World Happiness Report 2023 89 the WVS). Specifically, the civic values index aggregates five variables: confidence in government, general trust in people, attitudes to complying (not to cheat) on taxes, confidence in the justice system/courts, and attitudes (not being justified) to accepting bribes.29 Figure 3.1 shows a strong positive correlation between the Pillars of Prosperity index and the history of executive constraints (left graph) and civic values (right graph). Each dot represents a country and the color of that dot indicates which third of the world income distribution that country is in. As both graphs show, the positive correlation is present not only across all countries but also more narrowly within each income group. Clusters The evidence in Figure 3.1 relies on a more or less arbitrary amalgamation of various indicators into a single index. Because of the positively correlated indicators, we prefer to think in terms of clusters of countries. We now show, using our data, that positive and negative attributes tend to cluster together, just as we would expect if the components of social peace and state capacity were the result of common causes and complementarities (recalling the discussion at the end of the previous section). Figure 3.2: Clustering of Attributes Across Countries -2 2 0 Dimension 2: Political Violence 2 0 -2 -4 Dimension 1: State Capacity and Income Weak States Special-interest States Common-interest States
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