NS4053 Winter Term 2014 Country/Region Indices

Country Indices/Rankings I There are a number of organizations that provide rankings of countries based on factors that organization feels are key to progress and sustained growth and development World Bank Governance Indices Voice and Accountability Political Stability/Absence of Violence Government Effectiveness Regulatory Quality Rule of Law Control of Corruption 2

Country Indices/Rankings II Heritage Foundation, Index of Economic Freedom: Rule of Law Property Rights Freedom from Corruption Government Size Fiscal Freedom Government Spending Regulatory Efficiency Business Freedom Labor Freedom Monetary Freedom Open Markets Trade Freedom Investment Freedom Financial Freedom 3

Country Indices/Rankings III Legatum Prosperity Index Economy Entrepreneurship and Opportunity Governance Education Health Safety and Security Personal Freedom Social Capital 4

Country Indices/Rankings IV World Economic Forum, Competitiveness Index Institutions Infrastructure Macroeconomic Environment Health and Primary Education Higher Education and training Goods Market Efficiency Labor Market Efficiency Financial Market Development Technological Readiness Market Size Business Sophistication Innovation 5

WEF Framework 6

BRICs: Voice and Accountability 7

BRICs: Political Stability/Absence of Violence 8

BRICs: Government Effectiveness 9

BRICs: Regulatory Quality 10

BRICs: Rule of Law 11

BRICs: Control of Corruption 12

MENA: Voice Accountability 13

MENA: Political Stability, Absence of Violence 14

MENA: Government Efficiency 15

MENA: Regulatory Quality 16

MENA: Rule of Law 17

MENA: Control of Corruption 18

MENA: Index of Economic Freedom 19

MENA: Entrepreneurship Large public sector has bred a lack of economic dynamism in region – further setting back employment World Bank found (2010) that MENA has some of the lowest firm entry density rates in the world Suggests a lack of entrepreneurship with rate almost four times lower than of Europe and Central Asia 20

MENA: Ease of Doing Business Region generally scores very low on World Bank’ Ease of Doing Business Index – even lower after 2011 – yet the private sector will have to create most of the jobs. 21

Social Capital There are a number of interesting patterns associated with the region’s governance. An often neglected aspect is social capital which incorporates Social networks and The cohesion a society experiences when people trust one another Empirical studies on social capital have found that societies with lower levels of social capital have experienced lower rates of economic growth Unlike physical capital, social capital may take years to show significant increases For the MENA region, low levels of social capital are closely associated with low levels of governance and entrepreneurship 22

Patterns of Governance/Social Capital 23

Patterns of Social Capital/Entrepreneurship 24

Governance/Oil Curse 25

Asia Governance: Voice and Accountability 26

Asia: Political Stability Absence of Violence 27

Asia: Government Effectiveness 28

Asia: Regulatory Quality 29

Asia: Rule of Law 30

Asia: Control of Corruption 31

Asia: Overall Economic Freedom 32

Asian Trade Freedom 33

Asian Total Economic Freedom 34

Asian Governance: Total Dimensions 35

Africa: Progress in Voice and Accountability 36

Africa: Progress in Political Stability, Absence of Violence 37

Africa: Progress in Government Effectiveness 38

Africa: Progress in Regulatory Quality 39

Africa: Progress in Rule of Law 40

Africa: Progress in Control of Corruption 41

Africa: Progress in Economic Freedom 42

Africa Groupings: Voice and Accountability 43

Africa Groupings: Political Stability Absence of Violence 44

Africa Groupings: Government Effectiveness 45

Africa Groupings: Regulatory Quality 46

Africa Groupings: Rule of Law 47

African Groupings: Control of Corruption 48

Latin America: Voice and Accountability 49

Latin America: Political Stability Absence of Violence 50

Latin America: Government Effectiveness 51

Latin America: Rule of Law 52

Latin America: Control of Corruption 53

Latin America: Total Economic Freedom 54

Latin America: Trade Freedom 55