Key Finding

6. Good governance is central to life satisfaction and economic progress

Citizens – not governments – are ultimately responsible for the creation of wealth and the realisation of happiness. Yet governance is indispensable. Countries in which sound governance leads to satisfied citizens are also most likely to have the healthiest economic fundamentals and the most entrepreneurial societies. Accountable political institutions, protections for civil liberties, predictability in contracts, and reliable regulatory structures all help promote prosperity.

INSIGHT: Governance is a key source of a country’s overall prosperity. Of the top 50 countries in the Prosperity Index, 46 have higher scores for governance than their overall scores, meaning that this main factor has given them a higher ranking than they would have otherwise achieved.