1. Legatum Limited. Whilst every care has been taken in the preparation of this report, no responsibility can be taken for any error or omission contained herein.
Legatum and/or its affiliates. ‘Legatum’, the Legatum logo and ‘Legatum Prosperity Index’ are the subjects of Community trade mark registrations of affiliates of
the prior written permission of Legatum Limited. The Legatum Prosperity Index and its underlying methodologies comprise the exclusive intellectual property of
©2012 Legatum Limited. All rights reserved. This document may not be reproduced or transmitted, in whole or in part, by any means or in any media, without
OUTER SIDE
and methodology might affect certain individual rankings please see pages 46–47.
sub-indices and see how the rankings change accordingly. For a discussion of how the Index data
(www.prosperity.com), we give you the opportunity to assign your own weightings to the
The eight sub-indices are equally weighted to produce the overall rankings. On our website
THE 2012 LEGATUM PROSPERITY INDEX™ RANKINGS
BUILDING A MORE PROSPEROUS WORLD THROUGH LIBERTY AND RESPONSIBILITY www.prosperity.com
www.prosperity.com
A UNIQUE GLOBAL INQUIRY INTO WEALTH AND WELLBEING
‘Gross National Product counts air pollution and cigarette advertising, and ambulances
to clear our highways of carnage. It counts special locks for our doors and the jails for
the people who break them.
The 2012 Legatum Prosperity Index™
‘It counts the destruction of the redwood and the loss of our natural wonder in chaotic
sprawl. It counts… nuclear warheads and armored cars for the police to fight the riots
in our cities…
‘ Yet the gross national product does not allow for the health of our children, the
quality of their education or the joy of their play. It does not include the beauty of
our poetry or the strength of our marriages, the intelligence of our public debate
or the integrity of our public officials. It measures neither our wit nor our courage,
neither our wisdom nor our learning, neither our compassion nor our devotion to our
country, it measures everything in short, except that which makes life worthwhile.’
Senator Robert F. Kennedy
LEGATUM INSTITUTE
11 Charles Street
Mayfair
London W1J 5DW
United Kingdom
t: +44 (0) 20 7148 5400
f: +44 (0) 20 7148 5401
www.li.com
http://twitter.com/LegatumInst GLOBAL TRANSITIONS PROSPERITY STUDIES

2. THE LEGATUM INSTITUTE
CONTENTS
2012 Prosperity Index Rankings Table inside front
Foreword 3
Key Findings from The 2012 Prosperity Index 4
Map: Prosperity Around the World 8
Regional Analysis
The Americas 10
Europe 12
Sub-Saharan Africa 14
Middle East and North Africa 16
Asia-Pacific 18
Snapshots
Prosperity Within Countries 20
Less Is More … Social Capital and Regulation 22
Tracing A Path To Prosperity 24
Tolerance, Diversity, and Prosperity 26
Entrepreneurship and Innovation 30
Government Approval and Media Freedom in Latin America 32
Methodology 34
Sub-Indices 38
Prosperity Index ‘Anomalies’ 46
Year-On-Year Rankings Table 2009-2012 48
Acknowledgements inside back
1 www.prosperity.com
www.li.com

3. Legatum Limited. Whilst every care has been taken in the preparation of this report, no responsibility can be taken for any error or omission contained herein.
Legatum and/or its affiliates. ‘Legatum’, the Legatum logo and ‘Legatum Prosperity Index’ are the subjects of Community trade mark registrations of affiliates of
the prior written permission of Legatum Limited. The Legatum Prosperity Index and its underlying methodologies comprise the exclusive intellectual property of
©2012 Legatum Limited. All rights reserved. This document may not be reproduced or transmitted, in whole or in part, by any means or in any media, without
OUTER SIDE
and methodology might affect certain individual rankings please see pages 46–47.
sub-indices and see how the rankings change accordingly. For a discussion of how the Index data
(www.prosperity.com), we give you the opportunity to assign your own weightings to the
The eight sub-indices are equally weighted to produce the overall rankings. On our website
THE 2012 LEGATUM PROSPERITY INDEX™ RANKINGS
BUILDING A MORE PROSPEROUS WORLD THROUGH LIBERTY AND RESPONSIBILITY www.prosperity.com
www.prosperity.com
A UNIQUE GLOBAL INQUIRY INTO WEALTH AND WELLBEING
‘Gross National Product counts air pollution and cigarette advertising, and ambulances
to clear our highways of carnage. It counts special locks for our doors and the jails for
the people who break them.
The 2012 Legatum Prosperity Index™
‘It counts the destruction of the redwood and the loss of our natural wonder in chaotic
sprawl. It counts… nuclear warheads and armored cars for the police to fight the riots
in our cities…
‘ Yet the gross national product does not allow for the health of our children, the
quality of their education or the joy of their play. It does not include the beauty of
our poetry or the strength of our marriages, the intelligence of our public debate
or the integrity of our public officials. It measures neither our wit nor our courage,
neither our wisdom nor our learning, neither our compassion nor our devotion to our
country, it measures everything in short, except that which makes life worthwhile.’
