NS4540 Winter Term 2015 Country Indices. Country Indices/Rankings I There are a number of...

NS4540 Winter Term 2015Country Indices

Country Indices/Rankings I

• There are a number of organizations that provide rankings of countries based on factors that organization feels are key to progress and sustained growth and development

• World Bank Governance Indices• Voice and Accountability

• Political Stability/Absence of Violence

• Government Effectiveness

• Regulatory Quality

• Rule of Law

• Control of Corruption

2

CA: Voice and Accountability

1996 2000 2003 2005 2007 2009 2011 201320

30

40

50

60

70

80

90

Voic

e an

d A

ccou

ntab

ility

(Per

cent

ile)

LegendCOSTA RICAEL SALVADORGUATEMALAHONDURASNICARAGUAPANAMA

3

CA: Political Stability

1996 2000 2003 2005 2007 2009 2011 201310

20

30

40

50

60

70

80

90

Polit

ical

Sta

bilit

y/A

bsen

ce o

f Vio

lenc

e (P

erce

ntile

)


4

CA: Government Effectiveness

1996 2000 2003 2005 2007 2009 2011 201310

20

30

40

50

60

70

Gov

ernm

ent E

ffect

iven

ess

(Per

cent

ile)


5

CA: Regulatory Quality

1996 2000 2003 2005 2007 2009 2011 201320

30

40

50

60

70

80

Regu

lato

ry Q

ualit

y (P

erce

ntile

)


6

CA: Rule of Law

1996 2000 2003 2005 2007 2009 2011 201310

20

30

40

50

60

70

80

Rule

of L

aw (P

erce

ntile

)


7

CA: Control of Corruption

1996 2000 2003 2005 2007 2009 2011 201310

20

30

40

50

60

70

80

Cont

rol o

f Cor

rupt

ion

(Per

cent

ile)


8

Country Indices/Rankings II• Heritage Foundation, Index of Economic Freedom:• Rule of Law

• Property Rights

• Freedom from Corruption• Government Size

• Fiscal Freedom

• Government Spending• Regulatory Efficiency

• Business Freedom

• Labor Freedom

• Monetary Freedom• Open Markets

• Trade Freedom

• Investment Freedom

• Financial Freedom 9

CA: Economic Freedom

1996 1998 2000 2002 2004 2006 2008 2010 2012 201450

55

60

65

70

75

80

Tota

l Eco

nom

ic F

reed

om (S

core

)


10

CA: Trade Freedom

1996 1998 2000 2002 2004 2006 2008 2010 2012 201455

60

65

70

75

80

85

90

Trad

e Fr

eedo

m (S

core

)


11

Country Indices/Rankings III

• Legatum Prosperity Index• Economy

• Entrepreneurship and Opportunity

• Governance

• Education

• Health

• Safety and Security

• Personal Freedom

• Social Capital

• http://prosperity.com/#!/

12

http://prosperity.com/#!/

http://prosperity.com/#!/

Country Indices/Rankings IV• World Economic Forum, Competitiveness Index

• Institutions

• Infrastructure

• Macroeconomic Environment

• Health and Primary Education

• Higher Education and training

• Goods Market Efficiency

• Labor Market Efficiency

• Financial Market Development

• Technological Readiness

• Market Size

• Business Sophistication

• Innovation 13

WEF Framework

14

WEF Country Groupings 2014/15

15

BRICs: Voice and Accountability

1996 2000 2003 2005 2007 2009 20110

10

20

30

40

50

60

70

80Vo

ice

and

Acc

ount

abili

ty (p

erce

ntile

)

CountryBrazilChinaIndiaRussiaSouth Africa

Source: World Bank, Worldwide Governance Indicators, 1996-2011

Reflects perceptions of the extent to which a country's citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association, and a free media.

22

BRICs: Political Stability/Absence of Violence

1996 2000 2003 2005 2007 2009 20115

10

15

20

25

30

35

40

45

50

55

60

Polit

ical

Sta

bilit

y/A

bsen

ce o

f Vio

lenc

e (p

erce

ntile

)

CountryBrazilChinaIndiaRussiaSouth AfricaSource: World Bank, Worldwide Governance Indicators, 1996-2010

Reflects perceptions of the likelihood that the government will be destabilized or overthrown by unconstitutional or violent means, including politically-motivated violence and terrorism.

23

BRICs: Government Effectiveness

1996 2000 2003 2005 2007 2009 201120

30

40

50

60

70

80G

over

nmen

t Effe

ctiv

enes

s (p

erce

ntile

)


Reflects perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government's commitment to such policies.

24

BRICs: Regulatory Quality

1996 2000 2003 2005 2007 2009 201125

30

35

40

45

50

55

60

65

70

75

Reg

ulat

ory

Qua

lity

(per

cent

ile)



Reflects perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development.

25

BRICs: Rule of Law

1996 2000 2003 2005 2007 2009 201110

15

20

25

30

35

40

45

50

55

60

65R

ule

of L

aw (p

erce

ntile

)


Reflects perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence.

