Legatum Prosperity Index

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The Legatum Prosperity Index is a framework that assesses countries on the promotion of their citizens’ flourishing, reflecting both wealth and wellbeing across nine pillars of prosperity and 104 variables. It provides data and analysis for 149 nations.

Main Points

The stated purpose of the Legatum Prosperity Index is to help answer the questions: “How do people flourish? Why are some nations more prosperous than others and how do poorer communities transition from poverty to increasing prosperity?”

The nine pillars, or sub-indices, are:

Icon_EconomicQuality.pngThe Economic Quality sub-index ranks countries on the openness of their economy, macroeconomic indicators, foundations for growth, economic opportunity, and financial sector efficiency.
Icon_BusinessEnvironment.pngThe Business Environment sub-index measures a country’s entrepreneurial environment, its business infrastructure, barriers to innovation, and labour market flexibility.
Icon_Governance.pngThe Governance sub-index measures a country’s performance in three areas: effective governance, democracy and political participation, and rule of law.
Icon_Education.pngThe Education sub-index ranks countries on access to education, quality of education, and human capital.
Icon_Health.pngThe Health sub-index measures a country’s performance in three areas: basic physical and mental health, health infrastructure, and preventative care.
Icon_SafetySecurity.pngThe Safety & Security sub-index ranks countries based on national security and personal safety.
Icon_PersonalFreedom.pngThe Personal Freedom sub-index measures national progress towards basic legal rights, individual freedoms, and social tolerance.
Icon_SocialCapital.pngThe Social Capital sub-index measures the strength of personal relationships, social network support, social norms, and civic participation in a country.
Icon_NaturalEnvironment.pngThe Natural Environment sub-index measures a country’s performance in three areas: the quality of the natural environment, environmental pressures, and preservation efforts.

Source: The Legatum Prosperity Index 2016, at http://www.prosperity.com/, and The Legatum Prosperity Index – Methodology at http://www.prosperity.com/about/methodology, accessed 6 March 2017.

Page created by: Ian Clark, last modified on accessed 6 March 2017.