Legatum, the London based think-tank launched their latest Prosperity Index this week. The Index follows a report by Nicholas Sarkozy, the French president that concluded that GDP in an insufficient measure of well-being.

Holistic prosperity

The more holistic definition of prosperity combines material wealth and quality of life, proving the point Finland heads a list of 104 nations. The index covers nine 'Prosperity Factors' - economy, entrepreneurship/innovation, democratic institutions, education, health, safety/security, governance, personal freedom and social capital.

Indian 'wealth'

India rank 45th in the index, ahead of Asia Pacific rivals, Philippines (55th), China (75th), Indonesia (61st) and Vietnam (77th), but chasing Japan (16th), Hong Kong (18th), Taiwan (24th) and South Korea (26th).

India's Prosperity Factor rankings:

• Economic fundamentals - 43rd (of 104)
• Entrepreneurship and Innovation - 55th
• Democratic Institutions - 26th
• Education - 86th
• Health - 88th
• Safety and Security - 87th
• Governance - 41st
• Personal Freedom - 47th
• Social Capital - 5th

China versus India

The index includes a handy gadget called the 'Prosperiscope' that provides direct country comparisons. Despite being 30+ places above China, comparison between the two countries shows that China leads India on five of the nine Prosperity Factors (see below).

Not surprisingly India leads on issues relating to democracy, freedom and governance. But India leads on in health, education, innovation, economic fundamentals and security.

Image sources - www.legatum.com