NZ very prosperous, international report shows

New Zealand is the world's 10th most prosperous country, according the Legatum Institute, a London-based think tank, which measures wealth and “general wellbeing.”

Finland came first, Australia 6th, and the US 9th. New Zealand did well to beat the UK, France and Germany.

New Zealand achieved mediocrity in economic fundamentals (27th) despite low inflation and unemployment, average level domestic savings, and efficient finance. But it has a low ratio of exports to the cost of imports and its raw material reliance is very high (75th in the world) and FDI is only 2% of GDP.

In entrepreneurship and innovation New Zealand's performance is creditable at 18th. It is easy to start a new business, and the population is computer literate. But hi-tech exports are low, and R&D makes up only 1.2% of GDP, indicating insufficient attempts at innovation. Nevertheless royalties are high, so business does commercialise its intellectual property.

New Zealand has a robust democracy (4th) and has efficient and open processes of governance (11th) with excellent personal freedom (6th) where 9 out of 10 Kiwis feel their country welcomes ethnic diversity and immigrants.

New Zealand is first in the world in social capital. Nine out of 10 Kiwis trust friends and family. They have more volunteers than anywhere else and they support many organisations. They are willing to help strangers.

New Zealand did well in education (10th). Education is free, well funded and efficiently allocated. There is equality of access and a very high level of human capital.

Health (19) wins less approval. Hospitals ratio of 22 doctors and 65 beds per 10,000 ranks NZ 38th and 20th respectively. But infant mortality is low, the incidence of malnourishment is the lowest in the world and health adjusted life expectancy is very high at 71. NZ is first rate in sanitation, waste disposal and water. Most New Zealanders are healthy but an unusually number report stress and sleeplessness.

Finally, the country ranks high in safety and security (13th). By international standards assaults are low, theft average, personal perception of safety are about average, and 63% feel safe while walking at night. The government treats offenders and protesters very well.

The Legatum Institute examines prosperity as wealth and well-being (happy, healthy, and free citizens).