26

BRICs: Control of Corruption

1996 2000 2003 2005 2007 2009 201110

20

30

40

50

60

70

80C

ontr

ol o

f Cor

rupt

ion

(per

cent

ile)



Reflects perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as "capture" of the state by elites and private interests.

27

MENA: Voice Accountability

1996 2000 2003 2005 2007 2009 20115

10

15

20

25

30

35

40

Country/GroupingMonarchiesGulfAuthoritarian

Data Source: World Bank, World Governance Indicators, 2009

28

MENA: Political Stability, Absence of Violence

1996 2000 2003 2005 2007 2009 201110

15

20

25

30

35

40

45Pe

rcen

tile



29

MENA: Government Efficiency

1996 2000 2003 2005 2007 2009 201120

25

30

35

40

45

50

55

60

65

70Pe

rcen

tile



30

MENA: Regulatory Quality

1996 2000 2003 2005 2007 2009 201120

25

30

35

40

45

50

55

60

65

70Pe

rcen

tile



31

MENA: Rule of Law

1996 2000 2003 2005 2007 2009 201125

30

35

40

45

50

55

60

65

70Pe

rcen

tile



32

MENA: Control of Corruption

1996 2000 2003 2005 2007 2009 201120

30

40

50

60

70

80Pe

rcen

tile


33

MENA: Index of Economic Freedom

1995 1997 1999 2001 2003 2005 2007 2009 2011 201345

50

55

60

65

70

75

80O

vera

ll Sc

ore

Overall IndexOther MonarchiesGulf MonarchiesAuthoritarian


34

MENA: Entrepreneurship• Large public sector has bred a lack of economic dynamism in

region – further setting back employment• World Bank found (2010) that MENA has some of the lowest

firm entry density rates in the world• Suggests a lack of entrepreneurship with rate almost four

times lower than of Europe and Central Asia

35

MENA: Ease of Doing Business• Region generally scores very low on World Bank’

Ease of Doing Business Index – even lower after 2011 – yet the private sector will have to create most of the jobs.

36

Social Capital• There are a number of interesting patterns associated

with the region’s governance.• An often neglected aspect is social capital which

incorporates• Social networks and • The cohesion a society experiences when people trust one

another • Empirical studies on social capital have found that

societies with lower levels of social capital have experienced lower rates of economic growth

• Unlike physical capital, social capital may take years to show significant increases

• For the MENA region, low levels of social capital are closely associated with low levels of governance and entrepreneurship

37

Patterns of Governance/Social Capital

Egypt

Tunisia

Yemen

Morocco

Saudi Arabia

Jordan

Syria

Kuwait

Iraq

0 20 40 60 80 100 120 140

Ranking -- Legatum Social Capital (1 highest, 142 lowest)

0

20

40

60

80

100

120

140

Ran

king

-- L

egat

um G

over

nanc

e (1

hig

hest

, 142

low

est)

38

Patterns of Social Capital/Entrepreneurship

EgyptTunisia

Yemen

MoroccoSaudi Arabia

Jordan

Syria

Kuwait

Iraq

0 20 40 60 80 100 120 140

Ranking -- Legatum Entrepreneurship (1 highest, 142 lowest)

0

20

40

60

80

100

120

140R

anki

ng --

Leg

atum

Soc

ial C

apita

l (1

high

est,

142

low

est)

39

Governance/Oil Curse

Iraq

IranVenezuela

Nigeria

Saudi Arabia

Russia

Angola

MexicoIndonesia

UAE

Azerbaijan

Kuwait

ChadSudan

0 20 40 60 80 100 120 140

Ranking -- Legatum Economy (1 highest, 142 lowest)

0

20

40

60

80

100

120

140

(Classic Oil Curse)

(Oil Blessing)

(Partial Oil Curse)

40

Asia Governance: Voice and Accountability

41

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80

90Vo

ice

and

Acc

ount

abili

ty (p

erce

ntile

)

CountryChinaJapanSouth KoreaIndonesiaVietnamSource: World Bank, Worldwide Governance Indicators, 1996-2010


Asia: Political Stability Absence of Violence

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80

90

Polit

ical

Sta

bilit

y/A

bsen

ce o

f Vio

lenc

e (p

erce

ntile

)



42

Asia: Government Effectiveness

1996 2000 2003 2005 2007 200920

30

40

50

60

70

80

90

100

Gov

ernm

ent E

ffect

iven

ess

(per

cent

ile)

CountryChinaJapanSouth KoreaIndonesiaVietnam

43

Asia: Regulatory Quality

1996 2000 2003 2005 2007 200920

30

40

50

60

70

80

90

Reg

ulat

ory

Qua

lity

(per

cent

ile)


44

Asia: Rule of Law

1996 2000 2003 2005 2007 200920

30

40

50

60

70

80

90

100

Rul

e of

Law

(per

cent

ile)


45

Asia: Control of Corruption

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80

90

100C

ontr

ol o

f Cor

rupt

ion

(per

cent

ile)



