Legatum - Prosperity Index

 

The Prosperity Index: Top Pillar Indicators (2026 Rankings)

The Prosperity Index measures how countries empower their citizens to flourish across three essential domains: Inclusive Societies, Open Economies, and Empowered People. In 2026, the global conversation has moved beyond mere economic growth toward "Resilient Prosperity," focusing on the strength of a nation's social fabric and its ability to innovate in a decarbonizing world.

Rank	Pillar Indicator	Domain	Global Trend (2026)	Key Focus Area
1	Social Capital	Inclusive Societies	🌍 High Interest	Strength of trust, networks, and civic duty.
2	Enterprise Conditions	Open Economies	🌍 High Innovation	Ease of starting and scaling businesses.
3	Governance	Inclusive Societies	🌍 Accountability Focus	Rule of law, integrity, and state efficiency.
4	Safety & Security	Inclusive Societies	🌍 Regional Priority	Protection from crime, conflict, and terror.
5	Investment Environment	Open Economies	🌍 Capital Mobility	Property rights and investor protections.
6	Education	Empowered People	🌍 Skill Re-alignment	Literacy, secondary, and tertiary quality.
7	Economic Quality	Open Economies	🌍 Fiscal Stability	Labor engagement and trade competitiveness.
8	Health	Empowered People	🌍 Longevity Focus	Infrastructure, lifespan, and mental health.
9	Personal Freedom	Inclusive Societies	🌍 Values Shift	Rights to speech, belief, and assembly.
10	Living Conditions	Empowered People	🌍 Material Wealth	Access to basic services, shelter, and water.

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Rank	Pillar Indicator	Domain	2026 Global Trend	Key Focus Area
11	Infrastructure & Market Access	Open Economies	🌍 High Interest	Quality of trade, transport, and digital connectivity.
12	Natural Environment	Empowered People	🌍 Sustainability Focus	Air quality, biodiversity, and ecosystem resilience.
13	Interpersonal Trust	Social Capital	🌍 Core Metric	The "glue" of society; belief in the reliability of others.
14	Investor Protections	Invest. Environ.	🌍 Rising Priority	Legal safety for capital and minority shareholder rights.
15	Government Integrity	Governance	🌍 High Scrutiny	Absence of corruption and transparency in power.
16	Market Openness	Econ. Quality	🌍 Trade Re-alignment	Freedom from trade barriers and market distortions.
17	Digital Skills & Literacy	Education	🌍 Critical Transition	Adult population’s readiness for an AI-driven economy.
18	Mental Health Access	Health	🌍 Rising Importance	Integration of psychological well-being into healthcare.
19	Basic Services Access	Living Conditions	🌍 Global Monitoring	Reliability of water, electricity, and sanitation.
20	Civic Participation	Social Capital	🌍 Values Shift	Public engagement in voting, volunteering, and protest.

#	Pillar	Category	Context	Metric / Definition
21	Circular Economy Adoption	Sustainability	🌍 Resource Security	Efficiency in recycling and minimizing industrial waste loops.
22	Cybersecurity Resilience	Safety & Security	🌍 Digital Defense	National capacity to protect critical infra from cyber threats.
23	Wealth Equality	Econ. Quality	🌍 Social Cohesion	Distribution of assets and capital across the population.
24	R&D Intensity	Innovation	🌍 Future Growth	Public and private investment in scientific research.
25	Biodiversity Protection	Environment	🌍 Ecosystem Health	Percentage of protected land/marine areas and species health.
26	Intergenerational Mobility	Social Capital	🌍 Opportunity	Ability for individuals to move beyond their parents' socio-economic status.
27	Energy Grid Decarbonization	Infrastructure	🌍 Climate Action	Transition speed from fossil fuels to renewable energy sources.
28	Media Independence	Governance	🌍 Info Integrity	Freedom of the press and lack of government censorship.
29	Urban Livability	Living Conditions	🌍 Rapid Urbanization	Quality of housing, green spaces, and commute times in cities.
30	Conflict Resolution	Safety & Security	🌍 Peace & Stability	Strength of legal and diplomatic frameworks to settle disputes.

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The Global Mid-Tier "Performance Gaps"

As we reach the top 29 countries in 2026, the Prosperity Index (now managed by the Prosperity Institute) reveals a fascinating "trade-off" strategy used by different nations.

• The Digital Frontier: Estonia (Rank 21) is the highest-ranking post-Soviet nation. Its success is driven almost entirely by Governance and Enterprise Conditions, serving as a global case study for how "Digital-First" policy can leapfrog traditional development barriers.

• The Stability vs. Freedom Divide: Countries like Hong Kong (Rank 22) and Singapore (Rank 17) remain global outliers. They achieve massive prosperity through Economic Quality and Infrastructure but rank significantly lower in Personal Freedom, proving that in 2026, "prosperity" can follow multiple ideological paths.

• The Healthcare Standard: South Korea (Rank 29) and Japan (Rank 16) represent the "Health & Education" heavyweights. While their overall ranking is slightly weighed down by Social Capital (interpersonal trust and social isolation challenges), their human capital metrics remain the envy of the Western world.

• The Southern European Recovery: Spain (Rank 24) and Portugal (Rank 26) have seen their search interest spike in 2026 due to their high "Quality of Life" metrics. As remote work becomes permanent for global elites, these nations are being re-evaluated for their balance of Personal Freedom and Natural Environment.

These pillars provide a comprehensive health check for a nation, proving that true prosperity is found where inclusive societies, open markets, and empowered citizens meet.

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