World's Top Shopping Capitals

Consumers will find the most satisfying selection of retailers in these 15 cities.

Topshop finally hopped across the pond to New York City in April 2009. Anthropologie, headquartered in Philadelphia, Penn., signed a lease on London's Regent Street to open its first store in Europe by the end of this year. And Thailand's first Gap is set to opens its doors next spring.

Regardless of how badly retailers' sales have suffered through the recession--in June 2009, U.S. retail sales saw a year-over-year decrease of 9%, to $342.1 billion, according to the Commerce Department, and Saks ( SKS - news - people ) Fifth Avenue's, Gap's ( GPS - news - people ) and H&M's year-over-year global sales for stores open at least one year were down 4%, 10% and 5% in June, respectively--there's no denying that many have used this as an entrée into markets beyond their country's borders. That's because expanding abroad is one of the most efficient ways for a brand that has saturated its own country's retail landscape to gain global market share and increase sales. The result? More choice for the consumer, from Hong Kong to Hamburg. And (hopefully) a bigger bottom line for retailers.

Consider London. In the U.K., the High Street--or the main road in a neighborhood--is shopping mecca. In London, there are more High Streets than one can count, so it's no surprise it hosts more than half of the world's top retailers--chosen for their market share both in their home country and abroad--including the young and trendy Topshop as well as high-end department stores like Liberty of London and Harvey Nichols. What's more, London's leasing regulations for real estate occupied by a foreign-operated business are a lot less strict as they are in, say, Mumbai--where foreign retailers are forbidden to directly open single brand stores--according to Peter Gold, head of Europe, Middle East and Africa cross-border retail research at Los Angeles-headquartered CB Richard Ellis Group ( CBG - news - people ) (CBRE), a multinational real estate corporation. That means retailers like Gap, Abercrombie & Fitch ( ANF - news - people ), Uniqlo and Urban Outfitters ( URBN - news - people ) have often used London as a launch pad for foreign expansion.

It also means that shoppers in London have the most options when it comes to browsing the world's top retailers. Indeed, 59.26%of the world's biggest and best stores are open for business in the city.

Behind the Numbers

To find the world's best cities for shopping, we turned to Gold, who co-authored CBRE's spring 2009 study "How Global Is the Business of Retail?" Gold and his colleagues mapped the global footprint of 280 of the world's top retailers across 67 countries, analyzing retail globalization at a city level. Cities that possessed the highest percentage of these top retailers--chosen for their market share both in their home country and abroad--capped off the list. Retailers studied included restaurants, luxury goods purveyors and mass-market discounters. (The only retailers not considered were automobile dealerships and manufacturers.)

The more options a shopper has, the more discerning he seems to be.

"London shoppers are most adventurous, full stop" says Jason Campbell, a personal stylist and founder of online fashion publication JC Report. Londoners' style is all over the map, and that's reflected in what the stores carry for the runway collections."

While London has its fare share of mass retailers, niche boutiques are peppered across the city, from Westbourne Grove to Shoreditch. For instance, Comme des Garçons designer Rei Kawakubo's Dover Street Market in Mayfair features hard-to-find designers like Anne Valerie Hash; Labour of Love in Islington stocks little-known labels such as Louis Amstrup.

Paris' shoppers--with 49.79% of the world's top shops at their disposal--are similarly selective, although favorite boutiques tend to showcase French designers or those who show their collections during the city's Fashion Week, says Campbell. The latest shopping hot spot? Palais Royal in the first arrondissement, which hosts boutiques such as Stella McCartney, Rick Owens and Corto Moteldo. Diane Pernet, a fashion journalist and author of the Where to Wear, Paris travel guide, suggests new vintage shop Bastien de Almeida as well as Maria Luisa, Colette and L'Eclaireur for those who love multi-brand boutiques. Designer Isabel Marant's boutique in the Marais is also a must-visit for fashionistas looking to add some Parisian ease to their wardrobe.

Other popular shopping destinations include New York, Tokyo and Dubai. While New York (hosting 46.91% of the world's top retailers) and Tokyo (38.68%) both offer tourists a bigger selection of stores than any other city in their respective countries, Dubai's No. 4 ranking on the list--boasting 45.68% of top retailers--is an indication that demand in the Middle East just keeps growing. For example, by 2010, American department store Bloomingdales, part of Macy's ( M - news - people ), will have opened up shop in the city. Along with a consumer demand for more brand names, the numerous malls and shopping centers being built within Dubai make it easier for retailers--or their franchise partners--to acquire prime real estate at a reasonable price. "Access to real estate is key," says Gold.

Other emerging markets are also going strong, including Russia's Moscow--where, Campbell says, conspicuous consumption is still socially acceptable if you do indeed have the money to spend--and Beijing and Hong Kong in China--where 50 new millionaires emerge every day, according to Dan Sontag, president of the global wealth management group at Merrill Lynch. However, brand names still lack a real presence in cosmopolitans within India and Brazil. That's because these countries have stricter rules when it comes to foreign retailers operating businesses within their cities, regardless of whether or not it's through a franchise agreement. Both India and Brazil have strong domestic retail and luxury industries and don't want to cannibalize those sales, says Gold.

