Legatum Institute 11 Charles Street, Mayfair London, W1J 5DW, UK Telephone +44 20 7148 5400 www.li.com The Legatum Prosperity Index
OUTLINE The prosperity index: a general overview; How does the Prosperity Index impact on prosperity? Media; Policy-makers; Civil society; Private sector.
PROSPERITY INDEX The prosperity index: a general overview; How does the Prosperity Index impact on prosperity? Media; Policy-makers; Civil society; Private sector.
PROSPERITY INDEX AFRICA RANKINGS
PROSPERITY INDEX GLOBAL RANKINGS
PROSPERITY INDEX CHANGES OVER TIME
PROSPERITY INDEX SUB-INDEXES
PROSPERITY INDEX THE VARIABLES The Prosperity Index includes 89 variables Tanzania
PROSPERITY INDEX AND MEDIA IN AFRICA The media love rankings! Easy to understand Powerful tool to reinforce statements Journalists use the Prosperity Index in all of its different dimensions: Compare countries by their prosperity ranking
PROSPERITY INDEX AND MEDIA IN AFRICA Look at changes in prosperity over time or across countries;
PROSPERITY INDEX AND MEDIA IN AFRICA They focus on particular sub-indexes
PROSPERITY INDEX AND MEDIA IN AFRICA
PROSPERITY INDEX AND POLICY-MAKERS Policy-makers have a tense relationship with indexes! They love them when there is an improvement in their country s ranking They attack them when their country slides down the league table
PROSPERITY INDEX AND POLICY-MAKERS The collection and analysis of good quality data is vital for effective policy making: Highlight weaknesses and strengths of a country Powerful and effective way of assessing government policy Link to Data Revolution in Africa Provide incentives to implement new reforms; Find a better allocation of resources given a limited public budget
HOW POLICY-MAKERS INTERACT WITH US Excluded countries ask to be added to the league Ask more information about changes in their ranking Great interest in the Prosperity framework and methodology: Adapt it at the sub-national level General framework or specific sub-indexes Use more detailed and specific data Get a new set of weights What-if analysis and policy recommendations
PROSPERITY INDEX AND CIVIL SOCIETY Powerful and effective way of: Generating awareness about the country s strength and weaknesses Generating awareness about the country s changes across time Making complex issues accessible to a wider audience Assessing government policy Providing a rich and user-friendly dataset Using the conceptual framework for M&E of projects (wider contribution to prosperity) and to compare countries where programs are planned.
PROSPERITY INDEX THE PRIVATE SECTOR Early phase of business strategy Compare countries at a macro level Different sectors use the index in their business Examples include: Consultancies firms: PWC uses the Index in their client-facing work. They package our data with their own in order to provide bespoke services to their clients. The insurance sector: Rolling out a human safety net for the poorest Proliferation of insurance companies in Africa;
PROSPERITY INDEX AND THE INSURANCE SECTOR The Prosperity Index might help in the preliminary phase of assessing the potential for: Insurance products: Sub-index analysis Variable level: - Satisfaction with living standards; - Adequate food and shelter; Gross domestic savings - Life expectancy; - Satisfaction with health - Health problems - Feeling Safe walking at night; - Assaults; - Property Stolen.
PROSPERITY INDEX AND THE INSURANCE SECTOR Tool for Insurance penetration Diffusion of mobile phones Secure internet servers Internet bandwidth Receptiveness in society How trusting is society of each other, local institutions, national institutions, financial institutions? How strong are familial and community based support networks in times of need?
PROSPERITY INDEX Thank you For more information about the Legatum Prosperity Index, please visit P: www.prosperity.com E: Novella.Bottini@li.com