Senator Robert F. Kennedy
LEGATUM INSTITUTE
11 Charles Street
Mayfair
London W1J 5DW
United Kingdom
t: +44 (0) 20 7148 5400
f: +44 (0) 20 7148 5401
www.li.com
http://twitter.com/LegatumInst GLOBAL TRANSITIONS PROSPERITY STUDIES

4. THE 2012 LEGATUM PROSPERITY INDEX™ RANKINGS
High Ranking Countries (30) Upper Middle Ranking Countries (41) Lower Middle Ranking Countries (41) Low Ranking Countries (30)
ENTREPRENEURSHIP
SAFETY & SECURITY
PROSPERITY RANK
& OPPORTUNITY
SOCIAL CAPITAL
GOVERNANCE
EDUCATION
ECONOMY
PERSONAL
COUNTRY
FREEDOM
OVERALL
HEALTH
1 Norway 2 4 13 6 4 2 6 1
2 Denmark 19 1 3 16 16 8 7 2
3 Sweden 5 2 4 12 14 6 5 9
4 Australia 10 8 8 2 17 19 3 3
5 New Zealand 27 13 2 1 20 13 2 4
6 Canada 8 16 6 3 15 9 1 8
7 Finland 16 3 5 8 12 3 19 5
8 Netherlands 14 10 11 11 7 18 9 6
9 Switzerland 1 7 1 32 3 10 22 11
10 Ireland 25 14 14 14 11 4 4 7
11 Luxembourg 4 5 9 48 1 7 8 16
12 United States 20 12 10 5 2 27 14 10
13 United Kingdom 26 6 7 30 18 20 11 12
14 Germany 6 18 16 15 5 21 12 15
15 Iceland 61 9 20 13 13 1 10 13
16 Austria 13 17 12 24 10 15 21 14
17 Belgium 21 22 17 17 8 22 20 18
18 Hong Kong 9 15 23 39 30 5 23 25
19 Singapore 3 11 15 41 22 12 54 39
20 Taiwan 7 24 31 4 29 11 27 24
21 France 22 21 18 19 9 31 16 40
22 Japan 12 23 22 23 6 16 42 20
23 Spain 40 26 26 10 21 29 18 34
24 Slovenia 41 25 29 9 25 14 28 36
25 Malta 32 20 19 46 27 30 24 21
26 Portugal 51 28 36 34 28 17 13 67
27 South Korea 23 19 30 7 24 40 56 51
28 Czech Republic 30 29 33 22 26 24 45 45
29 United Arab Emirates 17 30 41 37 32 23 66 42
30 Cyprus 37 27 21 25 33 49 34 56
31 Uruguay 49 56 27 45 44 26 15 55
32 Poland 52 38 38 38 34 25 37 46
33 Italy 36 37 39 36 19 42 57 38
34 Chile 28 40 24 60 47 36 29 69
35 Estonia 60 32 25 31 39 39 74 30
36 Slovakia 56 35 42 26 31 33 40 47
37 Costa Rica 45 43 34 67 43 45 17 66
38 Kuwait 24 33 40 62 36 32 73 57
39 Hungary 68 45 37 20 38 28 68 79
40 Israel 29 31 28 33 35 115 118 22
41 Argentina 48 52 75 42 41 46 26 70
42 Panama 42 39 62 58 54 48 35 61
43 Lithuania 82 42 43 18 46 34 93 49
44 Brazil 33 47 56 79 57 87 25 64
45 Malaysia 15 44 35 40 45 62 111 100
46 Kazakhstan 54 59 95 43 60 53 43 37
47 Latvia 80 36 44 28 50 50 112 86
48 Bulgaria 93 41 72 51 49 41 59 85
49 Greece 85 51 48 35 23 38 121 97
50 Croatia 59 48 52 56 37 35 100 110
51 Trinidad and Tobago 78 54 57 82 59 58 36 76
52 Saudi Arabia 31 46 50 64 42 82 130 43
53 Vietnam 39 73 61 80 80 55 99 35
54 Belarus 90 63 123 21 40 52 102 26
55 China 11 66 65 50 67 101 128 29
56 Thailand 18 61 64 70 71 99 129 19
57 Montenegro 105 58 66 55 53 37 75 102
58 Sri Lanka 71 86 51 47 74 122 58 31
59 Mongolia 98 62 84 52 96 43 92 33
60 Romania 94 49 71 49 64 47 81 113
61 Mexico 34 69 69 78 52 116 78 63
62 Jamaica 116 57 68 86 65 70 64 48
63 Indonesia 43 85 80 84 95 68 80 27
64 Uzbekistan 67 98 116 65 72 66 70 17
65 Belize 64 72 74 96 63 72 65 50
66 Russia 62 50 118 27 48 97 119 71
67 Philippines 47 75 63 72 93 112 55 72
68 Paraguay 53 91 103 97 73 78 38 53
69 Colombia 46 60 58 81 79 136 61 62
70 Botswana 107 68 32 90 102 63 30 90
71 Ukraine 110 64 121 29 69 56 108 58
72 Peru 38 71 83 85 88 91 62 101
73 Morocco 35 78 78 110 76 84 103 23
74 South Africa 87 34 45 89 114 100 48 80
75 Macedonia 109 70 77 71 51 69 90 106
76 Ecuador 55 83 109 69 78 94 51 114
77
78
Jordan
Tunisia
100
69
65
53
59
67
53
75
62
68
75
73
133
123
92
122
ACKNOWLEDGEMENTS
79 Serbia 120 79 82 61 61 60 87 115
