The Legatum Prosperity Index is an annual ranking, developed by the Legatum Institute, of 142 countries. The ranking is based on a variety of factors including wealth, economic growth and quality of life
BELIEVE BUSINESS/GOVERNMENT CORRUPTION IS WIDESPREAD
TEACHER TO PUPIL RATIO
SAY THEY CAN RELY ON OTHERS IN TIMES OF NEED
BUSINESS START-UP COSTS (% OF GNI PER CAPITA)
Italy - 32nd
Italy dropped four places, to 32nd, in overall prosperity. The Economy sub-index dropped by nineteen places, to 52nd, due to a drop in gross domestic saving rates and confidence in financial institutions, and increased in unemployment rates, non-performing loans, and inflation rates. The Social Capital sub-index increased eleven places, to 29th, because of an increase in the volunteerism levels and the willingness to help a stranger.
5-year average GDP per capita growth (% annual) 2005-2009.
Expectations of the economy
Survey question: “Right now, do you think that economic conditions in the city or area where you live, as a whole, are getting better or getting worse?”
Survey question: “What is your employment status?” (Employed full time for an employer, employed full time for self, employed part time do not want full time, unemployed, employed part time want full time, out of workforce).
Do you have confidence in financial institutions? (% yes)
Survey question: “In (respondent’s country), do you have confidence in financial institutions or banks?”
Do you have access to adequate food and shelter? (% yes)
Composite variable including two survey questions: “Have there been times in the past 12 months when you did not have enough money to buy food that you or your family needed? Have there been times in the past 12 months when you did not have enough money to provide adequate shelter or housing for you and your family?”
Is it a good time to find a job? (% yes)
Survey question: “Thinking about the job situation in the city or area where you live today, would you say that it is now a good time or a bad time to find a job?”
Capital per worker
Average amount of physical capital per worker for the production of goods and services. (Logged value).
FDI size and volatility
Foreign direct investment are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. This value is adjusted by the five-year moving average volatility. (Logged value).
Gross domestic savings (% of GDP)
Gross domestic savings are calculated as GDP less final consumption expenditure. The domestic savings rate is this figure divided by GDP. (Logged value).
Hi-tech exports (% of manufactured exports)
High Technology exports as a percentage of manufactured exports. (Logged value).
Annual change in consumer price index. (Logged value).
Value of Domestic consumption plus country exports minus country imports in US dollar terms. (Logged value).
Non-performing loans (% of total loans)
Percentage of loans that have not been re-paid 90 days after the end of the borrowing term. (Logged value).
Satisfied with living standards? (% yes)
Survey question: “Are you satisfied or dissatisfied with your standard of living, all the things you can buy and do?”
Unemployment rate (% of labour force)
Percentage of labour force not employed.
Entrepreneurship & Opportunity
Good place for entrepreneurs to start a business? (% yes)
Survey question: “Is the city or area where you live a good place or not a good place to live for entrepreneurs forming new businesses?”
ICT Exports (% of total exports)
Information and Communication Technology (ICT) exports as a percentage of total goods exports. (Logged value).
Secure internet servers (per 1 million people)
Servers using encryption technology in internet transactions, per one million people. (Logged value).
Internet bandwidth (Mpbs)
The contracted capacity of international connections between countries for transmitting Internet traffic. Mega bites per second (Mbps). (Logged value).
Royalty and license fees are payments and receipts between residents and non-residents for the authorised use of intangible, non-produced, non-financial assets and proprietary rights. (Logged value).
Business start-up costs (% of GNI per capita)
Start-up business costs measured as share of GNI per capita. (Logged value).
Mobile phones (per 100 people)
Cellular devices per 100 people.
Mobile phones per household
Survey question: “Does your home have a cellular phone?”
R&D expenditure (% of GDP)
Expenditures for research and development are current and capital expenditures (both public and private) on creative work undertaken systematically to increase knowledge, including knowledge of humanity, culture, and society, and the use of knowledge for new applications. R&D covers basic research, applied research, and experimental development.
Uneven economic development
Group-based inequality, or perceived inequality, in education, jobs, and economic status. Also measured by group-based poverty levels, infant mortality rates, education levels. (Ordinal rating).
Can people get ahead by working hard? (% yes)
Survey question: “Can people in this country get ahead by working hard, or not?”
Satisfied with govt. efforts to address poverty? (% yes)
Survey question: “In (respondent’s country), are you satisfied or dissatisfied with efforts to deal with the poor?”
Do you have confidence in the honesty of elections? (% yes)
Survey question: “In (respondent’s country), do you have confidence in the honesty of elections?”
Do you have confidence in the military? (% yes)
Survey question: “In (respondent’s country), do you have confidence in the military?”
Do you have confidence in the judicial system? (% yes)
Survey question: “In (respondent’s country), do you have confidence in the judicial system and courts?”
Satisfied with govt. efforts to preserve environment? (% yes)
Survey question: “In (respondent’s country), are you satisfied or dissatisfied with efforts to preserve the environment?”
