Institute for Economics and Peace (IEP) reveals the most peaceful countries in the world. Despite living in the most peaceful century in human history, the world has become less peaceful over the last decade. 

Author: Luca Ventura
Project Coordinator: B Pham

INTRODUCTION

Peace, some people say, starts with a smile. But ask anyone who lives in one of the most peaceful countries in the world, and they will probably tell you that it is the other way around. These most peaceful nations also enjoy lower interest rates, a stronger currency and higher foreign investment -- not to mention better political stability and stronger correlation with the individual level of perceived happiness. Sadly, the economic  impact of violence is quantifiable too: on a global scale, in 2017 it amounted to  $14.76 trillion in purchasing-power parity (PPP) terms, or to 12.4% of the total global gross domestic product (if the sheer scale of these figures makes them a little hard to grasp, we are talking about $1,988 for each person on the planet).

These are the most significant takeaways from the 2018 Global Peace Index compiled by the international think-tank Institute for Economics and Peace (IEP) covering 163 independent states and territories home to 99.7% of the world’s population. The ranking, which is based on 23 indicators grouped into three criteria (societal safety and security, extent of ongoing domestic and international conflict and degree of militarization), paints a sobering picture: global peace has declined by 0.27% in the last year, the fourth consecutive annual drop, making the world less peaceful today than at any time in the last decade. In the meantime, the number of refugees has rocketed to 1% of the global population, the highest level in modern history.

While it certainly comes as no surprise that many longstanding tensions and conflicts, especially in the Middle East, remain unresolved, even the most peaceful regions – Europe, Asia-Pacific and especially South America – recorded deteriorations. And for anyone wondering whether US President Trump’s “America First” policy is working, it should be noted that he most likely wasn’t referring to the Global Peace Index: the United States dropped seven spots to 121, well behind Cuba (81) and China (114) and a little too close to the least peaceful country in the world, Syria (163).

Here are the top 10 most peaceful countries of 2018.

#10 | IRELAND

Prosperous and developed, the 77th smallest country in the world maintains the tenth spot in the Global Peace Index, which it shared last year with Japan. Due to its independent status and neutral army, Ireland is routinely ranked as one of safest countries in the world. Sense of personal safety, together with air access and positive publicity, has also contributed to Ireland's booming tourism in recent years.

Not only tourists have the Irish Republic on their radar. Due to Brexit, many more businesses are set to join the many multinational companies already operating there. As a result, in 2017 the economy grew by 7.3 per cent, making Ireland the fastest-growing European country with a rate three times faster than the wider EU area.

View Ireland GDP and Economic Data

#9 | JAPAN

Up one spot from last year, Japan is three times more densely populated than Europe and twelve times more than the United States. Yet it still manages to ranks highly for both peace and quality of life. While the overall number of recorded crimes in Japan continued to fall in 2017 hitting a record low of 915,111, the good people of Tokyo returned a staggering total of 3.7 billion yen (or $32.7 million) in lost cash to the Metropolitan Police Department -- figures that are also reflected in the low incarceration rate, which in Japan has followed a downward trend starting from the 1950s.

However, when it comes to neighboring countries relations, shaky relationships with China and especially North Korea are often mentioned by the Japanese as reasons of concerns. Japan’s “peace constitution” -- put in place following the Second World War to prohibit the resurrection of aggressive militarism -- was reinterpreted in 2014 to enable “collective self-defense,” hence prompting a restructure and build-up of the country’s strategic capabilities.

View Japan GDP and Economic Data

#8 | SINGAPORE

While the Global Peace Index report shows an increasingly violent world, Singapore has become more peaceful. Way more peaceful: it advanced 13 places up from 21st place last year. What prompted this jump? The Institute for Economics and Peace points out that the largest improvements in the ranking are usually broadly based while large deteriorations in peace are usually led by a few indicators. So while Singapore scored highly in the aspects of societal safety and security and low levels of domestic and international conflict, holding it back from the very top spots of the ranking is the level of militarization, with red marks when it comes to armed services personnel, police forces and weapons import expenditure. The reason? Singapore depends on seaborne trade for its prosperity, so having the resources to ensure the smooth passage of vessels through the Strait of Malacca, the narrow stretch of water that serves as a gateway between the Indian and Pacific Oceans, is crucial.