80 Venezuela 66 88 131 54 70 106 88 75
81 Dominican Republic 102 80 87 93 92 103 52 74 The Legatum Institute Prosperity Index™ team
82 Laos 58 96 81 106 105 57 82 41
83 Namibia 86 92 47 99 101 81 41 99 Nathan Gamester
84 Moldova 124 77 101 59 84 79 115 81
85 Lebanon 63 74 107 63 86 85 114 120 Stefania Lovo
86 Tajikistan 113 107 112 68 94 54 98 65
87 Ghana 111 101 54 104 99 67 39 94 Serena Masino
88 Kyrgyzstan 123 87 122 73 81 107 101 32
Edo Omic
89 Turkey 74 55 46 91 58 93 127 133
90 El Salvador 75 90 70 98 82 90 83 119
91 Nicaragua 83 105 99 88 90 76 50 108 Special Advisors
92 Albania 99 89 93 83 56 44 126 128
93 Georgia 132 76 53 66 83 59 79 140
The Legatum Institute wishes to thank the Special Advisors to the Prosperity
94 Azerbaijan 89 67 113 87 89 80 117 88 Index for their helpful advice, critiques, and suggestions.
95 Bolivia 44 102 104 76 103 102 71 103
96 Honduras 91 100 105 95 85 86 86 96
Tim Besley, London School of Economics
97 Guatemala 65 84 90 102 91 110 97 93 Daniel Drezner, Tufts University
98 Armenia 129 81 97 44 98 61 122 124
99 Bosnia-Herzegovina 114 94 108 74 55 71 131 117 Carol Graham, Brookings Institution
100 Algeria 50 93 106 77 75 104 137 109
101 India 57 99 49 100 104 114 67 138 Edmund Malesky, University of California, San Diego
102 Iran 70 95 126 57 66 125 125 121
103 Bangladesh 73 104 98 101 100 118 32 130 Ann Owen, Hamilton College
104 Mali 88 126 86 137 126 51 33 54
105 Malawi 106 129 60 115 110 92 72 60
106 Egypt 104 82 85 94 77 108 140 104 The Legatum Institute also wishes to give special thanks to Boston College lecturer
107 Cambodia 84 109 79 105 111 83 116 107
Martha Bayles for her assistance and guidance in writing and editing this year’s Index.
108 Nepal 97 115 110 107 97 96 104 111
109 Tanzania 81 118 89 120 122 109 96 59 The Legatum Institute wishes to thank Gallup, Inc. for permission to use the Gallup
110 Zambia 117 111 102 109 130 119 91 28
World Poll Service© and Gallup World Poll Data in construction of the Prosperity
111 Rwanda 118 110 55 108 115 77 95 135
112 Burkina Faso 101 134 88 138 108 74 53 89 Index. Copyright Gallup, Inc. 2012, Reprinted with permission of Gallup, Inc. All
113 Syria 77 113 91 92 87 120 136 131 Rights Reserved.
114 Niger 72 138 76 141 117 88 46 98
115 Cameroon 76 119 124 113 127 113 60 112 The Legatum Institute wishes to thank its International Advisory Group for their
116 Kenya 122 97 111 114 119 130 77 77 input and assistance in the Prosperity Index:
117 Uganda 96 112 94 116 129 133 89 52
118 Senegal 108 117 100 119 124 89 47 129 Peter Skerry, Boston College; Dan Chirot, University of Washington; Patrick
119 Benin 119 128 73 122 118 64 31 141 Cheung, Hong Kong; and Toby Mundy, CEO, Atlantic Books.
120 Congo (Republic of) 79 122 134 111 113 105 76 134
121 Djibouti 131 130 96 136 121 65 106 84 Finally, the Legatum Institute would like to thank the following individuals and
122 Mauritania 127 116 133 128 120 95 109 78 organizations who assisted in the production of the 2012 Prosperity Index:
123 Nigeria 121 106 125 123 116 131 84 91
124 Mozambique 126 108 92 129 137 111 69 116
Nicola Coulton, Naomi Fenwick, Mosadeq M. Hobrara, Ciaran Hughes, Nicole Muir,
125 Sudan 103 114 136 124 106 138 134 44 Oxford Analytica, Peter Passell, Andrew Rzepa, Yaroslava Romanova.
126 Côte d'Ivoire 95 127 138 135 123 127 49 136
127 Guinea 135 135 132 132 133 117 44 125
Designed by Kay Webb.
