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Country trails Georgia and Armenia by more than 60 places but ranks ahead of Iran and Turkmenistan
Azerbaijan ranked 105th among 161 countries in the 2026 Legatum Prosperity Index, placing below Georgia, Armenia, Turkey and Russia but ahead of Iran and Turkmenistan.
The findings suggest that Azerbaijan’s wide gap with its South Caucasus neighbors is driven less by economic and human development than by weaker results in freedom and the strength of social and state institutions.
According to the official Legatum Institute report, Georgia ranked 42nd globally, followed by Armenia in 43rd place. Turkey was 102nd, Russia 103rd, Azerbaijan 105th and Iran 116th.
How Azerbaijan Compares With Its Neighbors
A lower number indicates a better position.
| Country | Overall Rank | Development | Freedom | Society |
|---|---|---|---|---|
| Georgia | 42 | 65 | 53 | 29 |
| Armenia | 43 | 67 | 37 | 54 |
| Kazakhstan | 66 | 52 | 112 | 45 |
| Turkey | 102 | 55 | 137 | 92 |
| Russia | 103 | 46 | 142 | 85 |
| Azerbaijan | 105 | 69 | 128 | 124 |
| Iran | 116 | 72 | 144 | 122 |
| Turkmenistan | 150 | 86 | 158 | 160 |
Azerbaijan finished only two places behind Russia and three behind Turkey. However, it trailed Armenia by 62 positions and Georgia by 63.
The country ranked 11 places above Iran and 45 places above Turkmenistan.
Development Results Are Close Across the South Caucasus
The gap among the three South Caucasus countries is relatively small in the Development domain.
Georgia ranked 65th, Armenia 67th and Azerbaijan 69th. This means the enormous difference in their overall rankings cannot be explained solely by income, health care or education.
Azerbaijan’s individual Development rankings were:
- Standard of Living: 69th;
- Health: 81st;
- Education: 54th.
Education was Azerbaijan’s strongest result among the index’s 10 main pillars.
Russia ranked 46th in Development, Kazakhstan 52nd and Turkey 55th. Iran was slightly below Azerbaijan in 72nd place.
Largest Gap Is in Freedom and Society
The most substantial differences between Azerbaijan and its South Caucasus neighbors appeared in the Freedom and Society domains.
Armenia ranked 37th in Freedom and Georgia 53rd, while Azerbaijan was placed 128th. That represents a gap of 91 positions with Armenia and 75 with Georgia.
Azerbaijan’s Freedom rankings were:
- Civil Peace: 115th;
- Freedom of Dissent: 137th;
- Economic Freedom: 122nd.
Despite its low position, Azerbaijan ranked above Turkey, Russia and Iran in the overall Freedom domain. Turkey was 137th, Russia 142nd and Iran 144th.
The index defines Civil Peace through indicators related to security, the rule of law and protection from illegitimate coercion. Freedom of Dissent covers areas including freedom of expression, religion, digital autonomy and privacy. Economic Freedom examines property rights, contract enforcement, inflation, taxation and regulation.
State Integrity Is Azerbaijan’s Weakest Result
Azerbaijan ranked 124th in the Society domain, compared with Georgia in 29th place and Armenia in 54th. Russia ranked 85th and Turkey 92nd.
Azerbaijan’s results across the four Society pillars were:
- Integrity of Families: 111th;
- Integrity of Communities: 86th;
- Integrity of Society: 109th;
- Integrity of State: 143rd.
The 143rd-place result for Integrity of State was Azerbaijan’s weakest individual performance in the entire index.
These rankings reflect the specific methodology and indicators selected by the Legatum Institute and should not be treated as an independent or definitive assessment of any country’s political system.
Why Russia and Turkey Ranked Slightly Higher
Russia and Turkey performed worse than Azerbaijan in Freedom but compensated with stronger Development and Society results.
Russia ranked 46th in Development and 85th in Society, while Turkey placed 55th and 92nd, respectively. Azerbaijan ranked 69th in Development and 124th in Society.
Azerbaijan’s advantage over Russia and Turkey in Freedom was therefore insufficient to offset its weaker results in the other two domains.
The comparison with Iran is reversed. Azerbaijan ranked slightly higher in Development and substantially higher in Freedom, while Iran held a narrow advantage in Society, ranking 122nd against Azerbaijan’s 124th. Azerbaijan nevertheless finished 11 places higher overall.
This Is Not a Wealth Ranking
The Legatum Prosperity Index is not simply a measure of gross domestic product, income or economic growth.
The 2026 index uses 130 indicators divided across three domains: Development, Freedom and Society. Development includes living standards, health and education, while the other domains examine civil and economic freedoms, family and community ties, social cohesion and state integrity.
The institute substantially revised its methodology for the 2026 edition. Under the new system, serious weakness in one domain has a greater effect on a country’s final result and cannot be fully offset by strong performance elsewhere.
A wealthy or relatively developed country can therefore receive a low overall ranking if it performs poorly in freedom or social and institutional strength.
According to Azerbaijan’s official country profile, the country’s position over the period covered by the revised calculations has ranged from 100th to 109th. Its average position was 104th, compared with its current rank of 105th.
Important Correction to the Georgian Report
A Jnews report described several figures for Georgia – including 69, 67 and 57 – as scores on a 100-point scale.
However, the corresponding table in the official Legatum report lists rankings, not scores. For example, Georgia’s figure of 69 for Freedom of Dissent means the country ranked 69th among 161 states in that category; it does not represent a score of 69 points.
The central conclusion for Azerbaijan remains clear: the country’s Development performance is close to that of Georgia and Armenia. Its overall deficit of more than 60 positions is primarily linked to much lower rankings in Freedom, Society and the integrity of state institutions.
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