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Life, liberty and the pursuit of happiness: a Jeffersonian approach to development indicators.

I. Introduction

International comparisons of well-being across nations and through time are meaningful endeavors for social scientists interested in expanding knowledge of the human condition. Per capita Gross Domestic Product (GDP) has historically been used to distinguish between high, middle, and low-development countries since this measure is the broadest single piece of quantifiable data available to economists. While per capita GDP is widely accepted as a key element in living a quality life, it fails to account for many human activities not fully captured in markets. A more comprehensive method of comparing human well-being across countries and through time, is the Human Development Index (HDI) created by Mahbub ul Haq and published annually by the United Nations Development Program. (1) The HDI rates a country's social and economic progress along three basic dimensions: health, as proxied by life expectancy, income, measured by per capita gross national income (GNI) at purchasing power parity, and education, made up of average and expected years of schooling. (2) However, despite the HDI's integration of additional social indicators, it still fails to include a large number of factors that most humans value in their lives.

The Genuine Progress Indicator (GPI) represents an ambitious attempt by the nonprofit organization Redefining Progress to measure many previously underreported elements of human behavior. The GPI is based on accounting methods similar to those used to measure GDP but it imputes values for activities and externalities that traditional reporting excludes from income calculations, such as the value of housework and parenting, the services of highways and streets, the costs of crime and pollution, and the depletion of nonrenewable resources. (3) By including many costs and benefits not calculated in GDP but experienced by the country's citizens, the GPI produces a more complete rendering of living standards. There are other international comparisons as well. The Economist's quality-of-life index incorporates income, life expectancy, unemployment, political freedom and stability, family and community life, climate, and gender equity into its comprehensive measure. (4) The United Nations Development Programme's Human Poverty Index is comprised of income poverty rates, long-term unemployment, functional illiteracy and the probability of not surviving to age 60. (5) Finally, a recent approach, dubbed the Happy Planet Index, compares longevity, ecological footprint, and life satisfaction among countries. (6)

Despite the best efforts of many researchers, ranking well-being across nations or through time is still imprecise at best. Any rating scale is likely subject to the attitudes, beliefs, and cultural landscape of its authors; therefore, these models naturally contain the bias of their creators. As Paul Streeten writes, "It is clear that the concept of human development is much deeper and richer than what can be caught in any index or set of indicators." (7) In this paper, we propose an alternative approach to calculating international comparisons. We create a development index based not on income or the perspectives of modern development theorists, but rather on a simple interpretation of the political and economic philosophy of one of modern Western civilization's most influential figures--Thomas Jefferson. (8) This exercise is not an attempt to create a universally acceptable development metric. We acknowledge that no index can be globally comprehensive in scope and that all indices will exhibit inevitable cultural bias. However, with this index we adopt the particular biases and perspectives of one of America's more interesting and influential thinkers.

II. Jefferson Development Index

A nearly universal concept in Western philosophy is the idea that all people are endowed with certain human rights. (9) In his Second Treatise of Civil Government, John Locke wrote that the rights natural to all men are life, health, liberty, and possessions. (10) Drawing on Locke, Jefferson immortalized the inalienable rights as "life, liberty, and the pursuit of happiness" in the U.S. Declaration of Independence. His eloquent enumeration of natural rights and the principles they embody has become a cornerstone of western political philosophy. Since much of western civilization is rooted in the security of these natural rights, we use Jefferson's famous phrase as a basis for creating a novel, yet reasonably comprehensive measure of development and progress. Each component of the Jefferson Development Index (JDI) reflects the relative performance of countries in achieving these rights considered paramount to Jefferson and other Enlightenment thinkers.

Following the methodology of the HDI, the JDI is computed as the aggregation of three individual indices relating each country's actual performance along life, liberty, and the pursuit of happiness dimensions to the maximum and minimum observed values in the sample. Specifically, the index for each of the components and subcomponents of the JDI is calculated as:

[I.sub.i,t] = [X.sub.i,t] - [X.sub.min]/[X.sub.max] - [X.sub.min] (1)

where [I.sub.i,t] is the index value for country i at time t, [X.sub.i,t] is the observed value of the particular component in country i at time t, and [X.sub.min] and [X.sub.max] are the minimum and maximum values of the component respectively. (11) The resulting index, bounded by 0 and 1, measures a country's performance relative to the most and least successful countries in the sample along the given dimension.

