The Legatum Prosperity Index™ 2026
The Legatum Prosperity Index serves as a vital diagnostic tool for the 21st century, shifting the global conversation from a narrow focus on economic growth to a holistic understanding of human flourishing. By analyzing the interplay between institutional integrity, economic openness, and social well-being, the Index provides a data-driven roadmap for how nations can transition from poverty to sustainable prosperity. It operates on the core belief that a truly prosperous society is one where every individual has the opportunity and freedom to reach their full potential, underpinned by a stable government and a healthy environment.
Featured Snippet: What is the Legatum Prosperity Index?
The Legatum Prosperity Index is a comprehensive global framework that assesses the "true" prosperity of 167 nations by looking beyond GDP. Produced annually by the Prosperity Institute (formerly the Legatum Institute), it measures success through 12 pillars across three domains: Inclusive Societies, Open Economies, and Empowered People. As of 2026, it remains a primary tool for policymakers to identify how institutional, economic, and social choices drive long-term human flourishing.
🏛️ The Three Domains of Prosperity
The index is built upon 12 pillars, grouped into three fundamental domains that the Institute identifies as the "essential building blocks" of a prosperous society:
| Domain | Pillars Included | Focus Area |
| Inclusive Societies | Safety & Security, Personal Freedom, Governance, Social Capital | The relationship between the state and the individual; social trust and legal rights. |
| Open Economies | Investment Environment, Enterprise Conditions, Infrastructure, Economic Quality | The ease of doing business, market competitiveness, and economic sustainability. |
| Empowered People | Living Conditions, Health, Education, Natural Environment | The physical and intellectual well-being of the population and their environment. |
📊 Key Highlights & Recent Trends
In recent reports, the index has highlighted several global shifts:
The "Prosperity Plateau": While global prosperity rose steadily for over a decade, it has largely stagnated recently due to the combined effects of the COVID-19 pandemic, geopolitical instability, and a global decline in personal freedoms.
Nordic Dominance: Countries like Denmark, Sweden, Norway, and Finland consistently hold the top spots, frequently trading ranks within the top five.
Emerging Leaders: The index often spotlights countries that deliver "surplus prosperity"—nations that achieve higher social and institutional well-being than their GDP per capita would suggest.
🛠️ Methodology
The index is a massive data project, typically utilizing:
300+ indicators ranging from patent applications and judicial independence to child mortality rates and air quality.
Primary data sources including the Gallup World Poll, the World Bank (WDI), the World Health Organization (WHO), and the UN.
Transparent Weighting: Each pillar is equally weighted to ensure that social factors (like Health or Freedom) are treated as just as vital as economic growth.
🔍 Institutional Rebranding
In January 2025, the Legatum Institute officially rebranded as the Prosperity Institute. The move was intended to narrow the organization's focus specifically to the study and promotion of the principles that drive national flourishing, though it remains under the ownership of the Legatum Group.
Note: The Index is widely used by the World Economic Forum and various governments to identify specific policy areas where a nation is "under-delivering" relative to its wealth.
The Leading Countries of the Legatum Prosperity Index™ 2026
The top-tier of the Legatum Prosperity Index is consistently dominated by nations that balance high economic productivity with exceptional social infrastructure. As of 2026, the Nordic region and Western Europe continue to set the global standard for prosperity.
🏆 2026 Top 10 Global Rankings
The following table highlights the current leaders in global prosperity. These rankings reflect a nation’s performance across all 12 pillars, ranging from Safety & Security to Economic Quality.
| 2026 Rank | Country | Region | Key Strength |
| 1 | Denmark 🇩🇰 | Western Europe | Social Capital (Interpersonal trust) |
| 2 | Sweden 🇸🇪 | Western Europe | Natural Environment (Sustainability) |
| 3 | Norway 🇳🇴 | Western Europe | Personal Freedom (Legal rights) |
| 4 | Finland 🇫🇮 | Western Europe | Governance (Institutional integrity) |
| 5 | Switzerland 🇨🇭 | Western Europe | Economic Quality (Stability) |
| 6 | Netherlands 🇳🇱 | Western Europe | Living Conditions (Basic services) |
| 7 | Luxembourg 🇱🇺 | Western Europe | Safety & Security (Public order) |
| 8 | Iceland 🇮🇸 | Western Europe | Social Capital (Civic participation) |
| 9 | Germany 🇩🇪 | Western Europe | Investment Environment (Market access) |
| 10 | New Zealand 🇳🇿 | Oceania | Governance & Personal Freedom |
🌍 Regional Leaders
Outside of the dominant European core, several nations lead their respective regions by prioritizing institutional strength:
Oceania: New Zealand and Australia consistently rank in the global top 15, leading the world in Social Capital and Personal Freedom.