128 Sierra Leone 139 133 114 131 140 128 63 82
129 Angola 125 120 117 127 134 129 113 118
130 Liberia 141 132 128 117 135 126 94 68
131 Iraq 92 125 137 112 107 135 141 105
132 Pakistan 115 103 115 121 112 139 132 137
133 Ethiopia 128 131 119 134 125 134 138 95
134 Yemen 134 124 127 130 109 124 142 123
135 Zimbabwe 142 123 142 103 128 137 107 73
136 Togo 138 136 130 125 132 98 85 142 Unless otherwise stated, all data are from the 2012 Legatum Prosperity Index™. All original data sources can be found in the
137 Burundi 137 140 120 126 136 123 120 139 Prosperity Index full report available at www.prosperity.com. In this report the term ‘country’ is used to refer to the 142 societies that
138 Haiti 140 137 135 118 138 121 139 126 are included in the Prosperity Index. There are 140 states and two territories—Hong Kong and Taiwan—in the Index.
139 Chad 112 139 139 140 141 142 124 83
140 Afghanistan 130 121 141 139 131 140 135 127
141 Congo (DR) 136 142 140 133 142 141 110 87
142 Central African Republic 133 141 129 142 139 132 105 132

5. THE 2012 LEGATUM PROSPERITY INDEX™ RANKINGS
High Ranking Countries (30) Upper Middle Ranking Countries (41) Lower Middle Ranking Countries (41) Low Ranking Countries (30)
ENTREPRENEURSHIP
SAFETY & SECURITY
PROSPERITY RANK
& OPPORTUNITY
SOCIAL CAPITAL
GOVERNANCE
EDUCATION
ECONOMY
PERSONAL
COUNTRY
FREEDOM
OVERALL
HEALTH
1 Norway 2 4 13 6 4 2 6 1
2 Denmark 19 1 3 16 16 8 7 2
3 Sweden 5 2 4 12 14 6 5 9
4 Australia 10 8 8 2 17 19 3 3
5 New Zealand 27 13 2 1 20 13 2 4
6 Canada 8 16 6 3 15 9 1 8
7 Finland 16 3 5 8 12 3 19 5
8 Netherlands 14 10 11 11 7 18 9 6
9 Switzerland 1 7 1 32 3 10 22 11
10 Ireland 25 14 14 14 11 4 4 7
11 Luxembourg 4 5 9 48 1 7 8 16
12 United States 20 12 10 5 2 27 14 10
13 United Kingdom 26 6 7 30 18 20 11 12
14 Germany 6 18 16 15 5 21 12 15
15 Iceland 61 9 20 13 13 1 10 13
16 Austria 13 17 12 24 10 15 21 14
17 Belgium 21 22 17 17 8 22 20 18
18 Hong Kong 9 15 23 39 30 5 23 25
19 Singapore 3 11 15 41 22 12 54 39
20 Taiwan 7 24 31 4 29 11 27 24
21 France 22 21 18 19 9 31 16 40
22 Japan 12 23 22 23 6 16 42 20
23 Spain 40 26 26 10 21 29 18 34
24 Slovenia 41 25 29 9 25 14 28 36
25 Malta 32 20 19 46 27 30 24 21
26 Portugal 51 28 36 34 28 17 13 67
27 South Korea 23 19 30 7 24 40 56 51
28 Czech Republic 30 29 33 22 26 24 45 45
29 United Arab Emirates 17 30 41 37 32 23 66 42
30 Cyprus 37 27 21 25 33 49 34 56
31 Uruguay 49 56 27 45 44 26 15 55
32 Poland 52 38 38 38 34 25 37 46
33 Italy 36 37 39 36 19 42 57 38
34 Chile 28 40 24 60 47 36 29 69
35 Estonia 60 32 25 31 39 39 74 30
36 Slovakia 56 35 42 26 31 33 40 47
37 Costa Rica 45 43 34 67 43 45 17 66
38 Kuwait 24 33 40 62 36 32 73 57
39 Hungary 68 45 37 20 38 28 68 79
40 Israel 29 31 28 33 35 115 118 22
41 Argentina 48 52 75 42 41 46 26 70
42 Panama 42 39 62 58 54 48 35 61
43 Lithuania 82 42 43 18 46 34 93 49
44 Brazil 33 47 56 79 57 87 25 64
45 Malaysia 15 44 35 40 45 62 111 100
46 Kazakhstan 54 59 95 43 60 53 43 37