But not to worry, power shoppers. Gold also says that as the demand for global brands increases in these countries, so will their brick-and-mortar presence: "I think that it will change," he says. "There is too much [financial] opportunity."

To find the world's best cities for shopping, we turned to Los Angeles-headquartered CB Richard Ellis Group, a multinational real estate corporation that deals in everything from investment to management to research. CBRE's spring 2009 study "How Global Is the Business of Retail?" mapped the global footprint of 280 of the world's top retailers across 67 countries, analyzing retail globalization at a city level. Cities that possessed the highest percentage of these top retailers--chosen for their market share both in their home country and abroad--topped the list.




1. London



Top Retailers: 59.26%

In England, the High Street--or the main road in a neighborhood --is ground zero for shopping. In London, there are more High Streets than one can count, so it's no surprise it hosts more than half of the world's top retailers, including the young and trendy Topshop as well as high-end department stores like Liberty of London and Harvey Nichols. Looking for something more niche? Try Comme des Garçons designer Rei Kawakubo's Dover Street Market--a super-boutique featuring hard-to-find designers like Anne Valerie Hash--or Labour of Love, which stocks little-known labels such as Louis Amstrup.



2. Paris



Top Retailers: 49.79%

Paris is the world's most stylish city, home to some of the world's most well-dressed artists, stylists and designers. Where do these tastemakers score their duds? At vintage shops like Bastien de Almeida and multi-brand boutiques such as Maria Luisa, Colette and L'Eclaireur. The latest hot shopping spot, however is the Palais Royal, which hosts boutiques such as Stella McCartney, Rick Owens and Corto Moteldo, according to Campbell.



3. New York



Top Retailers: 46.91%

The only American city to reach the top of the list, New York is beloved for its grand department stores--including Bergdorf Goodman and Barneys, both in Midtown--as well as its funky boutiques, such as Crave in the meatpacking district and Aloha Rag and What Comes Around Goes Around in SoHo. Of course, every major mass retailer under the sun seems to have a presence in New York, from Target to Gap to Best Buy. One Big Box that's missing? Wal-Mart.



4. Dubai



Top Retailers: 45.68%

Wealthy shoppers in the Middle East love Dubai for its endless sea of malls, including Mall of the Emirates, Wafi Shopping Mall and Villa Moda, chockfull of designer shops like YSL, Gucci, Prada and Louis Vuitton. Many retailers open up shops in Dubai through franchisee agreements. For example, by 2010, American department store Bloomingdales will be open for business in the city through a partnership with the Dubai-based Al Tayer Group.



5. Madrid



Top Retailers: 44.03%

The Spanish capital of Madrid serves as a home to many of the world's top brands, including Adidas, French leather goods maker Loewe and mass mainstay H&M, as well as local favorites such as Agatha Ruiz de la Prada and Desigual, which recently made its U.S. debut in New York's SoHo neighborhood.



6. Moscow



Top Retailers: 42.39%

Bottega? Bulgari? Balmain? If you're looking for luxury, Moscow's got it. Le Form, the city's 10-year-old concept shop--or a shop that carries many brands with complimentary aesthetics--stocks local couturiers as well as international favorites such as Derercuny, Maison Martin Margiela and Dries Van Noten. Even mass brands like Gap, Zara and H&M have expanded into a city still seemingly dedicated to conspicuous consumption.



7. Berlin



Top Retailers: 40.33%

The sprawling city of Berlin has mass retailers like the runway inspired COS--a leg of Swedish company Hennes and Mauritz--high-end department stores such as Galeries Lafayette and fashion-forward boutiques like The Corner, which carries pristine vintage dresses alongside men's Kilgour suits and women's Clements Ribeiro sweaters.



8. Munich



Top Retailers: 39.92%

While it's only the third-largest city in Germany, Munich is still a favorite spot for global retailers, such as Brioni, Armani and Cerruti 1881, which are all at the high-end of retail. More accessible favorites include Polo Ralph Lauren. Of course, those in search of traditional German garb can search the Marienplatz--the area where most of the retail streets converge--for Bavarian costume.



9. Barcelona



Top Retailers: 39.09%

Of course Barcelona has its fair share of High Street stores, including Zara, Topshop as well as the more-mature Cortefiel. Designer shops, including Chanel and Cartier are also present. But it is lesser-known stores that avid shoppers truly appreciate. These include luxury designer boutique Jean-Pierre Bua--which stocks brands like Jean Paul Gaultier--and Le Shoe, home to the heels of Marc Jacobs and Robert Clergerie.



