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The Functional States Index is a measure of how functional a country is, with functional defined by a combination of factors, including standard of living, life expectancy, education, how democratic, peaceful and egalitarian the country is, per capita ecological footprint, life satisfaction, and government debt/foreign assets. It was conceived as a compromise among other indices of the functionality of nations, such as the Human Development Index and the Happy Planet Index, which take more limited selections of factors into account.
The Functional States Index was created in May 2009 by Eldon Katz. It is not claimed to be a perfect measure, but Katz says he hopes it will inspire a "legitimate" organization to create such an index that incorporates a broad range of relevant factors.
For example, the Human Development Index score for Egypt was 0.734. The high and low scores on the Human Development Index were 0.968 (Iceland) and 0.284 (Somalia), so Egypt's sub-score regarding this source would be =
To give one more example, the Global Peace Index score for Israel was 3.052. The high and low scores on the Global Peace Index were 1.176 (Iceland) and 3.514 (Iraq) (note that the high score here is actually the smaller number), so Israel's sub-score regarding this source would be =
Each state's Functional States Index score is the average of all six subscores, with the Happy Planet Index receiving double the weight of the other sub-scores, as a country's ecological footprint is likely to have a greater effect on it's long term sustainability than other factors.
Every United Nations member state with a population of 300,000 or more was rated, plus Hong Kong and Taiwan. Each one is given a grade from A to F, based on their score. An "A" grade means mostly functional, a "B" grade means satisfactorily functional, a "C" grade means unsatisfactory/somewhat non-functional, a "D" grade means highly non-functional, and an "F" grade means
completely un-functional.