The past year has become very eventful for Armenia. One of the important achievements can be considered a “dizzying” rise in the ranking of prosperous countries of the world, which is annually compiled by the British analytical center Legatum Institute. The basis for determining the place in the ranking is the so-called “prosperity index”. What is the “prosperity index”, how is it calculated, and how did Armenia manage to raise it in just a year? Let’s find out!
What is “Legatum Prosperity Index”?
For the first time, the British Legatum Institute introduced the concept of the “Legatum Prosperity Index” in 2006. Since then, the index has been calculated annually for different countries of the world, based on which the rating is compiled. Accordingly, the higher the “prosperity index” – the higher the place in the ranking, which means that this country is more prosperous and safe, including for tourists visiting it.
How is “prosperity Index” calculated?
“Prosperity Index” is a kind of indicator of the current state of the country, expressed in numbers, which means that it should reflect the most diverse aspects of life in the country. Now, the index is calculated based on nine components (initially there were eight), namely:
- Personal freedom
- Social capital
Each component is calculated separately, based on statistical data and expert estimates obtained from several independent international sources such as UN, World Bank, Organization for Economic Cooperation and Development, World Trade Organization, Gallup, Economist Intelligence Unit, IDC, Pyramid Research and other institutions. Then the general “prosperity index” for a given country is derived from the obtained values.
How has the “prosperity index” changed for Armenia over the past year?
Over the past year, Armenia has risen significantly in the Legatum Institute rating by 27 points and took 61 place, overtaking Turkey, Iran and most of the post-Soviet countries (except Georgia and the Baltic countries). This was even recorded by the Prime Minister of Armenia Nikol Pashinyan on his page in social networks. Obviously, the country is experiencing a rise in most areas; in addition, Armenia is considered one of the safest countries in the region.