10. Tokyo



Top Retailers: 38.68%

With some of the most unique street fashion in the world, one of Tokyo's biggest draws is its bevy of stores. "It has the largest scope," says Jason Campbell, editor of online fashion publication JC Report. These include mass retailers like Uniqlo and one-off boutiques such as Boutique W--which stocks Belgian designer Ann Demeulemeester--as well as Side by Side, a clothing store launched by international stylist Nicola Formichetti that also showcases the work of emerging artists.



11. Singapore



Top Retailers: 38.27%

On Singapore's Orchard Road, shoppers will find well-known Western brands such as DKNY and Marc by Marc Jacobs, the department store Takashimaya and high-end Indian shop Mumbai Se. DFS Galleria Scottswalk is great for duty-free cosmetics and perfume.



12. Hamburg



Top Retailers: 38.27%

With nine major shopping malls, it's easy to see why Germany's second largest city makes the cut. The Hanse Viertel Galerie Passage--Europe's longest shopping arcade--is a particular favorite, with shops including upscale electronics maker Bang & Olufsen, Lacoste and Falke hosiery.



13. Hong Kong



Top Retailers: 37.86%

Venerable luxury department stores Lane Crawford and Joyce still reign supreme, housing brands like 3.1 Phillip Lim, Balenciaga and Thakoon. I.T--a chain boutique with an urban edge--is great for labels like A Bathing Ape, Cacharel and Raf Simons.



14. Milan



Top Retailers: 37.45%

Milan is Italy's fashion capital, and unsurprisingly, it's also the country's biggest shopping center. Along with the usual suspects, including Giorgio Armani, Gucci and Versace, Milan and the surrounding area is great for outlet shopping. Labels like Marni and Prada discount their goods by as much as 50% in these outposts.



15. Beijing



Top Retailers: 36.21%

Although oft-considered less-cosmopolitan than Shanghai, Beijing has a broad spectrum of retailers that includes department store Lane Crawford Shanghai Tang--which stocks Western clothes with an oriental flair--and the Place Mall, home to 40-plus luxury boutiques including Givenchy, Prada and Stella McCartney.

The World's Most Expensive Iphone

An Apple iPhone 3G made of 18 carat gold and encrusted with diamonds is laying claim to the title of the world's most expensive phone.

Forget the recession - here's the world's most expensive phone. This stunning diamond-encrusted iPhone will set you back a whopping $2,517,345 (£1.6m). The Apple iPhone 3G 'King's Button'.

Designed by Austrian jeweller Peter Aloisson the customised iPhone is priced at £1.6 million.

The handset is surrounded by a white gold line encrusted with a total of 138 brilliant cut diamonds of the best quality.

But the most prominent feature of the "Kings button" phone is its home button that features a rare 6.6 carat diamond.

Mr Aloisson, has a record of blurring the lines between gadget, art and jewellery.

In 1998 the controversial designer released his first diamond-encrusted mobile phone and earlier last year he launched a record-breaking $1.3 million dollar diamond crypto smart phone for Russian encrypting specialist company JSC Ancort.

Besides his "extravagant luxurious mobile phones" which he has been manufacturing for 8 years he also redesigns household objects.

The iPhone has capitalised on the sucess of the iconic iPod to become the most sought after of a new generation of smart phones.

However its competitors, including Microsoft's Zune, Google's G1 and Blackberry's Storm are raidly rolling out a new range of applications in a bid to close the gap.

Most Spectacular Waterfalls In The World

Niagara Waterfalls and beyond--far beyond

The waterfalls hide in all corners of this planet, from specks of islands like Réunion to bustling countries like India, some gushing straight down and others dilly-dallying along rocks, some amidst glaciers and others tucked away in parched landscapes. Each has its own charm, so how to narrow down the world's most spectacular waterfalls?

Dean Goss, along with fellow in the waterfall connoisseur Bryan Swan, have taken quite a calculated approach, working up an algorithm that figures in volume of water, height and verticality of drop, as well as setting—be it pristine or overdeveloped.

"We grew up collecting waterfalls like little kids collect baseball cards," says Goss of he and Swan. They met after stumbling across each other's web sites devoted to the waterfalls and merged forces to create World Waterfall Database, the most comprehensive online resource for the waterfalls information, complete with a "World's 100 Best Waterfalls" list.

Their obsession has certain benefits: In 2003, a respected Japanese photographer named Yoshikazu Shirakawa caught wind of their list and brought them along as consultants when he toured the world shooting the 100 greatest waterfalls (his final cut differs a bit from theirs). "He loves a list of superlatives," says Swan. The project ended with a gallery reception and a coffeetable book priced for $400 "that would probably require a trip to the emergency room if you dropped it on your foot."

Gary Black is another professional photographer who's interested in the waterfalls—they've been his specialty for the last three decades, over which time he's accumulated tens of thousands of photos.

Although he grew up just 15 minutes from Niagara in Ontario, Canada, "my favorite waterfalls don't tend to be the hugest ones," says Black, who prefers to photograph large-but-cascading streams. "They hit the rocks on the way down—it's not a solid, straight drop."