1. Life

In constructing the first component of the JDI we begin with the straightforward assumption that greater longevity implies a country is more successful at protecting Jefferson's "life" natural right than countries with relatively short average life spans. Therefore, the Life Index was computed simply as the relative life expectancy at birth across countries. These data were collected for various years from the World Bank website. (12)

2. Liberty

The Liberty measure is more subjective; however, we argue that two existing indices, Freedom House's annual Freedom in the World rankings and the Fraser Institute's Economic Freedom of the World report, are generally commensurate with Jefferson's views on political and economic freedom, respectively. (13,14)

Political Freedom

The Freedom House rankings are based on two categories, political rights and civil liberties. (15) The political rights rating includes scores which evaluate a country's 1) electoral process, 2) political pluralism and participation, 3) functioning of government, and a supplemental section measuring the power of monarchy. Though not included in his succinct list of universal rights found in the Declaration of Independence, Jefferson also considered self-government a natural and inalienable right of all people. (16) In communications with Congressman William Eustis, Jefferson stated, "The fundamental principle of the government is that the will of the majority is to prevail." (17) Learning from the failure of the Articles of Confederation, Jefferson could only remedy the necessity of a federal administration by ensuring that the national government would derive all its authority and abilities from the will of the people, a sentiment explicitly measured in the political rights category of the Freedom of the World report.

Freedom House's civil liberties assessment measures four categories of human rights: 1) freedom of expression and belief, 2) associational and organizational rights, 3) rule of law, and 4) personal autonomy and individual rights. In addition to the importance of self-governance, Jefferson thought it crucial to protect the civil liberties of a republic's people. His communications on these topics disclose a clear understanding that the will of the majority may infringe upon the rights of minorities. Jefferson wrote, "It [is] inconsistent with the principles of civil liberty, and contrary to the natural rights of the other members of society, that any body of men therein should have authority to enlarge their own powers without restraint." (18) Jefferson believed that the only way a population could enjoy its natural rights was for the government to pursue the will of the majority while protecting the rights of all people, especially the personal freedoms measured in the Freedom House's civil liberties assessment.

Economic Freedom

The second component of the Liberty Index is economic freedom as reported in the Fraser Institute's Economic Freedom of the World report. The scores reflect the Institute's findings along five dimensions: 1) size of government, 2) legal structure and security of property rights, 3) access to sound money, 4) freedom to trade internationally, and 5) regulation of credit, labor, and business. Jefferson's beliefs in small government with limited involvement in the market are generally consistent with the stance of the Economic Freedom of the World report. (19) In a letter to Elbridge Gerry, Jefferson wrote, "I am for a government rigorously frugal," with this frugality to be exercised in every aspect of government from taxation to commercial policy. (20) In Jefferson's view, the ability to own and control property was essential to personal and commercial freedom, and a government's effective maintenance of property rights helps ensure its citizens are free to consume and save according to their own desires.

Jefferson's attitude toward governmental regulation such as barriers to trade, tariffs, and quotas can be gleaned from many of his compositions. Freedom to trade with all parts of the world was a right of people and should not be subject to a government's intervention. (21) By allowing its citizens total freedom to exchange mutual surpluses for mutual wants, a country would ensure that its people were able to produce and consume those goods and services which would promote human life and happiness. (22) This would lower the prices paid by domestic consumers and widen the variety of available goods that add to the comfort and enjoyment of human existence. (23) Burstein described these views as reactions to the French regulation of commercial policy that left the American colonies bitterly opposed to state control. He maintained that Jefferson was more inclined to ban all governmental involvement in commerce rather than simply excluding the federal government from imposing commercial policy while allowing states the right to regulate market activity. (24) In his correspondence with John Adams, Jefferson wrote "I think all the world would gain by setting commerce at perfect liberty." (25) Clearly Jefferson showed little appetite for government influence over the market activities of its people and is rightly portrayed "as one of the early American champions of laissez-faire capitalism." (26)

3. Pursuit of Happiness

The final component of the JDI is the Pursuit of Happiness Index. While Locke's enumeration of the natural rights triad as "Life, Liberty, and Estate" was fairly specific, Jefferson's use of more general syntax creates some ambiguity. As a proponent of minimal government, Jefferson wanted to ensure that the government had no control over the right to own property, the ability to assemble peaceably, and other such activities that could not be concisely listed in the Declaration of Independence. Bassani asserts, "The right to the pursuit of happiness appears to be so all-encompassing as to include the right of property." (27) It could also be asserted that by generalizing all other natural human rights as the pursuit of happiness, Jefferson was vocalizing his distaste of government influence over the lives of its citizens.

We define the natural right to the pursuit of happiness, the third component of the JDI, as the freedom to pursue and achieve life satisfaction. The Pursuit of Happiness Index is derived from the aggregated results of two questions drawn from the World Values Survey. (28) The first question asks respondents to numerically rate on a scale of 1 to 9 how satisfied they were with their life. The second question similarly asked respondents to rate how free they felt they were to make their own decisions. Together these questions elicit citizens' perceptions about their freedom, and success, in attaining overall life satisfaction. The raw data we use to compute the pursuit of happiness portion of the JDI is measured as the countries' average value of each of these two questions.

The final JDI is computed as:

JDI = 1/3 L + 1/3 [(1/2 PRCL) + (1/2 EF)]

+ 1/3 [(1/2 LS) + (1/2 PF)] (2)

where, L is the Life Index, PRCL is the Political Freedom Index, EF is the Economic Freedom Index, LS is the Life Satisfaction Index, and PF is the Personal Freedom Index. Each component and subcomponent is calculated as shown in equation (1).

