Germany. My girlfriend lives there, and besides being the powerhouse economy of the Eurozone at the moment, they seem to have more or less successfully blended a highly successful capitalist economy with realistic and humane social initiatives. To broadly generalize, the people here have a strong work ethic, are highly educated by average US standards, and take pride in what they do. They have a strong outdoors tradition and have highly progressive (again, by US standards) green-living initiatives.

While I'm not yet that well educated in Germany politics and policies, my initial vague impression is that while they're not as big on certain civil rights as people ostensibly are in the States (open government censorship and sometimes discriminatory hiring practices, for example), neither do they have any illusions about those policies. If you do cross the law, punishments appear reasonable--not $3 million and a lifetime of bankruptcy and lawyers if you share 5 songs on Kazaa.

Lots of other countries like to poke fun and point out the flaws in many of Germany's policies, and they certainly may be right, but Germany as viewed from the lens of a self-employed American engineer unable to get even basic health insurance is, at times, seemingly a progressive paradise.