The reasons for being attracted to certain falls are as varied as falls themselves. Forbes Traveler has narrowed down the world's cataracts to the most awe-inspiring, unique ones in a mix of destinations, near luxury accommodations or accessible with world-class tours.

Sometimes the best way to see a fall is nothing new: According the Black, the Maid of the Mist boat tour is the perfect way to see Niagara, despite the new-fangled helicopter rides, floodlights at night, and revolving dining rooms that have cropped up since the ferry's inception in 1846. Blue-ponchoed passengers travel down the Niagara River right to the base of the falls, where "there's a wall of water on your left and a wall of water on your right, and mist all over the place. It's a totally different perspective than seeing the falls from up above. It's wow."

A waterfall can be spectacular without being big, wide or tall. In New Zealand, where waterfalls abound, Huka stands above the rest with its brilliant blue waters. It's only about 30 feet tall, but packs a ton of force, carrying an enormous amount of water from Lake Taupo through a narrow canyon, erupting down the drop.

Goss has visited so many falls (about 3,000) and seen photos of so many (he talks about most as though he's been there in person) that he now has a knack for identifying the location of a fall without knowing anything about it but its picture. Iceland's falls are particularly distinctive, he says. "There are a lot of beautiful waterfalls in Iceland because there's so much volcanic activity going on. Over the course of centuries or millennia a volcano erupts, it forms a layer of lava, organic stuff grows on top and then that gets matted down, and then there's the next flow." Svartifoss in southern Iceland is the smallest waterfall (at 80 feet) to be included in Shirakawa's roundup. "It has amazing black rock columns; he was absolutely enthralled by the bedrock."

From just-discovered, gigantic cataracts to aesthetically inspiring falls, from one of the Seven Natural Wonders of the World (Victoria Falls in Africa) to preternaturally blue waters lurking in Croatian parks (Plitvice), the world of waterfalls carries such varied enchantments. The list of the top ones is ever-changing, thanks to new discoveries as well as evolving cravings—whether you desire a fall that's intimidatingly powerful or simply meditative. "It's like asking, what's better, steak or sushi?" says Goss. "It all depends on the mood."



Victoria Falls, Zambia/Zimbabwe





One mile wide, the Victoria Falls forms the planet's largest curtain of falling water—but that's not the only reason it ranks among the Seven Natural Wonders of the World. During the rainy season, from March to July, water plunges with such force that the spray bouncing back upward can be seen for miles around, giving meaning to Victoria's indigenous name, Mosi-oa-Tunya or "The Smoke Which Thunders." And when there's a full moon during these months, on fortuitous nights, it is one of the only spots on earth that creates rarely seen moonbows. Stanley Safari Lodge provides the perfect resting place, with ten retro-glamorous cottages on the edge of Mosi-oa-Tunya National Park.



Angel Falls, Venezuela




waterfalls mountains

To put Angel Falls—the tallest waterfall in the world, at 3,212 feet—into perspective, picture this: water drops from so high that winds whirl it into mist—a mist that reaches a mile-wide radius—before it can ever hit the ground. Documented in BBC's color-soaked series Planet Earth, its location in the remote jungle of southeastern Venezuala is a top challenge for danger-seeking BASE jumpers. For those who want to see it without jumping into it, Waku Lodge offers modern rooms with views of the waterfall and organizes flyovers as well as hikes to the base, where travelers can swim in Angel's tumultuous lagoon.



Huka Falls, New Zealand




river waterfalls

One of the highlights of New Zealand's diverse scenery is its abundance of the waterfalls, the waterfalls in the Huka Falls is the river waterfalls,and Huka stands above the rest thanks to its technicolor blue waters and location right near Huka Lodge. Oft cited as one the world's top hotels, it has hosted the likes of Kate Winslet and Bill Gates and is just a short walk from the raging waters of Waikato River. Not particularly tall (at only about 30 feet), the waterfall packs a ton of force, carrying an enormous amount of water from Lake Taupo through a narrow canyon, erupting down the drop.



Jog Falls, India





Many travel to India for the Taj Mahal, ashrams, the beaches of Goa—but the country's abundance of majestic waterfalls is a lesser known (but none the less wise) reason for going. Most spectacular of them all is Jog Falls, boasting four cascades named after their distinct characteristics: the Roarer, the Queen, the Rocket, and the King. It's best to visit during monsoon season (August to December), when Jog flows the strongest, and rainbows often arch above in the mist. The closest accommodations aren't top quality, so it's best to book through a custom luxury travel company like Travcoa with experience navigating remote corners of the world.



