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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86

Lebanon  


Fast Facts

Population 4.0 mn (2009 est.) GDP (per capita) $11,100 (2008 est.) Inflation 10% (2007)
Life Expectancy 60 years (2003) GDP (PPP) $63.3 bn (2008 est.) Unemployment 20% (2007)
Average Life Satisfaction 5/10 (2008) GDP (growth) 6.3% (2008 est.) Freedom House Rating Partly Free (2009)
Political System Republic (2009)

Sub-Index Rankings

Compare Countries:

Index Comparisons
(Rank / Number of countries)

Legatum Prosperity Index86th / 104
Average Life Satisfaction Ranking90th / 104
Per Capita GDP Ranking55th / 104
WEF Global Competitiveness Indexn/a
UN Human Development Index78th / 179
Heritage/WSJ Economic Freedom Index95th / 178
TI Corruption Perceptions Index102nd / 180
Vision of Humanity Global Peace Index132nd / 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 75th

High unemployment rates indicate that the Lebanese economy is performing below its potential

With one of the lowest international domestic savings rate of -7% of GDP, the Lebanese, on average, consume more than they earn. However, foreign direct investment, at a competitive 12% of GDP, provides Lebanon with resources for investment. Lebanese workers have limited access to physical capital, such as offices, factories, and machinery, ranking the country 65th on this variable. Unemployment and inflation rates are both high at 20% and 10%, respectively, ranking the country in the bottom quintile on both variables. Net interest margins of only 2% indicate high levels of banking competition, although with over 10% of all loans defaulting, the sector is somewhat inefficient in detecting high risk borrowers. Household expenditure, at 24% of GDP, is weak and may be a result of high unemployment rates. Reliance on exports of raw materials is relatively low, placing the country above the global average. Export revenues are around the international average compared to the price of imported goods, ranking Lebanon 57th on this variable.

Entrepreneurship and Innovation - Ranked 66th

The Lebanese economy is based more on the service sector than on technology

Despite low barriers to entry for new businesses, with only six formal procedures required, less than 3,000 businesses were registered in 2007, placing the nation 66th on the latter variable. The level of internet infrastructure as measured by bandwidth and secure internet servers per million capita is around the global median, with Lebanon ranking 68th and 50th, respectively, on these variables. The number of personal computers available to the general public is below the international average with only one for every 10 people. ICT and high-tech exports account for 1% and 2% of total exports and manufactured exports, respectively, ranking Lebanon 55th and 74th on these variables. Value added in the service industry stands at 70%, ranking the country in the top 15 internationally, indicating a strongly service-driven economy. R&D investment is very low at only 0.4% of GDP.

Democratic Institutions - Ranked 80th

Lebanese citizens have restricted political rights and civil liberties

Civil and political rights, including the right to participate in political processes, and freedom of expression are severely limited in Lebanon. Executive elections are highly regulated, but there is only open political competition between candidates from a single political party. Elections at the legislative level are more competitive, with the largest political party receiving less than 75% of the available seats. Political constraints exist to prevent leaders from making arbitrary decisions. However, the stringency and potential effectiveness of these measures ranks Lebanon only 76th on this variable. The judiciary is not independent from other branches of the government, implying a potential for interference from political actors. With less than 10 years since the last regime change, Lebanon’s political system is highly unstable and ranks 96th on this variable.

Education - Ranked 44th

The Lebanese education system equips workers with levels of human capital that are above the global average

With only 82% of primary age children enrolled in schools, Lebanon ranks amongst the bottom 15 countries on this variable. However, the average ratio of pupils to teachers is 14 to one, ranking Lebanon within the top 20, internationally, on this variable. With a secondary enrolment rate of 81%, Lebanon ranks 64th on this measure, while tertiary enrolment rates of 48% rank Lebanon 36th in the Index on this variable. 103 girls are enrolled for every 100 boys at the primary and secondary levels. Lebanese workers benefit from above average levels of secondary and tertiary schooling, ranking the country 37th and 31st, respectively, on these variables. Educational expenditure is just below the international average at less than $1,300 per student.

