The full report is available online at www.prosperity.com.Source: Legatum Institute

Finland takes the lead in this year’s ranking of the world’s most prosperous countries announced by the UK-based economic think-tank the Legatum Institute on 27 October. Finland’s position, up from third place in 2008, is due to a variety of factors that include monetary wealth and economic development as well as the level of democratic governance, public health and quality of life. The top three includes two other small liberal democracies, Switzerland and Sweden.

According to the Institute’s report, Finland in terms of economic fundamentals, promotion of entrepreneurship and democratic institutions barely makes the top ten. It is in terms of security, education and governance that Finland is superior.

As expected, the top 20 is dominated by European countries and North America, with the United States ranking 9th overall. The lowest rungs of the list are heavy with African countries. Afflicted by hyperinflation and nearly 80 per cent unemployment, Zimbabwe has the lowest scores on almost every indicator.

The list holds some surprises, too. Despite giant leaps in economic development, China lags behind in the prosperity index, in 75th place. Both China and fellow giant Russia were far below average in overall prosperity, with dismal scores in democratic institutions, personal freedom and safety and security for both countries. The most prosperous countries, according to the Legatum ranking, are not necessarily those with the highest GDP but those that also have happy, healthy and free citizens.

The Legatum Institute Prosperity Index was first launched in 2007, and this year included 104 countries.

Matti Koskinen - HT