Australia and the United States were second and third in the annual Human Development Index compiled by the U.N. Development Program, the U.N. News Center reported Thursday.
The index measured life expectancy, literary, school enrollment and gross domestic product per capita of 187 countries and territories this year.
Also ranked in the top 10 were, in order, the Netherlands, Germany, New Zealand, Ireland, Sweden, Switzerland and Japan.
The report noted the rankings changed significantly when the HDI was adjusted for "internal equities" in health, education and income.
The United States fell from third to 16th while Sweden rose from seventh to fourth.
The report, "The Rise of the South: Human Progress in a Diverse World," found the main drivers of economic growth and societal change will be in countries such as China, India and Brazil.