This brochure from the Bertelsmann Transformation Index (BTI) contains a lot of useful information on failed states and what the international community is looking for by way of an improvement in that condition and by extrapolation what we would be looking for in choosing a failed state.
This is written from the statist point of view as it lists governmental "social programs" as one of the main indicators of a functioning state.
It's an interesting thought that if a LFC state was established, that no matter how well it performed economically and with regard to individual rights and liberty, organizations such as this one would penalize it for not "providing" social programs for its people. Not that it would matter... It's just an interesting observation. Sometimes it seems that the priorities and thoughts of most of the world are upside down.
The other main indicator cited in the pamphlet was a states ability to establish its monopoly on the use of force, that at least is not in dispute.
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