In this article, we look at the most democratic countries in the world. You can skip our detailed analysis on the link between democracy and economic growth, and head over directly to the Top 10 Most Democratic Countries in the World.
The 2022 Democracy Index issued by The Economist Intelligence Unit earlier this year categorized 167 countries according to the type of regimes in these nations. Of these, only 24 were fully democratic, while 48 were termed as flawed democracies. On the other hand, 36 were hybrid regimes, whereas 59 were categorized as authoritarian regimes.
China’s spectacular rise over the last two decades and increasing prosperity in the oil-rich monarchies of the Arab world, coupled with growing populist politics in Europe and the United States have once again given prominence to the question of whether democracy leads to economic growth, or are democratic institutions a hindrance.
A research conducted in 2019 by professors belonging to various universities of the US concluded that democracy does cause economic growth and provide evidence that democratization leads to an increase in GDP per capita over the long run. The paper studied countries from 1960 to 2010 and tracked their path from nondemocracy to democracy between this time period. Results showed that countries that transitioned to democracy experienced a 20% growth in GDP per capita over the next 25 years after embracing democracy.
While the United Nations does not publicly advocate for any form of government, it includes democratic elements such as human development, equal participation, and gender equality in the set of principles and values it promotes.
Corporations That Promote Democracy
Recently, a number of large corporations have also made commitments to advance democracy. Cloudflare, Inc. (NYSE:NET) for instance, which connects to more than 11,000 networks around the globe, works with researchers on sharing data about internet shutdowns across different regions of the world. Cloudflare, Inc. (NYSE:NET) works with organizations such as the Internet Society, Access Now, and others to monitor internet censorship. Moreover, Cloudflare, Inc. (NYSE:NET) also regularly consults members of the civil society to ensure that all future product developments and technologies are privacy-enhancing and consistent with human rights.
Earlier this year at the White House’s Summit for Democracy, Alphabet Inc. (NASDAQ:GOOG)’s Google announced to commit $2 million to support human rights defenders since they consistently face harassment and are targeted which threatens their privacy and freedom of expression. This fund will be dedicated by Alphabet Inc. (NASDAQ:GOOG) to safety helplines and digital security for human rights defenders. In addition to this, Alphabet Inc. (NASDAQ:GOOG) also recently announced plans to provide 100,000 security keys, free of cost, to individuals who are at high risk of cyber attacks.
In 2022, Microsoft Corporation (NASDAQ:MSFT) partnered with International Foundation for Electoral Systems (IFES) to train investigative journalists on cybersecurity and digital safety with a focus on how state machineries abuse power to steal elections. The first training was held in Tunisia in October 2022, followed by Serbia in November. 29 local journalists in these countries benefited from the curriculum training offered by IFES and Microsoft Corporation (NASDAQ:MSFT). The IFES has received high demand for this training from several other countries as well, and it plans on expanding this offering in collaboration with Microsoft Corporation (NASDAQ:MSFT) in 33 other countries in the coming years.
Methodology
We have ranked the the most democratic countries using The Economist’s 2022 Democracy Index released this year and V-dem Institute’s Democracy Report 2023. Rankings of countries on both of these indices were averaged to get an aggregated score. The most democratic countries are listed in descending order of these rankings. In case where the scores were the same for two or more countries, we outranked one over the other by seeing which country had the highest ranking on either of the two indices.
Let’s now head over to the list of the most democratic countries in the world.
30. Slovakia
Score: 30.5
Slovakia is ranked 18th in V-dem’s democracy report 2023, but it was placed under the flawed democracies list by The Economist. While the country’s democratic credentials are still stronger than most other countries in Europe and the world, only 48% of Slovaks believe liberal democracy is good for their country – signaling a risk to the future of democracy in Slovakia.
29. Italy
Score: 26.5
Italy finds itself in the middle ranks in terms of its democratic credentials. The country is a parliamentary republic with a multi-party system. Its ratings have dropped by three points on The Economist’s democracy index compared to last year.
28. Austria
Score: 26.5
Austria is one of the most democratic countries in the world and is acclaimed for its electoral processes, pluralism, and civil liberties. An estimated 61% of the population in Austria is satisfied with how democracy is functioning in their country.
27. United States
Score: 26.5
While the United States is widely considered as the world’s bastion of democracy, it receives low scores when it comes to its political culture and functioning of the government. The Economist rated it as a flawed democracy and ranked it at 30. On the other hand, V-dem placed it on 23rd in its democracy report.
