August 3, 2018 Luxembourg's quality of life reasserted

SEDA - European dominance

Luxembourg came 4th on the 'Sustainable Economic Development Assessment' (SEDA) ranking, just after Norway, Switzerland and Iceland. Compared to last year, the Grand Duchy maintains its position thanks to good results in the areas of employment and infrastructure. As for the wealth/well-being coefficient, which reviews how countries are able to convert their wealth (as reflected by the income per inhabitant ratio) into well-being, Luxembourg obtained a good rating of 1.5.

The BCG (Boston Consulting Group) presented the results of a factual analysis assessing the development of well-being in a country based on ten different elements, including health, education and infrastructure. The 2018 analysis also assessed the overall direction of total well-being across the world.

European countries continue to dominate the ranking, thanks to high incomes and strong commitment towards social progress and governance. Singapore is the only non-European country among the top ten countries.

What are the essential elements leading to progress?

The SEDA's aimis to strike a balance between both well-being and economic growth, not only under normal circumstances, but also in times of crisis.

A large number of countries are convinced that policies aimed at improving well-being lead to a slower GDP growth. Since the BCG's inception, countries have to resist the temptation of pursuing policies at the expense of well-being and focus their development strategies on improving it.

Among countries with a low level of well-being, here are the areas that differentiate countries which have made improvements in terms of well-being:education, infrastructure and governance.

The importance of a "virtuous circle"

The SEDA notes that countries need to realise how important it is to have a virtuous circle between well-being and economic growth.

The consensus is generally a positive one: figures show that well-being has progressed over a period of ten years. Improvements were recorded between 2007 and 2016, in particular in terms of education, equality and infrastructures. Although trends have been less encouraging with regard to governance and environment, most countries have improved their performance.

(Article written by the editorial team of the 'www.luxembourg.lu' portal)