The Most Peaceful Country on Earth

If it's peace you're looking for, New Zealand is the place to be.

This Pacific country has been named the most peaceful country on earth in the latest Global Peace Index, an annual ranking of 144 nations on the basis of how peaceful they are.

New Zealand scored top position thanks to its relatively low rate of violence, decrease in military spending and the election of a conservative coalition government last year.

"The center-right National Party has a strong popular mandate and a robust parliamentary majority by New Zealand's standards, putting the new Prime Minister, John Key, in a good position to push through his agenda," the report states.

The Kiwi nation also got top marks for its homicide rate and the level of respect for human rights.

It replaces Iceland, which has seen an increase in violence and violent demonstrations following the banking collapse that engulfed its economy in September.

Nordic nations dominated the top of the chart, with Denmark, Norway and Iceland coming second, third and fourth, followed by Austria and Sweden.

Professor Kevin Clements, director of New Zealand's National Centre for Peace and Conflict Studies, said the index was a pretty good reflection of countries people want to live in.

"If you look at the top 20, they are all small nations based on strong welfare principles, all with good and relatively uncorrupt governance," Clements said.

Securely nailed to the bottom of the list was Iraq, which has claimed the wooden spoon three years running.

It sits below Afghanistan, Somalia and Israel, followed by Sudan, The Democratic Republic of the Congo, Chad, Pakistan, Russia and Zimbabwe.

Britain made 35th place, a slight improvement on last year, while the United States came in 83rd, six places up the ladder from 2008.