A Closer Look at the World's Top Democracies

America prides itself on being number one. And yet, it is not only not ranked number one, but it isn't even ranked even among the top ten in top democracies. In fact, the United States recently ranked 30th. This begs to question whether we have let our American pride turn into American arrogance, and whether there might be some things we can learn from the people who are doing it best. Here’s a list of the top democracies in the world, typically based on rankings from sources like the Economist Intelligence Unit (EIU) Democracy Index. And here's a few things we can learn from them.

Norway

Democratic Strengths: Strong political institutions, high civic engagement, and a comprehensive welfare system.

• Strong Political Institutions: Norway has a high level of government transparency, low corruption, and efficient public institutions.

• High Civic Engagement: The population is highly engaged in politics, with high voter turnout and active participation in civil society.

• Social Welfare System: Norway’s comprehensive welfare state ensures that citizens' rights to health, education, and social security are well protected, contributing to social stability and equality.

• Economic System: Social Market Economy – Norway has a mixed economy with a significant welfare state. The government plays a strong role in regulating the economy and providing extensive social services, funded largely by the country’s oil wealth through the Government Pension Fund.

• Impact on Democracy: The wealth generated by Norway’s natural resources is used to fund extensive social welfare programs, ensuring that citizens have access to health care, education, and social security. This reduces inequality, fosters social cohesion, and supports political stability, strengthening democratic governance.
  

2. Iceland

Democratic Strengths: Effective governance, high civic participation, and strong press freedom.

• Effective Governance: Iceland boasts strong democratic institutions with a transparent and effective government.

• Civic Participation: The country has a highly participatory political culture, with high voter turnout and active citizen involvement in policymaking.

• Press Freedom: Iceland is known for its robust freedom of the press, with minimal restrictions on journalists.

• Economic System: Mixed Economy – Iceland has a diversified economy with significant government involvement in key sectors, particularly in regulating the banking system after the 2008 financial crisis.

• Impact on Democracy: Iceland’s economic system supports democracy by providing a safety net and ensuring that wealth is distributed in a way that reduces extreme disparities. The country’s recovery from the financial crisis through collective decision-making and public involvement has reinforced trust in democratic institutions.

3. Sweden

Democratic Strengths: Commitment to human rights, open government, and an inclusive society.

• Human Rights and Equality: Sweden is recognized for its strong commitment to human rights, gender equality, and social justice.

• Open Government: The country has a transparent and accountable government, with strong laws that protect freedom of information and promote public trust in institutions.

• Inclusive Society: Sweden’s social policies are highly inclusive, promoting equality and reducing social disparities.

• Economic System: Social Democratic Economy – Sweden operates a social democratic system with a strong welfare state, high taxes, and extensive government involvement in providing public services like health care, education, and pensions.

• Impact on Democracy: Sweden’s economic model reduces income inequality and promotes social mobility, which in turn supports a stable and cohesive society. This economic stability underpins a strong democratic culture, where citizens are more likely to participate in the political process and trust in the system.

4. New Zealand

Democratic Strengths: Stable governance, high trust in institutions, and recognition of indigenous rights.

• Stable Governance: New Zealand has a stable government with effective checks and balances and a strong legal system that upholds the rule of law.

• High Trust in Institutions: Public trust in democratic institutions is high, partly due to New Zealand’s low levels of corruption and high government accountability.

• Indigenous Rights: The country has made significant strides in recognizing and protecting the rights of the Māori people, contributing to a more inclusive democracy.

• Economic System: Liberal Market Economy – New Zealand has a market-oriented economy with a focus on free trade, open markets, and minimal state intervention, although it also maintains a strong social safety net.

• Impact on Democracy: The balance between a liberal market economy and a robust social safety net ensures that while the economy remains competitive, citizens are protected from the excesses of the market. This balance fosters social stability, supports equality, and ensures broad participation in the democratic process.

  
  

5. Finland

Democratic Strengths: Transparent governance, emphasis on education and civic awareness, and strong press freedom.

• Transparent Governance: Finland has a transparent government with minimal corruption, strong rule of law, and a well-functioning judicial system.

• Education and Civic Awareness: The education system emphasizes civic responsibility and political literacy, which contributes to high levels of political engagement.

• Press Freedom: Finland consistently ranks high in press freedom, ensuring that the media can operate independently and inform the public without government interference.