Separation of Powers
Composite variable including five components that are highly correlated:Competitiveness in Executive Branch – The extent of competition in the participation of various political fractions in the executive branchCompetitiveness in Legislative Branch – The extent of competition in the participation of various political fractions in the legislative branch.Judiciary Independence – The extent to which the judiciary system is independent in its actions from the preferences of the executive authorities.Regulation of Executive Election – Regulation refers to the extent to which a polity has institutionalised procedures for transferring executive power. 1) Unregulated:Changes in chief executive occur through forceful seizures of power. 2) Transitional: Chief executives are chosen by designation within the political elite, without formal competition. 3) Regulated: Chief executives are determined by hereditary succession or in competitive elections.Political participation: This variable indicates to what extent citizens enjoy freedom of political choice and the legal right and ability in practice to change the laws and officials that govern them through free and fair elections. This right is sometimes known as the right to self-determination.This composite variable is constructed by normalising each of the five variables between one and two and multiplying all variables. The minimum value is one; the maximum value is 32.
Do you have confidence in the national government? (% yes)
Survey question: “In (respondent’s country), do you have confidence in the national government?”
Captures the efficiency and quality of bureaucracy, level of government stability and effectiveness with respect to the implementation of policies. (Ordinal rating).
The number of years since the most recent regime change.
The extent to which a society is autocratic or democratic. This measure depends on the competitiveness of executive recruitment, constraints on chief executives, regulation of political participation, and competitiveness of political participation. Categorical rating.
Are the businesses and government corrupt? (% yes)
Composite variable includes two survey questions: “Is corruption widespread within businesses located in (respondent’s country), or not? Is corruption widespread throughout the government in (respondent’s country), or not?”
The extent to which a change in the preference of a political actor may lead to policy change. This is an indicator of the existence of checks and balances in apolitical system. (Ordinal rating).
Ability to participate in political processes such as voting in legitimate elections, joining parties, running for office, etc. This variable captures elements relating to the electoral process, political pluralism and participation as well as the functionality of the government and additional discretionary politicalrights.(Ordinal rating).
Captures perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development.
Rule of law
The extent to which individuals within a society respect property rights, the police and the judiciary system, as well the quality of police and legalsafeguards. (Ordinal rating).
Voiced concern to a public official in past year? (% yes)
Survey question: “Have you voiced your opinion to a public official in the past month?”
Do children have the opportunity to learn? (% yes)
Survey question: “Do most children in (respondent’s country) have the opportunity to learn and grow every day, or not?”
Are you satisfied with the quality of education? (% yes)
Survey question: “In the city or area where you live, are you satisfied or dissatisfied with the educational system or the schools?”
Girls to boys enrolment ratio
The ratio of the gross enrolment rate of girls to boys in primary and secondary education levels in both public and private schools. We have adjusted this variable by the share of each gender in the population.
Gross secondary enrolment rate
The ratio of total enrolment, regardless of age, to the population of the age group that officially corresponds to the level of secondary education. Secondary education completes the provision of basic education that began at the primary level, and aims at laying the foundations for lifelong learning and human development, by offering more subject- or skill-oriented instruction using more specialised teachers.
Gross tertiary enrolment rate
The ratio of total enrolment, regardless of age, to the population of the age group that officially corresponds to the level of tertiary education. Tertiary education, whether or not to an advanced research qualification, normally requires, as a minimum condition of admission, the successful completion of education at the secondary level.
Net primary enrolment rate
Net enrolment ratio is the ratio of children of official school age based on the International Standard Classification of Education 1997 who are enrolled in school to the population of the corresponding official school age. Primary education provides children with basic reading, writing, and mathematics skills along with an elementary understanding of such subjects as history, geography, natural science, social science, art, and music.
Pupil to teacher ratio
The number of pupils enrolled in primary school divided by the number of primary school teachers.
Secondary education per worker
Average years of secondary education completed amongst the labour force.
Tertiary education per worker
Average years of tertiary education completed amongst the labour force.
Rate of immunisation against infectious disease
Child immunisation measures the percentage of children aged 12-23 months who received vaccinations before 12 months or at any time before the survey.A child is considered adequately immunised against diphtheria, Pertussis (or whooping cough), and tetanus.
Satisfied with the beauty of the environment? (% yes)
Survey question: “In the city or area where you live, are you satisfied or dissatisfied with the beauty or physical setting?”
Health-adjusted life expectancy (years)
Life expectancy adjusted by health status. As opposed to life expectancy, which assigns the same weight to all years of life, HALE weights sick years less thanhealthy years.
Do you have any health problem? (% yes)
Survey question: “Do you have any health problems that prevent you from doing any of the things people your age normally can do?”
Satisfied with personal health? (% yes)
Survey question: “Are you satisfied or dissatisfied with your personal health?”
Hospital beds (per 1,000 people)
Number of hospital beds per 1,000 people. This includes public, private, generalised and specialised hospitals.
Infant mortality rate (per 1,000 live births)
Number of infants dying before the age of one per 1,000 live births in a given year.
Life expectancy at birth indicates the number of years a new-born infant would live if prevailing patterns of mortality at the time of its birth were to stay thesame throughout its life.
