There are many governments--including the United States--in which leaders invoke God, or claim to be inspired by God, or claim to obey the will of God. This does not, in practice, make a government a theocracy. What makes a government a theocracy is when lawmakers actually believe that leaders are governed by the will of God, and write laws predicated on this belief.
Iran and Saudi Arabia are often cited as modern examples of theocratic governments. In practice, North Korea also resembles a theocracy due to the supernatural powers attributed to Kim Jong-il; and the comparable deference he receives from other government officials, the military; and the hundreds of thousands of indoctrination centers that center on devotion to his will and legacy.
There are theocratic movements in virtually every country on Earth, but true contemporary theocracies are primarily found in the Muslim world.