The Southeast Asian nation of Indonesia has made the most radical improvements in terms of prosperity since 2009, while neighbor Singapore is the most successful economy today, according to the newly released Legatum Prosperity Index for 2015.
The annual index by the Legatum Institute also found that the least prosperous countries are in Sub-Saharan Africa, while Norway, for the seventh year running, is the most prosperous country in the world.
The index ranks 142 countries across eight categories: the economy; entrepreneurship & opportunity; governance; education; health; safety & security; personal freedom; and social capital.
The 2015 findings reveal that Indonesia has performed better than any country in the world over the past seven years, rising 21 places up the rankings to 69th this year.
Another strong performer since 2009 is Rwanda, which has risen 17 places up the Prosperity Index and now ranks 101st.
Meanwhile, the report said that Singapore, a member of the Association of Southeast Asian Nations (ASEAN), is the most successful economy in the world, ranking first on the economy sub-index this year. The country has the second highest capital per worker in the world: US$240,750 per worker. Some 47% of the country’s manufactured exports are classified as “high-tech,” the third highest in the world.
By overall ranking, the ASEAN nations came out with Singapore at No. 17, Malaysia in 44th place, Thailand in 48th spot, Vietnam in 55th, Indonesia in 69th, the Philippines in 74th, Laos in 95th, and Cambodia in 112th.
Other highlights of the report show that the UK is an increasing world leader in entrepreneurship, ranked sixth for entrepreneurship & opportunity and regarded as the best place in Europe to start a business.
Canada is the new “Land of the Free,” rising five places to first on the personal freedom sub-index and emerging as the most tolerant of immigrants.
The 20 most prosperous countries for this year are Norway, Switzerland, Denmark, New Zealand, Sweden, Canada, Australia, Netherlands, Finland, Ireland, United States, Iceland, Luxembourg, Germany, United Kingdom, Austria, Singapore, Belgium, Japan, and Hong Kong.
Norway comes out on top due to the freedom it offers its citizens, the quality of its healthcare system, and social bonds between its people.
Switzerland is ranked second in the index for the third year in a row, while Denmark has risen from fourth to third compared to last year.
At the other end of the scale, the poorest performers have been Syria (down 23 places), Tunisia (down 28 places), and Venezuela (down 16 places).
The least prosperous countries are predominantly found in sub-Saharan Africa, with the Central African Republic at the bottom of the rankings for a second year in a row. Six of the bottom ten countries are in Sub-Saharan Africa. However, many countries in the Middle East also perform poorly.
Nathan Gamester, director of the Prosperity Index at the Legatum Institute, said: “The Prosperity Index tells us that human progress goes beyond economics. Norway and other countries at the top of the Index provide opportunity and freedom to their citizens, access to quality healthcare and education, and provide safe environments for people to flourish in. By contrast those countries or regions of the world where people feel unsafe, where they are forced to flee from their homes, and where the education and healthcare systems are failing do not provide prosperity to their citizens.”
He added that the Prosperity Index reveals that the world is becoming an increasingly dangerous place.
“A dramatic decline in Safety & Security in Africa and the Middle East threatens to undermine prosperity across the world. Many European countries are still struggling to grapple with unemployment. The Prosperity Index shows that the world is becoming more prosperous, but ominous developments suggest that this cannot be taken for granted,” he said.
The Legatum Institute is an international think tank and educational charity focused on promoting prosperity. The Legatum Prosperity Index, its signature publication, ranks 142 countries in terms of wealth and well-being.