Health - Ranked 52nd

Although Lebanon has generally good levels of healthcare provision, the country suffers from a high rate of infant mortality

Lebanese citizens have a health-adjusted life expectancy of 60 years, ranking the country 64th on this variable. The availability of 24 doctors and nurses, and 36 hospital beds, per 10,000 capita, is higher than the international average. Only 3% of the population is undernourished; however, there is a relatively high rate of infant mortality, with 27 deaths per 1,000 live births, ranking Lebanon 70th, internationally, on this measure. Five-sixths of Lebanese citizens claimed satisfaction with their state of health, while only 20% reported health problems, ranking Lebanon in the top 25 on this variable.* However, only 58% of people felt well rested, ranking the country in the bottom 10, globally, and 26% claimed to have felt pain for a large part of the preceding day, ranking the country 58th on this variable.* Despite high sanitation standards, which rank the country 35th, internationally, only one-third of people indicated they were satisfied with their water quality, the second lowest result worldwide.*

Safety and Security - Ranked 90th

Issues of national security are of greater concern than threats to personal security in Lebanon

Lebanon faces severe security challenges in relation to the movement of refugees, targeted violence towards social groups with histories of discrimination or other grievances, and human flight from dangerous or degrading conditions. On all of these measures, Lebanon ranks in the bottom 25 of the Index. Insecurity resulting from government-sponsored violence and political imprisonment is less problematic, but is still more prevalent than the international average, ranking the country 71st overall. However, personal security issues are less serious: with a homicide rate of 25 deaths per million capita, assault rates of one in 20 and property theft of almost one in 10 individuals, Lebanon ranks solidly in the top 50 according to these variables.* As a result, 64% of Lebanese citizens feel safe walking alone at night.*

Governance - Ranked 79th

Lebanon’s ineffective governance translates into weak approval ratings and widespread perception of corruption

In Lebanon the rule of law is often applied arbitrarily and unequally, ranking the country 75th in the Index on this variable. The quality of economic and commercial regulation ranks below the international average, at 66th. The Lebanese civil service is also relatively ineffective and inefficient, ranking the country 84th, globally. Political participation is considered free and fair; however, in reality this is limited. Just over one-third of the population has confidence in electoral honesty, while only 40% of Lebanese citizens approve of the judicial system, scoring Lebanon below the global average on these variables.* Ranking amongst the bottom three, internationally, 95% of citizens believe that local businesses are corrupt, while 90% believe corruption is rife in local government.* However, nearly 90% of Lebanese citizens have confidence in their military, ranking the country 11th, internationally, on this variable.*

Personal Freedom - Ranked 99th

Lebanese freedoms of movement, religion and speech are extremely restricted

Despite having very low levels of freedom with regards to movement, speech, and religion, 63% of Lebanese citizens are satisfied with their choice to do what they want with their lives.* Tolerance towards both ethnic minorities and immigrants is well below average, with 47% and 55% believing Lebanon to be a good settlement place for these groups, respectively,* for which Lebanon ranks 91st and 81st, on these measures.

Social Capital - Ranked 90th

Lebanese citizens do not rely heavily on family and friends, but demonstrate average levels of social capital

Average levels of charitable giving and volunteering place Lebanon 36th and 51st, respectively, on these variables.* Half of respondents reported having helped a stranger in 2008, ranking the country 40th, worldwide, on this variable.* However, familial social capital is low, as only 79% believe they can rely on friends and family in times of need, ranking the country 80th on this measure.* The majority of Lebanese citizens indicated religion to be a fairly important part of their daily lives, ranking the country slightly above the international average, which suggests some access to religious support networks.* No data were available concerning levels of social trust, importance of friends, and group membership.

* Data taken from the Gallup World Poll