Kiwis live well and prosper

The most prosperous nations have happy, free citizens. Photo / NZ Herald

New Zealand has made it into the top 10 of a list of the world's most successful countries, according to a global survey of wealth and happiness.

New Zealand ranks 10th in a "prosperity index" of 104 nations covering 90 per cent of the world's population released last week by London-based free market think-tank the Legatum Institute. Finland takes the top spot, while Australia ranks sixth.

Unsurprisingly, Zimbabwe is at the bottom.

The survey brings together data on economic growth with ratings for democracy, social provision, happiness and quality of life.

It shows the most prosperous nations are not necessarily those that have only a high GDP, but also those that have happy, healthy, and free citizens.

A key finding is that it is true money can't buy happiness - unless you are poor.

Only in the poorest countries do increases in income have a significant effect on people's life satisfaction.

Most New Zealanders see themselves as healthy, but just 62 per cent say they feel well rested, which suggests many people either do not get enough sleep or are experiencing significant sources of stress in their day-to-day lives.

Economically, the report says New Zealand is stable and productive, but export performance is weak, indicated by a low ratio of export revenues to the cost of imports.

Also, it says the country's raw material reliance is moderately severe, and foreign direct investment is very low, illustrating one of the drawbacks of self sufficiency and independence.

Workers in New Zealand command plentiful resources in the workplace, as measured by the capital stock per worker, an indicator that quantifies such things as offices and machinery. And our domestic savings run near the international average.

With few bureaucratic hoops to jump through to start a new business, a spirit of entrepreneurship prevails, but New Zealand may be falling behind on innovation.

Information and communications technology and high-tech exports are low, and expenditure on research and development makes up just 1.2per cent of GDP.

While New Zealand has been slow to make use of its entrepreneurial freedom in high-tech industries according to the report, royalty receipts constitute a relatively high percentage of GDP, showing businesses are able to commercialise their intellectual property.

Just over half of the population owns a computer, ranking New Zealand near the global average on this measure.

Efficient and open processes inspire public confidence in New Zealand's businesses and Government, the report says.

Economic and commercial activities are well regulated, business institutions inspire high levels of confidence, and New Zealanders believe their government and businesses are largely free from corruption.