For those questioning this metric to the point they think its laughable, below is another group that sort of aligns with the Economist results. While they are measuring different things of course, I would argue they are relatable given their definition.
This isn't to say the Economist metric is perfect in any way, just another study to provide context.
Australia also barley gets beat in this metric by Canada. Probably a rounding error margin to be honest given how imperfect these metrics are.
People care about the top 10, or top 5, but in truth, general year after year trends probably matter a lot more than exact position.
Quote:
Freedom in the World is a yearly survey and report by the U.S.-based[3] and partially U.S. government funded[4] non-governmental organization Freedom House that measures the degree of civil liberties and political rights in every nation and significant related and disputed territories around the world.
https://en.wikipedia.org/wiki/Freedom_in_the_World
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Canada tied for 5th with 3 others
Australia tied for 8th with 4 others
Uruguay crushing it in this list as well. My bias are showing as I had no idea, seems like a interesting place to visit.