Botswana number one in global ranking
Staff Writer | Monday June 2, 2014 18:07
In the 2014 Baseline Profitability Index (BPI), Botswana’s BPI value was 1.31, followed by Hong Kong with 1.22 and Taiwan’s BPI with 1.2.
Last year Botswana came in second to Hong Kong in the survey. The BPI report, presented by economist Daniel Altman today, assessed eight factors — economic growth, financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates — to determine the investment value of an economy based on the security and rate of return on investment.
In this respect the index further looks at issues of political stability, good governance as well as economic growth and levels of opportunity in the context of three key factors:
• how much an asset’s value grows,
• the preservation of that value while the asset is owned, and
• the ease of bringing home the proceeds from selling the asset.
According to its creators until BPI no index has combined these factors into a summary statistic that conveys a country’s basic attractiveness for investment.