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Entrepreneurial democracies and the happiness factor
OTTAWA— From Wednesday's Globe and Mail
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A general exterior view of Stortinget, the Norwegian parliament. Norway came first again in the Legatum Prosperity Index for 2011, which tracks “wealth and well-being” in 110 countries.
Ragnar Singsaas/Getty Images
The Legatum Prosperity Index, which tracks “wealth and well-being” in 110 countries, demonstrates – year after year – that providence favours small, entrepreneurial democracies. In its 2011 report, published last week, the London-based think tank moved Canada up a notch to sixth place but, tough times notwithstanding, bumped no one from its Top 10 list of wealthiest and healthiest countries in the world.
Norway placed first again, followed by: Denmark, Australia, New Zealand, Sweden, Canada, Finland, Switzerland, the Netherlands and – the only big entrepreneurial democracy – the United States. Canada would have moved up further except for Canadians’ personal debts. Canadians ranked 61st in per-capita savings.
Legatum (Latin for legacy) uses 89 statistical variables, divided into eight categories, to produce its rankings. Only two of these categories track traditional GDP and associated measures of economic advance. The other six track personal, political and social attributes (such as education, health and civil liberties).
Top 10 aside, Legatum 2011 contains a number of intriguing changes in rankings. For the first time, New Europe – countries such as Slovenia, the Czech Republic and Poland – finished ahead of Old Europe countries such as Greece, Italy, Portugal and Spain. For the first time, a non-European country placed first in economic prospects: Singapore. For the first time, in economic management and economic prospects, China ranked higher than the U.S.
China ranked 52nd in Legatum 2011’s overall rankings. But, year over year, it advanced 14 places (from 24th to 10th) in economic management, economic efficiency and economic prospects. For its part, the U.S. slipped from 10th to 18th.
In part, these rankings are subject to abrupt reappraisal because they measure public expectations – “public satisfaction” – as well as statistical fact. Thus the high China score reflects one of the most optimistic countries in the world; and the low U.S. score reflects one of the least optimistic. The U.S. lost ground because of a massive loss of public trust in its government, its judiciary – and, indeed, in the honesty of its elections.
The negative American mood is balanced by the positive Chinese mood. By any number of measures, Chinese think that they are better off, in terms of wealth and health, than they actually are. Nine out of 10 Chinese believe that they live in a meritocracy; 8.5 out of 10 express confidence in China’s financial institutions; eight out of 10 are perfectly fine with the freedoms that they now possess in China.
Indeed, China and Canada score almost identical numbers for various “life satisfaction” rankings. In China, 89.8 per cent of people think they live in a meritocracy; in Canada, 93.9 per cent. In China, 80 per cent feel safe and secure; in Canada, 81.2 per cent.
Ranked objectively, as measured by other performance indexes, China doesn’t fare nearly as well as Legatum 2011 indicates. The UN Human Development Index ranks China 89th. Transparency International’s corruption perceptions index ranks China 78th. The Heritage Foundation/Wall Street Journal freedom index ranks China 135th (out of 178). In measuring personal freedoms, Legatum 2011 ranks China 91st.
Moving to the Middle East, Legatum 2011 heralds the rise of Tunisia, the country that launched the Arab Spring uprisings. Tunisia now joins Saudi Arabia, the United Arab Emirates and Kuwait as the only four Arab countries to place in the top half of the prosperity index.
Tunisia already outperforms Turkey in six of Legatum 2011’s eight categories. It trails Turkey only in governance and personal freedom. If Tunisia now permits “a freer trajectory,” Legatum 2011 says, it could become a model for the entire region: in prosperity and in governance, too.
One intriguing personal sentiment, which is measured by asking people “Are other people trustworthy?”, appears to influence a country’s success. In Norway, for example, 74.2 per cent of people answer “yes.” In Denmark, 62.0 per cent; in Sweden, 56.1 per cent. In Canada, 41.9 per cent. In the United States, 37.1 per cent. In Germany, 31.6 per cent. In Greece, 16.5 per cent. In Zimbabwe, 14.8 per cent.
