According to the Happy Planet Index (HPI), the level of happiness of the people of a nation is measured by “the success of countries in supporting good life for their citizens, whilst repecting the environmental resource limits upon which our lives depend.” The BBC’s website says it “shows the ecological efficiency with which human well-being is delivered.”
The study was done by the New Economics Foundation (NEF) in 2006, where the aim of the HPI was to demonstrate that well-being did not have to be linked to “high levels of consumption.”
Vanuatu came out tops, out of 178 countries surveyed. In contrast, its GDP is ranked only 207th out of 233 economies.
Blue waters contrast with black sand beach, Sulphur Bay, Tanna Island, Vanuatu

Malaysia is ranked 44th.
My immediate thought was: at least our world happiness ranking is higher than our world football rankings. On a more serious note, we’re doing better than some of the largest economies: Germany is at 81st, Japan at 95th and the US at 150th.
HPI is based on unconventional factors like consumption levels, life expectancy and happiness, not the usual things like GDP.
Regarding Vanuatu, it is a tropical island in the South Pacific and has a population of 209,000. It has a GDP of USD2,900 and its main resource are forests and fish. Its economy is mainly based on small-time agriculture and tourism.
The rest of the top 10 are dominated by Latin Americans.
Now we know about the happiest country, how about the unhappiest? African and Eastern European countries dominate the bottom 10 of the list.
Some of the more interesting findings of the study:
- “Retail therapy” (=shop till you drop) does not bring happiness: ladies, take note!
- The last 50 years have seen standards of living in the West improved tremendously; but the level of happiness has remained stagnant.
- The main source of happiness is human relationships, not monetary wealth.
So if you want to go on vacation surrounded by happy people, you know where to go. Or perhaps, you’d like to retire there.
Source
Happy Planet Index
The BBC, 12th July 2006
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