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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52=

Kuwait  


Fast Facts

Population 2.7 mn (2009 est.) GDP (per capita) $57,400 (2008 est.) Inflation 5.5% (2007)
Life Expectancy 67 years (2003) GDP (PPP) $38.9 bn (2008 est.) Unemployment 2% (2007)
Average Life Satisfaction 6/10 (2006) GDP (growth) 8.5% (2008 est.) Freedom House Rating Partly Free (2009)
Political System Constitutional Emirate (2009)

Sub-Index Rankings

Compare Countries:

Index Comparisons
(Rank / Number of countries)

Legatum Prosperity Index52nd= / 104
Average Life Satisfaction Ranking35th / 104
Per Capita GDP Ranking2nd / 104
WEF Global Competitiveness Index39th / 133
UN Human Development Index29th / 179
Heritage/WSJ Economic Freedom Index50th / 178
TI Corruption Perceptions Index65th / 180
Vision of Humanity Global Peace Index42nd / 144

 

Regional Ranking:
Middle East and North Africa

27= Israel
47 United Arab Emirates
52= Kuwait
68 Tunisia
80 Jordan
81 Saudi Arabia
83 Morocco
86 Lebanon
88 Egypt
94 Iran
96 Algeria
101= Yemen

View other countries:
 

Economic Fundamentals - Ranked 62nd

Kuwait has moderately favourable economic conditions, despite high reliance on raw material exports and low foreign direct investment

Kuwaiti workers benefit from access to a very high level of physical capital, including offices and productive machinery, placing Kuwait 33rd on this variable. Furthermore, Kuwait benefits from a very low unemployment rate at 2%, and an extremely high domestic savings rate equivalent to 55% of its GDP, placing the country second on the latter variable. Kuwait’s domestic demand is weak with household expenditure equivalent to 24% of GDP and at 5%, Kuwait’s inflation rate is moderate. While an interest margin of 2.8 percentage points reflects favourably on the Kuwaiti banking sector, a default rate of 3.2% indicates weak lending requirements. Foreign direct investment of less than 1% of its GDP indicates that Kuwait is not an attractive market for foreign investment and with a raw material concentration ratio of 85%, export revenues are extremely dependent on raw material exports. Kuwait’s terms of trade are relatively strong, ranking the country 16th on this variable.

Entrepreneurship and Innovation - Ranked 71st

Kuwait provides moderate Internet infrastructure, poor access to personal computers and has extremely low R&D expenditure

In order to set up a business in Kuwait, new businesses need to adhere to 13 formal requirements. Value added in service industries is low, amounting to just 48% of Kuwait’s GDP and suggesting that the service industry is not Kuwait’s most competitive sector. Kuwait’s communication infrastructure as measured by internet bandwidth is slightly underdeveloped, ranking the country 69th on this variable. However, an average of 35 secure internet servers per one million people guarantees a relatively secure internet connection. Every 100 Kuwaiti citizens have access to approximately 23 personal computers on average, which places Kuwait 37th, internationally, on this variable. ICT exports, as a share of exported goods, are less than 0.1%, while high-tech exports make up just 1% of manufactured goods, placing the country 89th on both variables. At 0.2% of GDP, R&D expenditure is extremely low. Similarly, Kuwait shows an extremely low level of royalty receipts, ranking the country 76th on this variable. There are no data available for the number of new businesses registered.

Democratic Institutions - Ranked 83rd

Kuwait is an autocratic state with an independent judiciary

Kuwaiti citizens have moderate political and civil rights, illustrated by limited freedom to participate in political processes and express beliefs without fear for personal security. Furthermore, Kuwait is classified as a near complete autocracy, being ranked 93rd on this variable. However, there are significant checks and balances in place to prevent arbitrary decision making by incumbent political actors. Electoral processes are highly regulated but the executive branch is not elected by the people. In the legislative branch, despite some competition, one party dominates, winning all seats. The judiciary is independent of the executive branch and the last regime change occurred less than 50 years ago ranking the stability of the political regime at 27th, internationally.