46

Asia: Overall Economic Freedom

1995 1997 1999 2001 2003 2005 2007 2009 201135

40

45

50

55

60

65

70

75

Ove

rall

Econ

omic

Fre

edom

Sco

re

CountryChinaJapanSouth KoreaIndonesiaVietnamSource: Heritage House Index of Economic Freedom, 2012

47

Asian Trade Freedom

48

1995 1997 1999 2001 2003 2005 2007 2009 201120

30

40

50

60

70

80

90

Trad

e Fr

eedo

m S

core


Asian Total Economic Freedom

49

1995 1997 1999 2001 2003 2005 2007 2009 201135

40

45

50

55

60

65

70

75

Ove

rall

Econ

omic

Fre

edom

Sco

re


Asian Governance: Total Dimensions

50

1996 2000 2003 2005 2007 200920

30

40

50

60

70

80

90

Sum

: Tot

al G

over

nanc

e D

imen

sion

s (p

erce

ntile

)


Africa: Progress in Voice and Accountability

51

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80Vo

ice

and

Acc

ount

abili

ty (p

erce

ntile

)

Country/GroupingNigeriaSouth AfricaEgyptLibyaKenyaGhana

Africa: Progress in Political Stability, Absence of Violence

52

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80


Africa: Progress in Government Effectiveness

53

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80G

over

nmen

t Effe

ctiv

enes

s (p

erce

ntile

)


Africa: Progress in Regulatory Quality

54

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80


Africa: Progress in Rule of Law

55

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60


Africa: Progress in Control of Corruption

56

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80


Africa: Progress in Economic Freedom

57

1995 1997 1999 2001 2003 2005 2007 2009 201125

30

35

40

45

50

55

60

65

70

Ove

rall

Inde

x of

Eco

nom

ic F

reed

om


Africa Groupings: Voice and Accountability

1996 1998 2000 2002 2003 2004 2005 2006 2007 20085

10

15

20

25

30

35

40

45

50

Voic

e an

d A

ccou

ntab

ility

(per

cent

ile)

Country/GroupingOilMineralCostalLandlockedNorthernChina

58

Africa Groupings: Political Stability Absence of Violence

1996 1998 2000 2002 2003 2004 2005 2006 2007 200815

20

25

30

35

40

45

50

Polit

ical

Sta

bilit

y, A

bsen

ce o

f Vio

lenc

e (p

erce

ntile

)


59

Africa Groupings: Government Effectiveness

1996 1998 2000 2002 2003 2004 2005 2006 2007 200810

20

30

40

50

60

70

Gov

ernm

ent E

ffect

iven

ess

(per

cent

ile)


60

Africa Groupings: Regulatory Quality

1996 1998 2000 2002 2003 2004 2005 2006 2007 200815

20

25

30

35

40

45

50

55

Reg

ulat

ory

Qua

lity

(per

cent

ile)


61

Africa Groupings: Rule of Law

1996 1998 2000 2002 2003 2004 2005 2006 2007 20085

10

15

20

25

30

35

40

45

50

Rul

e of

Law

(per

cent

ile)


62

African Groupings: Control of Corruption

1996 1998 2000 2002 2003 2004 2005 2006 2007 200810

15

20

25

30

35

40

45

50

55

Con

trol

of C

orru

ptio

n (p

erce

ntile

)


63

Latin America: Voice and Accountability

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80

90Vo

ice

and

Acc

ount

abili

ty (p

erce

ntile

)

CountryArgentinaBrazilMexicoVenezuelaColombiaCubaChile



64

Latin America: Political Stability Absence of Violence

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80

90

Polit

ical

Sta

bilit

y/A

bsen

ce o

f Vio

lenc

e (p

erce

ntile

)




65

Latin America: Government Effectiveness

1996 2000 2003 2005 2007 200910

20

30

40

50

60

70

80

90G

over

nmen

t Effe

ctiv

enes

s (p

erce

ntile

)



Reflects perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government's commitment to such policies.

66

Latin America: Rule of Law

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80

90R

ule

of L

aw (p

erce

ntile

)



Reflects perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence.

67

Latin America: Control of Corruption

1996 2000 2003 2005 2007 20090

10

20

30

40

50

60

70

80

90

100C

ontr

ol o

f Cor

rupt

ion

(per

cent

ile)




68

Latin America: Total Economic Freedom

1995 1997 1999 2001 2003 2005 2007 2009 201135

40

45

50

55

60

65

70

75

80

Ove

rall

Econ

omic

Fre

edom

Sco

re

CountryArgentinaBrazilMexicoVenezuelaColombiaChile

Source: Heritage House Index of Economic Freedom, 2012

69

Latin America: Trade Freedom

1995 1997 1999 2001 2003 2005 2007 2009 201150

55

60

65

70

75

80

85

90

Trad

e Fr

eedo

m S

core

CountryArgentinaBrazilMexicoVenezuelaColombiaChile

70

NS4540 Winter Term 2015 Country Indices. Country Indices/Rankings I There are a number of...

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