Ticos top in regional prosperity

Finland is the world’s most prosperous country according to an annual report released by the Legatum Institute. Would you care to guess which Latin American country is the wealthiest according to the London-based think tank? Could it be the emerging global player in Brazil or the oil-rich state of Venezuela? What about the regional powerhouse that is Mexico?

The answer is Costa Rica.

The Central American state ranked 32nd on the list ahead of countries like India, South Africa, and Russia. Costa Rica has been called the “Switzerland of Central America” and the country lived true to that adage with high marks in the categories of personal freedom and democratic institutions.

Regarding the rest of Latin America, the Southern Cone states faired very well with Uruguay, Chile and Argentina ranking slightly below the Ticos. Most Latin American countries hovered around mid-table including Brazil (41st), the Dominican Republic (54th), and El Salvador (60th). Nicaragua, Bolivia, and Venezuela (72-74) rounded off the regional bottom three though they were placed in front of countries like China and Saudi Arabia.

The definition of “prosperity” is certainly up for interpretation but how does the Legatum Prosperity Index define it? According to Reuters:

The index is based on a definition of prosperity that combines economic growth with the level of personal freedoms and democracy in a country as well as measures of happiness and quality of life.

With the exception of Switzerland, which came in at number 2, Nordic countries dominated the top 5 slots, with Sweden in third place followed by Denmark and Norway.

The top 10 were all also Western nations, with Australia (6th place) and Canada (7th place) both beating the United States, ranked 9th. Britain came in at number 12.

Based on the index, Latin America has some ways to go in order to reach more advanced industrialized nations yet as a region it has done better than other areas.

Image – CIA World Factbook
Online Sources- Legatum Prosperity Index, Reuters, New Internationalist