Czech Republic  

With unemployment at 5% and inflation at 3% the Czech economy appears relatively stable. Low percentages of loans defaulting – only 2.6% – and low net interest margins of 2.5 percentage points are symptomatic of a healthy banking sector. An extremely low number of raw materials are exported from the Czech Republic, and overall export revenues are high compared to the cost of imports, indicative of a well-diversified economy, ranking the country second in the international community on this variable. The domestic savings rate is high, and household expenditure is close to the international average. Czech workers benefit from very high levels of capital stock, placing the country in the top third in the Index for this variable. Contrastingly, at only 5% of GDP, levels of foreign direct investment are moderate as the Czech Republic ranks only 40th on this variable.

Despite a low number of secure internet servers per 1000 capita, and only 274 personal computers per 1,000 people, the Czech Republic has good internet infrastructure as measured by bandwidth, ranking the country 31st on this variable. ICT and high-tech exports both make up roughly 14% of total exports, placing the Czechs at 18th and 27th, respectively, on these measures. Barriers to entry, in terms of procedures required to set up a business, are average, globally, and have not deterred the high 16,395 new businesses registered in 2007. There is significant expenditure on R&D and royalty receipts are high, demonstrating the country’s ability to capitalise on its intellectual property. Contrastingly, however, value added in the service industry stands at a very average 58% of GDP, leaving some room for improvement.

Completely democratic with full civil liberties and rights, the Czech government is also characterised by high levels of open political competition in both its executive and legislative branches. The judiciary is independent of other governmental offices, with its actions unaffected by the preferences of the executive authorities. However, despite a highly regulated electoral process, there are very few political constraints to regulate those in power. The last change in the country’s political system occurred less than 20 years ago, indicative of a fairly changeable political climate by international comparison, ranking the country 69th on this variable.

Only 93% of primary school age children are enrolled in schools, placing the Czech Republic at 52nd on this variable. However, a very strong ratio of one teacher to 16 students at primary level suggests a good quality of education, and there is gender equality with 101 girls per 100 boys registered in educational institutions. This is in line with high government expenditure on education ranking the country in the top 30, worldwide, with an average of nearly $6,000 spent per student. Further secondary and tertiary level enrolment rates are the 28th and 35th highest, respectively. Czech workers have a very high average number of years in secondary education, ranking the country in the top five, internationally, on this variable. However, this figure is dramatically reduced in relation to tertiary education per worker, where the Czech Republic ranks at only 51, globally.

Citizens of the Czech Republic benefit from a very high number of doctors and nurses and have access to 84 hospital beds per 10,000 capita, placing the country fifth in the international community on this latter variable. Similarly, 99% of the population has access to improved sanitation facilities and 81% of respondents were happy with the quality of water, ranking the country in the top third on both variables.* Very low infant mortality rates, at only three deaths per 1,000 births, coupled with a very low levels of undernourishment, at only 3%, and a very high health-adjusted life expectancy of 68, indicate a healthy population. One in four people report having health problems, close to the international average, and a low percentage of people reported being in pain the previous day.* However, the Czechs rank much lower on other subjective health variables. Nearly eight out of 10 are satisfied with their health, ranking the Czech Republic 97th, and 59% feel well rested, ranking the country at 90th for this variable.*

Security challenges related to refugees, internally displaced individuals, and communities with a history of social discrimination are minimal in the Czech Republic. Human flight poses some problems, but is comparatively low. There are some reported instances of alleged political violence by the government; however, the Czech Republic still ranks in the top third on this variable. Theft is a much more pressing issue, with 26% of respondents reporting the burglary of personal property or money in 2007, one of the highest figures in the international community.* Assault is less of an issue, with a lower 8% of respondents affected, and likewise the number of homicides is comparatively low at only 175 per one million citizens.* Over half of those interviewed felt safe walking alone at night, a figure close to the international average.*

The rule of law in the Czech Republic is enforced universally, with very few exceptions. Similarly, the quality of regulation in economic and commercial sectors is high, placing the Czech Republic in the top third for this variable. A high 63% of Czechs have faith in the honesty of elections.* Figures also show that the Czech civil service is highly effective when carrying out the objectives set out by political leaders. Despite this, more than nine out of 10 Czechs believe that the local government and businesses are corrupt.* Approximately 70% of citizens have confidence in the military, an average score internationally, but a low percentage of people – only 32% – have faith in the legal system, ranking the Czech Republic at only 88th for this variable.*

Czechs enjoy unlimited freedom of movement, religion, and speech, and 83% of respondents are satisfied with the civil liberties afforded to them in their daily lives.* Tolerance of ethnic minorities and immigrants is around the international median, with around six-tenths of people believing the Czech Republic is a welcoming place for both immigrants and minorities to live.*

In the Czech Republic, social trust is moderate, with only 29% of the population believing that others can be trusted.* Friends are thought of as very important, and 91% of respondents believe that they could rely on friends and family in times of need, a very high percentage, internationally.* However, average levels of charitable donations and volunteer work point to a lower emphasis on social capital.* Membership of social organisations is similarly average: 17% of Czechs are members of a religious organisation, 24% of sports clubs, while 9% and 5% are members of arts and environmental clubs, respectively. Religiosity is extremely low, ranking the Czechs in the bottom 10, internationally, suggesting limited access to religious support networks.

* Data taken from the Gallup World Poll

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