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Life in South Africa getting worse: index

Staff Writer

 ·6 Nov 2014

South Africa is the 81st most prosperous country in the world, according to the Legatum Institute’s prosperity index, a position down from 77th in 2013, and far away from its 67th position in 2009.

The Legatum Prosperity Index analyses and ranks 142 countries across the globe, measuring 89 variables across eight sub-indices, namely, a country’s:

• Economy;
• Level of entrepreneurship and opportunity;
• Governance;
• Education;
• Health;
• Safety and security;
• Personal freedom; and
• Social capital.

Legatum says its index is the only global measurement of prosperity based on both income and well-being.

Looking at global prosperity, American and European countries tend to be the most prosperous, with strong economies and high degrees of life satisfaction.

Conversely, African, Middle East and South Asian nations account for the least prosperous countries, though, notably, sub-Saharan Africa showed the biggest positive regional changes in the world.

“Despite set-backs, sub-Saharan Africans are optimistic about their future, while parts of Europe are still struggling with the fallout from the financial crisis,” the group said.

“While Europe has declined in the Economy, Governance, Education, Personal Freedom and Social Capital sub-indices, Sub-Saharan Africa has improved in all.”

Norway was ranked as the most prosperous country in the world – a position the country has held for a number of years.

New Zealand showed a big climb to 3rd position, ranked below Switzerland.

Three African countries – CAR, Chad and the DRC – were ranked as the least prosperous nations in the world, respectively.

Norway

10 Most prosperous countries in the world

Central African Republic

10 least prosperous countries in the world

However, South Africa did not follow the same trend as the sub-Saharan region, slipping down the prosperity rankings from 77th to 81st.

South Africa has a prosperity index score of -0.453, indicating that the country is in decline.

South Africa declined in all but one sub-index – personal freedom – where it climbed from 82nd in 2013 to 79th in 2014.

The country most prosperous area is in entrepreneurship and opportunity, where it’s ranked 44th (down from 41st in 2013), but continues to struggle in safety and security, where it dropped to the 109th worst in the world (from 106th in 2013).

South African prosperity 2012-2014

Despite its decline, South Africa is still ranked as the second most prosperous country on the African continent, ranked only below Botswana.

Botswana

10 most prosperous countries in Africa

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