Iguazu Falls, Brazil/Argentina





Unlike the such enormous waterfalls as Victoria and Niagra, Iguazu is not a lengthy curtain but rather a canyon in the middle of powerful Iguazu River. Its curved arrangement allows visitors to drink in the scene all at once from land, rather than by helicopter. And what a scene it is: More than 270 falls shoot over the chasm in dynamic tiered cascades (so cinematic that Iguazu served as a backdrop in 2008's Indiana Jones). The most impressive of the cataracts is U-shaped Devil's Throat, which marks the border between Argentina and Brazil. Stay at Hotel das Cataratas in the center of Iguazu National Park, a World Heritage site, right alongside the falls.



Trou de Fer, Réunion





Viewed from above, Trou de Fer looks like a gaping mouth in the deep-green tamarind forests of Réunion, a tiny French island off the southern tip of Africa. No wonder its name translates to "Iron Hole:" A unique site best viewed from above, its numerous, tiered waterfalls form from the Bras de Caverne River and tumble into a fearsome, narrow abyss. Dodo Travels organizes helicopter tours of the island's cirques, and will even take you for a dip down into the Iron Hole. They'll pick you up from your hotel; Les Villas du Lagon is a good choice, located on an idyllic white-sand lagoon.



Svartifoss, Iceland





Black, lava-formed columns hang like organ pipes behind Svartifoss' gushing, ice-cold meltwater, transforming the smallish fall (at only 80 feet) into a must-see—they've even inspired the landmark architecture of Hallgrímskirkja, Iceland's largest church. The near-Arctic country hosts a wealth of waterfalls, due to frequent rain and snow paired with large glaciers. See the best of them, along with the rest of the island's natural beauty (geysers, thermal pools, mud pots, and more) through Quintessentially Escape's bespoke "Encounter Iceland" vacation.



Yosemite Falls, California







The highest waterfalls in North America is so tall that the uppermost of its three tiers is, at 1,430 feet, itself one of the world's 20 highest falls. Although it roars from November to July (and is at its strongest in May), it completely ceases during late summer and early fall of years with little snow. There are countless other waterfalls to see within Yosemite Park, including the fantastic, lofty Bridalveil at the valley's entrance. Stay at The Ahwahnee, a tall stone-and-wood lodge on park grounds that provides some of the best views the area has to offer.



Niagara Falls, United States/Canada









Niagara waterfalls is by far the biggest waterfall in the world. And there's reason for it: Niagara actually consists of three waterfalls—Horseshoe in Ontario, Canada, and on the other side of Goat Island, American and Bridal Veil in New York—which together pack a width of 3,300 feet. Although they're relatively not too high (167 feet, or the height of a 20-story building), their hydro-force is so immense that Niagara is the biggest electricity producer in New York state. Out of the hotels with views of the falls, Crowne Plaza is probably the best; if you're looking for more of an out-of-the-ordinary Niagara experience, try Harbour House, a romantic boutique hotel in a quaint town 20 minutes from the main attraction.



Plitvice, Croatia





The many waterfalls in Plitvice Lakes National Park are not known for the height of their drops or the roar of their waters—the largest fall, aptly named Veliki Slap or Big Waterfall, plunges only 250 feet—but rather their other-worldly, mythic setting. Covering nearly 50 acres, the World Heritage site is divided between 12 upper lakes and 4 lower ones, with dozens of cascading waterfalls linking the two. Wooden footbridges transport visitors all around and across the water, distinctive for its changing shades of vibrant green, blue, gray, and turquoise. Find it all a 2.5-hour busride from Croatia's capital, Zagreb, where the five-star Regent Esplanade—an arresting white colonnaded building—was built in 1925 as a rest stop for passengers on the Orient Express.

The World’s Most Peaceful Countries

Peace equals prosperity

In 2005, after traveling through Africa looking for business opportunities, Australian entrepreneur Steve Killelea became discouraged. It had become apparent to him that, while there were plenty of ways to measure how violent a country was, there were no such measures of how peaceful a country was. So he decided to create the Global Peace Index. Today, the GPI measures 144 nations based on 23 indicators of the existence or absence of peace both within and outside a country’s borders. The indicators use quantitative and qualitative data from the World Bank, various U.N. offices and Peace Institutes, and the Economist Intelligence Unit and are divided into three categories: five measures of ongoing domestic and international conflict, 10 measures of safety and security in society, and eight measures of militarization. Why is this important? Killelea argues that there is a strong correlation between prosperity and peace. The most peaceful country for 2009? New Zealand. The least? Iraq, not surprisingly. Where does the U.S. fit in? Thanks to such factors as its high incarceration and homicide rates, as well as its overseas military operations, it ranks a relatively bellicose 83rd.



No. 1 New Zealand



GDP per capita: $28,980*
Life Expectancy: 79.9**
Mean Years of Schooling: 19.5***
Unemployment: 4.1%****

After ranking toward the top in previous surveys by the Global Peace Index, New Zealand earns the title of the most peaceful country in 2009. The small island nation in the South Pacific Ocean is home to only 4 million people, about 80% of whom live in cities. Referring to improved relations between indigenous Maori peoples and European settlers, GPI founder Steve Killelea says New Zealand provides an example of an ability "to bridge an ethnic divide and have a peaceful nation."

