Meet your business partners: The birthplace of coffee ranks 108th in Prosperity Index

According to Legatim Institute's 2011 Prosperity Index, Ethiopia ranks 108th out of 110 countries. Here is a high level run down of the highlights in the report:

Entrepreneurship & Opportunity - Ranked 108th

Ethiopia’s weak communications infrastructure and low access to opportunity inhibits entrepreneurship and limits innovation.

Income from royalty receipts is low at just over 2.2 million USD, and there is virtually no investment in R&D. ICT goods account for less than 1% of total manufactured exports. Ethiopians ability to start and run a business is highly limited: business start-up costs are high at 14% of GNI per capita, and communication infrastructure is weak with only five mobile phones for every 100 citizens. Furthermore, on both internet provision variables – internet bandwidth and number of secure internet servers – Ethiopia places in the bottom 10 of the Index. What little wealth exists is relatively concentrated: inequality across different socio-economic groups, in terms of education, jobs, and economic status, is among the 20 most pervasive in the world. Possibly as a consequence of this, just 85%* of the population believe that they can get ahead in life by working hard, which places Ethiopia in the bottom half of the Index on this variable. Data on perceptions of the local entrepreneurial environment were not available.

Economy - Ranked 104th

Despite high levels of growth and relative optimism about their economic future, Ethiopia faces very high levels of unemployment and dissatisfaction.

Governance - Ranked 101st

A lack of democratic accountability and confidence blights the Ethiopian political system.

Education - Ranked 107th

Ethiopia’s education system is poor at all levels and its population is deeply dissatisfied.

Health - Ranked 107th

Ethiopia has a health deficit, but its people worry less than any other nationality.

Safety & Security - Ranked 106th

Ethiopia’s national security faces major challenges while citizens also face high levels of crime.

Personal Freedom - Ranked 110th

Ethiopia is one of the least free countries in the world.

Social Capital - Ranked 86th

Despite high levels of religious attendance, other social networks in Ethiopia are relatively weak.

Fast Facts

Average Life Satisfaction	4.4 / 10 (2007 Est.)	Literacy Rate	30% (2008)
Population mn.	87 million (2011 Est.)	Health Adjusted Life Expectancy	50 years (2007)
GDP per capita (PPP)	$1,089 (2011 Est.)	Business Start-up Costs (% of Gross National Income)	14.1% (2011)
GDP (PPP) bn.	$94.6 (2011 Est.)	85.4% of people believe society is meritocratic*	(2007)
Political System	Republic (2011)	50.1% of people feel personal safety*	(2007)
Freedom House Rating	Not Free (2011)	24.4% of people find others trustworthy*	(2005)

Read the full report here.