III. Results

The JDI and its components are shown in Table 1 for 2006. New Zealand, Switzerland, and Canada top the rankings. Perhaps not surprisingly, the top nine countries are all high-income OECD countries while African and South Asian countries make up the bottom portion of the rankings. Most of the high-income OECD countries perform well in all three of the index's components. Relative to their income levels Chile, South Africa, and Bulgaria perform well on the Liberty scale and Mexico, Colombia and various other Latin American countries score well in the Happiness component.

In general, however, there is substantial agreement across the measures in terms of top performers and laggards. The cross-country Pearson product-moment correlation coefficients for each of the subcomponents as well as their correlation coefficients with per capita GNI and the HDI are shown for 2006 in Table 2. While the table shows significant correlation between many of these components, a notable exception is personal freedom, which does not appear to be strongly correlated with life expectancy, economic or political freedom or per capita income. However, it is highly correlated with life satisfaction. In fact, life satisfaction appears to be more closely tied to personal freedom than to freedom, life expectancy or income. Many of the Latin American countries perform well in life satisfaction, perhaps because residents enjoy a greater sense of personal freedom and autonomy.

Table 3 shows the JDI for each year that sample data is available. While many countries fluctuate somewhat from period to period, there are several examples of sustained improvement--defined as an increase of over 10 percentage points for more than a decade. These include four "transitional" economies (Romania, Poland, Bulgaria, and South Africa), South Korea, Argentina, and Italy. Also of note is that there appears to be no sustained declines in the JDI--similarly defined. Of course this observation may be a function of the limited sample sizes for many countries. The United States and India experienced declines recently; however, they may be transitory movements since such regression is not observed repeatedly.

Table 4 provides overall rankings for all 81 countries in the sample. GNI and HDI rankings are based on 2006 data. (29) The JDI ranking in the table is based on the most recent wave available. For most countries that is 2006, however some previous JDI values are used to augment the sample. For expositional purposes we divide these 81 countries into five regional groupings: (1) northwestern European countries and their offshoots, (2) southern European countries and their Latin American offshoots, (3) east Asian countries, (4) Eastern European countries, and (5) African and southwestern Asian countries.

When viewed through the spectrum of these regional groupings a few patterns emerge. First the western European countries and their offshoots make up the 14 highest ranked countries. Only Belgium, the Netherlands and Germany lag slightly from this group. The second most successful group of economies according to the JDI belongs to the Mediterranean/Latin group occupying fifteen of the 22 positions between 15 and 36. Unlike HDI rankings or those based on per capita income, there is not great distinction between southern European and Latin American countries in the JDI, many of which share similar cultural heritage.

Generally the East Asian counties are ranked in the next wave, with the higher income economies (Japan, Singapore, South Korea) performing better in the index than middle or lower income Asian economies. Eastern European and former Soviet countries are intermixed with some of the East Asian countries, but generally place slightly lower in the rankings. However, several early transition countries such as Slovenia, the Czech Republic, and Poland, have moved upward in the rankings over time. African and south and southwest Asian countries tend to rank lowest on the JDI with Jordan, Turkey, and, to a lesser extent, South Africa being notable exceptions.

As indicated by Table 2 there is considerable correlation between the JDI and the other two widely used economic and social indicators, GNI and the HDI. However, there are several outliers. Table 5 displays nine countries that average more than fifteen places higher in the JDI than in GNI and HDI rankings. Guatemala, for instance, ranks thirty spots higher on the JDI than on the HDI and Uruguay ranks 27 places higher on the JDI than it does in terms of per capita income. Seven of these nine overachievers are Latin American countries, which tend to perform very well relative to their income level in terms of personal freedom and life satisfaction measures. The Philippines, a former Spanish territory, also performs well on these measures.

Countries that perform poorly on the JDI relative to GNI and the HDI generally fall into two categories. First are former Soviet or Soviet-influenced economies, including Russia and the Baltics. Russia, for instance, falls 30 spots lower on the JDI than it ranks in per capita income. The second group of underperformers on the JDI is high income Asian economies including Singapore, Japan, and South Korea. Singapore, for instance, is 28 places lower on the JDI than it ranks in terms of per capita income. Overall, each of the countries rank lower on the personal freedom and life satisfaction measures than their income levels would suggest.

IV. Conclusions

By evaluating social and economic progress with non-traditional indicators such as natural rights, social scientists can make international comparisons of well-being that do not necessarily measure human development by market success or per capita GDP. These new comparisons can then be analyzed against market-based metrics to evaluate the extent to which market prosperity corresponds with the chosen interpretation of human development. Thomas Jefferson's political and economic philosophies, particularly his views on natural rights, have been influential world-wide, particularly among Western political economists and philosophers, and therefore have been chosen as a starting point for the human development metric constructed in this paper.

