America is Not the Greatest Nation in the World

“Usually, we tend to measure countries based on GDP or narrow economic measures.” Prosperity Index program director Nathan Gamester says. [10] “Most people would intuitively agree that “prosperity” is not just about money but also about quality of life.” [8] “GDP alone can never offer a complete view of prosperity.” Jeffrey Gedmin, President and Chief Executive of the Legatum Institute, a London-based public policy institute and publisher of the Legatum Prosperity Index, stated. [1] “The Index defines prosperity as both wealth and wellbeing, and finds that the most prosperous nations in the world are not necessarily those that have only a high GDP, but are those that also have happy, healthy and free citizens.” [8] “The Index values the need for a country to promote high levels of per capita income, but also advocates the need for countries to improve the subjective well being of its citizens.” Gedmin said. [2] “It encompasses traditional measures of material wealth, as well as capturing citizens’ sense of wellbeing—from how safe they feel to their perceived personal freedom.” The Legatum Prosperity Index assessed and ranked the wealth and wellbeing in 142 countries, covering 96 of the world’s population, based on eight subcategories: economy, entrepreneurship and opportunity, health, governance, education, safety and security, personal freedom and social capital. “Our attempt here is to quantify potential prosperity or multidimensional prosperity.” Gamester says. [10] “We believe that by measuring the quality of education, healthcare, social capital and opportunity, our Prosperity Index gives the clearest view of how countries are prospering today and how they are likely to prosper in the future.” “The Legatum Prosperity Index allows us to paint a comprehensive picture of what makes a country truly successful.” Gedmin said. “Since the inaugural Legatum Prosperity Index, the world has seen a continuous increase in prosperity with citizens in many countries experiencing improving wealth and wellbeing.”

According to Legatum’s system, the top ten most prosperous nations on Earth are dominated by Western Europe: Norway, Denmark, Finland, Australia, New Zealand, Sweden, Canada, Switzerland, Netherlands, and the United States. [8] Switzerland, Norway and Singapore topped the economy sub-index. Switzerland also topped the rankings for best government, followed by New Zealand and Denmark. Legatum said the highest marks for education went to New Zealand, Australia, and Canada, and that Canadians, New Zealanders, and Australians enjoy the most freedom. [9]

“In an unprecedented fall, America drops to twelfth position in the worldwide prosperity rankings—with weakening performance across five of the Index’s eight sub-categories." The six-year old Institute, the public policy branch of the Legatum Group, a Dubai-based private investment company founded by New Zealand billionaire investor Christopher Chandler in 2006, stated. [1] [12]  “Despite performing relatively well in a few sub-indices…Good education alone will not keep prosperity afloat.” According to the Index, while the United States ranked 2^nd in health and 5^th in education, the U.S economy has deteriorated to beneath that of 19 of its rivals. [6] [9] According to the report, the ideal of the American dream may very well be in flux: “As the U.S struggles to reclaim the building blocks of the American dream;” The research group writes; “The latest findings from the Legatum Institute’s Prosperity Index reveal that the American Dream is in jeopardy;” And that: “The national ethos of the U.S. is under threat.” [1] [2] [6] [9] [12] 

The Institute stated that the U.S. drop in the rankings: “Reflects the fact that economic growth has been largely absent from Europe and North America since 2008.” [2] According to the study, the recession that hit America and Europe in 2008 left its mark in the form of unemployment, underinvestment, and decreasing export competitiveness. [2] According to Legatum, overall prosperity in Europe has increased in spite of the economic crisis—with the Netherlands, Ireland and Germany climbing the rankings into 8^th, 10^th and 14^th position respectively, though, plagued by the Euro-area debt crisis, two thirds, of European nations, 24 out of 33, have witnessed a decline in their scores in categories analyzing economic development since 2009: Greece recorded the biggest drop, falling 10 places to 49^th. [9] [12]

The Institute pegged the U.S.’s precipitous drop to a decline in consumer and voter confidence, along with a bleak economic and entrepreneurial outlook: “This drop in ranking was caused by the following variables: gross domestic savings, high-tech exports, access to adequate food and shelter, confidence in financial institutions and overall satisfaction with standards of living.” [2] The report finds that its government’s approval rate, its citizens’ respect for government, has fallen to 39% from 42%, only 37.5% of Americans say that they “have confidence in financial institutions”, 72.4% of Americans say they “are satisfied with their living standards”, four percent fewer Americans, 89%, “believe that hard work gets you ahead”, gross savings in the U.S. is at 11.1%, its business startup costs as a percentage of Gross National Income have doubled in the past two years, and it’s the export of high-technology products is dropping. [1] [6] [9] [10]

