Capitalism has come under attack with the economic crisis, the looming threat of climate change, and a broader concern, most recently driven by French President Nicolas Sarkozy.

As the West contemplates ever tighter regulations on how and where money can be spent, lent, and invested, their leaders should remember that economic and political liberty play a key role in prosperity.

India's democratic institutions, freedom, and social capital rank it thirty places above its rival China in the 2009 Legatum Prosperity Index.

When candidates flip-flop, their poll numbers suffer, but when countries flip-flop, entire economies suffer. This scenario is playing out in India after the government flip-flopped on its decision to allow retail giants such as Wal-Mart to own a majority 51% stake in joint operations with a local partner.

Ah, the power of engagement. New North Korean leader Kim Jong Eun has reportedly agreed to a wide-ranging deal with the Obama administration.

The Legatum Prosperity Index finds countries that dumped the shackles of communism for a system of freedom and political transparency are much more likely to be prosperous.

India ranked forty-fifth to China's seventy-fifth on parameters of wealth and well-being.

The 2009 Legatum Prosperity Index found that while Hong Kong and Singapore show strong economic fundamentals, in terms of noneconomic variables such as health, personal freedom, and social capital, these countries need improvement.