2012 Legatum Prosperity Index™

The 2012 Legatum Prosperity Index™ incorporates traditional economic measures of prosperity with measurements of wellbeing and life satisfaction. Indeed, it remains the only global index to provide an empirical basis for the intuitive sense that true prosperity is a complex blend of income and wellbeing

A report for the Prosperity Index programme

Published 5 Nov 2012

Recently, there has been a global shift in the understanding of how to measure national success. From former French President Nicolas Sarkozy’s 2009 Commission, to the King of Bhutan’s Index of Gross National Happiness, to David Cameron’s initiative to measure wellbeing in the UK: the world is beginning to take a broader view of success. We welcome this shift in our understanding of why countries prosper.

We believe that the Legatum Institute is contributing to this debate. For the past six years the Legatum Prosperity Index™ has been exploring the foundations of national success by combining traditional measures of material wealth with subjective wellbeing. This holistic view of prosperity, that moves beyond GDP, allows us to paint a more complete picture of the world.

The 2012 Legatum Prosperity Index™ incorporates traditional economic measures of prosperity with measurements of wellbeing and life satisfaction. Indeed, it remains the only global index to provide an empirical basis for the intuitive sense that true prosperity is a complex blend of income and wellbeing. In order to better understand the role of wellbeing in public policy, the Legatum Institute has recently launched a Commission on Wellbeing to be chaired by former Cabinet Secretary Lord (Gus) O’Donnell. The independent, non-partisan Commission will report on the strengths and limitations of wellbeing analysis, tying latest research findings to the everyday practical needs of citizens.

Each country must chart its own course to success. No matter the circumstance, however, the Prosperity Index confirms that key drivers of national prosperity include entrepreneurship and opportunity, effective accountable government, and the rule of law.

The Prosperity Index is central to the Legatum Institute’s on-going inquiry into the foundations of national success. We hope that you find the 2012 edition stimulating and engaging.

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2012 Legatum Prosperity Index™

Nov 2012

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