The 2013 Prosperity Index also saw many of the countries in Asia’s region overtake European countries in the economy sub-index. [2] Hong Kong, Singapore and Taiwan all ranked in the top ten for their economies and the top 20 overall. [9] A new generation of so-called Asian “Tiger Cub” countries, Vietnam and Indonesia, also rose, with Vietnam, Thailand, Malaysia, and Indonesia all performing well. Indonesia experienced the largest gain of any country, jumping 26 positions since 2009 to 63^rd. The U.K Remained 13^th, and Legatum predicted it would overtake the U.S. by 2014. [9] 

References Cited:

1.     Berlinger, Joshua. “U.S. Crashes Out Of The Top 10 In World Prosperity Index”. Business Insider. November 5, 2012. http://www.businessinsider.com/us-crashes-out-of-the-top-10-in-world-prosperity-index-2012-11

2.     Boghani, Priyanka. “U.S. Prosperity Ranked Below Canada’s and Australia’s: The United States Ranks 11^th In Legatum Institute’s 2013 Prosperity Index, And Dropped Out Of The Top 20 In The Economy Sub-Index”. Sydney Sun. Tuesday October 29, 2013. http://www.globalpost.com/dispatch/news/regions/americas/united-states/131028/legatum-prosperity-index-united-states-ranks-11

3.     Browne. Lauren. “Japan Tops List of Healthiest Countries: Japanese Citizens Are Still The Healthiest People In The World, A New Study Found”. ABC News. December 13, 2012. http://abcnews.go.com/blogs/health/2012/12/13/japan-tops-list-of-healthiest-countries/

4.     Craggs, Ryan. “World Freedom Index 2013: Canadian Fraser Institute Ranks Countries”. The Huffington Post. January 14, 2013. http://www.huffingtonpost.com/2013/01/09/world-freedom-index-2013_n_2440620.html

5.     Dusen, Allison and Ferrey, Ana. “World’s Healthiest Countries”. Forbes. August 4, 2008. http://www.forbes.com/2008/04/07/health-world-countries-forbeslife-cx_avd_0408health.html

6.     Epstein, Eli. “The World’s Top 10 Most Prosperous Countries”. International Business Times. November 5, 2012. http://www.ibtimes.com/worlds-top-10-most-prosperous-countries-859412

7.     Gayomali, Chris. “The 10 Healthiest Countries In The World For Both Men And Women: Japan Leads The Way For Both Genders. The Asian Country Is The Healthiest Across The Globe For Both Men And Women. America? Not Even Close…” The Week. December 13, 2012. http://theweek.com/article/index/237831/the-10-healthiest-countries-in-the-world-for-both-men-and-women

8.     Ghosh, Palash. “Norway Is World’s Most Prosperous Country; Zimbabwe is the Poorest”. International Business Times. January 24, 2011. http://www.ibtimes.com/norway-worlds-most-prosperous-happiest-country-zimbabwe-poorest-unhappiest-258659

9.     Kennedy, Simon. “U.S. Prosperity Slides In Index That Ranks Norway Number 1”. Bloomberg. October 29, 2012. http://www.bloomberg.com/news/2012-10-30/u-s-prosperity-slides-in-index-that-ranks-norway-no-1.html

10.  Kurtzleben, Danielle.  “U.S. No Longer Among 20 Most Economically Prosperous Countries: A New Report Says The U.S. Trails Thailand, Norway When It Comes To Prosperity”. U.S. News And World Report. October 29, 2013. http://www.usnews.com/news/articles/2013/10/29/us-no-longer-among-20-most-economically-prosperous-countries

11.  Novak, Sara. “Top 10 Healthiest Countries In The World For Both Men And Women”. Discovery.  September 1, 2013.  http://blogs.discovery.com/dfh-sara-novak/2013/01/healthiest-countries-in-the-us-wheres-the-us.html

12.  Sedghi, Ami. “Global Prosperity Index 2012: The Latest Global Prosperity Index Is Out And The U.S. Has Dropped Out Of The Top Ten For The First Time: The U.S. Have Dropped Out Of The Top Ten Of The Latest Prosperity Index With The Economy Rank Falling To 20^th Place”. The Guardian. Tuesday October 30, 2012. http://www.theguardian.com/news/datablog/2012/oct/30/global-prosperity-index-usa-economy

13.  Su, Reissa. “New Zealand In 5^th Place In 2013 Legatum Prosperity Index”. International Business Times. October 31, 2013. http://au.ibtimes.com/articles/518381/20131031/world-prosperity-imf-new-zealand-legatum-index.htm#.Uxu1Yv1ZUeE

14.  Tsuno, Yoshikazu. “World’s Healthiest Countries”. Foreign Policy. October 15, 2007. http://www.foreignpolicy.com/articles/2007/10/14/the_list_worlds_healthiest_countries?wp_login_redirect=0

15.  Tuccille, J. “U.S. Slipped In Four Freedom Rankings This Year.” Reason. November 5, 2013.  http://reason.com/blog/2013/11/05/us-slipped-in-four-freedom-rankings-this