*Nominal gross domestic product (US$) per capita. Source: EIU; Year: 2008
**Source: World Bank, World Development Indicators; Year: 2006
*** School life expectancy (years), primary to tertiary. Source: UNESCO; Year: 2005 and earlier years depending on availability
****Source: EIU; Year: 2008



No. 2 (Tie) Denmark



GDP per capita: $62,140
Life Expectancy: 78.1
Mean Years of Schooling: 16.7
Unemployment: 1.8%

Denmark is the second-most peaceful nation for the second year in a row, sharing its spot with neighboring Norway. Like all Scandinavian countries, Denmark enjoys good foreign relations and has low levels of crime, weapons possession, and organized conflict within and outside its borders. A member of NATO, Denmark had 500 troops in Iraq from June 2003 until their withdrawal in August 2007.



No. 2 (Tie) Norway



GDP per capita: $93,759
Life Expectancy: 80.3
Mean Years of Schooling: 17.5
Unemployment: 2.6%

Sharing second place with Denmark, Norway’s economy is rich with natural resources; oil and gas reserves discovered in the 1960s make it the third-largest gas exporter and seventh-largest oil exporter, according to the The World Factbook published by the CIA. The Norwegian government provides its citizens with a vast safety net of social welfare programs such as universal health care, and received maximum 10 scores for a highly clean electoral process, political participation, and civil liberties. The country’s participation in external conflict continues to be limited to peacekeeping, and it has been reducing its military resources since 2002.



No. 4 Iceland



GDP per capita: $52,390
Life Expectancy: 81.2
Mean Years of Schooling: 18.2
Unemployment: 1.6%

Badly hurt by the global economic downturn in the fall of 2008, Iceland drops three places from its No. 1 spot last year. The investment banking industry, which fueled a ninefold rise in the country's stock market from 2003 to 2007 (U.S. market doubled in the same period), has since collapsed. Although violent demonstrations resulted in some injuries, but no deaths, and the coalition government collapsed in January 2009, GPI’s Killelea says Iceland’s ability to remain at the top of the list shows that it is "a good example of how peaceful nations are more resilient and able to rebound than countries that are more fragile and likely to crack under stress."



No. 5 Austria



GDP per capita: $49,720
Life Expectancy: 79.8
Mean Years of Schooling: 15.3
Unemployment: 3.8%

Neutral since 1955, this small mountainous country rose five places this year to claim the top spot for a non-Scandinavian European country. While Austria’s military expenditure as a percentage of GDP is one of the lowest in the world, it has sent troops on peacekeeping missions in Serbia and Afghanistan. Minimal crime and civil unrest complement good relations with neighboring countries. Austria’s score for its respect for human rights, while still good, is the worst of any country in the top 10. In July 2008, its grand coalition government folded after just 18 months in office.



No. 6 Sweden



GDP per capita: $51,943
Life Expectancy: 80.8
Mean Years of Schooling: 15.8
Unemployment: 6.2%

Sweden boasts one of the lowest levels of incarceration in the world and received perfect scores for a highly clean electoral process, functioning of government, political participation, and civil liberties. Yet its rank was hurt by its role as a heavy supplier of major conventional weapons—it’s one of the highest such suppliers in the world per capita. This European Union-member nation has not engaged in any war in almost two centuries, according to the CIA's World Factbook, but in recent years has committed peacekeeping troops to U.N. efforts in Afghanistan, Chad, the Balkans, and the Democratic Republic of Congo.



No. 7 Japan



GDP per capita: 38,580
Life Expectancy: 82.3
Mean Years of Schooling: 15
Unemployment: 4%

With the third-largest economy after the U.S. and China, Japan is down two places from last year in the Global Peace Index. The California-sized cluster of islands in the North Pacific Ocean is home to about 127 million people, who enjoy some of the world’s lowest crime and homicide rates and are banned from possessing firearms. Japan is a major exporter of fish but has no natural energy resources to speak of, making it the world's largest importer of coal and liquefied natural gas and the second-largest importer of oil, according to the World Factbook.



No. 8 Canada



GDP per capita: $45,220
Life Expectancy: 80.4
Mean Years of Schooling: 16.9
Unemployment: 6.2%

Canada’s internal safety and security levels are similar to the Scandinavian countries, and it jumped three spots to No. 8 this year thanks to an improvement in its respect for human rights. Conservative political leaders won approval from Parliament in 2008 to continue the country's mission in Afghanistan as part of NATO’s International Security Assistance Force. As of April 2009, 116 troops of Canada's more than 2,500-member force have been killed in Afghanistan.