26. South Korea
Score: 26
South Korea is a democratic republic with a presidential form of government. While its democracy remains susceptible to populism, South Korea still manages to have a healthier democracy compared to several other Asian nations. It ranks among the most democratic nations in the world. The country is considered a full-fledged democracy by The Economist Democracy Index 2022.
25. Portugal
Score: 25
Portugal is a stable parliamentary form of democracy in Europe and ranks among the most democratic countries in the world. The country received high scores from V-dem for ensuring free, fair and transparent elections.
24. Japan
Score: 21.5
Japan is one of the most democratic countries in Asia and has improved its ratings over the last few years. According to The Economist, Japan’s democracy performs well when it comes to pluralism, civil liberties, functioning of the government, and electoral process.
23. Belgium
Score: 21.5
Belgium is ranked 36th on the Democracy Index 2022 issued by The Economist, while it was placed on 7th spot by V-dem. The country is known for hosting the headquarters of several large international organizations, including the European Union and NATO.
22. Uruguay
Score: 21
Uruguay was recently ranked as the most democratic country in The Americas by The Economist. It received a full 10 out of 10 score for its electoral process and pluralism, and also scored well on other metrics such as functioning of the government, political participation, and civil liberties.
21. Czech Republic
Score: 21
The Czech Republic is one of the most democratic countries in the world and in Europe. It is a unitary parliamentary republic, with the president as the head of state, and the prime minister as the head of the government. The Economist, however, identified one area where the country’s democracy needs to improve: functioning of the government, for which it received a score of 6.43 out of 10.
20. Chile
Score: 20
After the return of civil rule in 1990, Chile has experienced an expansion of political rights and liberties, and is considered to be a stable, full democracy. Chile ranks 19th on The Economist and 21st on V-dem Institute’s democracy indices.
19. Taiwan
Score: 20
Taiwan is one of the most democratic countries in the world, and recently, President Tsai Ing-wen reaffirmed her country’s commitment to a democratic future by saying that Taiwan will never give up on its democratic way of life. Taiwan is claimed by China as its own, and Taipei regularly faces both political and military pressure from Beijing which is under communist rule.
18. Spain
Score: 19.5
Spain has climbed two spots in The Economist Democracy Index of 2022, compared to 2021, and is considered to be a full democracy. However, several independent analysts have, in recent times, cast doubts on Spain’s democratic credentials over curbs placed on secessionist politicians in Catalonia.
17. United Kingdom
Score: 19
The United Kingdom falls in the upper-middle tier when it comes to democratic credentials. It was ranked 20th on V-dem Institute’s 2023 Democracy Report, and 18th on The Economist’s 2022 Democracy Index, which also listed the UK as a full-fledged democracy due to its sound electoral process, pluralism, and civil liberties.
16. Canada
Score: 18
According to a recent survey, 66% of Canadians are satisfied with democracy in their country. Canada scored 10 out of 10 on The Economist’s electoral politics and pluralism metrics. It is one of the most democratic nations in the world.
15. France
Score: 17.5
France has a vibrant democracy, with strong protections for civil liberties and political rights. The country has a semi-presidential form of government. It is listed among full democracies by The Economist.
14. Estonia
Score: 16
Estonia has strong democratic credentials, with civil liberties and political rights not just enshrined in the constitution, but also upheld and widely practiced around the country. Estonia is ranked by V-dem Institute as the fifth most democratic country in the world, whereas The Economist ranked the country at 27th.
13. Iceland
Score: 16
Iceland has been widely recognized as a full democracy since 2021 and has been consistently improving its democratic credentials in areas such as electoral process, political participation, functioning of the government, and civil liberties.
12. Luxembourg
Score: 14
Luxembourg has strong democratic institutions and ranks among the upper-middle tier of countries in terms of democratic credentials. The country’s media is pluralist and generally free from political interference. Luxembourg allows foreign nationals from both EU and third-countries to vote during the elections.
11. Costa Rica
Score: 13
Costa Rica is a presidential form of democratic republic and has a multi-party system. According to a recent survey, 87% of the respondents in the country reported that they are satisfied with their quality of life. This is likely due to the high levels of civil liberties, pluralism, and strong functioning of the government in Costa Rica.
