The Biggest Trends In Global Prosperity

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Despite economic crises and  security threats everywhere you look, global prosperity is booming, according to a new study.The 2012 Prosperity Index from the Legatum Institute rated prosperity in 142 countries based on econometric analysis of 89 variables.

The big news from the report was that the US fell out of the top 10 due to a decline in consumer and voter confidence, along with a bleak economic and entrepreneurial outlook. But that’s only part of the story …

Prosperity around the world is increasing — especially in central and southeast Asia.

However, global security is on the decline.

Citizens in Latin America feel especially unsafe.

Northern European countries lead for most of the sub-indexes, with African countries bringing up the rear.

Here are top 15 economies, and the only stars and stripes on here are Malaysia. The economy sub-index is calculated by measuring countries' specific macroeconomic policies, economic satisfaction, the foundation for growth, and financial sector efficiency.

The US lost ground in entrepreneurship, economy, and personal freedom.

Here's the overall prosperity ranking of the top 60 countries

The full list can be found here.

Democracies clearly performed better than their authoritarian counterparts in the rankings.

With respect to Latin America, Uruguay did surprisingly well.

Meanwhile European economies are feeling the affects of the Euro Crisis.

Eastern European prosperity is on the rise, while western Europe is on the decline.

Sub-Saharan Africa is suffering from a brain drain

Social Capital — the benefits derived from cooperation and treatment between different types of individuals and groups — is shockingly low throughout the Middle East, a region which has been rocked by recent instability.

The report notes that as social capital rises in a country, and people begin to trust each other and cooperate, the costs involved with starting and running businesses decrease.

Europe is prosperous, but China is growing ...

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