Official Site - The Legatum Prosperity Index is the world's only global assessment of wealth and wellbeing; unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term.
The 2009 Legatum Prosperity Index
Legatum Institute logo

73

Bolivia  


Fast Facts

Population 9.8 mn (2009 est.) GDP (per capita) $4,500 (2008 est.) Inflation 8.7% (2007)
Life Expectancy 54 years (2003) GDP (PPP) $27.1 bn (2008 est.) Unemployment 8% (2007)
Average Life Satisfaction 5/10 (2008) GDP (growth) 6.1% (2008 est.) Freedom House Rating Partly Free (2009)
Political System Republic; the new Constitution defines Bolivia as a "Social Unitarian State" (2009)

Sub-Index Rankings

Compare Countries:

Index Comparisons
(Rank / Number of countries)

Legatum Prosperity Index73rd / 104
Average Life Satisfaction Ranking63rd / 104
Per Capita GDP Ranking75th / 104
WEF Global Competitiveness Index120th / 133
UN Human Development Index111st / 179
Heritage/WSJ Economic Freedom Index130th / 178
TI Corruption Perceptions Index102nd / 180
Vision of Humanity Global Peace Index81st / 144

 

Regional Ranking:
The Americas

7 Canada
9 United States
32 Costa Rica
33 Uruguay
36 Chile
38 Argentina
40 Trinidad and Tobago
41 Brazil
42 Panama
43 Mexico
49 Jamaica
52= Belize
54 Dominican Republic
57 Paraguay
60 El Salvador
64 Peru
65 Colombia
66 Honduras
67 Guatemala
71 Ecuador
72 Nicaragua
73 Bolivia
74 Venezuela

View other countries:
 

Economic Fundamentals - Ranked 90th

Bolivia’s capacity to earn foreign revenue is weak but the banking system appears efficient

Bolivia’s unemployment rate is 8%, ranking the country 58th on this variable. The Bolivian workforce has the worst access to productive physical capital, such as offices, machinery, and factories, of any country in South America, and ranks 93rd across all surveyed countries. Raw material concentration as a share of total exports is high, and Bolivia’s capacity to earn foreign currency is very weak, as its low ratio of export revenues to cost of imports indicates. The inflation rate is at 9%, and the banking system is relatively inefficient: 5.6% of all loans are in default, ranking the country in the worst half worldwide, while an interest margin of six and a half percentage points puts Bolivia in the worst quartile. Domestic savings as a percentage of GDP are about average for this measure, but at just 2% of GDP, foreign direct investment is low, even by South American standards.

Entrepreneurship and Innovation - Ranked 78th

High barriers to entry and poor internet infrastructure are stifling Bolivia’s entrepreneurial potential

Bolivia has the fifth highest number of required steps for new businesses and the country ranks 71st for new businesses registered in 2007. R&D as a percentage of GDP is extremely low at just 0.1%. There is a relatively high number of secure internet servers, especially when compared to larger economies in South America, but low bandwidth puts Bolivia in the bottom 25 on this variable, globally. Access to personal computers is extremely low at just 24 computers for every 1,000 citizens: the lowest figure of all the South American countries in the Index. With a value of less than 0.1%, Bolivia ranks 85th on ICT exports as a percentage of exported goods, but ranks as highly as 15th in terms of high-tech exports. Bolivia ranks 61st worldwide in terms of royalty payments, suggesting the country has a moderate ability to capitalise on its intellectual property.

Democratic Institutions - Ranked 54th

A non-independent and non-impartial judiciary undermines civil and political rights in Bolivia

There is open political competition amongst multiple political parties for both the legislature and the executive branch. Electoral processes are open and well regulated. In terms of freedom to participate in political processes, such as voting in legitimate elections, running for office and joining political parties, Bolivians have a high level of political rights. The political system is characterised by strong checks and balances; in fact, globally Bolivia has the fourth-highest number of political constraints, preventing rash or arbitrary actions by political leaders. However, the judiciary is subject to interference from other branches of government and the country is relatively unstable, having undergone a regime change in the last 30 years. However, the country ranks 38th on this variable. Civil rights are just above average, ranking the country 51st, internationally.

