AUSTRALIA is the third most desirable country in which to live, behind Iceland and Norway, according to a United Nations index that examines wealth, life expectancy and literacy.

The top three nations were the same as last year's, except then Norway beat Iceland and Australia.

The United States has slipped in the latest index, based on 2005 data, from eighth to 12th.

African countries, many ravaged by AIDS, occupy the lowest rankings. All 22 countries that fall into the UN Human Development Index's "low human development" category are in sub-Saharan Africa.

In 10 of these countries, two children in five will not reach the age of 40.

The index ranks 175 UN member countries plus Hong Kong and the Palestinian territories, but does not include 17 countries about which there was inadequate data, including Iraq, Afghanistan and Somalia.

Norway had held top spot for six years but was edged out by Iceland this year because of new life expectancy estimates and figures for gross domestic product.

- The Age
November 28, 2007