47 Latvia 80 36 44 28 50 50 112 86
48 Bulgaria 93 41 72 51 49 41 59 85
49 Greece 85 51 48 35 23 38 121 97
50 Croatia 59 48 52 56 37 35 100 110
51 Trinidad and Tobago 78 54 57 82 59 58 36 76
52 Saudi Arabia 31 46 50 64 42 82 130 43
53 Vietnam 39 73 61 80 80 55 99 35
54 Belarus 90 63 123 21 40 52 102 26
55 China 11 66 65 50 67 101 128 29
56 Thailand 18 61 64 70 71 99 129 19
57 Montenegro 105 58 66 55 53 37 75 102
58 Sri Lanka 71 86 51 47 74 122 58 31
59 Mongolia 98 62 84 52 96 43 92 33
60 Romania 94 49 71 49 64 47 81 113
61 Mexico 34 69 69 78 52 116 78 63
62 Jamaica 116 57 68 86 65 70 64 48
63 Indonesia 43 85 80 84 95 68 80 27
64 Uzbekistan 67 98 116 65 72 66 70 17
65 Belize 64 72 74 96 63 72 65 50
66 Russia 62 50 118 27 48 97 119 71
67 Philippines 47 75 63 72 93 112 55 72
68 Paraguay 53 91 103 97 73 78 38 53
69 Colombia 46 60 58 81 79 136 61 62
70 Botswana 107 68 32 90 102 63 30 90
71 Ukraine 110 64 121 29 69 56 108 58
72 Peru 38 71 83 85 88 91 62 101
73 Morocco 35 78 78 110 76 84 103 23
74 South Africa 87 34 45 89 114 100 48 80
75 Macedonia 109 70 77 71 51 69 90 106
76 Ecuador 55 83 109 69 78 94 51 114
77
78
Jordan
Tunisia
100
69
65
53
59
67
53
75
62
68
75
73
133
123
92
122
ACKNOWLEDGEMENTS
79 Serbia 120 79 82 61 61 60 87 115
80 Venezuela 66 88 131 54 70 106 88 75
81 Dominican Republic 102 80 87 93 92 103 52 74 The Legatum Institute Prosperity Index™ team
82 Laos 58 96 81 106 105 57 82 41
83 Namibia 86 92 47 99 101 81 41 99 Nathan Gamester
84 Moldova 124 77 101 59 84 79 115 81
85 Lebanon 63 74 107 63 86 85 114 120 Stefania Lovo
86 Tajikistan 113 107 112 68 94 54 98 65
87 Ghana 111 101 54 104 99 67 39 94 Serena Masino
88 Kyrgyzstan 123 87 122 73 81 107 101 32
Edo Omic
89 Turkey 74 55 46 91 58 93 127 133
90 El Salvador 75 90 70 98 82 90 83 119
91 Nicaragua 83 105 99 88 90 76 50 108 Special Advisors
92 Albania 99 89 93 83 56 44 126 128
93 Georgia 132 76 53 66 83 59 79 140
The Legatum Institute wishes to thank the Special Advisors to the Prosperity
94 Azerbaijan 89 67 113 87 89 80 117 88 Index for their helpful advice, critiques, and suggestions.
95 Bolivia 44 102 104 76 103 102 71 103
96 Honduras 91 100 105 95 85 86 86 96
Tim Besley, London School of Economics
97 Guatemala 65 84 90 102 91 110 97 93 Daniel Drezner, Tufts University
98 Armenia 129 81 97 44 98 61 122 124
99 Bosnia-Herzegovina 114 94 108 74 55 71 131 117 Carol Graham, Brookings Institution
100 Algeria 50 93 106 77 75 104 137 109
101 India 57 99 49 100 104 114 67 138 Edmund Malesky, University of California, San Diego
102 Iran 70 95 126 57 66 125 125 121
103 Bangladesh 73 104 98 101 100 118 32 130 Ann Owen, Hamilton College
104 Mali 88 126 86 137 126 51 33 54
105 Malawi 106 129 60 115 110 92 72 60
106 Egypt 104 82 85 94 77 108 140 104 The Legatum Institute also wishes to give special thanks to Boston College lecturer
107 Cambodia 84 109 79 105 111 83 116 107
Martha Bayles for her assistance and guidance in writing and editing this year’s Index.