Perhaps not surprisingly then the results show the high-income OECD countries, particularly those in the West enjoy the highest degree of Jeffersonian rights. However, there appears to be a strong degree of regionalism embedded in the results. Northwestern Europe and its offshoots are rated highly by this metric followed by Latin American and southern European countries, East Asian countries, and finally African and south Asian countries. Eastern European countries tend to run the gambit depending on their chosen degree of integration with the West. Furthermore, Latin American countries tend to perform well on the JDI relative to per capita GDP and HDI rankings, while eastern European and wealthy Asian nations tend to perform poorly compared to these other measures.

This novel interpretation of inalienable rights as a development indicator serves to motivate discussions both on the link among culture, human rights, and economic success and on the creation of alternative development measures. Our results show the Jefferson Development Index produces international comparisons quite similar to those of market-based metrics without explicitly relying on productivity as a measure of success. Further research into the relationship between natural rights and market success may help social scientists explain the bi-directional links between certain elements of Western political and economic philosophy and the economic and social development of nations founded upon these elements.

References

Bassani, Luigi M. "Life, Liberty, and ...: Jefferson on Property Rights." Journal of Libertarian Studies 18, no. 1 (2004): pp. 31-87.

Burstein, M. L. Understanding Thomas Jefferson: Studies in Economics, Law, and Philosophy. New York: St. Martin's Press, 1993.

Kekic, Laza. "The world's best country," The Economist, November 2004, The World in 2005, special edition.

Fraser Institute. "Economic Freedom of the World, 2004 Dataset," http://www.freetheworld.com (accessed November 1, 2010).

Freedom House. "Freedom in the World Comparative Rankings," http://www.freedomhouse.org (accessed October 27, 2010).

Jefferson, Thomas. A Summary View of the Rights of British America. Edited by Thomas P. Abernathy. New York: Scholar's Facsimilies and Reprints, 1943.

Jefferson, Thomas. The Papers of Thomas Jefferson. Edited by Julian P. Boyd, et. al. Princeton, N J: Princeton University Press, 1950.

Jefferson, Thomas. The Writings of Thomas Jefferson: being his autobiography, correspondence, reports, messages, addresses, and other writings official and private. Edited by H.A. Washington. New York: J.C. Riker, 1853-1855.

Jefferson, Thomas. The Writings of Thomas Jefferson. Edited by Paul L. Ford. New York: Putnam, 1892-1899.

"Liberty Poll, The." Liberty 13, no. 2 (Feb. 1999).

Locke, John. Two Treatises of Government. Edited by Thomas I. Cook. New York: Hafner Publishing Company, 1947.

Marks, Nic, Andrew Simms, Sam Thompson, and Saamah Abdallah. The Happy Planet Index: An index of human well-being and environmental impact. London: New Economics Foundation, 2005.

Sakiko Fukuda-Parr, et al. Technical Notes. Human Development Report 2003, Millenium Development Goals: A Compact among nations to end human poverty. New York.: Oxford University Press, 2003.

United Nations Development Programme. Human development report. New York: Oxford University Press, various years.

Venetoulis, Jason and Cliff Cobb. The Genuine Progress Indicator 1950-2002 (2004 Update). San Francisco: Redefining Progress, 2004.

World Bank Group. Life expectancy at birth, total (years). http://data.worldbank.org/ (accessed November 8, 2010).

World Values Survey Association. "World Values Survey," Online Data Analysis. http://www.wvsevsdb.com/wvs/WVSAnalize.jsp (accessed November 8, 2010).

Streeten, Paul. "Human Development: Means and Ends." American Economic Review 84 no. 2 (1994) pp. 232-237.

Notes

(1.) United Nations Development Programme, Human development report (New York: Oxford University Press, various years)

(2.) For a more detailed description of the Human Development Index calculations see Sakiko Fukuda-Parr, et al., Technical Notes. Human Development Report, Millenium Development Goals: A compact among nations to end human poverty (New York.: Oxford University Press, 2003)

(3.) Jason Venetoulis and Cliff Cobb, The Genuine Progress Indicator 1950-2002 (2004 Update). (San Francisco: Redefining Progress, 2004)

(4.) Kekic, Laza. "The world's best country," The Economist, November 2004, The World in 2005, special edition.

(5.) United Nations Development Programme, Human development report (New York: Oxford University Press, 2005).

(6.) Nic Marks, Andrew Simms, Sam Thompson, and Saamah Abdallah, The Happy Planet Index: An index of human well-being and environmental impact (London: New Economics Foundation, 2005)

(7.) Paul Streeten, "Human Development: Means and Ends," American Economic Review 84 (1994): pp. 232-237.

(8.) "The Liberty Poll," Liberty 13, no. 2 (February 1999), p. 26.

(9.) While the terms human, natural, and inalienable rights have different meanings, we use them somewhat interchangeably here since life, liberty and the pursuit of happiness are widely recognized to fit all three definitions.

