1

WellbeingIncome

Variables listed in darker columns have an effect on income. Those in the lighter column affect wellbeing. Some variables appear in both columns because they have an impact on both income and wellbeing.

The diagram above shows the eight sub-indices that form the basis of national prosperity. The 89 individual variables, divided between the subindices, are listed below. The variables determine a country’s score for each sub-index and these determine its overall score for the Prosperity Index. Each variable makes a different contribution to its sub-index score. The variables are weighted by the size of their effect on either wealth or wellbeing. For instance, in the Health

sub-index infant mortality has a greater effect on the score than health expenditure per person. Although variables are weighted differently, the Prosperity Index applies equal weights to each sub-index for all countries. We offer you, the reader, the opportunity to assign your own weightings to each of the sub-indices. This can be done on our website. For more information on weightings please refer to the Technical Appendix published on www.prosperity.com.

Page 69: PI2013africa RECREATED - Legatum Prosperity Indexmuch corruption and civil strife, but the changing general ... Direct Investment is starting to branch out. €e inˆuence of the West

METHODOLOGY

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 68

HOW DO WE MEASURE A COUNTRY’S OVERALL PROSPERITY?

1 Selecting the variables. Starting with the current academic literature on economic growth and wellbeing, we identified a large number of variables (more than 200 in total) that have an impact upon wealth and wellbeing. The final variables were selected according to their global coverage and by using regression analysis to determine those that have a statistically significant relationship with wealth and wellbeing. The remaining 89 variables are divided into eight sub-indices depending on what aspect of prosperity the data influences.

2 Standardisation. The 89 variables use many different units of measurement. For example, the proportion of citizens that express confidence in financial institutions is measured in percentage terms, while capital per worker is measured in US Dollars. We transformed all variables to a common scale using a statistical technique called standardisation. A variable is standardised by subtracting the mean and dividing by the standard deviation.

3 Variable weights. When the methodology was set in 2010, we also determined the weight of each variable, using regression analysis. A variable’s weight (or ‘coefficient’) represents its relative importance to the outcome (either income or wellbeing). In other words, statistically speaking, some things matter more to prosperity than others.

HOW TO CALCULATE PI SCORES AND RANKINGS

4 Income and Wellbeing scores. For each country, the latest data available in 2013 were gathered for the 89 variables. The raw values are standardised and multiplied by the weights. The weighted variable values are then summed to produce a country’s wellbeing and income score in each sub-index. The income and wellbeing scores are then standardised so that they can be compared.

5 Sub-index scores. The standardised income and wellbeing scores are added together to create the countries’ sub-index scores. Countries are ranked according to their scores in each of the eight sub-indices.

6 Prosperity Index score. Finally, the Prosperity Index score is determined by assigning equal weights to all eight sub-indices. The average of the eight sub-indices yields a country’s overall prosperity score. The overall Prosperity Index rankings are based on this score.

METHODOLOGY:

How We Build the Index

he 2013 Legatum Prosperity Index™ o�ers a unique insight into how prosperity is forming and changing across the world.

Traditionally, a nation’s prosperity has been based solely on macroeconomic indicators

such as a country’s income, represented either by GDP or by average income per person (GDP per capita). However, most people would agree that prosperity is more than just the accumulation of material wealth, it is also the joy of everyday life and the prospect of being able to build an even better life in the future. �e Prosperity Index is distinctive in that it is the only global measurement of prosperity based on both income and wellbeing.

Attempting to understand how we move ‘beyond’ GDP is a particularly stimulating challenge, one that we strive to meet with academic and analytical rigour. This short methodological overview provides an understanding of how we constructed the 2013 Legatum Prosperity Index™ by combining established theoretical and empirical research on the determinants of wealth and wellbeing.

The Index values the need for a country to promote high levels of per capita income, but also advocates the need for countries to improve the subjective wellbeing of its citizens. Our econometric analysis has identified 89 variables, which are spread across eight sub-indices. �rough this process we are able to identify and analyse the specific factors that contribute to the prosperity of a country.

We endeavour to create an Index that is methodologically sound. To that end, we also publish a full methodology document to provide the reader with all the information required to understand the Legatum Prosperity Index™ in a way that is transparent, useful, and informative.

T

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FOOTNOTES

69 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

FOOTNOTES TO GRAPHS

Changing Demographics: The Youth Bulge

AVERAGE AGEAfrican Development Bank Group, African Economic Outlook 2012: Promoting Youth Employment, Special Theme Promoting Youth Employment, pp. 125-126, (Tunis: OECD Publishing, 2012),http://www.oecd.org/site/devyewa/Pocket%20Edition%20AEO2012-EN.pdf

DISSATISFIED WITH GOVERNMENT EFFORTS TO ADDRESS POVERTY (% YES)*Survey question: “In (respondent’s country), are you satisfied or dissatisfied with efforts to deal with the poor?”

