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
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67

Guatemala  


Fast Facts

Population 13.3 mn (2009 est.) GDP (per capita) $5,300 (2008 est.) Inflation 6.5% (2007)
Life Expectancy 57 years (2003) GDP (PPP) $33.7 bn (2008 est.) Unemployment 3% (2007)
Average Life Satisfaction 6/10 (2008) GDP (growth) 4% (2008 est.) Freedom House Rating Partly Free (2009)
Political System Constitutional Democratic Republic (2009)

Sub-Index Rankings

Compare Countries:

Index Comparisons
(Rank / Number of countries)

Legatum Prosperity Index67th / 104
Average Life Satisfaction Ranking30th / 104
Per Capita GDP Ranking73rd / 104
WEF Global Competitiveness Index80th / 133
UN Human Development Index121st / 179
Heritage/WSJ Economic Freedom Index87th / 178
TI Corruption Perceptions Index96th / 180
Vision of Humanity Global Peace Index111st / 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

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Economic Fundamentals - Ranked 84th

An inefficient banking sector and low levels of foreign investment reflect unsound fundamentals

The unemployment rate in Guatemala is low at just over 3%, but Guatemalan workers have below average levels of access to physical capital, ranking 76th, worldwide. The inflation rate is comparatively high at nearly 6.5%. The domestic savings rate in Guatemala is low, placing the country in the lowest 10th on this variable. Household expenditure is also low at 24% of GDP, and foreign direct investment is also low at 2% of GDP, indicating weak flows in capital. The proportion of loans that have defaulted in Guatemala is just below the global average, but the country has the fourth highest interest margin in the banking sector, at over 12 percentage points. Guatemala relies moderately on raw material exports, with a concentration level of 15%, and the country’s exports as a capacity to import indicates moderate terms of trade.

Entrepreneurship and Innovation - Ranked 75th

Many barriers to entry and poor infrastructure characterise the Guatemalan business environment

There are 13 formal start up procedures required for new businesses in Guatemala, possibly resulting in the low number of new businesses registered in 2007, which ranked the country in the bottom quintile. Value added by the country’s service industries is near the global average. Internet infrastructure as measured by bandwidth ranks 75th of 104 countries, but the number of secure internet servers per person is around the median value of the Index. In both ICT and high-tech exports, Guatemala ranks just below average, globally. In Guatemala, there are only 21 personal computers per 100 people, an extremely low number comparatively, and only 0.2% of Guatemalan GDP goes towards R&D, ranking the country in the bottom third worldwide. Guatemala enjoys a moderate level of royalty receipts, ranking the country around the global median.

Democratic Institutions - Ranked 74th

Guatemala’s democratic progress is weakened by limited checks and balances on the executive and a dependent judiciary

Guatemala boasts moderate political rights, and levels of civil liberties near the global average. Guatemala is a democratic country with high levels of political competition; however, the last fundamental regime change in the country was less than 10 years ago, making political stability an issue. In Guatemala, there is open political competition among rival parties for the office of chief executive, and electoral processes are open and well regulated for the executive branch but there are few constraints on the power of the executive. The Guatemalan legislature also has high levels of competition among political parties; however, the Guatemalan judiciary is subservient to other branches of government.

Education - Ranked 87th

Gender inequality and low secondary enrolment rates pose challenges to Guatemala’s education system

More than nine out of 10 primary aged children are enrolled in primary school. There is only one teacher for every 30 primary students and only 92 girls for every 100 boys, placing Guatemala in the bottom quartile for both variables. Further, only just over half of secondary-aged children are enrolled in Guatemalan schools, while only 9% enrol in higher education, ranking Guatemala in the bottom 20 with respect to both variables. The education of the labour force also compares poorly, with the average amount of secondary education per worker ranking in the bottom 10 on this variable. Guatemalan workers only have an average of 3.1 years of tertiary education, ranking the country in the bottom quartile worldwide. There is no data available on the level of educational expenditure per student.

Health - Ranked 71st

Despite access to very few hospital beds and high rates of infant mortality, Guatemalans report satisfaction with their personal health

In Guatemala, health-adjusted life expectancy is relatively poor at just 57 years, 22% of citizens are undernourished, and infant mortality is also high at 32 deaths per 1,000 live births, placing Guatemala in the worst 30 countries for all variables. A moderate 84% of Guatemalans have access to improved sanitation facilities, and just over two-thirds are satisfied with their quality of water, again ranking the country around the global median.* Despite these figures, 89% of Guatemalans are satisfied with their personal health, ranking the country in the top 10, and only 17% report significant health problems.* Just over a quarter of those polled reported pain the previous day, but over seven-tenths of respondents said they were well rested.* There are just seven hospital beds per 10,000 people in Guatemala, an extremely low number, but no data was available on the number of doctors or nurses per capita.

Safety and Security - Ranked 82nd

Guatemala has numerous national security problems, and overall levels of crime are high

Guatemala has significant security problems related to refugees, social groups with a history of discrimination or other grievances, and human flight; the country ranks in the bottom half of the Index on all three of these variables. In addition, data suggests that the authorities in Guatemala allegedly engage in practices such as torture and political imprisonment. No Guatemalans were killed in civil wars in 2007, but the country suffered the fifth highest homicide rates worldwide. Further, 14% of citizens reported they had been physically assaulted or mugged in 2007, one-fifth had property stolen, and just over half feel safe walking in their area at night.*

Governance - Ranked 70th

A poorly enforced legal system contributes to perceptions of corruption in Guatemala’s government and businesses

The quality of regulation of commercial and economic activities is around the global average, but the efficiency of the governmental bureaucracy is low, ranking Guatemala in the lowest quartile on this variable. Participation in the political process is very free and fair, but only 39% of citizens have confidence in the electoral process, ranking the country 67th worldwide, and the rule of law is enforced unequally.* Only just over one-third of citizens approve of the judicial system in Guatemala, a low percentage, internationally, and just 39% have confidence in the country’s military, ranking the country in the bottom 10.* Further, 72% of citizens believe there is widespread corruption in local businesses, and four-fifths believe the same of local government.*

Personal Freedom - Ranked 42nd

Guatemalans are free citizens, but most are dissatisfied with their freedoms, and there is low tolerance for immigrants

Guatemalans enjoy unrestricted freedoms of movement, religion, and speech. However, on more subjective measures, Guatemala fares rather poorly; only 64% of citizens are satisfied with their level of free choice, placing them in the bottom quartile worldwide on this variable.* Although 65% feel their area is a good place for ethnic minorities to live, which is around the global median, less than half feel that their area is a good place for immigrants to live, placing Guatemala in the bottom 20 countries for this variable.*

Social Capital - Ranked 49th

Guatemalan society benefits from high levels of donations and volunteering

More than eight out of 10 respondents indicated that they felt they could rely on their family and friends in times of need, ranking the country near the global median. In Guatemala, nearly half of respondents said they had donated to a charity in the last month, and over a quarter had volunteered, ranking the country 27th in the Index on both variables.* Nearly half had helped a stranger in the last month, and most of the population considers religion to be an important part of their daily lives.* Data was unavailable for group membership, importance of friends, and general levels of trust in Guatemala.*

* Data taken from the Gallup World Poll