Most Functional Countries

Switzerland is perfectly situated to avoid trouble. It's mountainous, inland, and hard to access. That has led to Switzerland's ability to remain neutral in many conflicts, preserving its stability. As a result, Switzerland has the highest Human Development Index in the world and the second-highest economic freedom score, according to the Heritage Foundation. It's also ranked high in GDP per capita, democracy, and stability.

While the days of the Nazis are gone, Switzerland remains fairly neutral. Furthermore, Switzerland has a large tourism industry due to its many ski resorts, an activity that attracts the upper classes. Its neutrality also allows it to be a big player in nuclear research, another high-paying, reliable industry.

Norway has oil. And only 5,600,000 people. This means that, unlike some other oil-producing countries, Norway has a lot of oil per capita, so fewer people share the wealth obtained from the natural resource.

However, Norway's success is due, to a larger extent, to its politics and laws, which are just like the rest of Northern Europe. Oil is what sets Norway apart from Sweden, Denmark, and Finland, but they are all rich for reasons other than natural resources.

Finland may be slightly poorer and more dangerous than the other Nordic countries, but while its living standards are a bit lower, there is a notable lack of political polarization and violence. The major parties don't disagree on much, making politics unimportant for many Finns.

Furthermore, what Finland lacks in wealth and safety is atoned for in education. Finland does considerably well here, outpacing its Nordic neighbors.

In 1965, Singapore was kicked out of Malaysia due to racial reasons (the Malaysian government didn't like the Chinese majority in Singapore). Today, Singapore is far more developed than Malaysia, despite lacking Malaysia's oil and agricultural resources.

Singapore is able to maintain its wealth due to being on a very busy trade route, which allowed it to build up manufacturing using natural resources from around the world. Additionally, Singapore's lack of financial regulation turned it into a financial hub.

Singapore has no oil or mining activity, but its location has made it important for world trade and industry, making it unusually rich. Many Singaporeans live there because of good job opportunities for skilled workers. While unskilled immigration is highly controversial, Singapore's skilled immigration policies have made it a wealthier and more educated country.

Monaco is tiny. Like 2.08 square kilometers tiny. As a result, Monaco is expensive - so expensive that only rich people can afford to live there. This has made Monaco the richest country on Earth, according to some measurements.

Monaco's wealth means people don't commit crimes, but it also gives the state a lot of tax revenue to keep the country running smoothly.

The Global Peace Index might not measure a country's safety, but it correlates very well with threats to peace and functionality. Iceland, depending on the year, is usually at the top or within the top five.

To understand why, look at a map. Iceland is isolated, with absolutely no geopolitical enemies nearby. Furthermore, Iceland's low population allows for wealth from geothermal activity to be distributed very generously, so everything is well funded.

Liechtenstein isn't very well known, but among those who know about it, they know how good it is.

For starters, it's pretty isolated. Surrounded by the rural mountains of Switzerland and Austria, it doesn't need a military because it's neither easy nor worthwhile to conquer. Due to similar reasons, organized crime has no use for Liechtenstein, crossing off more of the country's budget.

These two factors would usually have the downside of being bad for economic development, but due to a lack of pointless regulations and corruption, Liechtenstein is rich, with very little poverty.

Japan is what people have described as a "high-trust society." This means that people generally do the right thing and trust others to do the right thing.

Crime is shamed, for example, with no idolization of criminals and gangs in the media. Health outcomes are also good due to the abundance of good food and an avoidance of unhealthy lifestyles. And although seismic activity holds Japan back a bit, most new buildings are earthquake-proof, with Japan being a lead researcher and exporter of these structural techniques.

Despite lacking natural resources, a smooth history, and many other things that would make a country good, Ireland is unusually wealthy. By GDP per capita, it's one of the only countries, even in Europe, to rank above the United States.

Crime-wise, it's safer than the UK, France, and most of Western Europe. This is because Ireland did a lot of things correctly. Economic freedom and property rights are strong, and there's a lack of political violence, showing how Ireland has learned many lessons from the Troubles.