Every year, Legatum releases the Legatum Prosperity Index which analyzes social developments in 149 countries. The London-based independent charity ranks each nation based on certain societal pillars like growth in education or economy, as well as changes in business environments and governance.
Recently, the global think tank studied seven distinct regions around the globe, namely: North America, Western Europe, Eastern Europe, Latin America and the Caribbean, Asia-Pacific, the Middle East, North Africa, and Sub-Saharan Africa.
Below are seven global prosperity trends identified in Legatum’s key findings.
Prosperity Index Highlights
1. Global prosperity is on the rise
Overall, countries around the world are improving their rankings. Compared to 2007, the median score in the Legatum Prosperity Index went up 15 places. The increase may not be a surprise since 95 of the 149 countries observed made improvements to get better scores.
2. Social development is stratified
Even though global prosperity is on the rise, countries are not developing or changing at the same rate. Since 2013, the gap has steadily increased between nations with the highest scores and those with the lowest rankings. The year 2018 marked the largest difference between countries with high rankings and those at the lower end of the index.
3. Business environments are gaining traction worldwide
All the regions in the index have raised their business environment score. This pillar has seen the most significant global increase during a one-year period to date.
Asia, Sub-Saharan Africa, and Eastern Europe have seen the most developments in the business sector within the last 10 years. Their growth is partly thanks to improvements in their entrepreneurial environments. For instance, in Sub-Saharan Africa, a number of measures have been implemented to make it easier for citizens to start a business.
4. Safety and security are declining worldwide
Majority of the regions observed (approximately five out of seven) are experiencing a progressive decline in the safety and security pillar. It is the only sector in the Legatum Prosperity Index with a score that is lower in 2018 than it was in 2007.
One indicator, terrorist deaths, continues to rise, steadily contributing to the pillar’s falling rate. Another reason for this pillar’s downward spiral is believed to be the diminishing security in people’s living conditions. Latin America and the Caribbean, in particular, have seen the largest decline in this sector, as food and shelter become less affordable.
5. Eastern Europe makes significant improvements
This region has managed to rise the most compared to others. Countries like Lithuania, Romania, and Estonia contributed exponentially to the region’s developments, thanks to improvements in the business and natural environment, as well as personal freedom.
6. More women in government
In 2007, women represented 15 percent of national legislatures worldwide. For over a decade, that number has been steadily rising. In 2018, 20.7 percent of representation in parliament were female.
Rwanda’s parliament, in particular, has made great strides towards the representation of women in the government, with 49 out of 80 seats being held by a female politician. The same cannot be said for countries in the Middle East and North African regions, where women hold only 16 percent of seats in the legislature.
7. Steady improvements in global education
The world has seen a steady improvement in the education sector. It saw a slight decline in 2017, but this pillar has since picked up again. Below are some global highlights in each indicator that contributes to the education pillar’s score.
a. Quality of Education
Public perception of the educational system, the number of students graduating primary and secondary schools, and the reputation of a country’s universities are all factors that are considered when assessing the quality of a region’s education.
Global Highlights:
- Eastern Europe has managed to increase its quality of education substantially in recent years. The public’s perception of school systems in countries in the region has become better. According to research, more workers have received secondary education in Eastern Europe.
- In South Asia, specifically in Bangladesh, more parents are confident that their children are learning in schools.
- Ecuador in South America has also been improving its quality of education. More of its citizens feel confident in the school system, and public perception is steadily becoming optimistic.
- In West Africa, there has been substantial educational growth through the years. Niger, in particular, has managed to increase the number of students who finish primary education.
b. Access to Education
The (adult and child) literacy rate of a society, along with the ratio of girls vs. boys enrolled in school, are all considered when figuring out how much access people have to education in a country.
The Gini coefficient of education distribution is accounted for as well. It is a statistical measurement that analyzes how educational inequality correlates to income or wealth distribution in a population.
Global Highlights
- In Asia-Pacific, Bangladesh has improved its adult literacy rate from 47 percent in 2011 to 73 percent in 2016.
- In Western Asia, Armenia’s girls to boys ratio in schools has made strides. The gap between female and male enrollment is smaller.
- Switzerland’s education system ranks the highest in the world. However, it ranks 71st in the world when it comes to access, meaning the European country’s citizens don’t all get the same educational opportunities.
Legatum’s Mission
insights into social developments and changes around the world. Legatum uses the index to inform thinking on how best to allocate financial, intellectual, and human capital via the Legatum Foundation to aid global prosperity.
