Official Site - The Legatum Prosperity Index is the world's only global assessment of wealth and wellbeing; unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term.
The 2009 Legatum Prosperity Index
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8

Netherlands  


Fast Facts

Population 16.7 mn (2009 est.) GDP (per capita) $40,400 (2008 est.) Inflation 1.6% (2007)
Life Expectancy 71 years (2003) GDP (PPP) $672.0 bn (2008 est.) Unemployment 4% (2007)
Average Life Satisfaction 8/10 (2008) GDP (growth) 2% (2008 est.) Freedom House Rating Free (2009)
Political System Constitutional Monarchy (2009)

Sub-Index Rankings

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Index Comparisons
(Rank / Number of countries)

Legatum Prosperity Index8th / 104
Average Life Satisfaction Ranking4th / 104
Per Capita GDP Ranking8th / 104
WEF Global Competitiveness Index10th / 133
UN Human Development Index6th / 179
Heritage/WSJ Economic Freedom Index12th / 178
TI Corruption Perceptions Index7th / 180
Vision of Humanity Global Peace Index22nd / 144

 

Regional Ranking:
Europe

1 Finland
2 Switzerland
3 Sweden
4 Denmark
5 Norway
8 Netherlands
11 Ireland
12 United Kingdom
13 Belgium
14 Germany
15 Austria
17 France
19 Spain
20 Slovenia
21 Italy
22 Portugal
25 Czech Republic
27= Hungary
29 Poland
30 Greece
31 Estonia
34 Slovakia
35 Croatia
37 Latvia
46 Bulgaria
48 Romania
59 Macedonia
61= Ukraine
69= Russia
69= Turkey
78 Moldova
85 Belarus

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Economic Fundamentals - Ranked 3rd

The Netherlands scores highly on economic fundamentals, although raw material dependency is comparatively high

The Netherlands has a stable economy with low unemployment at 4% and inflation at 2%. There is a strong investment environment allowing for capital accumulation and high levels of physical capital per worker. Very high levels of foreign direct investment, equalling 16% of GDP, have reinforced capital accumulation. An interest margin of 1.3 percentage points coupled with less than 1% of non-performing loans reflect a strong banking sector. The savings rate, at 28%, is low, whilst household consumption is high at 26%, placing the country in the top 20 in the latter variable. Raw materials represent a low portion of exports though still high relative to most industrialised countries. The country has relatively low import costs compared to the revenues of its exported goods, ranking the Netherlands ninth overall.

Entrepreneurship and Innovation - Ranked 5th

The Netherlands is an entrepreneurial country with an advanced technological infrastructure

The Netherlands provides a vibrant entrepreneurial environment with very few barriers to entry for new businesses, resulting in 116,000 new businesses registered in 2007. The Netherlands also scores highly on variables relating to technological advancement, ranking fourth for internet bandwidth, ninth for number of secure servers and second for the number of computers per capita. These factors have allowed the Netherlands to create a strong technological sector with communication and technology accounting for 19% of all goods exports and high-tech exports accounting for 28% of all exports of manufactured goods. All of this has led to a developed economy with value added from services equivalent to 73% of GDP and an overall ranking of seventh for royalty receipts. These advancements have been aided by high R&D spending, which, at 1.3% of GDP, ranks the Netherlands 19th overall.

Democratic Institutions - Ranked 19th

The people of the Netherlands enjoy an open society with a vibrant democratic system

Citizens of the Netherlands live in an open society that affords them complete freedom to participate in the political process and the ability to express their personal and political views openly. The political system is highly democratic, characterised by a well-organised election process and significant competition in the election of individuals from various political affiliations to the executive and legislative branches. Stability in the political system is assured through moderate restrictions on the powers of the executive. Individual rights and freedoms are assured through a judicial branch independent of political influence from other branches of government. The political infrastructure has proven durable, with no fundamental change to the system in over 60 years.

Education - Ranked 14th

The Netherlands has a high rate of enrolment in secondary education but the workforce has had, on average, only moderate years of secondary education

Ranking in the top 25 on primary, secondary, and tertiary enrolment rates, the Dutch educational system is widely accessible. There appears to be near gender equality with 98 female students for every 100 male students enrolled in primary and secondary schools. Dutch workers are relatively well educated, with 5.3 years of secondary and 4.4 years of tertiary education on average, placing them 45th and 25th, respectively. Funding for education is high at approximately $11,000 per student, ranking the Netherlands 10th on this variable. No data were available for primary students per teacher.

Health - Ranked 8th

The Dutch enjoy good quality health provision, reflected in the population’s high level of health satisfaction

The Netherlands offers very good health services, with almost four health professionals and five hospital beds per 1,000 people. Furthermore, the entire country has access to improved sanitation facilities and 94% of the population is satisfied with the water quality, ranking the Netherlands sixth on this variable.* These services translate to a low rate of undernourishment at 3% and a health-adjusted life expectancy of 71 years, which is one of the highest amongst Western countries. The infant mortality rate is low at just four deaths per 1,000 live births. The population is also satisfied with the state of their health, with 72% feeling well rested and 87% believing that they are in good general health.* However, a quarter of the population report some form of health problems and one-fifth experience pain.*

Safety and Security - Ranked 15th

The Netherlands is a safe and secure country with very low reported crime rates

Despite facing some challenges related to refugees and displaced persons as well as group grievances, the Netherlands is a safe and secure country. There are no incidents of political and ethnic violence within the country and the homicide rate is very low at 13 deaths per one million people. Furthermore, only 12% reported property theft and 4% were assaulted or mugged, placing the Netherlands within the top 40 countries for these variables.* These apparent securities translate to a population that feels relatively safe: 76% of the population reported that they feel secure walking alone at night.* This relative stability also contributes to a low level of human flight and movement of the middle class out of the country.

Governance - Ranked 8th

The Dutch have faith in their government but tend not to trust local businesses

The Netherlands ranks in the top 15 in terms of government effectiveness, the rule of law, as well as writing and enforcing regulation. In addition, political participation in the Netherlands is free and open. The population are aware of their government’s efforts, as more than eight out of 10 people report confidence in the fairness of elections and in the military.* Furthermore, 64% approve of the judicial system, and only 42% believe the government to be corrupt.* However, faith in the private sector is very low, with roughly half of the population believing that there is widespread corruption amongst local businesses.*

Personal Freedom - Ranked 10th

The Dutch enjoy a free society tolerant of religious and ethnic differences within the population

The Netherlands allows complete freedom of expression, religion, and movement, comparable to the most open of societies. Nearly eight out of 10 people believe the Netherlands is a good place for ethnic minorities, 82% believe it is a good place for immigrants, and 89% are satisfied with the freedoms afforded to them, placing the country in the top 25 on all variables.*

Social Capital - Ranked 8th

The Dutch are generous with their time and money and they trust and rely on their family and friends

The Dutch enjoy a high level of reliance and trust with others, as a large portion of the population believes that friends are important, with 95% saying that they rely on their friends and family in their daily lives, and a relatively high 44% believing that others can be trusted.* This social trust translates to high levels of support for others, ranking the country first for donating money and seventh for volunteering, and nearly half of the population have reported helping a stranger.* The population is, in general, involved in various types of organisations, with 44% affiliated with sports associations, 26% with arts associations, and 16% with environmental associations, ranking the country eighth, 16th, and 16th, respectively, in terms of group membership.* In contrast to these relatively high levels of membership, the population is not highly religious and only 32% are affiliated with a religious institution.*

* Data taken from the Gallup World Poll