Education - Ranked 33rd

Kuwait’s high educational expenditure translates into a good quality system, but more children could be attending school at the primary level

With primary enrolment rates as low as 83% of the eligible population, Kuwait is placed 88th on this variable. However, those enrolled benefit from the lowest student to teacher ratio, internationally, with just 10 students for every teacher. Furthermore, there is a good ratio of female to male enrolment in education, with 102 girls for every 100 boys. Although the secondary enrolment rate is more comparable to the international average at 89%, only 18% continue to higher education, ranking Kuwait 73rd on the latter variable. Nevertheless, Kuwait’s workforce is well educated, with an extremely high average number of years of secondary education, ranking the country first, internationally. The high average tertiary education levels place Kuwait 39th on this variable. Government expenditure on primary and secondary students exceeds $11,000 and ranks Kuwait in the top 10, internationally.

Health - Ranked 33rd

Kuwaiti citizens have a very high health-adjusted life expectancy and are mostly satisfied with their personal health

Kuwait provides a moderate number of doctors and nurses per capita, but a low number of hospital beds, with less than two beds per 1,000 persons. All Kuwaiti citizens enjoy full access to improved sanitation facilities and have a health-adjusted life expectancy equivalent to 67 years, ranking the country 29th on this variable. Both malnourishment and infant mortality rates are better than the global average at 5% and 1%, respectively. A notable 95% of residents report satisfaction with their personal health and 85% claim to be well rested, which is the highest reported ranking, globally.* Despite these results, almost one-third of the population reports having experienced protracted periods of pain recently, while one in five claim to have debilitating health problems.*

Safety and Security - Ranked 24th

Kuwait faces some minor national security problems, but high assault rates remain the most significant concern

Kuwait faces some security problems caused by group grievances, as well as minor problems due to the movement of refugees and internally displaced individuals and human flight from dangerous or degrading conditions. However, it remains in the top half on all three variables. Insecurity in terms of state-sponsored violence and torture presents some problems as Kuwait ranks 30th on this variable. However, there have been no casualties due to civil or ethnic war in 2008. Furthermore, the homicide rate is extremely low at one death per 100,000 capita. While only 8% of respondents have reported stolen property, ranking Kuwait 11th on this variable, 11% reported being assaulted or mugged, a very high share, ranking Kuwait 81st on this variable.* Despite the high assault rates, 89% of Kuwaitis feel safe walking alone at night.*

Governance - Ranked 44th

Kuwaiti citizens demonstrate high confidence in their government

In Kuwait, the rule of law is enforced even-handedly, ranking the country 29th on this variable. Furthermore, the quality of regulation of economic and commercial activity as well as the quality of governance is moderately high, ranking the country 48th and 47th, respectively. Despite no rights to participate in political processes, most citizens hold the government and military in good esteem. Furthermore 81% of the population believes in the honesty of electoral processes, and 92% approve of the judicial system and a low one-third of the population perceives local business to be corrupt.* There were no data available on government corruption.

Personal Freedom - Ranked 87th

Kuwaiti citizens are highly satisfied with their freedom of choice despite considerable restrictions

Freedoms of movement, religion, and speech are ranked very low in Kuwait, placing the country 87th on this variable. Tolerance for minorities and immigrants is also low as just over 50% of respondents believe Kuwait is a good place for ethnic minorities and immigrants, ranking the country 84th and 82nd, respectively. Furthermore, 77% of respondents are satisfied with their freedom of choice, placing Kuwait in the top 50 on this variable.*

Social Capital - Ranked 79th

Kuwaitis have high access to social support through religious networks but are less engaged in volunteering and donating

A high 92% of the Kuwaiti population believe they can rely on friends and family in times of need, placing Kuwait 25th overall on this variable.* However, only 19% of respondents have donated money and only 12% have volunteered their time, ranking Kuwait 73rd and 84th, respectively, on these variables.* By contrast, a moderately high 51% report having helped strangers, placing Kuwait 37th on this variable.* Kuwaiti citizens also report very high levels of religious practice, ranking ninth and suggesting widespread access to religious support networks.* Kuwait is missing data on group membership, importance of friendship, and trust.*

* Data taken from the Gallup World Poll