Friday, November 4, 2011

Nigeria is at the Bottom of 2011 Global Prosperity Index

Nigeria is at the Bottom of 2011 Global Prosperity Index

Nigeria is ranked 104th out of 110 countries in the 2011 Global Prosperity Index, a worldwide assessment of wealth and quality of life.
Nigeria’s best ranking is at the 54th position in social capital and the worst is her 108th position in governance.

101 Zambia
102 Kenya
103 Mozambique
104 Nigeria
105 Sudan
106 Yemen
107 Pakistan
108 Ethopia
109 Zimbabwe
110 Central African Republic

The Legatum Prosperity Index(TM) [ ]) provides the world's only global assessment of national prosperity based on both wealth and well-being. The Index assesses 110 countries (accounting for over 93% of the world's population and 97% of the world's GDP) and ranks them based on their performance in eight sub-indices, including Economy, Governance, Personal Freedom, and Social Capital.

"We want to assess the long term drivers of prosperity," said Jeffrey Gedmin, President and CEO of the Legatum Institute. "The Prosperity Index is designed to be a practical tool for researchers, policy makers, media, and the interested public. We hope this year's findings will contribute to the conversation about what makes societies healthy and successful."

The following is the complete report on

Economy - Ranked 99th
Nigeria’s economy is not strong, and citizens’ access to food and shelter is far from adequate

Inflation in Nigeria is high at over 11%, along with gross domestic savings at 39%. Unemployment levels are similarly high, at almost 20%, and six in ten* Nigerians reported in a 2010 survey that they were engaged in paid or unpaid employment. Nigeria places 104th and 27th on these variables, respectively. Despite relatively strong employment levels, a remarkably high* share of people reported not having enough money to provide their family with adequate food and shelter. Not surprisingly, Nigerians place a low 93rd on the Index for the mere 42%* of people who were satisfied with their standard of living. People’s expectations regarding local job opportunities are slightly below* the global** average, and expectations for the economy are relatively low*. Between 2005 and 2009, GDP growth per capita was an average of 3.5% annually, placing the country 72nd on the Index, but capital per worker is one of the bottom six in the Index, falling below 3,000 USD (PPP). High-tech exports are also very low, at just 2.6% of total manufactured exports, while the levels of foreign direct investment, as measured by both net inflows and volatility, are the second highest on the Index. An above average 7% of Nigerian loans are non-performing, although with 66%* of people expressing confidence in the country’s financial institutions, it is above the global average on this variable. No data were available on Nigeria’s market size.

Entrepreneurship & Opportunity - Ranked 104th

Nigerians are relatively optimistic about the value of hard work, although opportunities seem limited

R&D expenditure in Nigeria is negligible at 0.6%, whilst royalty receipts and ICT exports are virtually non-existent. The country places 67th, 80th and 105th, respectively on the Index, on these variables. Nearly eight in ten* Nigerians believe that the country offers a robust environment for entrepreneurs, although start-up costs are one of the ten highest worldwide. Mobile phone penetration, access to internet bandwidth, and the availability of secure internet servers all place Nigeria in the bottom 20 countries of the Index, all of which suggests a weak infrastructure for entrepreneurship. Only two countries in the world have higher prevalence of uneven economic development than Nigeria, meaning that inequality across different socio-economic groups is pronounced. Despite this, an above average 86%* of Nigerians believe that hard work will help them get ahead in life.

Governance. Ranked 108th

The Nigerian government is inefficient and undemocratic, inspiring low confidence in its institutions

There are autocratic strains in Nigeria’s government, which is one of the most ineffectively run in the world. There are few political constraints in the country, meaning that a change in a political actor’s preferences has a large degree of influence on policy decisions, and relatively few checks on executive power. Nigeria places 85th and 75th, respectively, on these variables. Only 29%* of Nigerians approve of the government, 16%* approve of the country’s efforts to address poverty, and one in three* of its efforts to preserve the environment, placing the country in the bottom 20 on all three variables. Only 11%* of people believe that Nigerian elections are conducted honestly, which places the country last for this variable, worldwide. Corruption is pervasive* in business and government and only six countries* in the Index place lower on the rule of law variable, meaning that there is little respect for property rights, the police and the judiciary system. Regulation of the business sector is weak and inefficient, placing the country 95th, globally. Slightly over two-thirds* of Nigerians are confident in the military, and only half* of the population reports confidence in the judicial system, both below the global average. Regard for political rights is low and less than one in four* people voiced their opinion to a public official in the month preceding a 2010 survey, earning Nigeria 34th place on the Index.

