The Legatum Institute ranks 104 countries in the Legatum Prosperity Index by how well they foster economic growth and personal wellbeing.
Mumbai, Maharashtra, India, October 15, 2008 (PRESSbooth.ORG) -- Despite the recent economic gains following India’s liberalisation and its relative independence from foreign aid, the country still ranks poorly in promoting overall prosperity, the 2008 Legatum Prosperity Index reveals. The Index defines prosperity as a holistic combination of material wealth and life satisfaction, and thus measures how well nations are promoting both economic growth and quality of life. Australia holds the top spot, narrowly ahead of Austria and Finland ; Yemen ranks last, following several African nations including Zambia and Zimbabwe .
Ranked 70th according to the 2008 Legatum Prosperity Index, India is comparatively lower than the other emerging markets giants of China , Brazil and Russia but ranks higher than its neighbours Pakistan and Bangladesh which are ranked 85 and 89 respectively. The Prosperity Index assesses 104 nations around the world by measuring 44 different indicators of both economic competitiveness and liveability. Full rankings are available at www.prosperity.com.
Dr. William Inboden, Senior Vice President of the Legatum Institute commented that, “true prosperity consists of more than just wealth. It includes happiness, health and freedom of expression. The Prosperity Index shows that in addition to economic success, a society’s prosperity is based on strong family ties, bonding among communities, education, freedom to pursue religious beliefs and political ideologies.”
Dr. Inboden continued, “ India has made dramatic gains in recent years by embracing some market reforms which have helped begin to unleash the tremendous potential of the Indian people and provided them new pathways out of poverty and towards prosperity. This year’s Prosperity Index finds that India ’s long-term growth will be enhanced only by adopting policies that encourage greater economic openness and opportunities for entrepreneurship that in the long term will generate higher incomes.”
The Index indicates that India ’s growth has been adversely affected due to its lack of economic openness, primarily in areas of policies promoting trade freedom, foreign trade and investments. While India ’s political system encourages political freedom, it has also obstructed progress towards free markets and open trade. With regards to liveability, India falls short on average income per person, poor health services and lack of freedom and opportunity for women despite strong beliefs in the social supporting systems. Given the country’s strong democracy and booming economy, however, improvement in each of these areas is possible.
On economic competitiveness, China leads Brazil , Russia and India , but on measures of liveability, India and Brazil are at par and ahead of China and Russia . India may be lagging behind China in terms of economic growth or becoming a global manufacturing hub, but is equal in creating the greatest number of jobs among the BRIC nations. The Index also indicates the significant under-employment in all four countries, especially among women in Brazil and India .
Among the BRIC nations, Russia scores highest on education and private enterprises, which are vital to long-term income growth and key to quality of life. Brazil , however, scores highest in religious belief and in promoting competitive markets, which both demonstrates freedom of choice and builds avenues for further trade and less dependency upon other nations. In terms of avoiding reliance upon commodity exports, agricultural powerhouses India and Brazil are in the top 30, still lagging China ’s joint second position, but are less dependent on foreign aid. Russia ’s heavy dependence upon its position as a major oil and gas exporter is perhaps a bigger long-term problem than India ’s current challenge of high oil prices.
Australia leads the Index because of its strong performance in education, governance, and promoting entrepreneurship. All successful countries demonstrate several common attributes, with the top ten scoring especially high on five economic indicators:
· Growth in Invested Capital,
· Good Governance on economic issues,
· Commercialising Innovation,
· Good Governance on political issues,
· High Incomes.
All but Singapore and Hong Kong scored nearly as well on community life and family life indicators, which are important measures of Social Capital. Conversely, the bottom 25 percent of the Index countries get especially low marks on these same indicators as well as Freedom of Choice. They are particularly burdened by low incomes and high dependence on foreign aid.
The 2008 Prosperity Index finds that both individuals and governments have a role to play in promoting national prosperity. Alan McCormick, a Managing Director at Legatum, observed, “The 2008 Legatum Prosperity Index reveals that governments alone cannot mandate prosperity, but they can foster an environment that encourages prosperity through the implementation of wise policies that enable citizens to lead productive lives. Individual citizens are responsible for taking advantage of the opportunities that accompany increased freedom and privilege.” A website dedicated to measuring personal prosperity has been created at www.myprosperity.com.
Mr McCormick concluded that, “Amidst widespread global economic insecurity, the findings of this year’s Index could not be timelier. The Prosperity Index is a manifesto for advancing long-term national prosperity which can act as a guide to leaders from all sections of society.”
Note to Editors:
2008 Legatum Prosperity Index Rankings
Best 20
1 Australia
2 Austria
2 Finland
4 Germany
4 Singapore
4 United States
7 Switzerland
8 Hong Kong
9 Denmark
9 New Aealand
11 Netherlands
12 Sweden
13 Japan
14 Belgium
14 Canada
14 France
14 Norway
14 United Kingdom
19 Israel
20 Ireland
Bric Nations
43 Brazil
54 China
57 Russia
70 India
Worst 10
94 Sudan
96 Kenya
96 Mozambique
98 Nepal
99 Zimbabwe
100 Tanzania
101 Central African Republic
102 Mali
102 Zambia
104 Yemen
Observations from the Index Research
The key drivers for each country vary according to their level of development. For poorer countries, with average per capita incomes of less than US$10,000, raising incomes is a particular priority. For these countries, the most important components of economic competitiveness are:
1) Government effectiveness
2) Levels of education
3) Growth in invested capital
4) Low costs of starting a business
5) Commercialisation of innovation
6) Low dependence on foreign aid
7) Low dependence on commodity exports
8) Economic openness
For countries with incomes of more than US$20,000 per person, the most important drivers of continued economic growth are:
1) Invested capital
2) Education
3) Entrepreneurship
4) Commercialisation of innovation
Furthermore, in richer countries, moving beyond material wealth is a key element of continued prosperity. The most important factors for these countries are:
1) Continued high levels of income
2) Good health
3) Political rights and civil liberties
4) Freedom of choice
5) Charitable Giving
6) Family Life
7) Equality of opportunity
8) Pleasant natural environment
9) Community Life
10) Religious freedom
Find Out More
A website dedicated to the Index has been created at www.prosperity.com. In addition to viewing the 2008 Legatum Prosperity Index report, browsers may freely examine individual country profiles and conclusions, as well as experiment with interactive tools which allow for graphical comparison of countries and the components of their prosperity.
A website dedicated to measuring personal prosperity is also available at MailScanner has detected a possible fraud attempt from "www.personalprosperiscope.com" claiming to be www.myprosperity.com. Interviews with Dr. Inboden, in video, audio and text format, are available at www.prosperity.com and www.cantos.com.
About the Legatum Prosperity Index:
The 2008 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 advisors in the fields of economics, history, development, sociology, and political science.
About the Legatum Institute:
The Legatum Institute (“LI”) 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 www.li.com .
The Institute is part of the Legatum Group, a private global investment organisation focused on investing in the international capital markets and the promotion of sustainable development.
For more information about the Legatum Group, please visit www.Legatum.com.
Contact:
Hamish Banks, Legatum
Dubai , UAE
Telephone: +971 4 317 5800
Email: hamish.banks @ legatum.com
Nicole Anwer, Legatum
Dubai, UAE
Telephone: +971 4 317 5800
Email: nicole.anwer @ legatum.com
Arwa Husain , Adfactors Public Relations
Mumbai , India
Telephone: +971 22 2281 3565
Email: arwa.husain @ adfactorspr.com
Danielle Perissi, Edelman
New York , NY
Telephone _+1 212 704 8281
Email: danielle.perissi @ edelman.com
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