Education - Ranked 63rd

Bolivia has high levels of primary school enrolment but retention for secondary and tertiary enrolment is weak

Primary school enrolment is very high, with 95% of school age children enrolled, putting Bolivia in the top 40 on this variable. There is one teacher for every 24 children which is near the global average. However, only 82% of the secondary school-aged population are enrolled in school. Tertiary enrolment is about average at 41%. There are 98 girls in school for every 100 boys, suggesting gender equality is not far off. Bolivian workers have had on average 3.9 years of secondary education, putting it in the bottom five on this variable, and 4.3 years in tertiary level education. Educational expenditure comes in at $784 per student, a low figure internationally, ranking the country in the bottom third.

Health - Ranked 85th

One in four Bolivians are malnourished and most have limited access to healthcare facilities

Almost a quarter of Bolivians have a daily calorific intake that is consistently lower than minimum standards. Bolivia is the 20th most malnourished country in the Index, and occupies the same ranking for infant mortality. Health-adjusted life expectancy is 54 years, and 33% report being in physical pain, a relatively high figure internationally.* There are just one hospital bed and 12 doctors and nurses per 10,000 people. Less than half of the population has access to improved sanitation facilities, but 78% declare they are satisfied with the quality of their water.* Subjective levels of wellbeing are surprisingly high, with 81% of respondents claiming to be in good health for their age and 71% reporting that they are well rested.*

Safety and Security - Ranked 76th

Group grievances pose a significant threat to security and most Bolivians are concerned about their personal safety

Bolivia faces significant security concerns related to cross-border refugees and internally displaced persons. The grievances of indigenous groups are significant, putting Bolivia at a low ranking of 80 on this variable. Human flight in the form of voluntary emigration of skilled and professional workers or flight from dangerous or degrading conditions is also a concern. Bolivia ranks slightly worse than the global average on measures that assess the government’s use of violent methods against its own citizens. The murder rate is comparatively average, but personal safety is very low with only 42% of respondents saying they feel safe walking alone at night.* Theft is high with a quarter of respondents saying they had had property stolen in 2008, but assaults are far less common.*

Governance - Ranked 84th

Bolivia’s low ranking for governance stems from a high distrust of the government, military, and judiciary

Bolivians have full participation in the political and electoral process, but only 40% of respondents said they were confident in the honesty of those elections.* The quality of regulation of economic and commercial activity is low, and most respondents – 85% and 74% respectively - said they believe local businesses and politicians are corrupt.* The civil service is ranked 92nd in its ability to effectively carry out objectives set out by political leaders. Confidence in the country’s military is among the lowest for this variable, with only 34% of respondents expressing confidence in the country’s armed forces.* The rule of law is applied arbitrarily and unequally and only 26% of respondents reported confidence in the judiciary.*

Personal Freedom - Ranked 53rd

Most Bolivians are satisfied with their freedom of choice but the country as a whole has low tolerance for minorities

Bolivia ranks below average in terms of tolerance towards ethnic minorities and immigrants, with only six out of 10 reporting that their country is a good place for these groups.* Bolivian citizens do not have unfettered freedom of movement, religion, and speech. However, three-quarters of respondents claim to be satisfied with their freedom of choice in their daily lives, which puts Bolivia just inside the top 50 on this variable.*

Social Capital - Ranked 66th

Bolivians can rely on religious communities to foster social capital

Although 80% of Bolivians report that they could rely on friends and family in times of need, the country ranks just 76th on this variable.* Bolivians are highly religious, and almost three-quarters of respondents in this predominantly Catholic country say that they attend worship services and engage in personal religious practices such as prayer.* About one in five Bolivians report having donated money or volunteered their time during the previous month.* Almost half said they would help a stranger.* No data was available on social trust, the importance of friendship, or levels of membership in associations.

* Data taken from the Gallup World Poll