MEDIA RELEASE PR36763
Australia Leads U.S. and Canada in Prosperity; Ranks 6TH Globally Finds Legatum
Prosperity Index; New Zealand at #10
LONDON, Oct. 27 /PRNewswire-AsiaNet/ --
Australia ranks high in freedom and democracy but lags other
world leaders in health, domestic security and entrepreneurship. New Zealand
is #1 in social capital but lowest among top ten nations on economic
fundamentals and entrepreneurship.
The third edition of the Legatum Prosperity Index, published
today, ranks 104 countries (covering 90% of the world's population), based on
a definition of prosperity that combines economic growth together with
measures of happiness and quality of life.
Australia ranks 6th in overall prosperity, and remains the
top-ranked non-European nation in the Index despite losing its top ranking in
the 2008 Index, partly because of changes in methodology between 2008 and
2009, and also from relatively poor scores in health and entrepreneurship.
The only non-European countries in the top 20 of the 2009 Legatum Prosperity
Index are Australia (6th), Canada (7th), the U.S (9th), New Zealand (10th),
Japan (16th), and Hong Kong (18th).
"The Legatum Prosperity Index is the world's only global
assessment of wealth and wellbeing," said Dr. William Inboden, Senior Vice
President of the Legatum Institute. "Despite the recession, Australia and New
Zealand continue to stand among the world's most prosperous nations"
continued Dr. Inboden, "but beyond the positive headlines, Australia is
slowed by lower-than-expected performance in measures of health and
entrepreneurship, and New Zealand by surprisingly low economic numbers. The
Index clearly shows that while money doesn't guarantee happiness, true
prosperity does require strong economic fundamentals as well as high quality
of life."
Key Findings from the 2009 Legatum Prosperity Index
- Australia ranks fourth on the two indicators of social
capital and personal freedom, whereas New Zealand ranks first in social
capital and sixth in personal freedom. These rankings suggest that the
citizens of both countries enjoy exceptionally high levels of personal
opportunity and strong social networks.
- Australia ranks comparatively high, 6th, for education, and
New Zealand ranks 10th.
- Australia performs considerably better on the Prosperity
Index than it does when judged by actual GDP alone. For example,
Australia ranks 5th globally on the Index's multiple economic measures,
compared to 17th when measured by per capita GDP alone. This indicates
that the factors underlying Australia's economic performance are
healthier than a current snapshot of the economy would suggest.
- New Zealand is the only top 10 country to rank lower than
#20 for its economic fundamentals; its 27th place ranking makes it the
lowest of all top 20 countries except Slovenia. Its overall economic
performance is boosted by its 4th place ranking in the democratic
institutions sub-index, which assesses the effects of government policy
on economic growth.
- Australia's worst performance is in the area of health,
where it ranks 21st, behind all major European nations except the UK
(23rd), and behind Asian peers Singapore, Japan, and Hong Kong.
- Conversely, Australia's combined performance on the Index's
economic indicators bests Asian competitors Japan, Singapore, Hong Kong
and Taiwan.
The Index identified nine key factors that drive economic
growth and personal wellbeing, which are foundations of prosperity. Each of
these nine factors is represented in a sub-index and a country's final
Prosperity Index ranking is generated by averaging its scores across all nine
sub-indexes, equally weighted. More information on the Prosperity Index,
including full country rankings, background on data and methodology, and
Notes to Editors:
About the Legatum Prosperity Index
The 2009 Legatum Prosperity Index is based on statistical
analysis of more than 40 years of data for more than 100 countries worldwide,
produced and supervised by the Legatum Institute, with input from the
research consultancy Oxford Analytica and a panel of respected academic
advisors in the fields of economics, history, development, sociology, and
political science.
2009 Legatum Prosperity Index Rankings
TOP TWENTY COUNTRIES BOTTOM TEN COUNTRIES
1. Finland 95. Kenya
2. Switzerland 96. Algeria
3. Sweden 97. Tanzania
4. Denmark 98. Nigeria
5. Norway 99. Pakistan
6. Australia 100. Cameroon
7. Canada 101. Central African Republic
8. Netherlands 102. Yemen
9. United States 103. Sudan
10. New Zealand 104. Zimbabwe
11. Ireland
12. United Kingdom
13. Belgium
14. Germany
15. Austria
16. Japan
17. France
18. Hong Kong
19. Spain
20. Slovenia
How the Index is constructed
The Prosperity Index accounts for 90 percent of the world's
population, using a combination of objective data and subjective responses to
surveys. This data comprises 79 different variables, and each is then
distilled into one of the nine different sub-indexes identified as a
foundation of prosperity. A country's performance in each sub-index is given
a score, and the overall Prosperity Index rankings are produced by averaging
the equally-weighted scores of the 9 sub-indexes for each country. Those
countries that perform well across each sub-index score highest in the
overall rankings.
The foundations of prosperity that define successful nations
include:
- Economic Fundamentals - a growing, sound economy that
provides opportunities for wealth creation
- Entrepreneurship and Innovation - an environment friendly to new
enterprises and the commercialisation of new ideas
- Education - an accessible, high-quality educational system that
fosters human development
- Democratic Institutions - transparent and accountable governing
institutions that promote economic growth
- Governance - an honest and effective government that preserves
order and encourages productive citizenship
- Health - the physical well-being of the populace
- Personal Freedom - the degree to which individuals can choose the
course of their lives
- Security - a safe environment in which people can pursue
opportunity
- Social Capital - trustworthiness in relationships and strong
communities
About the Legatum Institute
The Legatum Institute is an independent policy, advocacy and
advisory organisation. The Institute's mission is to research and promote the
principles that drive the creation of global prosperity and the expansion of
human liberty and wellbeing.
For more information about the Legatum Institute, please visit
The Institute is part of the Legatum Group, a private global
investment organization focused on investing in the international capital
markets and the promotion of sustainable development.
For more information about the Legatum Group, please visit
Media Enquiries
London
William Inboden, Legatum Institute
Telephone: +44-20-7148-5400
william.inboden@legatum.com
Nick Wood, Media Intelligence Partners
Telephone +44-20-3008-8146
Email: nickwood@nickwood.demon.co.uk
Dubai, UAE
Hamish Banks, Legatum
Telephone: +971-4-317-5800
Email: hamish.banks@legatum.com
Nicole Anwer, Legatum
Telephone: +971-4-317-5800
Email: nicole.anwer@legatum.com
New York
Michael Iacovella, Edelman
Telephone +1-212-704-8254
Email: michael.iacovella@edelman.com
Mumbai
Arwa Husain, Adfactors PR
Telephone +91-22-2281-3565
Email: arwa.husain@adfactorspr.com
SOURCE: Legatum
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