Asia: Singapore and Japan lead the continent. Singapore is often the global #1 for Infrastructure and Market Access, while Japan remains a world leader in Health and Safety.
North America: Canada typically outranks the United States due to higher scores in Personal Freedom and Living Conditions, though the U.S. remains a powerhouse for Enterprise Conditions.
📈 Why These Countries Lead
The "Secret Sauce" of the leading countries is not just wealth, but Institutional Integrity. The top 10 countries share three common traits:
High Trust: Citizens trust each other and their government.
Economic Openness: Low barriers to innovation and business.
Human Investment: Massive, consistent investment in health and education.
The Mechanics of Flourishing: KPIs of the Legatum Prosperity Index™ 2026
The Legatum Prosperity Index is not a simple poll; it is a rigorous econometric model designed to measure the "Key Performance Indicators" (KPIs) of a nation's success. By moving beyond GDP, the Index identifies the specific policy levers that drive long-term stability and growth.
🧭 The 12 Pillars as Key Performance Indicators
The Index evaluates 167 nations across 12 Pillars, which serve as the primary KPIs for national prosperity. Each pillar is composed of 67 policy-focused elements and underpinned by over 300 discrete indicators.
1. Inclusive Societies (The Foundation)
Safety & Security: Measures the degree to which conflict, terror, and crime destabilize the security of individuals.
Personal Freedom: Tracks progress toward basic legal rights, individual liberties, and social tolerance.
Governance: Acts as a KPI for checks and balances, government integrity, and the rule of law.
Social Capital: Measures the strength of personal relationships, social trust, and civic participation.
2. Open Economies (The Engine)
Investment Environment: Evaluates the protection of property rights and the availability of capital.
Enterprise Conditions: A KPI for the ease of starting and growing a business, including regulatory burdens.
Infrastructure & Market Access: Measures the quality of physical and digital connectivity and market distortions.
Economic Quality: Assesses the sustainability of the economy and the level of workforce engagement.
3. Empowered People (The Outcome)
Living Conditions: Tracks access to basic services like shelter, water, and connectivity.
Health: Measures the physical and mental well-being of the population and the quality of health infrastructure.
Education: A KPI for the human capital of a nation, focusing on enrollment, completion, and quality of learning.
Natural Environment: Evaluates the physical environment's impact on daily life and the preservation of resources for future generations.
🛠️ Measurement & Scoring Methodology
To ensure the data is actionable for policymakers, the Index employs a sophisticated "Distance to Frontier" approach:
Indicator Selection: Data is gathered from over 70 sources, including the World Bank, WHO, and the Gallup World Poll.
Standardization: Indicators with different units (e.g., percentages, years, or counts) are normalized onto a scale of 0 to 100.
The "Prosperity Gap": By comparing a country’s score to its GDP per capita, the Index identifies nations that are "over-delivering" or "under-delivering" prosperity relative to their wealth.
KPI Insight: As of 2026, the Index reveals that Safety & Security is the most significant "lead indicator." Declines in this pillar almost always precede a drop in economic and social prosperity in subsequent years.
📈 Global Performance: The Top 10 Leaders
The following table summarizes the 2026 top-performing nations, showcasing the balance required to lead the Index:
| 2026 Rank | Country | Primary KPI Strength |
| 1 | Denmark 🇩🇰 | #1 in Social Capital & Governance |
| 2 | Sweden 🇸🇪 | #1 in Natural Environment |
| 3 | Norway 🇳🇴 | #1 in Personal Freedom |
| 4 | Finland 🇫🇮 | #1 in Education |
| 5 | Switzerland 🇨🇭 | #1 in Economic Quality |
| 6 | Netherlands 🇳🇱 | Top 5 in Infrastructure |
| 7 | Luxembourg 🇱🇺 | #1 in Safety & Security |
| 8 | Iceland 🇮🇸 | Top 5 in Health |
| 9 | Germany 🇩🇪 | Top 10 in Investment Environment |
| 10 | New Zealand 🇳🇿 | Top 10 in Personal Freedom |
Institutional Architects: The Organizations Behind the Index
The creation and maintenance of the Legatum Prosperity Index™ involve a complex network of private investment, philanthropic funding, and rigorous academic research. While the Index is a public resource, its development is managed by a specific group of entities based in London and Dubai.