No. 9 (Tie) Finland



GDP per capita: $51,703
Life Expectancy: 79.2
Mean Years of Schooling: 17.2
Unemployment: 6.4%

Finland enjoys strong political stability and low levels of violent crime, although its homicide rate is slightly higher than its Scandinavian neighbors'. The Finnish government has adopted a policy of strategic nonalignment since the end of the Cold War and has remained neutral to the conflict in Iraq. Finland is not a member of NATO but has sent troops to help peacekeeping efforts in Afghanistan, with 80 currently on duty there.



No. 9 Slovenia



GDP per capita: $27,270
Life Expectancy: 77.7
Mean Years of Schooling: 16.7
Unemployment: 6.7%

Slovenia is the first Baltic state on the list, thanks to its low levels of violent crime, homicides, and incarcerations. Relations with neighboring states are good, with the exception of an ongoing disagreement with Croatia over maritime borders. Slovenia has 70 soldiers in Afghanistan and 350 in Kosovo as part of NATO and U.N. peacekeeping missions.



No. 11 Czech Republic



GDP per capita: $21,240
Life Expectancy: 77.7
Mean Years of Schooling: 15
Unemployment: 5.4%

Deemed "one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe" by the CIA's World Factbook, the Czech Republic joined the European Union in 2004 and is slated to adopt the euro in 2012. It has low levels of organized crime and perceptions of criminality in society. The country has good relations with neighboring states, with the exception of a dispute over a nuclear plant near the Austrian border. Nearly 1 million Austrians signed a petition in January 2008 opposing the plant.



No. 12 Ireland



GDP per capita: $66,460
Life Expectancy: 79.4
Mean Years of Schooling: 17.6
Unemployment: 6.1%

Ireland dropped seven places this year to No. 12. While low, levels in the country of organized crime, perceptions of criminality in society, and ease of access to weapons of minor destruction are higher than countries that come before it on the list. Homicide and incarceration rates remain low and the country received the maximum score for civil liberties. Ireland has been hit hard by the global economic downturn, in part because property prices that rose faster there from 1996 to 2006 than in any other developed world economy, according to the World Factbook.



No. 13 Luxembourg



GDP per capita: $116,810
Life Expectancy: 79.2
Mean Years of Schooling: 13.5
Unemployment: 4.5%

Sandwiched between France, Germany, and Belgium, this tiny country of less than 500,000 people enjoys one of the highest levels of GDP per capita in the world, with a violent crime rate just slightly higher than its low homicide rate. Despite the global downturn, Luxembourg’s economy, fueled by a financial sector dominated by foreign activity and diversified industrial production, fared better than its European neighbors and is on track toward growth in 2009. Luxembourg was one of the six founding member countries in 1957 of the European Economic Community, which later became the European Union.



No. 14 Portugal



GDP per capita: $22,980
Life Expectancy: 78.4
Mean Years of Schooling: 15.2
Unemployment: 7.6%

This small country that hugs the western side of Spain slid seven spots from last year to land in 14th place. Levels of organized conflict, violent crime, and homicide remain low, while the likelihood of violent demonstrations is higher than that of countries coming before it on the list. Portugal’s economic growth has slowed in the 2000s compared with the 1990s, and the government struggles with a budget deficit. The country’s "poor educational system, in particular, has been an obstacle to greater productivity and growth," according to the CIA's World Factbook.



No. 15 Belgium



GDP per capita: $47,670
Life Expectancy: 79.5
Mean Years of Schooling: 16
Unemployment: 7.1%

Homicide and incarceration rates, along with military expenditures as a percentage of GDP, have remained low in Belgium even as political instability led to the government’s collapse in July 2008. The capital city of Brussels is home to the headquarters of the European Union and NATO, but the country boasts few natural resources. This makes its economy "unusually dependent" on world markets because of its reliance on imports of raw materials and exports of manufacturing, according to the World Factbook. Long-standing linguistic and cultural differences remain between Dutch-speaking Flanders and French-speaking Wallonia, causing persistent speculation that the country will split in two.



No. 16 (Tie) Germany



GDP per capita: $44,290
Life Expectancy: 79.1
Mean Years of Schooling: 15.9
Unemployment: 7.8%

With more than 82 million people, Germany is the world’s fifth-largest economy, Europe’s largest, and is the Continent’s second-most populous country after Russia. Sharing its rank with Qatar, Germany receives positive marks for good relations with neighboring countries, political stability, and respect for human rights. But the country’s economy is heavily dependant on exports—it’s the largest exporter in the world—and its standing in the GPI is hurt by its role as a large supplier of major conventional weapons. The eastern part of the country, where unemployment can reach 30%, still lags in performance. It has received billions of dollars in aid from its western counterpart.



No. 16 (Tie) Qatar



GDP per capita: $67,350
Life Expectancy: 75.5
Mean Years of Schooling: 13.3
Unemployment: 0.4%

The small emirate of Qatar in the Persian Gulf is the Middle East’s highest-ranking country on the list. Like its neighbor to the south, Saudi Arabia, Qatar is rich with natural oil and gas reserves. These account for more than 50% of GDP, roughly 85% of export earnings, and 70% of government revenues, according to the World Factbook. Crime and incarceration rates are low, while the country has increasingly been accused of failing to protect against or prosecute the trafficking of migrant workers. Still, and despite Qatar's proximity to some of the least peaceful countries on the list, including Iraq and Afghanistan, GPI founder Steve Killelea calls the country's placement in the top 20 as evidence "that peaceful nations can exist in any part of the world."