• Economic System: Nordic Model – Finland’s economy combines a market-based system with a comprehensive welfare state. The government plays a significant role in ensuring social welfare, health care, and education.

• Impact on Democracy: Finland’s economic model promotes equality and social cohesion, which are key to a functioning democracy. The high level of education and civic awareness among citizens contributes to informed voting and active participation in democratic processes, bolstered by the economic security provided by the welfare state.
  

6. Denmark

Democratic Strengths: Inclusive welfare system, strong civil liberties, and efficient government.

• Inclusive Welfare System: Denmark’s extensive welfare system ensures that citizens have access to essential services like healthcare and education, promoting social equality.

• Strong Civil Liberties: The country has a high degree of personal freedom, with strong protections for civil liberties and human rights.

• Efficient Government: Denmark is known for its efficient and transparent public administration, with low corruption and a high degree of public trust.

• Economic System: Nordic Model – Like Finland, Denmark has a market economy with a robust welfare state. High taxes fund extensive social programs, including health care, education, and unemployment benefits.

• Impact on Democracy: The economic system in Denmark supports democracy by reducing inequality and providing social safety nets that ensure all citizens can participate fully in society. This promotes social cohesion, reduces social tensions, and supports a stable and participatory democratic environment.

7. Ireland

Democratic Strengths: Responsive government, active civic participation, and progressive social policies.

• Responsive Government: Ireland has a responsive and accountable government, with a strong legal framework that upholds democratic principles.

• Active Civic Participation: The Irish population is actively engaged in the democratic process, with high voter turnout and a vibrant civil society.

• Progressive Social Policies: Ireland has made significant progress in recent years on social issues, such as same-sex marriage and reproductive rights, reflecting a commitment to human rights and equality.

• Economic System: Liberal Market Economy – Ireland has a market-driven economy with a focus on free enterprise and minimal state intervention, complemented by progressive social policies.

• Impact on Democracy: Ireland’s liberal market economy has spurred significant economic growth, which, combined with progressive social policies, has created a more inclusive society. This inclusivity fosters greater civic engagement and trust in democratic institutions, particularly as the government responds to social changes and challenges.

  
  

8. Canada

Democratic Strengths: Diverse and inclusive society, strong rule of law, and political stability.

• Diverse and Inclusive Society: Canada is known for its multiculturalism and policies that promote diversity and inclusion, making it one of the most socially progressive democracies.

• Strong Rule of Law: Canada has a robust legal system that ensures the rule of law is upheld, with strong protections for civil liberties and human rights.

• Political Stability: The country enjoys political stability with effective governance and a high degree of public trust in democratic institutions.

• Economic System: Mixed Economy – Canada operates a mixed economy with a combination of private enterprise and significant government involvement in key sectors such as health care, education, and natural resources.

• Impact on Democracy: Canada’s economic system supports democracy by ensuring that wealth and opportunities are distributed fairly across its diverse population. The strong social safety net and inclusive policies promote equality, reducing social divisions and enhancing political stability and citizen participation in the democratic process.
  

9. Australia

Democratic Strengths: High levels of political participation, transparency and accountability, and effective social policies.

• High Levels of Political Participation: Australia has compulsory voting, which contributes to high voter turnout and a politically engaged population.

• Transparency and Accountability: The government operates with a high degree of transparency, with strong mechanisms in place to combat corruption and ensure accountability.

• Effective Social Policies: Australia has a well-developed social welfare system that supports health, education, and social security, contributing to social equality and democratic stability.

• Economic System: Liberal Market Economy – Australia has a liberal market economy characterized by open markets, strong property rights, and minimal state intervention, alongside a comprehensive social welfare system.

• Impact on Democracy: The combination of a market-driven economy and a strong social safety net ensures economic stability and social equality. This balance supports democratic governance by creating a secure environment where citizens are free to engage in the political process and trust in public institutions.

  
  

10. Switzerland

Democratic Strengths: Direct democracy, decentralized government, and high civic engagement.

• Direct Democracy: Switzerland is famous for its system of direct democracy, where citizens have a direct say in decision-making through regular referendums and initiatives.

• Decentralized Government: The country has a highly decentralized government structure, which allows for significant regional autonomy and empowers local governance.