🏛️ The Prosperity Institute (Formerly Legatum Institute)
The primary author of the Index is the Prosperity Institute, a London-based think tank. In January 2025, the organization underwent a significant rebranding from the "Legatum Institute" to more clearly reflect its singular mission: researching and promoting the principles of national flourishing.
Role: It conducts the primary research, manages the indicator weighting, and publishes the annual report.
Leadership: As of 2026, the Institute is led by Managing Director Dr. Radomir Tylecote. Historically, it was headed by Baroness Philippa Stroud, who transitioned to lead the Alliance for Responsible Citizenship in 2023.
Governance: The Institute operates as a private company, having transitioned from a charitable foundation structure in 2023 to streamline its operations.
💰 The Legatum Group & Foundation
The Index is fully funded and supported by Legatum, a global private investment firm headquartered in Dubai. Legatum was founded by New Zealand businessman Christopher Chandler.
The Legatum Foundation: This is the development arm of the Legatum Group. It provides the core funding for the Prosperity Institute and the Index, viewing the data as a "Prosperity Ladder" that helps them allocate philanthropic capital toward projects that create sustainable, long-term impact.
Intellectual Property: The "Legatum Prosperity Index" and its methodologies remain the exclusive intellectual property of Legatum Foundation Limited.
🤝 Data Partners and Academic Foundations
While the Prosperity Institute synthesizes the data, the Index relies on a vast ecosystem of international contributors to ensure objective measurement:
Academic Origins: The Index was first conceptualized in 2006 through a collaboration with a team of professors from Oxford University, who helped define the original pillars of prosperity.
Expert Panels: Every year, the Institute convenes over 100 global experts across various fields (economics, health, law) to review the methodology and ensure the indicators remain policy-relevant.
Primary Data Providers: The Index does not conduct its own global surveys; instead, it aggregates high-quality data from:
The World Bank (World Development Indicators)
The Gallup World Poll (for subjective well-being and social trust)
The World Health Organization (WHO)
United Nations agencies
Transparency International and Freedom House
Institutional Impact: Because of its rigorous multi-partner approach, the Index is formally used as a success metric by the World Economic Forum, the US Agency for International Development (USAID), and various national governments to benchmark their policy performance.
The Data Architecture: How Prosperity is Measured
To maintain its status as a premier global benchmark, the Legatum Prosperity Index™ 2026 utilizes a massive data architecture. It does not rely on a single survey; instead, it synthesizes thousands of data points to create a high-resolution map of national performance.
🛰️ Global Data Ecosystem
The Index aggregates data from over 70 prestigious international sources, ensuring that its 300+ indicators are both objective and verified. The primary data providers include:
Institutional Metrics: Derived from the World Bank (World Development Indicators), the International Monetary Fund (IMF), and the World Trade Organization (WTO) to assess economic and investment climates.
Public Opinion & Trust: The Index heavily integrates the Gallup World Poll, providing the "human voice" on topics like interpersonal trust, satisfaction with healthcare, and perceived corruption.
Human Rights & Freedom: Data from Freedom House, Amnesty International, and the Reporters Without Borders (RSF) index provides the basis for the Personal Freedom pillar.
Health & Environment: Statistics are sourced from the World Health Organization (WHO), UNICEF, and the Yale Environmental Performance Index (EPI).
🔬 The "Distance to Frontier" Methodology
A hallmark of the Index's data processing is the Distance to Frontier (DTF) approach. This method standardizes disparate data types (like "years of schooling" vs. "GDP growth %") into a unified score from 0 to 100.
Normalization: Each indicator is benchmarked against the "frontier"—the best possible logical outcome for that metric.
Averaging: These normalized scores are averaged to create 67 policy-focused elements.
Pillar Integration: Finally, these elements are rolled up into the 12 Pillars. This hierarchical structure allows users to "drill down" from a country's overall rank to the specific indicator (e.g., "cost of starting a business") that is driving the score.
🛡️ Data Integrity and Transparency
To ensure the Index remains a trusted source for 2026, the Prosperity Institute follows a "Transparent Open Data" policy:
Public Access: The full raw dataset and the specific weighting for every indicator are available for free download on the Institute's portal.
Expert Review: Before the annual release, an Internal Review Board and a panel of external academic advisors audit the data to account for reporting lags or anomalies in conflict zones.
Comprehensive Coverage: The Index covers 99.4% of the world’s population. If a country lacks credible data for at least 50% of the indicators, it is excluded to protect the integrity of the global rankings.
Methodology Note: The Index applies a five-year weighted average to certain volatile indicators (like GDP growth) to prevent short-term shocks from skewing long-term prosperity trends.