North Korea is the 23rd most failed state in the world in a U.S. index gauging states' management of social, economic and political affairs, a foreign affairs magazine said Thursday.

The Failed States Index, compiled annually since 2005 by U.S. think tank Fund for Peace and the magazine Foreign Policy, ranked the North 23rd out of a total of 178 nations.

The index examines 12 social, political and economic factors like a government's practical control over its territories, non-provision of public services, corruption, criminality, refugees and sharp economic decline. Countries in the upper ranks are those in the worst conditions regarding the 12 factors.

In the first-year of the index in 2005, the North was ranked as the 13th most failed nation and it stayed near the top 10 before moving down to 22nd place last year.

The 2013 result put the North in the "alert" group, the highest of four classifications based on marks in the 12 sectors.

The index showed that the North is doing poorly especially in the sectors of poverty, economic decline, legitimacy of the regime, feeble public services, human rights violations and the rule of law.

Somalia was ranked as the most failed state while Congo, Sudan, South Sudan, Chad, Yemen, Afghanistan, Haiti, the Central African Republic and Zimbabwe rounded out the top 10 positions.

Finland was ranked at the bottom of the list while Sweden, Norway, Switzerland and Denmark were in the bottom group.

South Korean was ranked in 157th place, better than Japan at 156. The U.S. was in 159th place, with China ranked as the 66th most failed state. (Yonhap News)