In the latest rating of the happiest and saddest nations in the world, conducted by Legatum Foundation, the United States went down from 10th to 12th place in the list of the 20 top happiest countries. This is the first time America was not in the top 10 since the rating began about six years ago. It seems that the financial crisis is behind America's regression. When there is an economic setback, unemployment goes up, poverty increases, hunger prevails, the rate of crime rises and people feel less safe and secure. When all of this happens, unhappiness will then follow. The 10 happiest countries this year according to Legatum included four Scandinavian countries. Norway occupied first place, Denmark came second, Sweden 3rd and Finland 7th. The other countries on the list are Australia (4), New Zealand (5), Canada (6), Holland (8), Switzerland (9) and Ireland (10). Fair complexion countries occupied the 17 first places. Three Asian countries were included in the top 20 list. They are Hong Kong (18), Singapore (19) and Taiwan (20). What is the secret behind the happiness of people in these countries? Good weather is definitely not one of the determining factors; Scandinavian countries in general are known for their dreary winter days. During a typical Scandinavian winter, you don't see the sun for several weeks and during the summer days last 22 hours or more. In my opinion a nation's happiness is, to a large extent, determined by other factors. Look for instance at the international indicator of government transparency — all of the countries that rank high in transparency are Scandinavian countries. A person becomes happy when he has a sincere feeling that no authority or influential person will rob his country's wealth through devious means which may look legal at the surface but are replete with exploitation, theft and lies. A person also becomes happy when he feels that he is a real participant in the process of decision-making, free to choose his representatives, hold his leaders accountable and monitor the performance of government departments. He will feel happy when he is certain that he can openly criticize any shortcoming without being questioned for his actions. The officials in the happiest countries either apologize or quit their positions in case of any mistakes. These people are happy because they feel that they are real partners in nation-building.