This year’s Legatum Prosperity Index has been released, delivering mixed results for Australia with respect to our international competitiveness.
The Prosperity Index, dubbed the world’s only global assessment of wealth and wellbeing, ranked Australia in the top 10 for categories including economic fundamentals, democratic institutions, education, health, safety and security, personal freedom, governance and social. However, Australia fell to 15th place for entrepreneurship and innovation (page 26 of the report). Despite recent economic woes, the US and UK took the top two spots in that category.
According to the Legatum website, “… unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term.”
As we’ve written about before, past economic downturns have proved fertile times for innovative companies that were prepared to commit resources to R&D and growth while competitors bunker down to ride out the storm.
The past 18 months has been the right time to start a new business. So the real question the Prosperity Index raises for Australia’s private sector is: Have we been sufficiently bold during the GFC to secure future prosperity in a competitive global economy?