Most countries spend huge sums on tanks, fighter jets, and soldiers. Iceland, a volcanic island in the North Atlantic, does things differently. It has no standing army, and that has not stopped it from topping the list of the world’s most peaceful nations year after year.

Iceland has no standing military. Its defense relies on a Coast Guard that patrols its waters and handles search and rescue, along with a small police force. Iceland is also a founding member of NATO, so it is protected by a collective defense arrangement with its allies instead of an army of its own. The country has not fought a war in modern times, and its long history of resolving disputes through diplomacy has become part of its national identity.

The Global Peace Index, published by the Institute for Economics & Peace, measures 163 countries and territories using 23 indicators across three categories: ongoing conflict, societal safety and security, and militarization. In the 2026 edition, released in June, Iceland ranked first, and the index’s founder said the country has held the top spot since 2008. That is a remarkable streak in a ranking where most countries move up and down every year.

The latest result was not just a repeat. Iceland recorded a two percent improvement in peacefulness over the past year. The index also credits the country’s position to the absence of a standing military, very low crime rates, and strong social cohesion.

It would be easy to assume that the missing army is the whole story, but it is only one piece. Iceland is a small, close-knit society with high levels of trust between people and strong public institutions. Crime is very low, and the country is known for being a place where people rarely feel afraid. The index’s founder explained that these qualities develop gradually over generations, which is why the top of the index barely changes from year to year.

The timing makes Iceland’s record even more striking. The 2026 index found that global peacefulness has deteriorated for the 12th consecutive year, with 99 countries becoming less peaceful over the past year. While much of the world grow more tense, Iceland keeps its lead, followed by New Zealand, Switzerland, Slovenia, and Ireland.

Iceland shows that national security does not have to mean a large army. Strong communities, low crime, trust in institutions, and good alliances can build a kind of safety that weapons alone cannot