(You should be happy and thankful, perhaps. But not proud, because, to any reasonable approximation, you have had nothing to do with it.)
I agree that being proud of where you're born is silly; but being proud of where you chose to live is slightly different.
If you are born beautiful, can't you be proud of it?
If you are part of an ancient and rich civilization, can't you be proud of it?
It really boils down to you as an individual vs the country you are enlisted in.
Now if you are part of an ancient and rich civilization and you continue to further that civilization, that you can be proud of.
Why wouldn't personal beauty, health or intelligence be considered part of that civilization - and if I procreate, I am furthering it :)
A granfalloon is a false karass. http://en.wikipedia.org/wiki/Bokononism .
You can be proud of your kids because they belong to you. You can be proud of your family because you belong to it. You can be proud of your favorite sports team because you root for them.
BUT if you can be proud of it for its accomplishments, you also should be ashamed of it because of its errors.
Nationalists are people who love to claim the accomplishments of their country, but deny its errors.
EDIT: This is not to say that one has to mention all errors everytime one expresses pride.