Uruguay #1 for Prosperity in South America; Venezuela and Bolivia the Worst in the Region, Finds Legatum Prosperity Index

LONDON -

- Personal Freedom, Security, and Good Health are a Recipe for Success; Internal Security and Safety Concerns and Poor Governance Limit Overall Prosperity

The third edition of the Legatum Prosperity Index, published today, ranks 104 countries (covering 90% of the world’s population), based on a definition of prosperity that combines economic growth together with measures of happiness and quality of life.

The highest ranking South American countries are Uruguay, Chile and Argentina at 33rd, 36th, and 38th place respectively, whose citizens all claim high levels of personal freedom. The lowest performing country in the region is Venezuela which is placed at 74th on the Index, narrowly led by Bolivia (73rd) and Ecuador (71st).

“The Legatum Prosperity Index is the world’s only global assessment of wealth and wellbeing,” said Dr. William Inboden, Senior Vice President of the Legatum Institute. “Across South America, countries with high scores for Democratic Institutions and Personal Freedom generally record a strong overall ranking for prosperity,” he continued. “Furthermore, countries which have low levels of internal safety and security, such as Venezuela, finish lower in the overall rankings. This strongly suggests that a country can improve its prosperity by promoting the fundamentals of life satisfaction as much as the standard measurements of wealth such as GDP,” concluded Dr. Inboden.

The success of countries like Uruguay, Chile and Brazil in promoting economic growth and personal freedoms can be linked to their commitment to embrace human development and market freedom which fosters overall prosperity. In contrast, the lower rankings of Venezuela, Bolivia and Ecuador reflect their populist rulers’ policies that stifle business by nationalising entire industries once they become profitable and whose cities are characterised by high levels of crime.

Key Findings from the 2009 Legatum Prosperity Index

- Finland tops the overall Index, followed by several European nations such as Britain, Germany and France, as well as the US and Canada which all make the top 20. - Chile ranks highest among South American countries on Economic Fundamentals while Bolivia and Nicaragua perform lowest on this sub-index. - Costa Rica scores highest on variables which foster entrepreneurship and innovation which resulted in nearly 4,000 new businesses being created in 2007. - With the exception of Uruguay and Chile, no South (or Central) American country ranks in the top third of the Index for levels of security with Columbia receiving the lowest possible ranking, globally, on this sub-index. Countries that score lowest on this sub- index tend to be characterised by high rates of homicide, assault, state sponsored violence, internal conflict and human flight. - Among the lowest ranking countries on measures of stability within democratic institutions are Honduras, Ecuador, Venezuela, and Columbia with the latter three also ranking lowest among South American countries in the Safety & Security sub-index which measures variables such as the homicide rate, the prevalence of state sponsored violence, and human flight. - The countries which rank lowest in terms of health are Peru, Nicaragua and Bolivia, all of which have high levels of infant mortality and only one hospital bed per 1000 citizens. - Uruguay ranks very well at 14th in the world on levels of personal freedom, as does Brazil at 16th. - Venezuela’s low rank comes from its poor showings on Economic Fundamentals, Entrepreneurship and Innovation, Safety and Security, and Governance - the latter in which it ranks 101st, among the worst in the world. - When compared to Central America, South American countries score comparatively high for levels of education, although when compared globally, these rankings are still only average. - Low levels of trust between South Americans and a reluctance to rely on family and friends in times of need bring down the overall social capital score among South American countries. Peru ranks last out of all 104 countries on this sub-index.

The Prosperity Index identifies nine key factors that drive economic growth and personal wellbeing, which are the foundations of prosperity. Each of these nine factors is represented in a sub-index and a country’s final Prosperity Index ranking is generated by averaging its scores across all nine sub-indexes, equally weighted. More information on the Prosperity Index, including full country rankings, background on data and methodology, and profiles of each country can be found at www.prosperity.com.

Notes to Editors:

About the Legatum Prosperity Index

The 2009 Legatum Prosperity Index is based on statistical analysis of more than 40 years of data for more than 100 countries worldwide, produced and supervised by the Legatum Institute, with input from the research consultancy Oxford Analytica and a panel of respected academic advisors in the fields of economics, history, development, sociology, and political science.

