United Kingdom  

Net interest margins, and the percentage of defaulted loans, are both amongst the 20th lowest, internationally, reflecting a highly efficient and competitive banking sector. British inflation and unemployment rates are better than the global average, indicating a fairly stable economy. Workers have access to a large amount of physical capital, such as offices, factories and production machinery, ranking the country in the top quintile on this variable. Household expenditure is 28% of GDP, fostering a large domestic market, but the domestic savings rate, of 15%, places the country in the bottom third on this variable. Foreign direct investment stands at 7% of GDP, showing the British economy to be an attractive investment opportunity to foreign investors. However, Britain's export revenues relative to the cost of its imports, while high, are not as competitive as other European nations. The low level of raw material exports ranks the country 27th on this variable and reflects an economy focused on high-value-added manufactured products and services.

Barriers to entry, in terms of number of procedures required to start a business, are very low in the UK, ranking the country 15th, globally. This is reflected in the fourth highest number of new businesses registering in the country in 2007. The UK has very robust internet infrastructure, as measured by bandwidth and secure internet servers, with these variables both ranking in the top 10. With nearly 80 personal computers per 100 people, the general public enjoys broad access to technological infrastructure. ICT goods account for a high percentage of total exports, ranking the country 12th, internationally, and 34% of exported manufactured goods are high-tech exports. The country devotes 2.3% of its GDP on R&D expenditure, placing it in the top 10 on both variables. The UK receives the third highest amount of royalties, reflecting successful capitalisation on the country’s intellectual property. Value added in the service industry is at 75%, ranking Britain fifth on this variable.

The UK’s democratic political system demonstrates a high level of competition with multiple parties competing in free and fair elections, at both executive and legislative levels. Furthermore, British citizens enjoy excellent political rights and civil liberties. There are some constraints in place to prevent political leaders from acting rashly or arbitrarily, but the UK ranks below the international average for this variable. The judicial system is independent from the other branches of the government, preventing political actors from interfering with legal proceedings and with the last political upheaval taking place over 125 years ago, the UK ranks fourth, internationally, on this measure of political stability.

The UK has extremely high levels of primary school enrolment, ranking the country in the top 15, internationally. Furthermore, levels of gross secondary and tertiary enrolment stand at 98% and 59%, respectively, placing the UK in the top quartile on these variables. British workers have had, on average, 5.3 years of secondary and 4.5 years of tertiary schooling, ranking the country 49th and 19th, respectively on these variables. Despite the 14th highest levels of educational expenditure for primary and secondary levels, class sizes are near the global average, with one teacher for every 18 pupils. There are 102 girls enrolled for every 100 boys, indicating near gender equity.

British citizens have a high health-adjusted life expectancy, ranking the country in the top 15 worldwide. Furthermore, infant mortality is low, with only five deaths per 1,000 live births. Other health concerns are also minimal as all British citizens have access to improved sanitation facilities, 92% of people judge the water quality to be good,* and only 3% of the population are classed as undernourished. More than eight out of 10 people report to be satisfied with their health, while 24% experienced pain the day before they were asked, putting the British 41st on these subjective health variables.* Over one in five consider themselves to have health problems, ranking the country 33rd, and just 64% of people feel well rested, ranking the country 73rd.* With 22 doctors and nurses and 39 hospital beds per 10,000 people, the UK has a reasonable health infrastructure, ranking the country above global averages on both variables.

Overall, Britain’s domestic security is largely incident free, ranking in the top quartile on variables related to refugees and social groups with a history of discrimination. The UK also has one of the lowest threats to domestic security caused by voluntary emigration and human flight, ranking seventh on this variable. However, insecurity caused by incidents of government-sponsored violence and political imprisonment ranks the country 38th, internationally. British citizens benefit from a low homicide rate at only 22 incidents per one million people. In addition, only 4% reported having been assaulted or mugged in 2008.* However, 15% of respondents had property stolen in the same timeframe, and two-thirds of the population claimed to feel safe walking alone at night, ranking the country above global averages on both variables.*

The UK statute applies equally to all citizens and to those in power, ranking the country 14th on the rule of law variable. Nonetheless, only 57% of the population claims to have confidence in the judicial system.* ranking the country 39th on this variable. The UK ranks in the top 15 in other measures of governance. The UK’s policy and institutional framework is highly effective, almost two-thirds of people believe the country’s elections to be free and fair, and only half of the citizens think corruption to be rife in local government and businesses. Citizens also have very high confidence in the military, ranking the UK in the top quintile on this variable.* The quality of regulation of economic and commercial activities is also exceptionally good, ranking the country fourth, globally.

Citizens of the United Kingdom enjoy the highest levels of freedom of speech, religion and movement, and 84% of citizens are satisfied with the freedoms afforded to them in their daily lives.* Tolerance of both ethnic and racial minorities as well as immigrants is high, with more than eight out of 10 people believing the UK to be a good place for these groups to live, ranking the country in the top quintiles on both these variables.*

Although ranking in the top quartile globally, less than one-third of Britons believe that others are trustworthy and relatively few citizens turn to religious communities for social support.* However, the importance of friendships ranked highly amongst the British, as did the belief that friends and family could be relied on in times of need, placing the UK second on both these variables.* Instances of charitable giving also ranked second highest, internationally. Over a quarter of respondents had volunteered time to an organisation the previous month, and 59% had helped a stranger, ranking the country in the top 30 on both variables.*

* Data taken from the Gallup World Poll

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