THE LEGATUM PROSPERITY INDEX™ 2016

Bringing Prosperity to Life

Kyrgyzstan

Ranked 77th of 149

At a glance

Ranks

77 th on the Legatum
Prosperity Index™

71st
87th
113th
60th
61st
81st
86th
47th
68th

SUB-INDEX RANKINGS

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

Visit our Rankings table to see how Kyrgyzstan 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.

Despite being one of Asia’s’ poorest countries, Kyrgyzstan is amongst the global top twenty over-deliverers of prosperity. The country’s prosperity surplus, which has nearly doubled over the last decade, is the best in Asia (excluding Australia and New Zealand), the 3rd best out of all non-OECD countries, and is higher than France’s and Spain’s.

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

The 2011 elections resulted in President Almazbek Atambayev being elected with 63% of the votes. This represented the first peaceful transfer of power in Kyrgyzstan’s post-communist history and a three-point rise in the country’s democracy level ensued. This event, combined with progress in government confidence and confidence in the honesty of elections, has resulted in a successful 13 rank improvement in Kyrgyzstan’s Governance sub-index since 2011. Yet, weak rule of rule of law, high corruption, and declining government effectiveness, limit the country’s ability to ensure stable and inclusive growth and an effective implementation of public services.

Kyrgyzstan’s democracy level rose in 2011 after the first peaceful transfer of power in its post-Communist history, bringing it closer to Asia’s best performing democracy, Mongolia.
Kyrgyzstan’s democracy level rose in 2011 after the first peaceful transfer of power in its post-Communist history, bringing it closer to Asia’s best performing democracy, Mongolia.

Improving human capital through education and healthcare is now a priority for Kyrgyzstan. The government is actively implementing medium term reforms in these sectors. Since 2010, the country has benefited from a 19 rank improvement in the Health sub-index. Education rose by 13 ranks between 2011 and 2016, demonstrating what can be achieved with economic growth, despite low levels of wealth.

The 2016 Prosperity Index suggests that the nation’s biggest development challenge lies in stimulating its Business Environment. This sub-index has fallen 33 ranks since 2009, despite having made tremendous improvements until then. Entrepreneurs and investors are discouraged by the monumental discrepancy between the ease of starting a business in Kyrgyzstan, which ranks in the top quartile globally, and the perception on the ease of starting a business, where the country ranks very poorly globally. The business start-up process has been simplified and minimum capital is no longer required. But obstacles include low broadband connectivity and protection of intellectual property rights, recent growing difficulty in the ease of obtaining credit and an 18% decline in the ease of resolving insolvency as of 2010.

Kyrgyzstan’s 51 rank improvement in Social Capital offers high hopes for more inclusive and stable growth. Since 2007, the people of Kyrgyzstan’s devotion to charitable activities has increased; the number of people making donations has risen by 231% and 24% more households are sending informal financial help to other households. This strong social cohesion is supported by a high degree of interpersonal relations. Almost 80% of respondents are satisfied with the opportunity to make friends and 87% feel that they are treated with respect on a daily basis. 86% of people believe that they can count on friends and relatives for help in times of trouble. The Kyrgyz feel more secure to voice their opinions which is supported by a growing trust in the local police force. All these factors suggest a rapidly increasing sense of community and frequent cooperation at individual level. This strong society, seen in the most prosperous countries in the world, is a fundamental foundation on which Kyrgyzstan can build greater prosperity.


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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.