Australia in world top 10 for democracy but China threat looms

China's incredible economic success over the past decade brings new dangers for the democratic system of government across the world, a report says.

Less than half the world's population is living under a form of democratic government, the Economist Intelligence Unit (EIU) says in its annual Democracy Index.

The gloomy results were driven by the continuing negative impact on democracy and freedom for a second straight year of the coronavirus pandemic, the report said.

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Overall, 45.7 per cent of the global population considered to live in a democracy of some type, a drop from 49.4 per cent in 2020.

The country considered most democratic was Norway, with Australia ranked equal ninth in the world.

Afghanistan is at the bottom of the list of 165 independent states and two territories. Others with poor democratic records included Myanmar and North Korea.

China is also ranked in the authoritarian group, with the rising superpower ranked at number 148.

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And the rising economic power and diplomatic influence of China presents a major threat to democracy, the study warns.

"The potency of this political challenge is inextricably linked to China's incredible economic success over the past three decades," the report said.

"China's rulers have become more confident about promulgating the alleged superiority of their system over that of the West, and the COVID-19 pandemic has accentuated this trend."

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China's tough approach to the pandemic - which includes mass lockdowns of cities - stands in comparison to the more moderate approach of many liberal democracies.

But Beijing has claimed its hardline policies during the COVID-19 emergency was proof China's model of government is superior to western nations.