108 Nepal 97 115 110 107 97 96 104 111
109 Tanzania 81 118 89 120 122 109 96 59 The Legatum Institute wishes to thank Gallup, Inc. for permission to use the Gallup
110 Zambia 117 111 102 109 130 119 91 28
World Poll Service© and Gallup World Poll Data in construction of the Prosperity
111 Rwanda 118 110 55 108 115 77 95 135
112 Burkina Faso 101 134 88 138 108 74 53 89 Index. Copyright Gallup, Inc. 2012, Reprinted with permission of Gallup, Inc. All
113 Syria 77 113 91 92 87 120 136 131 Rights Reserved.
114 Niger 72 138 76 141 117 88 46 98
115 Cameroon 76 119 124 113 127 113 60 112 The Legatum Institute wishes to thank its International Advisory Group for their
116 Kenya 122 97 111 114 119 130 77 77 input and assistance in the Prosperity Index:
117 Uganda 96 112 94 116 129 133 89 52
118 Senegal 108 117 100 119 124 89 47 129 Peter Skerry, Boston College; Dan Chirot, University of Washington; Patrick
119 Benin 119 128 73 122 118 64 31 141 Cheung, Hong Kong; and Toby Mundy, CEO, Atlantic Books.
120 Congo (Republic of) 79 122 134 111 113 105 76 134
121 Djibouti 131 130 96 136 121 65 106 84 Finally, the Legatum Institute would like to thank the following individuals and
122 Mauritania 127 116 133 128 120 95 109 78 organizations who assisted in the production of the 2012 Prosperity Index:
123 Nigeria 121 106 125 123 116 131 84 91
124 Mozambique 126 108 92 129 137 111 69 116
Nicola Coulton, Naomi Fenwick, Mosadeq M. Hobrara, Ciaran Hughes, Nicole Muir,
125 Sudan 103 114 136 124 106 138 134 44 Oxford Analytica, Peter Passell, Andrew Rzepa, Yaroslava Romanova.
126 Côte d'Ivoire 95 127 138 135 123 127 49 136
127 Guinea 135 135 132 132 133 117 44 125
Designed by Kay Webb.
128 Sierra Leone 139 133 114 131 140 128 63 82
129 Angola 125 120 117 127 134 129 113 118
130 Liberia 141 132 128 117 135 126 94 68
131 Iraq 92 125 137 112 107 135 141 105
132 Pakistan 115 103 115 121 112 139 132 137
133 Ethiopia 128 131 119 134 125 134 138 95
134 Yemen 134 124 127 130 109 124 142 123
135 Zimbabwe 142 123 142 103 128 137 107 73
136 Togo 138 136 130 125 132 98 85 142 Unless otherwise stated, all data are from the 2012 Legatum Prosperity Index™. All original data sources can be found in the
137 Burundi 137 140 120 126 136 123 120 139 Prosperity Index full report available at www.prosperity.com. In this report the term ‘country’ is used to refer to the 142 societies that
138 Haiti 140 137 135 118 138 121 139 126 are included in the Prosperity Index. There are 140 states and two territories—Hong Kong and Taiwan—in the Index.
139 Chad 112 139 139 140 141 142 124 83
140 Afghanistan 130 121 141 139 131 140 135 127
141 Congo (DR) 136 142 140 133 142 141 110 87
142 Central African Republic 133 141 129 142 139 132 105 132

6. Prosperity extends beyond just material
wealth. It includes factors such as social
capital, effective governance, human
rights and liberties, health, opportunity,
security, and overall quality of life.
The purpose of the Prosperity Index
is to spark debate and to encourage
policymakers, scholars, the media,
and the interested public to take an
holistic view of prosperity and to better
understand how it is created.
2 www.li.com

7. THE LEGATUM INSTITUTE
A UNIQUE GLOBAL INQUIRY INTO WEALTH AND WELLBEING
The 2012 Legatum Prosperity Index™
FOREWORD
Dear Reader,
Recently, there has been a global shift in the understanding of how to measure national
success. From former French President Nicolas Sarkozy’s 2009 Commission, to the King
of Bhutan’s Index of Gross National Happiness, to David Cameron’s initiative to measure
wellbeing in the UK: the world is beginning to take a broader view of success. We welcome
this shift in our understanding of why countries prosper.
We believe that the Legatum Institute is contributing to this debate. For the past six years
the Legatum Prosperity Index™ has been exploring the foundations of national success by
combining traditional measures of material wealth with subjective wellbeing. This holistic
view of prosperity, that moves beyond GDP, allows us to paint a more complete picture of
the world.
The Legatum Prosperity Index™ incorporates traditional economic measures of prosperity
with measurements of wellbeing and life satisfaction. Indeed, it remains the only global
index to provide an empirical basis for the intuitive sense that true prosperity is a complex
blend of income and wellbeing. In order to better understand the role of wellbeing in public
policy, the Legatum Institute has recently launched a Commission on Wellbeing to be
chaired by former Cabinet Secretary Lord (Gus) O’Donnell. The independent, non-partisan
Commission will report on the strengths and limitations of wellbeing analysis, tying latest
research findings to the everyday practical needs of citizens.