• High Civic Engagement: Swiss citizens are highly engaged in the political process, with a strong culture of participation and a high level of trust in democratic institutions.

• Economic System: Social Market Economy – Switzerland has a strong market economy with extensive social policies. The government ensures economic stability while providing social protections, such as health care and unemployment benefits.

• Impact on Democracy: Switzerland’s economic system supports its unique form of direct democracy by ensuring that citizens have the economic security and education needed to participate fully in decision-making processes. The combination of economic stability and civic responsibility strengthens trust in democratic institutions and the overall functioning of democracy.
  

In each of these countries, the economic system plays a crucial role in reinforcing democratic principles. By promoting social equality, reducing economic disparities, and ensuring that citizens have access to essential services, these systems create a stable and inclusive environment where democracy can thrive.

30. United States of America

Democratic Strengths: America has long-standing democratic institutions, robust civil liberties, and vibrant civil society.

• Long-standing Democratic Institutions: The U.S. has a rich history of democratic governance, with established institutions like the Constitution, an independent judiciary, and a system of checks and balances that have been in place for over two centuries.
  

• Robust Civil Liberties: The Bill of Rights guarantees fundamental freedoms such as freedom of speech, religion, and assembly, which are vigorously protected by the judiciary.
  

• Vibrant Civil Society: The U.S. has a highly active civil society, with numerous NGOs, advocacy groups, and grassroots movements that contribute to political discourse and influence policy.

Key Social Factors: The US is experiencing high levels of political polarization, a feature that is directly correlated with economic inquality and exacerbated by social justice issues.

• Political Polarization: The U.S. is deeply polarized along political lines, which has led to significant challenges in governance, including legislative gridlock and a decline in bipartisan cooperation.
  

• Income Inequality: The U.S. has one of the highest levels of income inequality among developed nations, which has led to disparities in political influence and access to resources, undermining the principles of equal representation.
  

• Racial and Social Justice Issues: Systemic racism, mass incarceration, and social justice movements like Black Lives Matter highlight ongoing struggles with inequality and civil rights.

Economic System: America's has a highly capitalistic, super-consumer, liberal market economy, shaped so heavily by corporate influence that it's hard to call it "free-market".

• Liberal Market Economy: The U.S. operates a highly capitalistic, market-driven economy characterized by minimal government intervention, robust private enterprise, and a strong emphasis on free markets. The government plays a limited role in regulating the economy, with significant emphasis on individual responsibility and entrepreneurship.
  

• Corporate Influence: The U.S. economic system is heavily influenced by corporate interests, particularly in politics. The Supreme Court’s decision in Citizens United v. FEC has allowed for increased corporate spending in elections, amplifying the influence of wealthy individuals and corporations in the political process.
  

Impact on Democracy: America's current model of capitalism is driving economic inequality, which fuels political polarization, compromises social mobility, and perpetuates disasterous market failures.

• Economic Inequality: The concentration of wealth in the hands of a few has significant implications for democracy, as it leads to disparities in political power and access to resources. Wealthy individuals and corporations can exert disproportionate influence on policy-making, which can skew policies in favor of the wealthy and exacerbate social inequalities.
  

• Political Polarization: Economic inequality and the outsized influence of money in politics have contributed to growing political polarization, weakening the ability of the government to function effectively and eroding trust in democratic institutions.
  

• Social Mobility and Economic Opportunity: Rising costs in education, healthcare, and housing have made it more difficult for many Americans to achieve upward mobility. This economic strain contributes to political disillusionment and decreases trust in the system, weakening the democratic fabric of the nation.
  

• Capitalism and Market Failures: While the U.S. economy has driven significant innovation and economic growth, it has also led to market failures in areas like healthcare, housing, and finance. These failures disproportionately affect lower-income and marginalized communities, exacerbating social inequalities and undermining the sense of fairness and justice essential to a healthy democracy.
  

Conclusion

The United States, while having a strong foundation in democratic principles and civil liberties, faces significant challenges that impact its democratic ranking. The combination of political polarization, economic inequality, and the influence of money in politics has weakened its democracy. The liberal market economy, while promoting innovation and economic growth, has also contributed to these democratic challenges, particularly through the concentration of wealth and power. Addressing these issues will be crucial for strengthening the U.S.’s democratic standing in the future.