The World’s 10 Best-Managed Countries, 2014 Edition

As leader of one of the world's best-managed countries, Danish prime minister Helle Thorning-Schmidt (left) had something to smile about.

As leader of one of the world’s best-managed countries, Danish prime minister Helle Thorning-Schmidt (left) had something to smile about.

In most large bookstores, you will find a wide selection of ghost-written books in which celebrity CEOs explain the secret of their success, or how they turned a perennial also-ran into an industry-leading corporation.

Alas, it is more difficult to find helpful advice on how to accomplish the same when running a country, even though some good advice widely shared among the world’s politicians would surely improve the lives of billions.

But today’s release of the 2014 Corruption Perceptions Index — the final of four sets of annual rankings I’ve been awaiting — brings us a little bit closer to figuring out which world leaders should be asked to write such a book on how their countries came to be the world’s best-managed, and thus the best places to live.

Based on their overall rankings in the UN’s Human Development Index, Transparency International’s Corruption Perceptions Index, the World Economic Forum’s Global Competitiveness Report and Vision of Humanity’s Global Peace Index, Denmark is arguably this year’s best-managed country, with Switzerland and New Zealand close behind. Finland and Norway round out the Top 5, while Canada finishes in seventh place.

Singapore makes a surprise 8th-place showing here, boosted by a strong showing in three of the four indices, the exception being the Global Peace Index.

Since different indexes use different “highest” and “lowest” scores — e.g., the best possible score in the HDI would be ‘100 out of 100’, but ‘7 out of 7′ in the Global Competitiveness Report — I’ve standardized the scores by showing the best performer’s raw score in each category as a “100”, and then calculated the other countries’ proximity to that front-runner.

 

Country Human Development Index 2014* Corruption Perceptions Index 2014* Global Competitiveness Report 2014* Global Peace Index 2014* Average
Denmark 95.3 100 92.8 99.7 97
Switzerland 97.1 93.5 100 94.5 96.3
New Zealand 96.4 98.9 91.2 96.2 95.7
Finland 93.1 96.7 96.5 91.7 94.5
Norway 100 93.5 93.9 86.7 93.5
Sweden 95.1 94.6 94.9 86.1 92.7
Canada 95.6 88 91.9 91 91.6
Singapore 95.4 93.5 99.1 77 91.3
Iceland 94.8 85.9 82.6 100 90.8
Japan 94.3 82.6 96 90.3 90.8

* – Based on best performing country’s raw score = 100

 

While there is significant overlap between the indices, the objective of this exercise is to get a rough sense of which countries have got the balance right in securing a good life for all of their citizens — a life under human rights and the rule of law, enjoying a sense of security without feeling oppressed, and able to benefit from good economic opportunities.

What makes the front-runner countries work? Some hints might be found in this January 2014 chart (and the accompanying post) which showed that employment prospects, quality infrastructure and housing, personal health, personal cash-flow and a solid social support network all contribute significantly to a better quality of life.

These countries also appear to do quite well in all 12 key aspects of economic competitiveness (discussed in a May 2014 post), which included:

  • Reliable political and judicial institutions
  • Reliable infrastructure
  • Macroeconomic stability (e.g., balanced budgets; stable currency)
  • Well-developed Health and Primary Education systems
  • Ready access to higher and continuous education
  • Availability of goods and services from a variety of competitors
  • Good labour market policies aimed at maximizing the employment rate
  • Access to capital through a well-developed financial sector
  • Technological readiness
  • Access to a large (or larger) market
  • Business sophistication
  • Innovative ability

Additional insights might be gained from this timely Dec. 1 post on the World Economic Forum’s blog, which noted that countries with trustworthy, reliable governments and in which citizens feel less “alone” to face life’s challenges tend to make for better places to live.

Indeed, those with a passion for making their city, province, state or country a better place to live will find many good ideas — originating from both the left and the right, and often from neither — on the rest of the World Economic Forum’s blog site.

In Canada’s case, it appears that the one factor we need to work on the most to get toward “number one” is on cleaning up corruption perceptions. Though Canada was (just barely) one of the world’s 10 least-corrupt nations in this year’s Corruption Perceptions Index, we lagged behind front-runners Denmark, New Zealand and Finland.

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About theviewfromseven
A lone wolf and a bit of a contrarian who sometimes has something to share.

One Response to The World’s 10 Best-Managed Countries, 2014 Edition

  1. HARRISON M KOJUNJU says:

    I WANT THE AFRICAN LEADERS TO BORROW ALEAF FROM THESE GOVN.comENTS FOR GOOD OF THEIR PEOPLE

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