A prosperity model goes beyond the GDP

In most countries, development or progress of the nation is reflected in the Gross Domestic Product or GDP which is one of the commonly used measures of the total output (or income) of an economy. It measures the total annual value of goods and services produced by a country.

Per capita income is often used as a measure of the wealth of the population of a nation, particularly in comparison to other nations. Per capita income gives no indication of the distribution of that income within the country, so a small wealthy class can increase the measured per-capita income far above that of the majority of the population.

The 2007 Legatum Prosperity Index goes beyond the GDP by introducing a new measure of national prosperity combining the latest life satisfaction measures with material wealth indicators. Based on the analyses of 40 years worth of economic data, this index is a global study of the factors that drive and restrain national prosperity across more than 50 countries.

The researchers looked at material wealth drivers as well as life satisfaction drivers. The rankings of countries in different categories gives a useful analysis to understand the areas that need action for improvement.

Though Maldives is not on this list, a considerable income disparity exists between the rich and poor. As the country's GDP grows, so does the gap between the rich and poor. The poor remain poor not because they are lazy and don't work as hard as the rich (in economic terms low productivity), but because they are trapped in a system that favours the rich in terms of opportunities, access to resources and education.