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.

Governance Sub-Index

Well-governed societies enjoy national economic growth and citizen wellbeing. The Governance sub-index measures countries’ performance in three areas: effective and accountable government, fair elections and political participation, and rule of law. As illustrated in the chart below, the variables in the sub-index are categorised into these areas.

Stable and democratic governing institutions protect political and economic liberty and create an environment of civic participation, leading to higher levels of income and wellbeing. The Governance sub-index measures levels of competition and corruption in the government, and citizens’ confidence in elections, the judicial system, and the military.

The sub-index shows that citizens prefer governments that are stable and accountable. Public wellbeing is also related to people’s perceptions of how well the government addresses societal struggles with the environment and poverty.

Academic research has found that in general, political freedom, strength of institutions, and regulatory quality are significant contributors to economic growth. Effective, fair, and accountable governments also increase public confidence, leading to higher levels of life satisfaction among citizens. Likewise, the opportunity to have a voice in their government is correlated with happier citizens.

Sub-Index Rankings