The Economist’s 2012 Democracy Index ranks Israel 37th among 167 countries. It gets reasonably high marks in most political categories. But Israel falls down severely in the civil liberties category, where it receives a 5.9 ranking out of 10. Its overall placement puts it in the category of “flawed democracies.” Within that category, it placed 12th.
To be forthright, Israel does rank higher than other MENA countries, including the most arguably democratic country in the region (aside from Israel), Turkey. But compared to western or Asian democracies and the U.S., to which Israel traditionally likens itself, it falls distinctly short.
One of my readers tells me that in French Wikipedia the hasbarafia have falsified the reporting of this Index and moved Israel up to 16th place. I find it amazing that someone would find there was any value in doing such a thing.