Indonesia improves in the Social Progress Index 2014 ranking
The Republic ranks ahead of economic powerhouses China and India
JAKARTA, 28 April 2014 – According to the 2014 Social Progress Index (‘SPI’), the 2nd edition of this annual study, Indonesia has improved from an SPI score 45.24 in 2013, to 58.98 in 2014, ranking 88 out of 132 countries measured in the Index. This improvement places Indonesia ahead of economic powerhouses like China (90) and India (102) in the overall rankings. Indonesia is however still ranked behind its ASEAN partners represented in the Index – Malaysia (45), the Philippines (56) and Thailand (59) – but ahead of Laos (98) and Cambodia (100).
The SPI, created by a team led by Professor Michael E. Porter of Harvard Business School, is designed as a complement to GDP and other economic indicators to provide a more holistic understanding of countries’ overall performance. Deloitte Touche Tohmatsu Limited is a co-supporter of this Index. The top ranking countries for 2014 saw a surprise with New Zealand topping the Index ahead of Switzerland, Iceland, the Netherlands and Norway with traditional economic powers like Germany (12th), the UK (13th), Japan (14th) and the United States (16th) far behind.
This year, for the first time, each country’s performance was also compared to 15 other countries with a similar level of economic development (based on GDP per capita). For this analysis, Indonesia’s economic peers in the SPI are Guatemala, Swaziland, Bolivia, Morocco, Mongolia, Republic of Congo, the Philippines, Iraq, Honduras, Nicaragua, Georgia, India, Angola, Jordan and Paraguay.
Compared to this peer group of 15 countries, Indonesia has performed almost on par with the rest, with strengths in the areas of ‘Nutrition and Basic Medical Care’, ‘Health and Wellness’ and ‘Ecosystem Sustainability’. Based on the SPI 2014, compared to the countries in its peer group, Indonesia could however do better in areas under the ‘Opportunity’ measurement, such as ‘Personal Freedom and Choice’ and ‘Tolerance and Inclusion’.
“The wellness of the people is fundamental in creating a strong society. It is encouraging that Indonesia is in good standing in this area as it increases the country’s attractiveness for investments both locally and overseas,” said Danilo Alcantara of Deloitte Indonesia.
“While Indonesia has improved in its ranking, opportunity for the people must continue to be worked at and developed. Businesses can only thrive in societies that prosper, and the public and private sectors should work together to address these big issues with innovative solutions that can allow the economy and the society to grow,” Danilo continued.
Key global highlights include:
- New Zealand is this year’s top performing country.
- The Netherlands is the best performing country in European Union.
- Canada is the best performing G8 country.
- Slovenia and Estonia are Europe’s big success story, scoring better than France, Spain and Italy. Of the big EU countries Italy is a big under-performer, also coming in behind former Soviet bloc countries such as the Czech Republic, Slovakia and Poland.
- Costa Rica and Uruguay are the star performers in Latin America.
- Brazil is the top of the BRICS, followed by: South Africa, Russia, China, and India.
- Apart from Brazil, the BRICs are all significant under-performers on social progress, suggesting that, for China and India in particular, rapid economic growth is not yet being converted into better lives for their citizens.
- The United States finishes 16th behind Canada (7th) and the UK (13th). The Index identifies a wide range of areas in which the United States is “consistently under-performing” compared to countries with a comparable GDP per capita, according to Michael Green, Executive Director of the Social Progress Imperative.
- Russia ranked 80th in the Index, below the Ukraine (62nd) and Georgia (66th).
- India ranked 102nd on the Index, below Bangladesh (99th) and Sri Lanka (85th).
The top five:
- New Zealand – scores particularly well on political rights, access to modern communications and school enrollment. This achievement is particularly impressive given that New Zealand’s GDP per capita is $25,875* (just 25th globally).
- Switzerland – scores well on ecosystem sustainability, personal safety, life expectancy, and religious freedoms.
- Iceland – scores consistently well across all categories, particularly on tolerance and inclusion and on access to information and communications. Like New Zealand this result is impressive – over-performing against its GDP per capita of $33,880* (13th globally).
- Netherlands – scores well on water and sanitation, access to information and communications, ecosystem sustainability, and political rights.
- Norway – scores well on personal safety, internet users, press freedoms, and basic medical care.