View Singapore GDP and Economic Data

#7 | CZECH REPUBLIC

Down one spot from last year, over the last decade the Czech Republic has showed a sustained improvement in a great number of areas ranging from political stability to personal security and international relations.

According to the OECD, it also performs well in many measures of wellbeing, ranking above average in jobs and earnings, work-life balance and education and skills. Not only have 93% of adults aged 25-64 have completed upper secondary education -- well above the average rate of 76% and the highest among the 34 industrialized member countries -- but this small nation of 10.5 million can boast the lowest unemployment rate in the European Union at 2.2%, below what economists consider a "natural" level.

View Czech Republic GDP and Economic Data

#6 | CANADA

Canada is the sixth safest out of 163 countries. Up two spots from the past two years, it gets good marks when it comes to factors related to internal conflicts, levels of crime and political stability. The world's second largest country by landmass, while relatively small in terms of population with just 37 million residents, punches above its weight in economic terms. As a top-trading nation, it is also one of the richest. Add to the mix excellent job opportunities, good health facilities and effective governance and you will have one of the best countries to live in. However, the International Monetary Fund (IMF) has recently issued a warning about Canada's economy, saying the country faces significant risks due to trade tensions with the U.S.

View Canada GDP and Economic Data

#5 | DENMARK

Denmark has held the number two spot for five years in a row from 2011 to 2016, dropping subsequently to number five in 2017 and this year. A safe country to travel and live in, it is characterized by low levels of crime, a high degree of political stability, freedom of the press and respect for human rights. It also boasts a high level of income equality and is frequently ranked as one of the happiest nations in the world. The recent drop in the peace ranking is due to a deterioration in some of its militarization indicators. In 2017, to counter the threat Russia's increasing military activity in eastern and northern Europe, Denmark reached a landmark cross-party political deal to increase its defense budget by 20%, on course to match its Nordic neighbors Sweden’s and Norway's expenditure levels.

View Denmark GDP and Economic Data

#4 | PORTUGAL

Portugal marches to the beat of its own drum when it comes to peace and safety. While 61% of European countries have deteriorated over the past three years, this nation of about 10 million people has emerged as one of the biggest climbers, moving from the 18th position in 2014-2015 to the fifth in 2016, and even jumping on the podium last year, at the number three spot. Ranking above the industrialized nations' average in terms housing, work-life balance, personal security and environmental quality, Portugal is also rated as one of the top three favorite expat destinations for the overall quality of the lifestyle experience. Even better, there is no need to break the bank to enjoy the Portuguese way of living: the republic remains one of the most affordable destinations on the continent.

View Portugal GDP and Economic Data

#3 | AUSTRIA

Austria takes back the third spot in the Global Peace Index, a position it has held since 2014 with the exception of last year, when it slipped down one place. Since the end of the Cold War, this small landlocked country of just 8.7 million moved from its peripheral position at the borderline between East and West closer to the center of a larger Europe. As a young member of the EU and outside of NATO, Austria prided itself into trying to get along with rival political blocs and embracing new forms of cooperation with its neighbors. However, while Austria performs well in many measures of wellbeing such as income, jobs and housing, the inclusion of the far-right Freedom Party in the coalition government and the crackdown on migrants has recently sparked rallies in the streets and widespread anxiety among European allies.

View Austria GDP and Economic Data

#2 | NEW ZEALAND

Over the past ten years, New Zealand has never slipped below fourth place in the Global Peace Index. Scoring almost perfect marks in the domains of domestic and international conflict, militarization and societal safety, New Zealand is widely considered a wonderful country to live in.

At around the same size as the United Kingdom but with a population of just 4.7 million people, New Zealand ranks at the top in health status and above the average among OECD members when it comes to education, jobs and earnings. All this, however, comes at a cost: the shortage of affordable housing is increasingly making difficult for people with low incomes to buy homes, with the gap between rich and poor considered the top economic issue facing New Zealand by 20% of its citizens.

