New Zealand is the eighth-most prosperous country in the world, a global prosperity index shows.
But the Legatum Institute’s 2021 Prosperity Index said a “sustained attack on personal freedoms” was holding back prosperity in Asia-Pacific region overall.
New Zealand was the highest-ranking country in the Asia-Pacific region, due in part to its strong social capital, the strength of personal and social relationships, institutional trust, social norms and civic participation, the report said.
“Almost 60 per cent of New Zealanders think most people can be trusted, one of the highest proportions worldwide.”
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Countries that sit ahead of New Zealand in 2021 include number one-ranked Denmark, followed by Norway, Sweden, Finland, Switzerland, Netherlands and Luxembourg.
Since 2007, New Zealand has ranked either sixth, seventh, or eighth, in the world. In 2020, it was eighth, down from seventh in 2019, 2018 and 2017.
In analysing the performance of the 167 countries more than 100 experts looked at 12 “pillars", comprising 65 different elements, measured by 294 indicators, using publicly available data.
Those pillars were safety and security, personal freedom, governance, social capital, investment environment, enterprise conditions, market access and infrastructure, economic quality, living conditions, health, education and the natural environment.
New Zealand performed best in social capital and natural environment, where it sat fourth, while its lowest ranking was in living conditions, where it ranked 30th.
Living conditions measure what is necessary for individuals to attain a basic level of wellbeing including a level of material resources, adequate nutrition and access to basic services and shelter.
The index reveals that global prosperity has plateaued for the second year, because of weakening freedom of assembly and freedom of expression across all regions over the course of the past decade, with many of the greatest deteriorations in Asia-Pacific, the Middle East and North Africa and Eastern Europe.
In 100 countries around the world both freedom of expression and freedom of assembly deteriorated over the last decade.
The index identifies that while Covid-19 has “undoubtedly had a short-term impact on prosperity”, the pandemic has not been solely responsible. “The past decade has seen the increasing suppression of the core liberties which underpin true prosperity.
“Suppression of the freedom of people to assemble and their freedom of speech is beginning to lead to limited and stunted prosperity,” said Dr Stephen Brien, director of policy at the Legatum Institute.
“If we want to continue on the pathway from poverty to prosperity, leaders around the world have got to empower and free individuals to make the most of their talents.”
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