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Prosperity Index

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Prosperity Index

Summary: Based on the analysis of 40 years worth of economic data, the Prosperity Index measures national prosperity combining the latest life satisfaction measures with material wealth indicators.

Main Points: The Prosperity Index is divided into eight sub-indices, each of which has been identified as a foundation of prosperity.  Each sub-index is constructed using econometric analysis to determine what increases both per capita income and life satisfaction of a country’s citizens.

Main components:

·        Economy: Which factors in a nation’s economy are associated with higher levels of per capita income? Which economic conditions are linked to higher levels of wellbeing?

·        Entrepreneurship & Opportunity: What are the characteristics of a society that encourages citizens to be entrepreneurial, innovative, and seek opportunities that are related to higher levels of income and wellbeing?

·        Governance: What are the government institutions and types of government functions that are related to higher per capita income and higher levels of wellbeing?

·        Education: Which aspects of an educational system are linked to higher per capita income through their contribution to human capital, and which elements in a learning environment relate to higher levels of wellbeing?

·        Health: What are the characteristics of a healthy society that are linked to higher levels of income? How does personal wellbeing benefit from physical and mental health-related factors?

·        Safety & Security: How does the personal safety of citizens and the national security of a nation relate to growth in per capita income and higher levels of wellbeing?

·        Personal Freedom: Does freedom of expression, belief, association, and personal autonomy promote higher income and wellbeing? And does tolerance of immigrants and minorities affect prosperity?

·        Social Capital: What kinds of social networks, relationships, and institutions are associated with higher levels of wellbeing and national income?

Access to database:

Source: Methodology and Technical Appendix, The 2012 Legatum Prosperity Index, 2013,

Page Created By:  Madina Junussova. The content presented on this page is drawn directly from the source(s) cited above, and consists of direct quotations or close paraphrases. This material does not necessarily reflect the official view of the publishing organization.

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