Prolonged uncertainty hits Nepal's prosperity ranking

Low score in entrepreneurship and opportunities, personal capital, and weak governance system of the country, has pulled Nepal down to the 108th position in 2012, from a year ago's 93rd position, according to the Global Prosperity Index (GPI) published by London-based think tank, Legatum Institute, today.

Legatum’s prosperity index has ranked Nepal 115th in entrepreneurship and opportunities, and 116th in personal capital. Similarly, the governance system of the country has also weakened to 110th position among the 142 countries examined for their prosperity strength.

Prosperity index of Nepal had suffered since last couple of years, though Constituent Assembly election had given a glimpse of a better future from the years-long instability and prolonged economic uncertainties that were propelled by political instability pulling Nepal's ranking down.

Likewise, South Asian economies have also witnessed a sharp fall in making wealth following problems in economies and politics — from governance to personal freedom including safety and security. Most South Asian economies have scored seven to eight points less in the index of 2012.

According to the report, Sri Lanka is the only economy that gained prosperity in 2012. The country has secured 58th position among the 142 countries studied to rank prosperity through eight different parameters — economy, entrepreneurship and opportunities, governance, education, health, safety and security, personal freedom, and social capital.

Sri Lanka has climbed five steps to secure top position among South Asian countries in the last one year, the report said, adding that it was in the 63rd position a year ago.

Prosperity of South Asian economic giant, India, has also dropped from 91st position to 101st position in a year. Weakening safety and security and governance have caused the slide of the Indian economy that is, however, still in the 57th position in the globe.

Pakistan, which ranked 132nd in the index, has shown poor performances in all the eight parameters. The country has been ranked 138th in safety and security, followed by personal freedom (139th) safety and security (115th), entrepreneurship and opportunities (115th). It also has a poor record of governance at 103rd position.

Bangladesh was in a better position than Pakistan with a rank of 103, according to the sixth edition of Legatum Prosperity Index that has studied of wealth and wellbeing in 142 countries.

The ranking has placed Norway top for the overall prosperity index, whereas Switzerland is number one for economy, Denmark has scored the highest for entrepreneurship and opportunity, Switzerland tops in governance, Luxembourg ranks number one for health, Iceland ranks highest for safety and security, Canada scores highest for personal freedom, and Norway ranks highest for social capital sub-categories in the 2012 report.

Covering 96 per cent of the world’s population, the index is an attempt to broaden measurement of a nation’s economic health beyond indicators like gross domestic product. The Legatum Institute is a public policy research arm of the Legatum Group, a Dubai-based private investment group, founded in 2006 by New Zealand billionaire Christopher Chandler.

 

South Asian ranking

Country - 2009 - 2010 - 2011 - 2012

Sri Lanka - 68 - 59 - 63 - 58

India - 78 - 88 -91 -101

Bangladesh - 95 - 96 - 95 - 103

Nepal - 88 - 91 - 93 - 108

Pakistan - 107 - 109 - 107 - 132

Afghanistan - - - 140

(Source: Global Prosperity Index 2009-12, Legatum Institute)

 

South Asian ranking in key categories

Economy - E&O - Governance - S&S - Personal Freedom

Afghanistan - 130 - 121 - 141 - 140 - 135

Bangladesh - 73 - 104 - 98 - 118 - 32

India - 57 - 99 - 49 - 114 - 67

Nepal - 97 - 115 - 110 - 83 - 116

Pakistan - 115 - 103 - 115 - 139 - 132

Sri Lanka - 71 - 86 - 51 - 122 - 58

(E&O= Entrepreneurship and Opportunities, S&S= Safety and Security)