Legatum Prosperity Index™: Global prosperity rising while US and UK economies decline
- Norway leads world in 2013, as global prosperity continues to rise.
- US & UK suffer falling economic performance.
- Legatum Institute reveals its ‘20:20 Vision’ of countries it predicts will rise up the prosperity rankings.
The latest Legatum Prosperity Index™, which ranks nations according to extensive wealth and wellbeing factors, reveals that global prosperity has risen over the past five years, largely due to improvements in entrepreneurship, health and education.
Norway leads the overall rankings for the fifth year and is joined in the top ten by Switzerland (2nd), Canada (3rd), Sweden (4th), New Zealand (5th) and Denmark (6th).
The US (11th) and UK (16th) are both facing economic decline, dropping four and two places respectively for their performance in this sub-index1. The UK has also dropped three places in the overall prosperity rankings since last year.
Now in its seventh year, the Legatum Prosperity Index™ is a unique and robust assessment of global wealth and wellbeing, which benchmarks 142 countries around the world in eight distinct sub-indices: Economy; Education; Entrepreneurship & Opportunity; Governance; Health; Personal Freedom; Safety & Security; and Social Capital.
Jeffrey Gedmin, President and CEO of the Legatum Institute, said: “Since the inaugural Legatum Prosperity Index™, the world has seen a continuous increase in prosperity with citizens in many countries experiencing improving wealth and
“But we cannot afford to be complacent. Issues of war, governance and personal freedom continue to dog the Middle East and parts of Africa. Leading nations are not exempt, with the US and UK experiencing poor performance in the rankings in recent years.”
To mark the progress made in prosperity across the globe since the launch of the Index, the Legatum Institute is highlighting twenty countries that are predicted to move up the rankings by 2020 if they continue on their current path. This ‘20:20 Vision’ is made up of nations that are regional or sub-index leaders.
Included on this list are Bangladesh, which has improved in seven sub-indices, and Kazakhstan, which has risen seven places to 47th in the overall rankings since 2009.
Trinidad & Tobago and Slovakia are also listed, having experienced increases in prosperity and strong economic growth, as well as taking positive strides to overcome national challenges.
For the full ‘20:20 Vision’ list, please visit www.prosperity.com/#/media/
The Americas: Latin America on the up and up as US declines
On average, Latin America has seen a rise in seven sub-indices since 2009, translating into a rise in overall prosperity for the sub-region. Paraguay (68th), Trinidad & Tobago (42th) and Bolivia (86th) show the biggest improvements, while Uruguay (30th) leads Latin America for overall prosperity.
Canada (3rd) leads the rankings for the region, while the US (11th) remains outside the top ten.
Middle East, North Africa & Sub-Saharan Africa: Poor governance holds back prosperity
Falling Governance scores and challenges to Personal Freedom are limiting prosperity in a significant number of countries in MENA and Sub-Saharan Africa.
Unsurprisingly, Syria (122th) and Egypt (108th) have fallen down the rankings and elsewhere even the highest-ranking Sub-Saharan African nations – Botswana (72nd), South Africa (77nd) and Namibia (93nd) – have all declined.
Asia Pacific: Economic strength turbo-charges prosperity
Improvements in the Economy sub-index have helped to drive overall improvements in prosperity in Asia, with China (51st), Thailand (53rd), Malaysia (44th) and Sri Lanka (60th) all experiencing a rise.
Elsewhere, India (106th) has declined overall – overtaken for the first time in 2013 by Bangladesh (103rd). Pakistan remains low in the rankings (132nd) with progress hampered by security-related challenges.
Europe: Two-speed trend continues with ex-communist nations spurred by strong growth in prosperity
Germany (14th) has recorded the highest increase in overall prosperity in Europe since 2009 – bypassing the UK (16th), which has declined by three places overall.
The majority of European countries are becoming more prosperous, with ex-communist nations Slovenia (24th), Czech Republic (29th), Estonia (36th) and Slovakia (38th) all experiencing significant increases in prosperity.