Education - Ranked 106th
The education system is weak in Nigeria, and dissatisfaction with the quality of education is the highest in the world

Nigeria’s net primary and gross secondary enrolment rates are among the 10 worst in the Index, while gross tertiary enrolment is also low, placing Nigeria 87th in the Index. Only 61% of children of primary school age are enrolled in education, and there is an under representation of girls in primary and secondary education in Nigeria. Only three other countries in the world expressed greater dissatisfaction with its educational system, approval of which is a paltry 42%*. Yet, 63%* of Nigerians, believe that children are able to learn and grow in schools every day, placing Nigeria 77th in the Index, on this variable. There are 46 pupils for every primary school teacher, placing Nigeria among the 11 lowest countries in the world. The Nigerian workforce has, on average, less than a year of secondary education, and under six months of tertiary education, placing the country 98th and 84th on the Index, respectively.

Health - Ranked 106th
Nigeria places among the bottom five in the Index for many health outcomes, yet self-reported levels of health are very high

At almost 9%, infant mortality in Nigeria is high, while life expectancy, when adjusted for healthy years lived, is very low, at 42 years. Nigeria places 105th, and 104th on the Index, respectively, for these variables. Undernourishment is above the global average, with 6% of the population consuming less than the daily minimum standard of calories on a daily basis. The incidence of tuberculosis is high, and immunisation rates for both infectious diseases and measles, at around 42%, are extremely low, placing the country at the bottom of the Index for these variables. Health expenditure is a mere 134 USD (PPP) a year per capita, and there is only one hospital bed for every 1,000 people, placing Nigeria in the bottom 30 countries, on these variables. Nigeria also places in the bottom 30 countries on a number of other health-related variables, with only 32% of citizens having access to adequate sanitation facilities, very low* levels of satisfaction with water quality, and an extremely high number of deaths due to respiratory disease, with 191 fatalities per 100,000 persons. Given these low levels of performance, it is surprising that health satisfaction is a high 85%*, ranking 28th in the Index. Only 17%* of people, in a 2010 survey, reported worrying about their health the day before, and 76%* of people felt well-rested. Nigeria places eighth and 34th respectively on these variables. A very low 17%* of people believe that their health problems prevent them from engaging in activities others their age enjoy, placing the country in 10th place, on this variable. However, Nigeria places in the bottom five in the Index for the very low 37%* of people who derive satisfaction from the beauty of their environment.

Safety & Security - Ranked 105th
National security in Nigeria is extremely low, while risks to personal safety are very high

There is a relatively high level of forced uprooting of refugees and internally displaced people in Nigeria, and the country places 75th in the Index on this variable. Only three countries in the Index have more problems with group grievances, and state-sponsored political violence against political dissidents seems endemic, placing Nigeria 89th for this variable. Consequently, many* people are afraid to express their political opinions openly and the country has the seventh highest rate of human flight. Nigeria places in the bottom 20 countries of the Index for the high degree of civil and ethnic violence, and has a similarly high degree of demographic instability resulting from border disputes, ownership or occupancy of land, access to transportation outlets, control of religious or historical sites, or proximity to environmental hazards. According to a 2010 survey, a very high 19%* of the population reported having been assaulted during the previous year, while 24%* had property stolen, placing Nigeria 107th and 94th, respectively, on these variables. A low 52%* of people felt safe walking home alone at night, placing the country 70th in the Index on this measure.

Personal Freedom - Ranked 89th

Nigerians are dissatisfied with the low levels of individual freedom afforded to them

Civil liberties, including freedom of expression, belief, association, and personal autonomy, are low in Nigeria. Just 57%* of people are satisfied with their freedom of choice, placing the country among the bottom 20 countries in the Index. Perceived tolerance for immigrants and for ethnic and racial minorities is low, with around 66%* and 54%* of the population, respectively, believing that the area or city where they live is a good place for these groups. Nigeria ranks 55th and 88th in the Index, on these variables.

Social Capital - Ranked 54th

Few Nigerians feel they can rely on or trust others, but Nigeria has very high levels of religious attendance and volunteerism

Social cohesion appears poor, with only 13%* of Nigerians believing that in general they can trust others, placing the country 90th in the Index. Nonetheless, when responding to a 2010 survey, a close to average 30%* of people had donated money to charity, and a high 41%* had volunteered in the previous month. Nearly three-quarters* of Nigerians reported to have helped a stranger, placing the country fourth on this variable. Significant community involvement contrasts with a relatively low 82%* of people feeling they can count on relatives and friends in times of need, which places the country 73rd in the Index, on this variable. At 65th on the Index for the 50%* of people who are married, Nigeria appears to have fairly low levels of potential access to familial social networks. However, access to religious networks appears high, as Nigeria places first for the very high 94%* of people who had attended a place of religious worship in the week prior to the survey. * Data is taken from the Gallup World Poll ** The terms 'international', 'global', or 'world' are used to reference the 110 Prosperity Index countries, which represent approximately 93% of the world’s population and ¬¬97% of global GDP.

* Data taken from the Gallup World Poll
** The terms 'international', 'global', or 'world' are used to reference the 110 Prosperity Index countries, which represent approximately 93% of the world’s population and
97% of global GDP.

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