(10.) Locke, John. Two Treatises of Government, ed. Thomas I. Cook (New York: Hafner Publishing Company, 1947), p. 123.

(11.) Several components of the JDI utilize data that is only available for a few countries, yielding a restricted data set. Because the data is not uniform, the JDI is calculated using the absolute maximums and minimums over the course of the sample rather than creating annual comparisons; thus, international and intertemporal comparisons are possible.

(12.) World Bank. "Life Expectancy at Birth, Total (Years)," http://data.worldbank.org/indicator/SP.DYN.LE00.IN.

(13.) Fraser Institute. "Economic Freedom of the World Data," http://www.freetheworld.com/download.html

(14.) Freedom House. "Freedom in the World Comparative and Historical Data," http://www.freedomhouse.org/template.cfm?page--439

(15.) Freedom House assigns a rating of 1-7 to each country in two separate categories, Political Rights and Civil Liberties, with 7 denoting the least free countries and 1 denoting those countries whose citizens are "mostly free." We average the political rights and civil liberties scores to form an overall Political Freedom score that also lies between one and seven. In order to standardize these scores with the other data, where higher scores are preferred to lower ones, we invert the scale, assigning values of 7 to the mostly free countries and 1 to those which are least free. Note that not all reports have data ranging from 1 to 7 among usable countries.

(16.) Thomas Jefferson, The writings of Thomas Jefferson: being his autobiography, correspondence, reports, messages, addresses, and other writings official and private, ed. H.A. Washington. (New York: J.C. Riker, 1853-1855), vol. 7, p.495.

(17.) Thomas Jefferson, The Writings of Thomas Jefferson, ed. P.L. Ford. (New York: G. P. Putnam's Sons, 1892-1899), vol. 9, p.236.

(18.) Jefferson, Thomas. The Papers of Thomas Jefferson, ed. Julian P. Boyd. (Princeton, NJ: Princeton University Press, 1950), vol. 2, p.231.

(19.) In the Economic Freedom of the World report, scores range from one to ten, with ten denoting the most free countries and one the least free. It must be noted that this index is likely not an exact assessment of how Jefferson would rank human well-being throughout the world. Some aspects of this index actually run counter to his views regarding commerce. For instance Jefferson believed that a national body had no right to control the money supply of a country. He knew that access to sound money was the cornerstone of successful commerce but was vehemently opposed to a federal minting of fiat money. As he wrote to his fellow Virginia statesman Edward Carrington, "Paper is poverty ... it is only the ghost of money, and not money itself" (Thomas Jefferson, The Writings of Thomas Jefferson, ed. P.L. Ford. (New York: G. P. Putnam's Sons, 1892-1899), vol. 5, p.21.) Jefferson made clear that he did see some advantages in the use of a paper fiat money though the benefits therein were clearly outweighed by the inherent disadvantages and abuses subject to a currency with no inherent exchange value. In accordance with this distrust he repeatedly affirmed his stance that a national government has no power or business in the manufacture or regulation of fiat money. However, it is reasonable to assume he would believe sound money and low inflation would be preferable to the alternative.

(20.) Thomas Jefferson, The Writings of Thomas Jefferson, ed. P.L. Ford. (New York: G. P. Putnam's Sons, 1892-1899), vol. 7, p.327.

(21.) Thomas Jefferson, A Summary View of the Rights of British Americans, ed. Thomas Perkins Abernethy (New York: Scholar's Facsimiles & Reprints, 1943), p.8.

(22.) Thomas Jefferson, The writings of Thomas Jefferson: being his autobiography, correspondence, reports, messages, addresses, and other writings official and private, ed. H.A. Washington. (New York: J.C. Riker, 1853-1855), vol. 7, p.646.

(23.) Thomas Jefferson, The writings of Thomas Jefferson: being his autobiography, correspondence, reports, messages, addresses, and other writings official and private, ed. H.A. Washington. (New York: J.C. Riker, 1853-1855), vol. 4, p.286.

(24.) M. L. Burstein, Understanding Thomas Jefferson: Studies in Economics, Law, and Philosophy (New York: St. Martin's Press, 1993), p. 97.

(25.) Thomas Jefferson, The Writings of Thomas Jefferson, ed. P.L. Ford. (New York: G. P. Putnam's Sons, 1892-1899), vol. 4, p.81.

(26.) Luigi Marco Bassani, "Life, Liberty, and ... : Jefferson on Property Rights," Journal of Libertarian Studies 18 (2004): pp. 31-87.

(27.) Luigi Marco Bassani, "Life, Liberty, and ... : Jefferson on Property Rights," Journal of Libertarian Studies 18 (2004): pp. 31-87.