View New Zealand GDP and Economic Data

#1 | ICELAND

Icelanders can sleep well at night: they live in the most peaceful country in the world. No news is good news when it comes to tranquil Iceland: it is the tenth year in a row that it retains the number one spot. With no standing army, navy or air force and the smallest population of any NATO member state (about 350,000 people), Iceland also enjoys record-low crime rates, an enviable education and welfare system and ranks among the best nations in terms of jobs and earnings and subjective sense of wellbeing.

Iceland has also managed the impossible: with 97% of the citizens describing themselves as middle and working class, tension between economic classes is often described as "non-existent." Is it really any wonder that Iceland is also one of the happiest countries in the world?

View Iceland GDP and Economic Data

THE MOST PEACEFUL COUNTRIES IN THE WORLD - FULL LIST

Rank

Country

1 Iceland
2 New Zealand
3 Austria
4 Portugal
5 Denmark
6 Canada
7 Czech Republic
8 Singapore
9 Japan
10 Ireland
11 Slovenia
12 Switzerland
13 Australia
14 Sweden
15 Finland
16 Norway
17 Germany
18 Hungary
19 Bhutan
20 Mauritius
21 Belgium
22 Slovakia
23 Netherlands
24 Romania
25 Malaysia
26 Bulgaria
27 Croatia
28 Chile
29 Botswana
30 Spain
31 Latvia
32 Poland
33 Estonia
34 Taiwan
35 Sierra Leone
36 Lithuania
37 Uruguay
38 Italy
39 Madagascar
40 Costa Rica
41 Ghana
42 Kuwait
43 Namibia
44 Malawi
45 UAE
46 Laos
47 Mongolia
48 Zambia
49 South Korea
50 Panama
51 Tanzania
52 Albania
53 Senegal
54 Serbia
55 Indonesia
56 Qatar
57 United Kingdom
58 Montenegro
59 Timor-Leste
60 Vietnam
61 France
62 Cyprus
63 Liberia
64 Moldova
65 Equatorial Guinea
66 Argentina
67 Sri Lanka
68 Nicaragua
69 Benin
70 Kazakhstan
71 Morocco
72 Swaziland
73 Oman
74 Peru
75 Ecuador
76 The Gambia
77 Paraguay
78 Tunisia
79 Greece
80 Burkina Faso
81 Cuba
82 Guyana
83 Angola
84 Nepal
85 Trinidad & Tobago
86 Mozambique
87 Macedonia (FYR)
88 Haiti
89 Bosnia & Herzegovina
90 Jamaica
91 Dominican Republic
92 Kosovo
93 Bangladesh
94 Bolivia
95 Gabon
96 Cambodia
97 Guinea
98 Jordan
99 Togo
100 Papa New Guinea
101 Belarus
102 Georgia
103 Rwanda
104 Lesotho
105 Uzbekistan
106 Brazil
107 Uganda
108 Kyrgyz Republic
109 Algeria
110 Cote d' Ivoire
111 Guatemala
112 China
113 Thailand
114 Tajikistan
115 Djibouti
116 El Salvador
117 Guinea-Bissau
118 Honduras
119 Turkmenistan
120 Armenia
121 United States of America
122 Myanmar
123 Kenya
124 Zimbabwe
125 South Africa
126 Republic of the Congo
127 Mauritania
128 Niger
129 Saudi Arabia
130 Bahrain
131 Iran
132 Azerbaijan
133 Cameroon
134 Burundi
135 Chad
136 India
137 Philippines
138 Eritrea
139 Ethiopia
140 Mexico
141 Palestine
142 Egypt
143 Venezuela
144 Mali
145 Colombia
146 Israel
147 Lebanon
148 Nigeria
149 Turkey
150 North Korea
151 Pakistan
152 Ukraine
153 Sudan
154 Russia
155 Central African Republic
156 Democratic Republic of the Congo
157 Libya
158 Yemen
159 Somalia
160 Iraq
161 South Sudan
162 Afghanistan
163 Syria