THE LEGATUM PROSPERITY INDEX™ 2016

Bringing Prosperity to Life

Georgia

Ranked 84th of 149

At a glance

Ranks

84 th on the Legatum
Prosperity Index™

94th
66th
54th
54th
96th
78th
79th
139th
124th

SUB-INDEX RANKINGS

In the Prosperity Sub-Index rankings, Georgia performs best on Education and Governance and scores lowest on the Social Capital sub-index.

Visit our Rankings table to see how Georgia compares to other countries.

Prosperity Gap

The ‘Prosperity Gap’ takes a country's GDP and uses it as the yardstick to measure a nation's expected Prosperity Index ranking.

Georgia has a small prosperity deficit signifying that it slightly under-delivers prosperity for its citizens compared to its wealth. Nevertheless, this is an excellent result compared to its regional peers. Armenia and Azerbaijan have much larger prosperity deficits than Georgia despite having similar wealth and prosperity ranks.

Note:
In the chart above, each dot represents a country. The curve shows the general tendency with which prosperity increases as GDP per capita increases. If a country falls below the curve, then we can say that compared to all other countries, it is under-delivering prosperity for its citizens. Likewise, if a country rises above the curve, then we can say that it is over-delivering prosperity for its citizens. Learn more about the Prosperity Gap here.

Alternatively, have a look at the Prosperity Gap view on our Rankings table for a full list of countries and to see how each of them are performing on the various sub-indices.

Commentary

Ranked 54th, Georgia’s Governance sub-index has improved to surpass that of its regional peers. The ex-soviet state was under the leadership of reformer Mikhail Saakasvili between 2003 and 2013. He came into power just after the 2003 Rose Revolution and introduced reforms to combat corruption, renovate infrastructure, and motivate a poor economy.

Level of Governance in Georgia, Armenia, and Azerbaijan in the 2016 Prosperity Index.
Georgia’s score in the Governance sub-index significantly out-performs that of its regional peers.

Consequently, between 2007 and 2016, Georgia experienced a 38% improvement in perceptions of corruption, a 52% increase in judicial independence, and rule of law has progressed substantially, all of which are the best scores in the region. Additionally, the country’s democracy level is one of the best amongst ex-soviet countries. Level of political rights has risen above the global average. Such improvements in these variables is rare for an ex-soviet country, as most, especially those in Asia, are still ruled by fairly authoritarian governments. Yet, since 2013, the country has noticed a decline in confidence in the honesty of elections and in government confidence. This trend seems to correlate with the election of Giorgi Marvelashili as President that year.

Most impressively, according to the Index, it seems that improvements in governance have come alongside huge efforts to augment Personal Freedom in Georgia. Indeed, in the last decade, this sub-index has risen 22 ranks to push Georgia into 79th place. Homosexuality has been legalised, the death penalty no longer exists, and civil liberties are much higher than those of its regional counterparts. Most noticeably, press freedom has improved. Yet, despite all these achievements some controversy remains as to whether implementation of new reforms was achieved through intimidation and abuse of justice, as has been alleged by numerous respected non-governmental organisations.

With few natural resources to rely on, Georgia has learnt to become dependent on human capital, becoming a leader in education. Since the Rose Revolution, the Government has implemented sector wide education reforms and has invested heavily in repairing old buildings and improving infrastructure. Huge efforts have been made in raising literacy rates to 99.8% and in obtaining a 100% primary completion rate. Education equality still lags behind that of Armenia, a long term consequence of the conflict with Russia in South Ossetia which killed thousands and destroyed many schools. Overall, satisfaction with educational quality has improved by 27% in the last decade and vocational education, higher education, and inclusive education have become national priorities.


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Data

How to read this graph:
When comparing multiple countries on a spider chart, data points that appear
further away from the center represent a better performance to the points that are closer to the center.