(28.) The World Values Survey consists of thousands of in-depth interviews conducted by social scientists at universities around the world in an attempt to measure "major areas of human concern". Their main focus lies in the differences between traditional and secular-rational ideologies, and the effects of a country's transition between stages of development. We calculate each country's Pursuit of Happiness score by computing the average score on both the life satisfaction and personal freedom questions. The average of all interviewees was computed for each observation and a relative score developed for each country in the sample based on equation (1). These data were the most restrictive, limiting the sample size substantially. The derived indices are applicable only within the context of the 125 observations across the 50 countries which have complete data. (See http://www.worldvaluessurvey.org for a more comprehensive overview of the goals and findings of the World Values Survey.)

(29.) Data for Zimbabwe were not available for 2006 so we use 2005 data.

by Jon Rezek, Graham Cano, and Brent Evans *

All authors are with the College of Business at Mississippi State University. Rezek is an Associate Professor of Economics, Cano is a graduate research assistant, and Evans is a graduate assistant and doctoral candidate in economics.

* Corresponding author, Department of Finance & Economics, 40 Old Main, Mississippi State, MS 39762; bae57@msstate.edu
TABLE 1.
Components of the Jefferson Development Index

                   Life               Political   Economic
Country         Expectancy    Life     Freedom     Freedom    Liberty

New Zealand         80        0.95       1          0.88       0.94
Switzerland         81        0.98       1          0.86       0.93
Canada              80        0.95       1          0.84       0.92
Norway              80        0.95       1          0.73       0.87
Sweden              81        0.98       1          0.7        0.85
Australia           81        0.98       1          0.82       0.91
Finland             79        0.93       1          0.77       0.88
Britain             79        0.93       1          0.82       0.91
USA                 78        0.9        1          0.83       0.91
Mexico              74        0.8        0.83       0.64       0.74
Cyprus              79        0.93       1          0.69       0.85
Chile               78        0.9        1          0.82       0.91
Uruguay             76        0.85       1          0.63       0.82
Netherlands         79        0.93       1          0.75       0.87
Spain               80        0.95       1          0.71       0.85
Slovenia            77        0.88       1          0.61       0.81
Germany             79        0.93       1          0.75       0.87
Argentina           75        0.83       0.83       0.47       0.65
France              80        0.95       1          0.67       0.83
Italy               81        0.98       1          0.66       0.83
Colombia            72        0.75       0.67       0.48       0.57
Japan               82        1          0.83       0.75       0.79
Brazil              72        0.75       0.83       0.49       0.66
Trinidad and        69        0.68       0.83       0.67       0.75
  Tobago
Poland              75        0.83       1          0.61       0.81
South Korea         78        0.9        0.83       0.73       0.78
Guatemala           70        0.7        0.5        0.66       0.58
Jordan              72        0.75       0.5        0.71       0.6
Turkey              71        0.73       0.67       0.53       0.6
Peru                72        0.75       0.67       0.68       0.67
Malaysia            74        0.8        0.5        0.63       0.57
Romania             72        0.75       0.83       0.56       0.69
Indonesia           70        0.7        0.67       0.53       0.6
Thailand            68        0.65       0.67       0.65       0.66
Vietnam             74        0.8        0.33       0.56       0.44
Serbia              73        0.78       0.83       0.49       0.66
China               73        0.78       0.17       0.53       0.35
Bulgaria            73        0.78       0.83       0.67       0.75
South Africa        52        0.25       0.83       0.62       0.73
Georgia             71        0.73       0.67       0.7        0.68
Ghana               57        0.38       0.83       0.63       0.73
Iran                71        0.73       0.17       0.52       0.34
Moldova             68        0.65       0.5        0.57       0.53
Ukraine             68        0.65       0.83       0.42       0.63
Russia              65        0.58       0.33       0.53       0.43
Egypt               70        0.7        0.33       0.58       0.46
India               63        0.53       0.67       0.56       0.61
Morocco             70        0.7        0.5        0.5        0.5
Zambia              43        0.03       0.5        0.69       0.59
Mali                47        0.13       0.83       0.51       0.67
Burkina Faso        52        0.25       0.67       0.43       0.55
Ethiopia            54        0.3        0.33       0.39       0.36
Rwanda              48        0.15       0.33       0.44       0.39

Country         Personal        Life
                 Freedom    Satisfaction    Happiness     JDI