Perhaps people in affluent countries can afford to trust other people. Perhaps people in small, entrepreneurial democracies know their neighbours better. In any event, these trustworthiness findings go against conventional wisdom. Shakespeare famously advised people to love everyone but to trust only a few. From Legatum 2011, it appears that all’s well that ends well – but more so in small, entrepreneurial democracies.
Norway placed first again, followed by: Denmark, Australia, New Zealand, Sweden, Canada, Finland, Switzerland, the Netherlands and – the only big entrepreneurial democracy – the United States. Canada would have moved up further except for Canadians’ personal debts. Canadians ranked 61st in per-capita savings.
Legatum (Latin for legacy) uses 89 statistical variables, divided into eight categories, to produce its rankings. Only two of these categories track traditional GDP and associated measures of economic advance. The other six track personal, political and social attributes (such as education, health and civil liberties).
Top 10 aside, Legatum 2011 contains a number of intriguing changes in rankings. For the first time, New Europe – countries such as Slovenia, the Czech Republic and Poland – finished ahead of Old Europe countries such as Greece, Italy, Portugal and Spain. For the first time, a non-European country placed first in economic prospects: Singapore. For the first time, in economic management and economic prospects, China ranked higher than the U.S.
China ranked 52nd in Legatum 2011’s overall rankings. But, year over year, it advanced 14 places (from 24th to 10th) in economic management, economic efficiency and economic prospects. For its part, the U.S. slipped from 10th to 18th.
In part, these rankings are subject to abrupt reappraisal because they measure public expectations – “public satisfaction” – as well as statistical fact. Thus the high China score reflects one of the most optimistic countries in the world; and the low U.S. score reflects one of the least optimistic. The U.S. lost ground because of a massive loss of public trust in its government, its judiciary – and, indeed, in the honesty of its elections.
The negative American mood is balanced by the positive Chinese mood. By any number of measures, Chinese think that they are better off, in terms of wealth and health, than they actually are. Nine out of 10 Chinese believe that they live in a meritocracy; 8.5 out of 10 express confidence in China’s financial institutions; eight out of 10 are perfectly fine with the freedoms that they now possess in China.
Indeed, China and Canada score almost identical numbers for various “life satisfaction” rankings. In China, 89.8 per cent of people think they live in a meritocracy; in Canada, 93.9 per cent. In China, 80 per cent feel safe and secure; in Canada, 81.2 per cent.
Ranked objectively, as measured by other performance indexes, China doesn’t fare nearly as well as Legatum 2011 indicates. The UN Human Development Index ranks China 89th. Transparency International’s corruption perceptions index ranks China 78th. The Heritage Foundation/Wall Street Journal freedom index ranks China 135th (out of 178). In measuring personal freedoms, Legatum 2011 ranks China 91st.
Moving to the Middle East, Legatum 2011 heralds the rise of Tunisia, the country that launched the Arab Spring uprisings. Tunisia now joins Saudi Arabia, the United Arab Emirates and Kuwait as the only four Arab countries to place in the top half of the prosperity index.
Tunisia already outperforms Turkey in six of Legatum 2011’s eight categories. It trails Turkey only in governance and personal freedom. If Tunisia now permits “a freer trajectory,” Legatum 2011 says, it could become a model for the entire region: in prosperity and in governance, too.
One intriguing personal sentiment, which is measured by asking people “Are other people trustworthy?”, appears to influence a country’s success. In Norway, for example, 74.2 per cent of people answer “yes.” In Denmark, 62.0 per cent; in Sweden, 56.1 per cent. In Canada, 41.9 per cent. In the United States, 37.1 per cent. In Germany, 31.6 per cent. In Greece, 16.5 per cent. In Zimbabwe, 14.8 per cent.
Perhaps people in affluent countries can afford to trust other people. Perhaps people in small, entrepreneurial democracies know their neighbours better. In any event, these trustworthiness findings go against conventional wisdom. Shakespeare famously advised people to love everyone but to trust only a few. From Legatum 2011, it appears that all’s well that ends well – but more so in small, entrepreneurial democracies.
Entrepreneurial democracies and the happiness factor - The Globe and Mail
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