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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66

Honduras  


Fast Facts

Population 7.8 mn (2009 est.) GDP (per capita) $4,400 (2008 est.) Inflation 6.9% (2007)
Life Expectancy 58 years (2003) GDP (PPP) $306.6 bn (2008 est.) Unemployment 4% (2007)
Average Life Satisfaction 5/10 (2008) GDP (growth) 4% (2008 est.) Freedom House Rating Partly Free (2009)
Political System Democratic Constitutional Republic (2009)

Sub-Index Rankings

Compare Countries:

Index Comparisons
(Rank / Number of countries)

Legatum Prosperity Index66th / 104
Average Life Satisfaction Ranking57th / 104
Per Capita GDP Ranking76th / 104
WEF Global Competitiveness Index89th / 133
UN Human Development Index117th / 179
Heritage/WSJ Economic Freedom Index91st / 178
TI Corruption Perceptions Index126th / 180
Vision of Humanity Global Peace Index112nd / 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 76th

Honduras’s economy is weak but there is potential for improvement through strong trade performance and decent foreign direct investment

Honduran workers only have access to a low level of physical capital, ranking the country in the bottom quartile on this variable. At just over 4%, the unemployment rate is low, but the inflation rate is high at 7%. The domestic savings rate is less than 7% of GDP and household expenditure is also low at 23% of GDP, ranking the country in the bottom quartile on both variables. A moderate number of loans are in default in Honduras, and the interest margin, at over seven percentage points, ranks in the worst 15 worldwide. With 28% raw material export concentration, the country’s reliance on raw material exports is fairly severe. Honduras draws a decent foreign direct investment of 7% as a share of its GDP, indicating its relative attractiveness to foreign investors. Honduras’s ratio of export revenues as a capacity to import ranks the country inside the top 40, worldwide, suggesting a moderately high capacity to earn foreign currency.

Entrepreneurship and Innovation - Ranked 88th

Very poor internet infrastructure, poor investment, and significant barriers to entry limit Honduran entrepreneurship

There are 13 formal start up procedures required to start new businesses in Honduras, creating significant barriers to entry and ranking this country in the worst quintile on this variable. In terms of value added by workers in the service industry, Honduras ranks about average worldwide. Honduras performs slightly below the global average in terms of internet connectivity and security, with only 4.6 secure servers per million people. Although internet infrastructure ranks this country within the top 70, the availability of one personal computer per 50 people places this country in the bottom 15. Both ICT exports and high-tech exports, as a proportion of total exports, compare poorly, internationally, ranking the country in the lowest third on both variables. Honduras ranks around the global average in terms of royalty receipts but R&D expenditure is low at 0.2% of its GDP.

Democratic Institutions - Ranked 63rd

Honduran citizens enjoy some political rights and privileges. However, democratic institutions could strengthen even more

Hondurans enjoy high levels of both civil liberties and political rights. The government places some constraints on the executive power, meaning political rulers cannot simply make decisions without being subject to checks and balances. In Honduras, there is open political competition among rival parties for the office of chief executive, and electoral processes are open and well regulated for executive election. The political system enables the presence of, and competition among, multiple rival parties in the legislative branch, but the judiciary is subservient to other branches of government. Honduras ranks in the top 40 worldwide for regime stability, with over 20 years since the last fundamental change in the political system.

Education - Ranked 78th

Although Honduras has the highest girls to boys enrolment ratio, educational quality and standards are well below international average

Honduras scores well on primary education enrolment rates, with 96% of primary age children in school and near gender equal enrolment at this level. However, with a ratio of one teacher for every 28 pupils, there are comparatively few teachers in primary schools. Secondary and tertiary enrolment rates are also below average, with 76% and 17% of the population enrolled, respectively, placing Honduras in the bottom third, globally, on these variables. These low enrolment rates are reflected in low average years of secondary and tertiary schooling per worker, which place Honduras within the bottom 30 countries on both variables.

Health - Ranked 80th

With poor health provisions and few doctors, Hondurans suffer many health problems

There are only six medical professionals and 10 hospital beds per 10,000 people, ranking the country in the bottom third on both variables. Health-adjusted life expectancy is also below average at 58 years, while nearly one-quarter of all Hondurans are undernourished. The infant mortality rate is also fairly high, with 24 deaths per 1,000 live births. Two-thirds of Hondurans have access to improved sanitation facilities, and three-quarters are satisfied with their quality of water, both average numbers internationally.* Despite these low figures, 87% of Hondurans are happy with their level of general health, ranking the country inside the top 20 on this variable. Roughly one in five have ongoing health problems while a quarter complain about experiencing protracted pain.* However, an extraordinary three-quarters consider themselves well rested, ranking Honduras 12th on this variable.*

Safety and Security - Ranked 62nd

Honduras’ problems mainly concern its crime rate, which is among the highest in the world

Honduras has some security challenges related, refugees and internally displaced individuals, and more significant problems related to group grievances and human flight. There have been recorded instances of the Honduran government engaging in practices such as torture and political imprisonment of its own citizens, ranking the country in the bottom third on this variable. However, crime rates are also generally high; while only one in every six citizens reported having property stolen in 2008, Honduras’s murder rate is among the 10 highest of all countries and 15% of citizens reported having been assaulted in 2008, the fifth highest proportion worldwide.* Unsurprisingly, only half of respondents indicated that they felt safe walking the streets at night.

Governance - Ranked 71st

Hondurans are allowed to participate in political processes, but less than one third believe elections are honest

Rule of law is weak in Honduras, leading to a very low international ranking of 87th on this variable. A low 39% of Hondurans have confidence in their court system, and less than half have confidence in the country’s armed forces, ranking the country in the lowest quintile.*The quality of regulation of economic activity in the country is about average, but the efficiency of the governmental bureaucracy is poor, ranking the country 78th, globally. Despite political participation being rated as very free and fair in Honduras, less than a third of all citizens have confidence in the honesty of the country’s elections, placing Honduras in the bottom 20, internationally.* Around 85% of respondents believe there is widespread corruption among local businesses and governmental organisations, giving Honduras an average global ranking on both these variables.

Personal Freedom - Ranked 63rd

Hondurans have many freedoms but less than half the population believe that their country is a good place for immigrant settlement

Hondurans have high levels of freedom to practise their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. An average number of Hondurans are satisfied with their freedom of choice, but the country fares poorly on tolerance variables.* Only 62% of Hondurans believe their neighbourhood is a good place for ethnic minorities, while less than half of people believe their neighbourhood is a good place for immigrants, ranking the country in the bottom 10 on this latter variable.*

Social Capital - Ranked 55th

Honduran society benefits from high levels of donations and volunteering

More than four in five Hondurans feel they can rely on their family and friends, and nearly half reported having helped a stranger the month leading up to the survey in 2008.* Volunteering and donation rates are high, with 41% donating to charitable organisations and 30% volunteering their time, ranking Honduras 28th and 16th, respectively, on these variables.* Honduras is also among the 25 most religious countries in the world, with over three-quarters of citizens reporting that religion was an important part in their daily lives, suggesting widespread access to religious support networks.* Data on group membership and social trust were unavailable for Honduras.

* Data taken from the Gallup World Poll