2009 Legatum Prosperity Index Rankings Summary

TOP TWENTY COUNTRIES SOUTH AMERICA/CARIBBEAN 1. Finland 32. Costa Rica 2. Switzerland 33. Uruguay 3. Sweden 36. Chile 4. Denmark 38. Argentina 5. Norway 40. Trinidad & Tobago 6. Australia 41. Brazil 7. Canada 42. Panama 8. Netherlands 49. Jamaica 9. United States 52. Belize 10. New Zealand 54. Dominican republic 11. Ireland 57. Paraguay 12. United Kingdom 60. El Salvador 13. Belgium 61. Peru 14. Germany 65. Colombia 15. Austria 66. Honduras 16. Japan 67. Guatemala 17. France 71. Ecuador 18. Hong Kong 72. Nicaragua 19. Spain 73. Bolivia 20. Slovenia 74. Venezuela BOTTOM TEN COUNTRIES 95. Kenya 96. Algeria 97. Tanzania 98. Nigeria 99. Pakistan 100. Cameroon 101. Central African Republic 102. Yemen 103. Sudan 104. Zimbabwe

How the Index is constructed

The Prosperity Index accounts for 90 percent of the world’s population, using a combination of objective data and subjective responses to surveys. This data comprises 79 different variables, and each is then distilled into one of the nine different sub-indexes identified as a foundation of prosperity. A country’s performance in each sub-index is given a score, and the overall Prosperity Index rankings are produced by averaging the equally-weighted scores of the 9 sub-indexes for each country. Those countries that perform well across each sub-index score highest in the overall rankings.

The nine foundations of prosperity that define successful nations are:

- Economic Fundamentals - a growing, sound economy that provides opportunities for wealth creation - Entrepreneurship and Innovation - an environment friendly to new enterprises and the commercialisation of new ideas - Education - an accessible, high-quality educational system that fosters human development - Democratic Institutions - transparent and accountable governing institutions that promote economic growth - Governance - an honest and effective government that preserves order and encourages productive citizenship - Health - the physical well-being of the populace - Personal Freedom - the degree to which individuals can choose the course of their lives - Security - a safe environment in which people can pursue opportunity - Social Capital - trustworthiness in relationships and strong communities

About the Legatum Institute

The Legatum Institute (”LI”) is an independent policy, advocacy and advisory organisation. The Institute’s mission is to research and promote the principles that drive the creation of global prosperity and the expansion of human liberty and wellbeing.

For more information about the Legatum Institute, please visit www.li.com.

The Institute is part of the Legatum Group, a private global investment organization focused on investing in the international capital markets and the promotion of sustainable development.

For more information about the Legatum Group, please visit www.Legatum.com.

Media Enquiries London William Inboden, Legatum Institute Telephone: +44-20-7148-5400 william.inboden@legatum.com Nick Wood, Media Intelligence Partners Telephone +44-20-3008-8146 Email: nickwood@nickwood.demon.co.uk Dubai, UAE Hamish Banks, Legatum Telephone: +971-4-317-5800 Email: hamish.banks@legatum.com Nicole Anwer, Legatum Telephone: +971-4 317-5800 Email: nicole.anwer@legatum.com New York Michael Iacovella, Edelman Telephone +1-212-704-8254 Email: michael.iacovella.@edelman.com Mumbai Arwa Husain, Adfactors PR Telephone +91-22-2281-3565 Email: arwa.husain@adfactorspr.com

Source: Legatum

Media Enquiries: London, William Inboden, Legatum Institute, Telephone: +44-20-7148-5400, william.inboden at legatum.com. Nick Wood, Media Intelligence Partners, Telephone +44-20-3008-8146, Email: nickwood at nickwood.demon.co.uk. Dubai, UAE, Hamish Banks, Legatum, Telephone: +971-4-317-5800, Email: hamish.banks at legatum.com. Nicole Anwer, Legatum, Telephone: +971-4 317-5800, Email: nicole.anwer at legatum.com. New York, Michael Iacovella, Edelman, Telephone +1-212-704-8254, Email: michael.iacovella. at edelman.com. Mumbai, Arwa Husain, Adfactors PR, Telephone +91-22-2281-3565, Email: arwa.husain at adfactorspr.com