Up Close and Personal Prosperity Models

The first up-close and personal prosperity models are based on the theory of social capital and their empirical application in China. In a previous paper, Helliwell Huang Wang Shiplett analyzed the structure of the national well-being index and developed a nomological network of emerging prosperity factors. In this study, she also examined the discriminant validity of different well-being indicators, focusing on their differential associations with other variables.

In the up-close and personal prosperity model, people are highly motivated to serve other people and provide them with fulfillment. This is largely in their self-interest, so they often spend up to sixty hours a week providing services. They may even borrow and spend large sums of money on these activities. Ultimately, their success is entirely dependent on economic growth. But there are differences between the two models. For example, the up-close and personal prosperity model places more emphasis on subjective factors, while the personal model stresses the role of individual freedom and self-determination.

Another up-close model measures prosperity at the national level. The Legatum Prosperity Index measures social capital and economic quality. In addition, it includes personal freedom and safety. Its score on Factor 1 is higher than that on Factor 2 and Paraguay’s on Factor 3. That means that standing on one dimension might not reflect their standing on the other. This suggests that a more holistic approach is needed.

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