New Zealand       0.84          0.89           0.87      0.919
Switzerland       0.74          0.92           0.83      0.912
Canada            0.74          0.87           0.81      0.891
Norway            0.77          0.92           0.85      0.888
Sweden            0.81          0.84           0.82      0.884
Australia         0.74          0.74           0.74      0.875
Finland           0.71          0.87           0.79      0.866
Britain           0.65          0.82           0.73      0.856
USA               0.74          0.74           0.74      0.851
Mexico            1             0.97           0.99      0.841
Cyprus            0.71          0.76           0.74      0.836
Chile             0.61          0.71           0.66      0.825
Uruguay           0.81          0.79           0.8       0.821
Netherlands       0.45          0.87           0.66      0.820
Spain             0.52          0.74           0.63      0.810
Slovenia          0.71          0.71           0.71      0.797
Germany           0.48          0.68           0.58      0.795
Argentina         0.84          0.87           0.85      0.778
France            0.45          0.63           0.54      0.775
Italy             0.32          0.63           0.48      0.760
Colombia          0.87          1              0.94      0.753
Japan             0.26          0.66           0.46      0.749
Brazil            0.77          0.84           0.81      0.739
Trinidad and      0.84          0.74           0.79      0.738
  Tobago
Poland            0.42          0.66           0.54      0.723
South Korea       0.45          0.5            0.48      0.719
Guatemala         0.71          0.92           0.82      0.699
Jordan            0.74          0.68           0.71      0.689
Turkey            0.68          0.79           0.73      0.686
Peru              0.58          0.66           0.62      0.681
Malaysia          0.65          0.61           0.63      0.664
Romania           0.74          0.34           0.54      0.662
Indonesia         0.68          0.63           0.65      0.650
Thailand          0.52          0.71           0.61      0.641
Vietnam           0.58          0.68           0.63      0.626
Serbia            0.39          0.39           0.39      0.609
China             0.61          0.61           0.61      0.577
Bulgaria          0.16          0.18           0.17      0.566
South Africa      0.74          0.66           0.7       0.559
Georgia           0.35          0.13           0.24      0.551
Ghana             0.58          0.42           0.5       0.537
Iran              0.58          0.5            0.54      0.536
Moldova           0.52          0.26           0.39      0.524
Ukraine           0.23          0.32           0.27      0.516
Russia            0.55          0.42           0.48      0.498
Egypt             0.26          0.32           0.29      0.481
India             0.23          0.34           0.28      0.474
Morocco           0             0.21           0.11      0.436
Zambia            0.61          0.42           0.52      0.378
Mali              0.26          0.42           0.34      0.378
Burkina Faso      0.13          0.29           0.21      0.336
Ethiopia          0.29          0.13           0.21      0.292
Rwanda            0.39          0.13           0.26      0.266

TABLE 2.
Correlations between JDI components and GNI, HDI measures

INDICATOR              Life Ex.    Pol. Free    Eco. Free    Per. Free

Life Expectancy           --
Political Freedom        0.51          --
Economic Freedom         0.57         0.58          --
Personal Freedom         0.31         0.25         0.35          --
Life Satisfaction        0.58         0.49         0.50         0.76
GNI                      0.67         0.66         0.67         0.23
HDI                      0.91         0.65         0.68         0.39

                      Satisfact       GNI          HDI

Life Expectancy
Political Freedom
Economic Freedom
Personal Freedom
Life Satisfaction         --
GNI                      0.48          --
HDI                      0.59         0.81          --

TABLE 3.
Jefferson Development Index for All Years

Country                 1981     1990     1995     2000     2006

Albania                                  0.598    0.538
Algeria                                           0.455
Argentina              0.565    0.754    0.789    0.807    0.778
Australia              0.881             0.844             0.875
Austria                         0.9               0.879
Bangladesh                               0.597    0.456
Belgium                         0.835             0.835
Brazil                          0.67     0.594             0.739
Britain                0.817    0.869             0.873    0.856
Bulgaria                        0.433    0.611    0.563    0.566
Burkina Faso                                               0.336
Canada                 0.892    0.939             0.912    0.891
Chile                           0.808    0.786    0.791    0.825
China                           0.54     0.594    0.52     0.577
Colombia                                 0.665             0.753
Croatia                                  0.597    0.679
Cyprus                                                     0.836
Czech                                    0.759    0.76
Denmark                0.859    0.87              0.879
Dominican Republic                       0.696
Egypt                                             0.435    0.481
El Salvador                              0.691
Estonia                                  0.662    0.668
Ethiopia                                                   0.292
Finland                         0.885    0.853    0.876    0.866
France                 0.722    0.762             0.784    0.775
Georgia                                                    0.551
Germany                                  0.802    0.847    0.795
Ghana                                                      0.537
Greece                                            0.781
Guatemala                                                  0.699
Hungary                0.554    0.596    0.696    0.642
Iceland                0.854    0.886             0.91
India                           0.53     0.529    0.473    0.474
Indonesia                                         0.631    0.65
Iran                                              0.504    0.536
Ireland                0.828    0.861             0.897
Italy                  0.647    0.793             0.801    0.76
Japan                  0.703    0.734    0.771    0.78     0.749
Jordan                                            0.629    0.689
Latvia                                   0.561    0.605
Lithuania                                0.671    0.623
Luxembourg                                        0.87
Malaysia                                                   0.664
Mali                                                       0.378
Malta                  0.813    0.861             0.851
Mexico                          0.716    0.748    0.821    0.841
Moldova                                                    0.524
Morocco                                           0.515    0.436
Netherlands            0.795    0.828             0.862    0.82
New Zealand                              0.895             0.919
Nigeria                         0.319    0.365    0.397
Norway                 0.822    0.873    0.859             0.888
Pakistan                                          0.308
Peru                                     0.613    0.678    0.681
Philippines                              0.703    0.678
Poland                          0.585             0.682    0.723
Portugal                        0.585             0.8
Romania                         0.479    0.445    0.564    0.662
Russia                                   0.496    0.369    0.498
Rwanda                                                     0.266
Serbia                                                     0.609
Singapore                                         0.755
Slovakia                                 0.681    0.662
Slovenia                                 0.69     0.783    0.797
South Africa                    0.475             0.56     0.559
South Korea            0.373    0.753             0.719    0.719
Spain                  0.719    0.801    0.831    0.815    0.81
Sweden                 0.854    0.915    0.886    0.883    0.884
Switzerland                     0.954    0.779             0.912
Tanzania                                          0.282
Thailand                                                   0.641
Trinidad and Tobago                                        0.738
Turkey                                   0.503    0.477    0.686
Ukraine                                  0.518    0.391    0.516
Uruguay                                  0.797             0.821
US                     0.9      0.926    0.883    0.92     0.851
Venezuela                                0.526    0.738
Vietnam                                                    0.626
West Germany           0.818
Zambia                                                     0.378

