The initiative, which ranks several "well-being indicators", is part of a larger OECD initiative to measure the progress of societies by looking at a number of factors which contribute to people's overall quality of life such as health, education, security, community ties, and overall life satisfaction.
The report, released earlier this week, represents "one of the first attempts to respond to the demand for comparative information on the conditions of people's lives in developed market economies".
According to the Better Life Initiative, Swedes are most satisfied with the environment, but rank their overall life satisfaction and governance highly as well.
Of the eleven factors included in the Better Life Initiative, however, Swedes are least satisfied with their incomes.
When asked by the OECD, 83 percent of people said they were satisfied with their life, much higher than the OECD average of 59 percent.
Among the 34 countries included in the Better Life Initiative ranking, Turkey ranked lowest, along with Mexico, Chile, and Estonia.
The OECD plans to release a broader "How's Life?" report in October 2011.