Cambodia ranks next to last in Asia-Pacific on the 2009 Legatum Prosperity Index

Region Ranking
Asia-Pacific (out of a total of 104 countries)
06 Australia
10 New Zealand
16 Japan
18 Hong Kong
23 Singapore
24 Taiwan
26 South Korea
39 Malaysia
44 Thailand
45 India
50 Mongolia
55 Philippines
58 Sri Lanka
61 Indonesia
75 China
76 Kazakhstan
77 Vietnam
87 Bangladesh
90 Nepal
92 Uzbekistan
93 Cambodia
99 Pakistan

Index Comparisons (Rank / Number of countries)

• Legatum Institute Prosperity Index: 93rd / 104
• Average Life Satisfaction Ranking: 95th / 104
• Per Capita GDP Ranking: 93rd / 104
• WEF Global Competitiveness Index: 110th / 133
• UN Human Development Index: 136th / 179
• Heritage/WSJ Economic Freedom Index: 106th / 178
• TI Corruption Perceptions Index: 166th / 180
• Vision of Humanity Global Peace Index: 105th / 144

Source: http://www.prosperity.com

The Legatum Prosperity Index is the world's only global assessment of wealth and wellbeing; unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term.

Economic Fundamentals - Ranked 65th

Cambodia is strong on trade, but low value exports and a weak domestic market are a dead weight on the economy

Unemployment is low at 4%, putting Cambodia in the top 15 countries on this variable of economic performance. The difference between banks’ borrowing and lending rates is low at 4.2 percentage points, indicating a moderately efficient banking sector. Cambodia receives a great deal of foreign direct investment, falling just outside the top 10. Cambodia has the least severe export dependency on raw materials of all countries and, with a strong ratio of export revenues to imports, its terms of trade remain within the top 15 countries. While the inflation rate is moderate at 6%, the domestic savings rate is just 13% of GDP, and capital stock per worker is particularly low, putting Cambodia in the bottom 20 on both variables. Household expenditure as a percentage of GDP is also low at 22%, suggesting a weak domestic market for Cambodian businesses.

Entrepreneurship and Innovation - Ranked 102nd

Cambodia lags behind in developing ICT facilities, and a failure to invest in R&D indicates little change is likely in the near future

Cambodia has a very low level of internet infrastructure and secure servers, placing it in the bottom eight countries with respect to both variables. Access to personal computers is the second lowest worldwide, with just three computers for every 1,000 citizens. Barriers to entry are average for the region, with 10 formal steps required to set up a company. High-tech and ICT exports are negligible, registering less than 0.07% of manufactured exports. R&D expenditure as a percentage of Cambodia’s GDP is very low at just 0.1%, placing the country 99th and indicating extremely poor commercialisation of innovation. Royalty payments are below average, indicating that the country is able to capitalise on its intellectual property to some extent.

Democratic Institutions - Ranked 88th

Cambodia has a parliamentary democracy, but its institutions and processes are not democratic in practice

Cambodia receives a very low rating for political rights and a low rating for civil liberties, placing 86th on both variables. The political system allows for the presence of rival parties in the legislative branch of government and there is open political competition among political parties for the office of the chief executive. However, Cambodia ranks low on institutionalised procedures for transferring power, indicating that elections are poorly regulated and subject to political interference. There are some checks and balances in the political system to guard against rash or arbitrary actions by the executive, but the country ranks 56th on this variable, meaning that checks and balances are ineffective and real power abides in the hands of the executive. Cambodia’s judiciary is not independent and there are insufficient safeguards against interference from other branches of government. Regime stability is relatively low in Cambodia, with the country having undergone a significant change in the political system less than 10 years ago.

Education - Ranked 96th

Overall, there is a extremely low quality of education for most Cambodians, but workers have, on average, moderate years of secondary education, signifying some degree of human capital

At the primary education level, there are 51 schoolchildren per teacher and expenditure is just $91 per student, suggesting a very poor investment in education. Cambodia primary enrolment rates are the 70th lowest globally, and the country slides further down to 93rd place for secondary school enrolment rates, and to 94th place on tertiary education enrolment rates. There is also gender inequality in schools, with only 89 girls enrolled for every 100 boys, ranking the country 95th, globally. The average Cambodian worker has had 4.5 years of secondary schooling, a measurement associated with labour productivity, which in this case is close to the global average. However, the average level of tertiary education per worker is just 2.1 years, placing the country 99th out of 104 countries on this variable.

Health - Ranked 98th

Cambodia’s performance on the majority of health variables is consistently poor, with notably high levels of undernourishment and infant mortality

Cambodia’s severe underinvestment in health is an obstacle in addressing the high infant mortality rate of 67 deaths per 1,000 live births, widespread undernourishment affecting 33% of the population, and low life expectancy of just 48 years. Cambodia ranks consistently within the bottom 15 countries on objective health measures. There are only two doctors and one hospital bed per 10,000 capita. Only 28% of the population has access to improved sanitation facilities, ranking the country 100th, and only 61% claim that water quality is satisfactory.* Cambodians report the highest number of non-age-related health problems, with 29% reporting pain.* Despite this, 65% of respondents report feeling well rested.*

Safety and Security - Ranked 70th

Although significant internal security issues exist, most Cambodians report feeling safe

Cambodia has a significant presence of cross-border refugees and internally displaced persons, and there are serious problems related to group grievances. This insecurity encourages large voluntary emigration of skilled and professional workers to more secure nations. Political terror also poses a significant problem, with the country scoring poorly on variables that assess the degree to which the government uses violent methods against its own citizens. Despite high levels of insecurity, 60% of respondents said they felt safe walking alone at night, making Cambodia the 58th safest country, worldwide.* Reports of assault and muggings are low at 4%, and only one in five respondents reported theft of household property in 2008, placing Cambodia below the international average on this variable.*


Governance - Ranked 82ndCambodia ranks poorly on the enforcement of the rule of law, and corruption is perceived as widespread
Enforcement of the rule of law is very poor in Cambodia and the country ranks in the bottom 10, worldwide. Further, Cambodia ranks in the bottom 20 on both government effectiveness and regulation of economic and commercial activity. Over 85% of respondents believe local government and businesses are corrupt.* While citizens have the legal right to participate in political processes, this is limited to some degree.* Approval of the court and judicial system is higher, with 46% of respondents expressing confidence, while 72% declare confidence in the military.* Further, more than seven out of 10 of respondents said they were confident in the honesty of elections.*

Personal Freedom - Ranked 51st

Most Cambodians are satisfied with their freedoms of choice, but also acknowledge widespread intolerance for immigrants and ethnic minorities

Cambodians are reported to have unconstrained freedom to practice their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. Nearly nine out of 10 citizens claimed to be satisfied with their freedom to choose what they do in their daily lives.* However, tolerance for ethnic minorities and immigrants is among the lowest, internationally, ranking the country in the bottom five on both variables.*

Social Capital - Ranked 67th

Cambodians are highly connected to religious networks but three out of 10 citizens are doubtful that friends and family would help them in times of need

Only 70% of Cambodians believe they can rely on friends and family in times of need, ranking the country 97th on this variable.* With just 17% of respondents saying they would help a stranger, Cambodia has the lowest rate, worldwide, on this variable.* Volunteering was also very low, with just 6% of respondents giving their time during the past month. However, 32% of the population had donated money, ranking the country in the top half on this variable.* Cambodians are highly religious - as assessed by their tendency to attend worship services, ranking the country 37th on the religiosity variable and suggesting widespread access to religious support networks.* No data was available on social trust, the importance of friendship, or membership of associations.

* Data taken from the Gallup World Poll