NZ ranked second best-governed country in the world 

New Zealand has come second in a list ranking the world's best-governed countries.

The Legatum Institute, a policy research group, has released its yearly Global Prosperity Index, which looks at countries' national wealth, education and safety.

The research group looks at government, breaking it down into three distinct categories: Effective governance, democracy and political participation, and the rule of law. These are measured by figures such as voter turnout, legislative independence and the number of women in Parliament.

Finland tops the list this year, followed by New Zealand, Norway, the Netherlands and Sweden.

The list is dominated by European nations, but Canada, Australia and Japan also make the top 17.

The 17 best-governed countries in the world:

1. Finland
2. New Zealand
3. Norway
4. Netherlands
5. Sweden
6. Switzerland
7. Denmark
8. Luxembourg
9. Canada
10. Germany
11. United Kingdom
12. Iceland
13. Australia
14. Ireland
15. Austria
16. Belgium
17. Japan