Russia, index of prosperity, ranked 69

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Regional Ranking:
Europe

1Finland2Switzerland3Sweden4Denmark5Norway8Netherlands11Ireland12United Kingdom13Belgium14Germany15Austria17France19Spain20Slovenia21Italy22Portugal25Czech Republic27=Hungary29Poland30Greece31Estonia34Slovakia35Croatia37Latvia46Bulgaria48Romania59Macedonia61=Ukraine69=Russia69=Turkey78Moldova85Belarus
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Economic Fundamentals - Ranked 39th

High inflation and a dependence on raw materials hinder Russia’s otherwise strong economic performance

Russia benefits from a high level of physical capital per worker and the unemployment rate is low at 6%. Russia also has high rates of domestic savings and household expenditure, ranking the country in the top 20 on both variables. Russia’s capacity to earn foreign currency through trade is moderate, evident in the ratio of export revenues to the cost of imports. Performance in the banking sector is mixed, however, placing Russia in the top 40 for the low number of defaulted loans, but in the bottom 30 for its large margin on interest rates. Additionally, the inflation rate is notably high at 9%, the concentration of raw material exports is very high, and foreign direct investment is low, at 4% of GDP.

Entrepreneurship and Innovation - Ranked 42nd

There is evidence of a strong entrepreneurship in Russia, but the country faces barriers with limited technology infrastructure and weak support for innovation

With only seven steps required to start up a business, Russia experienced a proliferation of new business registrations in 2007 – roughly 483,000 – earning the country the third highest position in terms of new firms registered. Technology variables show that while Russia ranks in the top 40 for internet infrastructure as measured by bandwidth, it provides very few secure Internet servers and there are only 33 personal computers per 1,000 people. Similarly, high-tech exports are low, at 9% of manufactured exports, and ICT exports fall even lower at less than 0.5% of total goods exports. R&D expenditure, at only 1.1% of GDP, suggests moderate support for innovation, but a relatively high ranking in royalty payments implies a value placed on intellectual property. In terms of value added within the service industry, Russia ranks 57th in the international community.

Democratic Institutions - Ranked 85th

With inadequate checks on executive power, Russian citizens have restricted political and civil rights

There is little respect for political and civil rights in Russia, ranking the country 86th on both variables. The Russian government has few constraints on its power and has demonstrated autocratic leanings. Multiple parties compete in elections, at both executive and legislative levels, with reasonably open political competition. The judiciary is not independent from the government, and has demonstrated itself to be highly influenced by executive discretion. Change to the political system occurred less than 10 years ago, pushing Russia’s rank in regime stability to 87th.

Education - Ranked 28th

The value placed on education in Russia is evident in the high education levels amongst Russian workers

The Russian education system attracts 91% enrolment in primary school, but falls to 84% for secondary institutions, which is close to the global average. At tertiary level, enrolment is high, ranking the country in the top 15 countries, internationally. Despite low levels of government expenditure per student, Russian schools have the benefit of a moderately low teacher to student ratio of one to 17 and near gender parity of 99 girls for every 100 boys enrolled. Education is valued in Russian society, evidenced by the above average levels of secondary and tertiary schooling per worker, ranking 13th and fourth in these respective variables.

Health - Ranked 46th

Despite a high access to doctors and hospital beds, only six out of 10 Russians are satisfied with their health

Russia is notable for an extremely high number of medical professionals and hospital beds, per 1,000 citizens, ranking the country fourth and third, respectively, on these variables. However, the average Russian has a health-adjusted life expectancy of only 58 years, significantly below average and only 76th, worldwide. Poverty related health issues are around the global average: 3% of the population is undernourished, there are 15 deaths per 1,000 live births, and 87% of the population has access to improved sanitation facilities. Only one out of five Russians were in pain for a considerable amount of the day before being surveyed, ranking the country 25th on this variable.* However, only 59% of the population are satisfied with their health, one-third reported debilitating health problems, and just over half the people reported feeling well rested.* Additionally only one-third are satisfied with the quality of their water supply.*

Safety and Security - Ranked 99th

Only three out of 10 Russians feel safe walking alone at night, the lowest proportion of all countries in the Index

Significant security challenges related to refugees, social groups with a history of discrimination, and human flight from dangerous or degrading conditions are significant for Russia, ranking the country below the global average on all of these variables. Russia scores very poorly at 95th on the degree to which the government uses violence or intimidation against its own citizens. In 2008, Russia also reported high numbers of casualties resulting from internal conflict, ranking the country 96th, internationally. Personal security is also a concern in Russia, with only 30% of respondents indicating they felt safe walking home at night.* Additionally rates of homicide, theft and assault all rank below the global average.*

Governance - Ranked 85th

Below par regulatory quality has allowed corruption to flourish in Russia

More than nine out of 10 Russians view both government and businesses as corrupt.* Furthermore, the regulatory environment, with respect to investment and competition is lax compared to international standards, ranking the country 82nd, in the international community. With only nominal rights to free and fair political participation, only 26% of the people have confidence in the honesty of elections, placing Russia 10th from the bottom, in the international community.* Rule of law in Russia is not applied equally to all citizens, and may sometimes be enforced arbitrarily, or not at all; the country ranks 91st on this variable. Accordingly, less than one-third of citizens have confidence in the courts and judicial system.* In terms of efficiency and effectiveness, the Russian civil service is less than competent when enforcing governmental objectives, ranking 68th, and with only 65% of people putting confidence in the military, Russia ranks 70th on this variable.*

Personal Freedom - Ranked 88th

While freedom in Russia is generally limited, two out of three Russians are satisfied with the freedom they have to choose how to live their own lives

Russian citizens have highly limited freedom to practice their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. Nevertheless, almost two-thirds of Russian citizens reported that they were satisfied with the freedom of choice in their daily lives.* Tolerance for others is low, with 63% of survey respondents claiming Russia to be a good place to live for minorities and 69% claiming the same for immigrants.*

Social Capital - Ranked 84th

Social capital is weak in Russia as only few donate and help strangers

Russians place importance in friendships and 89% of all citizens feel they can rely on their family and friends in times of need*. Contrastingly, only 27% of Russians feel they can trust their fellow citizens.* Membership in voluntary networks are low: membership in environmental organisations is 5% and membership in religious, sports, and arts organisations is only marginally better, placing the country in the bottom third on all variables. Few Russians report that religion has an important part in their daily lives, ranking the country 92nd on the religiosity variable, suggesting citizens have little access to religious support networks.* Additionally, only 5% of citizens donated to charity in the previous month, ranking the country 103rd, and only 33% had helped a stranger.* However, the percentage of people who volunteered was 22%, placing Russia 43rd on this variable.*

* Data taken from the Gallup World Poll




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