July 12 (Bloomberg) -- Vanuatu, a group of South Pacific islands populated by fisherman and farmers, is the world's happiest place, according to a study published today.

The U.S. and U.K. are among the world's least happy countries because of their consumer-driven economies, according to an index compiled by the New Economics Foundation, a London-based researcher and environmental campaigner.

Vanuatu is slightly larger than Connecticut and has a population of 209,000, according to the Central Intelligence Agency. The inhabitants of the islands live for about 69 years on average, about eight less than Americans, and economic output per person is $2,944, a 13th of that in the U.S.

``People can live long, happy lives without using more than their fair share of the earth's resources,'' said the report, published on the foundation's Web site.

The New Economics Foundation was set up in 1986 to question the agenda of the Group of Eight leading industrialized nations.

The Happy Planet Index covers 178 countries by multiplying life expectancy by life satisfaction, and dividing it by environmental impact in each country, including carbon emissions. The index was compiled over two months, using United Nations life expectancy figures from 2003, World Database of Happiness statistics from 2005 and the World Footprint Network's research on consumption and environmental impact.

Small and Happy

Vanuatu scored 68.2 points, while the U.S. came in 150th place on 28.8 points. The U.K., ranked 108th, earned 40.3 points. Islands scored better because their societies tended to bond better with higher life satisfaction, the report said.

The red perils of the 1960s, Cuba and Vietnam, are now havens of happiness, ranked more than 100 places higher than the U.S. The biggest malcontents were in Zimbabwe, ranking bottom.

The U.S. and Germany have similar levels of satisfaction and life expectancy, though Germans, ranked 81st, have an ``ecological footprint,'' or area of land required to sustain the population, half the size of the U.S.

Italy ranked highest among members of the G8, placing 66th, with Russia the lowest, almost last in the survey at 172nd place.

Central American countries account for nine of the top 10 happiest countries. African countries including Swaziland and Equatorial Guinea make up six of the bottom 10, the index showed.

To contact the reporter on this story: Amy Wilson in London at awilson23@bloomberg.net.

Last Updated: July 12, 2006 12:00 EDT