Global Prosperity Index and Entrepreneurship – A Comparison [India vs. China/Israel and US]

UK based Legatum Institute conducted an annual prosperity survey of 104 countries and measured countries on prosperity – not just wealth, but factors such as health, education, safety, governance, support for entrepreneurship/innovation etc.

The nine sub-indexes/parameters are:

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

Here is a comparison of India/China/Israel and US on different parameters [India: Green, China: Blue, Israel: Red and US: Orange]

Prosperity Index of India Israel China and America
Prosperity Index of India, Israel, China and America

India beats China in all parameters except the ones which are most important to foster entrepreneurship – Innovation, Education and Health (Highly Recommended Read: Entrepreneurship: China vs. India Divide].

As far as Israel is concerned, it scores far above China and India – the results shows up in the quality of startups that Israel produces.

What’s your take on the study?

[Download the report (pdf) | Visit Legatum Website]

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