Australia has topped the rankings in a prosperity index of more than 100 countries, with its quality of life and economic strength pushing it into number one spot.
The Legatum Institute's Prosperity Index of 104 nations measures the material health of a country, including wealth, quality of life and life satisfaction.
Australia has topped the 2008 index, ahead of Austria and Finland in that order.
While Asian powerhouses Singapore, Taiwan and Hong Kong scored well economically, their livability dragged down their performance.
True prosperity consists of more than money - it also includes happiness, health and liberty.
The Prosperity Index shows that in addition to economic success, a society's prosperity is based on strong families and communities, political and religious liberty, education and opportunity, and a healthy environment.
The Australian government earns high scores on corruption control and overall effectiveness, supporting the country's quality of life in many areas.
Bottom of the list was Yemen, with Zambia and Zimbabwe not faring much better.
The financial crisis-racked United States was rated equal fourth, alongside Germany and Singapore.
14 October 2008
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