SA ranks 75th out of 142 countries on Prosperity Index

02 November 2015 - 13:56 By RDM News Wire

South Africa ranks 75th globally in the 2015 Prosperity Index‚ having risen by six places since last year. This is‚ however‚ eight places down from the country’s ranking seven years ago. In the three years from 2009 to 2011‚ South Africa was relatively stable on the rankings being placed 67th‚ 66th and 69th. SA’s ranking then slipped from 2012-2014 to 74th‚ 77th and 81st.The index showed South Africa's best performance this year is in the Entrepreneurship & Opportunity sub-index‚ where it ranks 37th in 2015.South Africa's lowest rank this year is in the Safety & Security sub-index‚ where it ranks 112th.In the sub-Saharan region‚ Botswana‚ Namibia‚ Zambia‚ and Nigeria are growing less prosperous‚ according to the international index‚ which defines prosperity by measuring a country’s economic success and its wellbeing.The annual index‚ by the Legatum Institute‚ an international think tank based in London‚ ranks 142 countries across eight categories: the Economy‚ Entrepreneurship & Opportunity; Governance; Education; Health; Safety & Security; Personal Freedom; and Social Capital.In 2015‚ the index reveals that Botswana has fallen 17 places‚ Namibia 26 places and Zambia 15 places down the Economy sub-index since last year. As a result these countries are less prosperous.The end of the commodities boom has left people in the resource-exporting countries of sub-Saharan Africa increasingly dissatisfied with their standards of living:- Only 30% of people in Zambia are satisfied (down from 38% last year) - Only 32% of people in Botswana are satisfied (down from 42% last year) - Only 43% of people in Namibia are satisfied (down from 67% last year).Rising up the Index are diversified economies such as Ethiopia.Ethiopia has risen seven places up the Prosperity Index since 2012. The country has also risen eight places up the Economy sub-index since last year.Ethiopia has seen a surge in investment—foreign direct investment has grown by over 200% and is now 2% of GDP.Other diversified economies have also performed well. Togo is up seven places in the Prosperity Index since last year and has also risen seven places in the Economy sub-index.Top 5 in Sub-Saharan Africa: 1. South Africa 75th 2. Botswana 77th 3. Namibia 94th 4. Senegal 100th 5. Rwanda 101thBottom 5 in Sub-Saharan Africa: 1. Central African Republic 142th 2. Chad 139th 3. Burundi 138th 4. Democratic Republic of the Congo 137th 5. Sudan 134thNathan Gamester‚ programme director at the Legatum Institute‚ said in a statement: “Prosperity is about more than economic growth‚ it is about seeing improvements in people’s lives. This year we see that the prosperity of some African countries was built on shaky foundations. Many of the major resource-exporting countries of sub-Saharan Africa have slipped down the rankings of the Prosperity Index this year because they have failed to diversify their economies. By contrast some of the more diversified economies have become more prosperous. The lesson is that national success is about continual improvements in the health‚ education and wellbeing of citizens‚ not just short-term economic growth.”The top 10 overall rankings for 2015 are: 1. Norway 2. Switzerland 3. Denmark 4. New Zealand 5. Sweden 6. Canada 7. Australia 8. Netherlands 9. Finland 10. IrelandNorway has consistently taken top spot‚ scoring well for a range of criteria including its teacher to pupil ratio‚ being a good place to live for immigrants‚ business start-up costs‚ finding a job and being able to rely on others in times of need.To compare on just one category‚ Norway’s teacher to pupil ratio is at 10.3. The USA is 14.4 and China is 18.2 while Botswana’s is 25.4‚ South Africa is 28.7 and Nigeria is 37.6...

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