Austria  

Despite a relatively low level of foreign direct investment, Austrian workers benefit from access to the fourth largest amount of physical capital, worldwide. Unemployment is low at 4%, and this coupled with a low inflation rate inspires confidence in the economy. Net interest margins are very low at 2.25 percentage points, and the percentage of defaulted loans is also low at 2.1%, indicating high levels of competition and efficiency in the financial sector. A healthy level of household expenditure and higher than average domestic savings place Austria 27th and 32nd in these respective variables. Austria’s reliance on the export of raw materials is very low, indicative of a developed economy and skilled workforce. Terms of trade remain strong, with Austria ranked 14th for its high export revenues relative to the cost of the goods it imports.

With one of the highest levels of start up procedures required to set up a business in Europe, it is not surprising that only an average number of approximately 3,800 new businesses were registered in 2007. Additionally, ICT and high-tech exports are also relatively low compared to other European nations, placing Austria within the top 30. Value added in the service industry is high globally, but is relatively low by EU standards. While the environment for entrepreneurship is still challenging, Austria’s investment in innovation is more promising. R&D expenditure is equivalent to 2% of GDP, placing it within the top 15 nations. Austria also receives high amounts of royalties from property rights and licence agreements, indicating the capability to commercialise innovation. With approximately 61 personal computers per 100 capita, as well as a high level of internet bandwidth and secure internet servers, Austria has a fast and secure internet infrastructure. Austria is well placed inside the top 20 in terms of its technological infrastructure.

Austria boasts a well-established democratic system. Civil and political rights, including the rights to participate in the political process as well as freedom of expression and personal autonomy, are heavily protected. The legislative process provides multiple opportunities to veto legislation, making it difficult for political leaders to make arbitrary decisions, or to change laws based on personal preference. Multiple parties compete in free and fair elections, at both executive and legislative levels, and the judiciary is independent from the rest of the government. With more than 60 years since the last regime change, Austria’s political system can be considered extremely stable.

With 97% of primary school age children enrolled in a school, Austria ranks 22nd on this variable. The ratio of teachers to pupils at this level of schooling is one to 12, indicating a good quality of schooling as well as small classrooms. With a very high secondary enrolment rate, Austria ranks in the top 20, whilst tertiary enrolment rates at 50% are just above average. Austria does not seem to enjoy the same level of gender equality as other EU countries, with only 97 girls enrolled for every 100 boys in primary and secondary schooling. The average Austrian worker benefits from 6.1 years of secondary education, which puts Austria in the top five countries on this measure. However, Austria ranks only 31st for average tertiary years of schooling per worker, indicating that more could be done to encourage citizens to study at a postsecondary level.

Austria performed well in both the objective and subjective health variables. Health-adjusted life expectancy was 71 years, ranking Austria 12th for this measure. Only a fifth of respondents reported health problems or pain-related trouble, whilst 74% of respondents felt well rested and 88% were satisfied with their personal health.* Austria’s extremely high sanitation standards were mirrored in a notable 95% of respondents indicating satisfaction with the water quality.* The number of doctors and nurses per capita was very high and Austria ranked in the top 10 for the number of hospital beds per 1,000 people. Only 3% of the population is undernourished, and only four instances of infant death occur for every 1,000 births, both very low figures, globally.

Austria largely escapes challenges related to refugees and social groups with a history of discrimination or other grievance. In 2008, Austria did not have any casualties due to civil strife and ethnic clashes, and problems caused by government use of violent methods such as torture or political imprisonment were minor, ranking Austria 23rd on this variable, internationally. The situation for personal security is also excellent as four out of five people feel safe walking alone at night.* This is, most likely, a reflection of the very low occurrences of physical violence – only 4% of respondents reported assaults or muggings in 2008,* and there was less than one homicide per 100,000 people. Although most Austrians enjoy high levels of physical security, 12% of respondents have reported their property being stolen.*

Internationally, Austria ranks in the top five countries where rule of law is applied even-handedly; this is reflected in the high levels of confidence in the judiciary. Confidence in commercial regulation is lower, with 56% of respondents believing that corruption is widespread in local businesses.* Despite 55% believing corruption to be present in local government, approximately two-thirds of people had confidence in the honesty of Austria’s elections.* Austria’s civil servants are effective in carrying out governmental policy, placing this country well inside the top 20. Confidence in the military is also high at 72%.*

Despite having a high level of freedom with regards to speech, movement, and religion, Austria’s record in this measure is poor compared to its European neighbours. Nevertheless, 91% of Austrians are satisfied with their freedom to do what they want with their lives.* Freedom for minorities and immigrants fares worse as only 61% of those polled believe that Austria was a good place for ethnic minorities to live, and tolerance for immigrants is only slightly better, with 62% of respondents believing Austria was a good place for immigrants to settle.*

Austrian is amongst the top 20 most trusting nations in the poll. This is supported by widespread charitable giving and volunteering, placing this nation 5th and 17th on these variables, respectively.* Furthermore, three-fifths of respondents reported having helped a stranger in 2008.* Familial social capital is also robust; Austrians believe that friends are moderately important, placing them 46th in this measure. Asked whether they believe they can rely on friends and family in times of need, 94% of Austrians confirmed.* On the self-assessed religiosity index, Austrians indicated that religion is not too important in their daily lives.

* Data taken from the Gallup World Poll

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