No. 18 Switzerland



GDP per capita: $63,810
Life Expectancy: 81.5
Mean Years of Schooling: 14.8
Unemployment: 2.6%

Switzerland has a prosperous economy and stable government that has remained neutral since before World War I. Switzerland’s crime rate is low, but, as GPI’s Killelea explains, its ranking is hurt by a relatively high homicide rate due to the mandatory conscription of its citizens into the army and the weapons they are allowed to take home. It is also a significant supplier of major conventional weapons. Switzerland’s largest banks, long a haven for foreign investors because of their high levels of secrecy, were significantly hit by the global economic crisis. The largest received government assistance in late 2008.



No. 19 Australia



GDP per capita: $48,070
Life Expectancy: 81
Mean Years of Schooling: 20.5
Unemployment: 4.3%

Australia is the world’s sixth-largest country geographically, roughly the size of the U.S.'s Lower 48. While internal organized conflict is low and there is a high level of respect for human rights, Australia’s position is weighed down by the fact that since 2003 it has sent hundreds of troops to the U.S.-led invasions in Iraq and Afghanistan. According to the CIA's World Factbook, "Emphasis on reforms, low inflation, a housing market boom, and growing ties with China have been key factors over the course of the economy's 17 solid years of expansion…The economy remains relatively healthy [in 2009] despite falling export commodity prices." It is the world's largest net exporter of coal, which accounts for 29% of global exports.



No. 20 Chile



GDP per capita: $10,110
Life Expectancy: 78.3
Mean Years of Schooling: 14
Unemployment: 7.8%

Chile receives good marks for its low levels of external and internal organized conflict and political instability, yet its ranking is hindered by higher levels of perceptions of criminality in society, likelihood of violent demonstrations, and ease of access to weapons of minor destruction. Far from its days of dictatorship under Augusto Pinochet that ended in 1990, Chile has since grown into a stable and politically representative democracy. Foreign trade characterizes the Chilean economy, which claims more bilateral or regional trade agreements than any other country, with exports accounting for 40% of GDP, according to the World Factbook.



No. 21 Oman



GDP per capita: $18,460
Life Expectancy: 75.5
Mean Years of Schooling: 11.6
Unemployment: 15%

The second Mideast country on the list, Oman has maintained close ties with the U.K. since the 18th century, and its strategic position in the Indian Ocean has long fueled a prosperous trade industry, especially that of crude oil. Dwindling oil resources and the drop in oil prices, combined with a pullback of investment and development because of the global economic crisis, threaten to contribute to a deficit in 2009. Rates of organized and violent crime, homicide, and incarceration are low, while Oman's political instability, military expenditures as percentage of GDP, and ease of access to weapons of minor destruction are high. Like Qatar, Oman has increasingly been accused of failing to protect against or prosecute the trafficking of migrant workers.



No. 22 Netherlands



GDP per capita: $53,280
Life Expectancy: 79.7
Mean Years of Schooling: 16.5
Unemployment: 4%

Not only does the Netherlands have a highly transparent democracy and a prosperous economy heavily reliant on foreign trade, but the country has earned a global reputation for its liberal social policies, especially toward drugs, sex, and immigration. This NATO-founding member country is a large exporter of agricultural products, but receives the worst possible score as a heavy supplier of major conventional weapons. It supported the U.S.-led invasion of Iraq in 2003 and was among the first NATO member countries to send troops to Afghanistan.



No. 23 Singapore



GDP per capita: $37,597
Life Expectancy: 79.9
Mean Years of Schooling: 11
Unemployment: 2.3%

Singapore’s strategic location along Southeast Asian trade routes has made it one of the wealthiest nations in the world, with GDP per-capita levels comparable to the most advanced nations in Western Europe. Home to just under 5 million people, the perception of criminality in society is higher than actual violent crime and homicide rates. While its military expenditures as a percentage of GDP is relatively low, the tiny island nation next to Indonesia receives a proportionally large amount of major conventional weapons.



No. 24 Slovakia



GDP per capita: $17,455
Life Expectancy: 74.2
Mean Years of Schooling: 14.9
Unemployment: 7.7%

This landlocked, mountainous country in the middle of Eastern Europe joined the European Union and NATO in 2004 and adopted the euro in the beginning of 2009. According to the CIA's World Factbook: "Foreign investment in the automotive and electronic sectors has been strong. Slovakia's economic growth exceeded expectations in 2001-08 despite the general European slowdown." The former Communist country has a low rate of internal organized conflict but has sent hundreds of troops to efforts in Afghanistan.