Each country must chart its own course to success. No matter the circumstance, however, the
Prosperity Index confirms that key drivers of national prosperity include entrepreneurship and
opportunity, effective accountable government, and the rule of law.
The Prosperity Index is central to the Legatum Institute’s on-going inquiry into the foundations
of national success. I hope that you find the 2012 edition stimulating and engaging.
Yours,
Dr Jeffrey Gedmin
President and CEO, Legatum Institute
www.prosperity.com 3

8. Covering 96% of the world’s The 2012 Legatum Prosperity Index™ comes at a time when much of the world
is questioning the very foundations upon which prosperity and security are built.
population and 99% of global Increasing economic uncertainty continues to dominate much of the developed
world; new global powers are emerging in Asia; citizens of Arab nations are tasting
GDP, the Index provides freedom and democracy for the first time; and social unrest is erupting in places as
a more complete picture of different as London and Lagos.
global prosperity than any Now, perhaps more than any time in recent history, we need to re-examine our values
and principles. What should be the priorities for policymakers responding to the
other tool of its kind. economic crisis in its various guises? Are there insights or lessons for countries that
are undergoing political and economic transitions? What are the fundamental pillars
of prosperity?
KEY FINDINGS FROM THE 2012 PROSPERITY INDEX
1 Global prosperity is increasing ...
DIFFERENCE IN INDEX SCORE, 2009–2012
Despite the most severe financial crisis in modern times, despite
0 0.2 0.4 0.6 0.8 citizen uprisings that have toppled some of the world’s most
1. Central Asia autocratic regimes, despite protests and riots that have erupted
2. SE Asia
around the world, global prosperity has increased across all
3. Sub-Saharan Africa
regions of the world over the last four years.
4. East Asia
5. South Asia
6. Latin America
7. Eastern Europe
8. MENA
9. Europe
10. Asia Pacific
11. North America
CHANGES BY SUB INDEX, 2009–2012
2 … but Safety & Security is decreasing
This has been driven by Arab Spring countries such as Tunisia,
0 0.2 0.4 0.6 0.8
Yemen, and Egypt and by Latin American countries such as
E&O
Mexico, Paraguay, and Honduras. In fact, the Latin American
Health
Personal Freedom
region is one of the worst performers for citizen safety, driven by
Education extremely high rates of assault and theft (see pages 10–11).
Economy
Social Capital
Governance
Safety & Security
4 www.li.com

9. THE LEGATUM INSTITUTE
142 countries Published in connection to this report
is a full methodology document and
96% of the world’s population 142 individual country fact sheets.
These are available in print and on our
99% of global GDP website www.prosperity.com.
A unique snapshot of national prosperity
6 years running
3 US falls out of top ten
The US ranks outside of the top ten for the first time
(down to 12th), pulled down primarily by a decline in
2009–2012
the Entrepreneurship & Opportunity sub-index. This fall
is driven by a decline in the number of US citizens who
Entrepreneurship -8 -7 -6 -5 -4 -3 -2 -1 0 believe that hard work will get them ahead and a decrease
& Opportunity
in ICT exports.
Economy -7 -6 -5 -4 -3 -2 -1 0
Personal Freedom -4 -3 -2 -1 0
Social Capital -2 -1 0
Governance -1 0
Health 0
Safety & Security 0
Education 0 1 2 3 4
www.prosperity.com 5

10. Key drivers of prosperity: The Prosperity Index is the only global index that measures national prosperity based
on both wealth and wellbeing. The Index seeks to redefine the concept of national
entrepreneurship, prosperity to include, as a matter of fundamental importance, factors such as
democratic governance, entrepreneurial opportunity, and social cohesion. Covering
opportunity, effective and 96% of the world’s population and 99% of global GDP, the Index provides a more
accountable government. complete picture of global prosperity than any other tool of its kind.
KEY FINDINGS FROM THE 2012 PROSPERITY INDEX
4 The rise of the East continues
SIX OF THE TOP 15
ECONOMIES ARE IN ASIA
Hong Kong, Singapore, and Taiwan all rank in the top
ten for the Economy and in the top 20 overall. Further,
1 Switzerland Asia receives the second highest inflow of Foreign Direct
2 Norway Investment as a percentage of GDP and East Asia is the
second largest exporter globally.
