The World's Happiest Countries

Most of the nations atop our list are democratic, business-friendly and boast strong social safety nets.

For most, being happy starts with having enough money to do what you want and buy what you want. A nice home, food, clothes, car, leisure. All within reason.

But happiness is much more than money. It's being healthy, free from pain, being able to take care of yourself. It's having good times with friends and family.

In Pictures: The World's Happiest Countries

Furthermore, happiness means being able to speak what's on your mind without fear, to worship the God of your choosing, and to feel safe and secure in your own home.

Happiness means having opportunity--to get an education, to be an entrepreneur. What's more satisfying than having a big idea and turning it into a thriving business, knowing all the way that the harder you work, the more reward you can expect?

With this in mind, five years ago researchers at the Legatum Institute, a London-based nonpartisan think tank, set out to rank the happiest countries in the world. But because "happy" carries too much of a touchy-feely connotation, they call it "prosperity."

Legatum recently completed its 2010 Prosperity Index, which ranks 110 countries, covering 90% of the world's population.

To build its index Legatum gathers data from 12 sources the Gallup polling group, the Heritage Foundation and the World Economic Forum. Each country is ranked on 89 variables sorted into eight subsections: economy, entrepreneurship, governance, education, health, safety, personal freedom and social capital.

The core conceit: Prosperity is complex; achieving it relies on a confluence of factors that build on each other in a virtuous circle. Continue ►