I don’t think the Nordic countries are well functioning because they are highly taxed and regulated. It’s a little bit more complicated than simply “more tax=more happy”. To some extent the high taxes are possible because of the well functioning society and not the other way around.
The distinguishing feature of these societies seems to be a strong sense of community participation/ responsibility and a strong social contract, with transparent and accountable government.
Finland is definitely doing some really interesting things but I don’t know how much of this is applicable only in small, relatively isolated and closed communities like Iceland and Finland as opposed to big international metropolises.