3 Singapore
5
4 Luxembourg
Watch out for the Asian Tiger Cubs
5 Sweden
Vietnam, Thailand, Indonesia, and Malaysia are the rising
6 Germany
countries nipping at the heels of the regional leaders. Indonesia,
7 Taiwan for example, has experienced the largest increase in prosperity,
8 Canada globally, since 2009, moving up 26 positions to 63rd.
9 Hong Kong
10 Australia 6 Key drivers of prosperity: accountable
governance and entrepreneurship
11 China This is particularly true for the top 50 countries, whereas for
12 Japan developing countries, health and education play a more crucial
role. The Index finds that good governance and entrepreneurship
13 Austria
tend to go together and reinforce each other, generating a
14 Netherlands virtuous cycle that leads to greater prosperity.
15 Malaysia
6 www.li.com

11. THE LEGATUM INSTITUTE
SUB-INDEX PERFORMERS:
BEST AND WORST
Economy E&O* Governance Education Health Safety & Personal Social
Security Freedom Capital
This graphic shows the
countries that rank highest
BEST
(first) and lowest (142nd) in
each of the eight sub-indices. Switzerland Denmark Switzerland New Zealand Luxembourg Iceland Canada Norway
*Entrepreneurship & Opportunity
WORST
Zimbabwe Congo Zimbabwe Central Congo Chad Yemen Togo
(DR) African Rep. (DR)
27 of the top 30 countries
7 Key stepping stone to prosperity:
accountable government
in the Index are democracies
27 out of the top 30 countries in the Index are democracies.
India, however (the biggest democracy in the world), has
fallen ten positions since 2009 due, in part, to a decline in the
Governance sub-index.
Highest
8 Tolerance is good for prosperity.
As the world becomes smaller and immigration
Rank rises, tolerance towards diversity becomes a
crucial issue for societies. The Prosperity Index
finds that in countries where tolerance levels are
high, prosperity flourishes (see page 26).
Lowest
Tolerance
30% 90%
www.prosperity.com 7

12. PROSPERITY AROUND THE WORLD
DENMARK
… ranks first on the
Entrepreneurship &
Opportunity sub-index.
See page 39.
US
… falls out of the top ten
for the first time.
Find out more on page 10.
COSTA RICA
… is a regional leader.
Find out why on page 24.
LATIN AMERICA
… has experienced a decrease
in Safety & Security.
Find out more on page 11.
8 www.li.com

13. THE LEGATUM INSTITUTE
High Ranking Countries (30) Upper Middle Ranking Countries (41) Lower Middle Ranking Countries (41) Low Ranking Countries (30) Insufficient Data
THE ASIAN TIGER CUBS
… find out which Asian
countries are on the rise
on page 19.
BOTSWANA
… outperforms all its sub-
Saharan African neighbours.
See page 24.
NEW ZEALAND
… has high levels of both
social capital and tolerance.
Find out more on page 29.
TOP 10 COUNTRIES BOTTOM 10 COUNTRIES
1 Norway 133 Ethiopia
2 Denmark 134 Yemen
3 Sweden 135 Zimbabwe
4 Australia 136 Togo
5 New Zealand 137 Burundi
6 Canada 138 Haiti
7 Finland 139 Chad
8 Netherlands 140 Afghanistan
9 Switzerland 141 Congo (DR)
10 Ireland 142 Central African Republic
www.prosperity.com 9

14. REGIONAL ANALYSIS: THE AMERICAS
Canada leads the region placing sixth, while the US falls out of the top ten for the first time since 2009, placing 12th overall.
The US has seen a decline in rankings in most sub-indices. The Economy and Entrepreneurship & Opportunity sub-indices have declined the
most with the US falling seven places and eight places respectively in each in the last four years. This is due to a decline in citizens’ perception that
working hard gets you ahead, a decline in high-tech and telecommunication exports, and an increase in levels of unemployment. Furthermore,
US citizens’ overall satisfaction with living standards has declined since last year. Although the US ranks second overall in the Health sub-index,
the country’s infant mortality rate is higher than that of Europe (6.5% compared to a European average of 3%).
Uruguay has replaced Costa Rica as the Latin American regional leader and is followed by Chile. Bolivia used to be the worst regional
performer, but has now overtaken both Guatemala and Honduras. At the very bottom of the regional rankings, Haiti—a new entrant in
the 2012 Index—places 138th.
When comparing the region with the rest of the world, we observe that most countries in the Latin American region fall below the global average
in the Governance, Safety & Security, and Social Capital sub-indices (represented in the graphic below). Whereas, most countries in the
region place above the global average for Personal Freedom.
LATIN AMERICA REGIONAL PERFORMANCE
_ Global
+
average
WORST BEST
PERFORMERS PERFORMERS
Economy
Haiti Chile URUGUAY
Most countries in Highest ranking country
E&O
the region fall below in Safety & Security and
Haiti Panama
global average in Personal Freedom.
Governance
Governance, Safety Haiti Chile COLOMBIA
& Security and Social Lowest ranking
Education
Capital sub-indices. Haiti Argentina country in Safety &
Health Security sub-index.
Haiti Argentina
Safety & Security
Colombia Uruguay
Personal Freedom
Haiti Uruguay
Social Capital
Haiti Jamaica
90
91
95
96
97
138
72
80
81
62
65
68
69
76
42
44
51
61
6
12
31
34
37
41
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REGIONAL RANKING—THE AMERICAS
10 www.li.com