TABLE 4.
JDI, GNI, and HDI Rankings

Country                JDI Rank    GNI Rank    HDI Rank

New Zealand                1          25           3
Switzerland                2           5          12
Iceland                    3          15           7
Ireland                    4          10           5
Canada                     5           7           8
Norway                     6           2           1
Sweden                     7           9           6
Denmark                    8           8          16
Austria                    9          11          22
Australia                 10          17           2
Luxembourg                11           1          18
Finland                   12          16          13
United Kingdom            13          12          23
USA                       14           4           4
Malta                     15          30          28
Mexico                    16          39          41
Cyprus                    17          24          31
Belgium                   18          13          15
Chile                     19          43          36
Uruguay                   20          47          40
Netherlands               21           6           9
Spain                     22          21          19
Portugal                  23          28          32
Slovenia                  24          23          26
Germany                   25          14          10
Greece                    26          22          20
Argentina                 27          42          37
France                    28          19          14
Italy                     29          20          21
Czech Republic            30          29          24
Singapore                 31           3          25
Colombia                  32          52          55
Japan                     33          18          11
Brazil                    34          51          53
Venezuela                 35          44          52
Trinidad and Tobago       36          27          45
Poland                    37          36          34
South Korea               38          26          17
Guatemala                 39          63          69
Dominican Republic        40          56          59
El Salvador               41          59          51
Jordan                    42          60          57
Turkey                    43          40          56
Peru                      44          57          48
Croatia                   45          34          38
Philippines               46          67          62
Estonia                   47          31          27
Malaysia                  48          41          42
Romania                   49          45          39
Slovak Republic           50          32          29
Indonesia                 51          66          66
Hungary                   52          33          30
Thailand                  53          55          60
Vietnam                   54          71          67
Lithuania                 55          35          33
Serbia                    56          49          44
Latvia                    57          38          35
China                     58          61          61
Bulgaria                  59          46          43
South Africa              60          50          65
Georgia                   61          64          49
Albania                   62          54          46
Ghana                     63          73          73
Iran                      64          48          54
Moldova                   65          68          63
Ukraine                   66          58          47
Russia                    67          37          50
Egypt                     68          62          64
India                     69          69          70
Bangladesh                70          74          72
Algeria                   71          53          58
Morocco                   72          65          68
Nigeria                   73          72          74
Zambia                    74          77          76
Mali                      75          78          80
Burkina Faso              76          76          79
Pakistan                  77          70          71
Ethiopia                  78          80          78
Tanzania                  79          75          75
Rwanda                    80          79          77
Zimbabwe                  81          81          81

TABLE 5.
Differences between GNI, HDI and JDI rankings

Country                GNI -JDI    HDI -JDI     Avg.

Guatemala                  24          30       27.0
Mexico                     23          25       24.0
Uruguay                    27          20       23.5
Colombia                   20          23       21.5
Chile                      24          17       20.5
Philippines                21          16       18.5
Brazil                     17          19       18.0
Dominican Republic         16          19       17.5
Jordan                     18          15       16.5
...                       ...         ...        ...
South Korea               -12         -21      -16.5
Singapore                 -28          -6      -17.0
Estonia                   -16         -20      -18.0
Japan                     -15         -22      -18.5
Slovak Republic           -18         -21      -19.5
Hungary                   -19         -22      -20.5
Latvia                    -19         -22      -20.5
Lithuania                 -20         -22      -21.0
Russian Federation        -30         -17      -23.5
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Author:Rezek, Jon; Cano, Graham; Evans, Brent
Publication:American Economist
Geographic Code:1USA
Date:Sep 22, 2011
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