Pakistan has the worst economy in Asia-Pacific region: Report

Legatum Institute releases 2012 Prosperity Index, ranking Pakistan at 132, out 142 countries.

LONDON: The 2012 Legatum Prosperity Index, which ranks 142 countries on global prosperity based on both material wealth and personal well-being, has ranked Pakistan 132 on their list.

Pakistan ranks higher than Afghanistan, which came in at 140.

The US, now ranked at 12, fell out of the top ten for the first time, due primarily to an economic decline. Norway topped the rankings.

The data has been calculated by implementing 89 different variables, which are spread across eight sub-indexes: economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom and social capital . These variables measure economic growth and well-being to determine the final Prosperity Index scores.

Key findings of the study show that global prosperity is increasing, but safety and security are decreasing, driven mostly by the Arab Spring in Middle Eastern countries such as Tunisia, Egypt in addition to Yemen.  The data also reveals that six of the top 15 economies in the world are located in Asia.

The index highlighted that the system of government is a major factor in prosperity, with 27 of the top 30 countries on the list being democratic nations.

India, placed 101 on the Index, experienced a decline in prosperity because of a decrease in its score on the governance sub-index. Indian regions of Gujarat and Uttarakhand scored high on the social capital sub-index, having ranks equivalent to Germany and Belgium, respectively.

Pakistan ranked last on the economy sub-index in the Asia-Pacific region, experiencing the largest drop in the region. In the sub-indexes of safety and security and social capital, Pakistan ranked in the bottom ten worldwide.

Afghanistan ranked in the bottom ten on the Prosperity Index in the categories of Governance, Personal Freedom, Safety & Security and Education.