The Nigerian Balancing Act

DRIVERS OF LOW SAFETY & SECURITY IN NIGERIA*Property stolen: Survey question: “Within the past 12 months, have you had money or property stolen from you or another household member?”

*Tolerance of minorities: Survey question: “Is the city or area where you live a good place or not a good place to live for racial and ethnic minorities?”

*Assaulted: Survey question: “Within the past 12 months, have you been assaulted or mugged?”

Group grievances: Grievances based on recent or past injustices, which could date back centuries. Including atrocities committed with impunity against communal groups and/or specific groups singled out by state authorities, or by dominant groups, for persecution or repression. (Ordinal rating).

Human flight: Flight of professionals, intellectuals and political dissidents and voluntary emigration of the middle class to other nations. (Ordinal rating).

Political rights: Ability to participate in political processes such as voting in legitimate elections, joining parties, running for office, etc. This variable captures elements relating to the electoral process, political pluralism and participation as well as the functionality of the government and additional discretionary political rights.(Ordinal rating).

STRONG FOUNDATIONS FOR ENTREPRENEURSHIP IN NIGERIA*Survey question: “Can people in this country get ahead by working hard, or not?”

*Survey question: “Is the city or area where you live a good place or not a good place to live for entrepreneurs forming new businesses?”

Start-up business costs measured as share of GNI per capita.

Cellular devices per 100 people.

PERCEPTIONS OF CORRUPTION*Composite variable includes two survey questions: “Is corruption widespread within businesses located in (respondent’s country), or not? Is corruption widespread throughout the government in (respondent’s country), or not?”

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FOOTNOTES

LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT | 70

Corruption vs. Ease of Doing Business

AVERAGE CHANGE IN SCORE ACROSS AFRICA (2010–2013)Regulation quality: Captures perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development. (-2.5 to +2.5, World Bank data)

CORRUPTION*Composite variable includes two survey questions: “Is corruption widespread within businesses located in (respondent’s country), or not? Is corruption widespread throughout the government in (respondent’s country), or not?”

ENTREPRENEURSHIPE&O score: determines the country’s rank on the E&O sub-index, the score is produced taking into account variables such as business start-up costs, ICT exports and perceptions on the environment for entrepreneurs.

*Survey question: “Is the city or area where you live a good place or not a good place to live for entrepreneurs forming new businesses?”

African Growth and Asian Investment

AVERAGE GDP GROWTH RATES 2007—2012 (%) Growth rates data sources:

China, Japan, South Korea, Brazil: The World Bank data, http://data.worldbank.org/

Argentina: IMF Data and Statistics, http://www.imf.org/external/data.htm

Taiwan: National Statistics of the Republic of China, http://eng.stat.gov.tw/mp.asp?mp=5

African average: African Development Bank, African Economic Outlook 2013: Structural Transformation and Natural Resources (Paris: OECD Publishing, 2013), Annex Table 2, http://www.africaneconomicoutlook.org/en/data-statistics/

Individual African countries: African Development Bank, African Statistical Yearbook 2013 (Tunis: African Development Bank, 2013), http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/African%20Statistical%20Yearbook%202013.pdf

KENYA AND ZAMBIA COMPARISONHi-tech exports (% of manufactured exports): High Technology exports as a percentage of manufactured exports. (Logged value).

Perceptions of Chinese help: 2009 Afrobarometer survey: Survey question:“In your opinion, how much do each of the following do to help your country, or haven’t you heard enough to say: China?”

Aleksandra Gadzala and Marek Hanush, “African perspectives on China-Africa: gauging popular perceptions and their economic and political determinants”, Working Paper 117, (Afrobarometer January 2010), http://www.isn.ethz.ch/Digital-Library/ Publications/Detail/?id=112383&lng=en

*Original source: Gallup World Poll

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ACKNOWLEDGEMENTS

71 | LEGATUM INSTITUTE | INSIGHT ON AFRICA: SPECIAL REPORT

The Legatum Institute Prosperity Index Team:

Joana Alfaiate

Novella Bottini

Stephen Clarke

Solène Dengler

Nathan Gamester

Edo Omic

Sean Walker

The Legatum Institute wishes to give special thanks to Daniel Chirot (University of Washington) and Shazia Ejaz (Legatum Institute) for their invaluable guidance and assistance in shaping and editing this report.

Graphic Designer: Kay Webb.

Data Visualisation Consultant: Jack Hagley.

Unless otherwise stated, all data are from the Legatum Prosperity Index™ 2013. All original data sources can be found at www.prosperity.com.

The Legatum Institute wishes to thank Oxford Analytica (www.oxan.com) for their input and assistance towards the production of this report.

ACKNOwLEDGEmENTS

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The 2013 edition of the Legatum Prosperity Index will be released later this year. For more information, please visit www.prosperity.com