Rate of immunisation against measles
Child immunisation measures the percentage of children aged 12-23 months who received vaccinations before 12 months or at any time before the survey.A child is considered adequately immunised against measles after receiving one dose of vaccine.
Health expenditure per person (Int. Dollars PPP)
Public and private health expenditure, including external aid, per capita in international PPP $.
Deaths from respiratory diseases (per 100 people)
Death rate from respiratory diseases and infections per 100,000 people.
Sanitation (% of population)
The percentage of the population with access to private or shared waste disposal facilities that can effectively prevent human, animal and insect contact with excreta. This variable captures the percentage of population having access to such facilities.
Incidence of tuberculosis ( per 100,000 people)
Incidence of tuberculosis is the estimated number of new pulmonary, smear positive, and extra-pulmonary tuberculosis cases, as a percentage of the population.
Undernourishment (% of population)
The share of population whose daily calorie intake is consistently less than the daily minimum standards (predicted).
Satisfied with the quality of water? (% yes)
Survey question: “In the city or area where you live, are you satisfied or dissatisfied with the quality of water?”
Did you feel well-rested yesterday? (% yes)
Survey question: “Now please think about yesterday, from the morning until the end of the day. Think about where you were, what you were doing, who you were with, and how you felt. Did you feel well-rested yesterday?”
Did you experience worrying yesterday? (% yes)
Survey question: “Did you experience worrying during a lot of the day yesterday?”
Safety & Security
Have you been assaulted in past year? (% yes)
Survey question: “Within the past 12 months, have you been assaulted or mugged?”
Pressures deriving from high population density relative to food supply and other life sustaining resources. The pressure from a population’s settlement patterns and physical settings, including border disputes, ownership or occupancy of land, access to transportation outlets, control of religious or historical sites, and proximity to environmental hazards. (Ordinal rating).
Ability to express political opinion without fear
Survey question: “In your opinion, how many people in your country, if any, are afraid to openly express their political views?”
Grievances based on recent or past injustices, which could date back centuries. Including atrocities committed with impunity against communal groups and/or specific groups singled out by state authorities, or by dominant groups, for persecution or repression. (Ordinal rating).
Flight of professionals, intellectuals and political dissidents and voluntary emigration of the middle class to other nations. (Ordinal rating).
Have you had any property stolen in past year? (% yes)
Survey question: “Within the past 12 months, have you had money or property stolen from you or another household member?”
Refugees and IDPs
Forced uprooting of large communities as a result of random or targeted violence and/or repression, causing food shortages, disease, lack of clean water, land competition, and turmoil that can spiral into larger humanitarian and security problems, both within and between countries. Ordinal rating.
Do you feel safe walking alone at night? (% yes)
Survey question: “Do you feel safe walking alone at nights in the city or area where you live?”
State-sponsored political violence
This is a measure of state-sponsored political violence and repression within a country. Countries reporting a higher level of disappearances, torture and political violence are rated as more insecure according to this variable. (Ordinal rating).
Civil war casualties
Magnitude score of episode(s) of civil violence, ethnic warfare and ethnic violence involving that state in that year. (Ordinal rating).
Composite of civil liberties and freedom of choice
Survey question: In (country of respondent), are you satisfied or dissatisfied with Your freedom to choose what you do with your life?Freedom of expression and belief, associational and organisational rights, rule of law, and personal autonomy are included in this variable.This variable is created by normalising satisfaction with freedom of choice and civil liberties between zero and one, and cross multiplying the two variables.
Satisfied with freedom of choice? (% yes)
Survey question: In (country of respondent), are you satisfied or dissatisfied with your freedom to choose what you do with your life?
Good place to live for ethnic minorities? (% yes)
Survey question: “Is the city or area where you live a good place or not a good place to live for racial and ethnic minorities?”
Good place to live for immigrants? (% yes)
Survey question: “Is the city or area where you live a good place or not a good place to live for immigrants?”
Donated money to charity in past month? (% yes)
Survey question: “Have you donated money to a charity in the past month?”
Have you helped a stranger in past month? (% yes)
Survey question: “Have you helped a stranger or someone you didn’t know who needed help in the past month?”
Are you married? (% yes)
Survey question: “What is your current marital status?” (Single, married, divorced, living with partner, widowed). Percentage of respondents who aremarried. Binary variable constructed from survey.
Attended a place of worship in past week? (% yes)
Survey question: “Have you attended a place of worship or religious service within the last seven days?”
Can you rely on friends and family for help? (% yes)
Survey question: “If you were in trouble, do you have relatives or friends you can count on to help you whenever you need them, or not?”
Do you think that most people can be trusted? (% yes)
Survey question: “Generally speaking, would you say that most people can be trusted or that you have to be careful in dealing with people?”
Have you volunteered your time in past month? (% yes)
Survey question: “Have you volunteered your time to an organisation in the past month?”
Five Year Trend Line
This decline over five years is, in part, due to the addition of 32 new countries in the 2012 Prosperity Index. In this instance, two of these new countries placed above Italy.
The Legatum Institute is an independent non-partisan public policy organisation whose research, publications, and programmes advance ideas and policies in support of free and prosperous societies around the world