Global Prosperity Rankings

In this post we explore a global ranking index on national prosperity called the Legatum Prosperity Index (LPI). From the website we have:

"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 th every foundations of prosperity - those factors that help drive economic growth and produce happy citizens over the long term."

The LPI considers 9 factors as listed below:

1. Economic Fundamentals. A growing, sound economy that provides opportunities for wealth creation.
2. Entrepreneurship & Innovation. An environment friendly to new entreprises and the commercialisation of new ideas.
3. Democratic Institutions. Transparent and accountable governing institutions that promote economic growth.
4. Education. An accessible, high-quality government that preserves order and encourages productive citizens.
5. Health. The physical wellbeing of the populace.
6. Safety & Security. A safe environment in which people can pursue opportunity.
7. Governance. An honest and effective government that preserves order and encourages productive citizens.
8. Personal Freedom. The degrees to which individuals can choose the course of their lives.
9. Social Capital. Trustworthiness in relationships and strong communities.

So, ... and the winner for 2009 is .... Finland. The top 10 are Finland, Switzerland, Sweden, Denmark, Norway, Australia, Canada, Netherlands, United States and New Zealand. The bottom 10 are Kenya, algeria, Tanzania, Nigeria, Pakistan, Cameroon, Central African Republic, Yemen, Sudan and (not surprisingly last) Zimbabwe.

The following list considers the top countries in each category:

1. Economic Fundamentals. Hong Kong (ranked #18)
2. Entrepreneurship & Innovation. United states (ranked #9)
3. Democratic Institutions. Switzerland (ranked #2)
4. Education. Norway (ranked #5)
5. Health. Austria (ranked #15)
6. Safety & Security. Norway (ranked #5)
7. Governance. Denmark (ranked #4)
8. Personal Freedom. Norway (ranked #5)
9. Social Capital. New Zealand (ranked #10)

Simple observations

1. The most successful countries are OECD countries.
2. The very best performing countries are European countries with emphasis on the Scandinavian countries.
3. The country with the best economic fundamentals is Hong Kong, part of China.
4. African countries and countries with dictators are the worst performing.

So democracy works. There is much more at the LPI site here. We'll look at more from the LPI in later posts.