THE Global Competitiveness Report 2012-2013 has
once again put Switzerland on the highest perch among 144 countries for the
fourth consecutive year.
Burundi figures at bottom, four notches below its 140th rank in previous year’s
Global Competitiveness Index (GCI).
World Economic Forum (WEF), which released the report today, has ranked the
countries on the basis of 12 pillars of competitiveness. Each pillar comprising
several factors. The effect and extend of tax, total tax rate and trade tariffs,
for instance, figure in the sixth pillar named Goods Market Efficiency.
WEF defines competitiveness as the set of institutions, policies, and factors
that determine the level of productivity of a country.
Singapore remains in second position and Finland in third position, overtaking
Sweden (4th). These and other Northern and Western European countries dominate
the top 10 with the Netherlands (5th), Germany (6th) and United Kingdom (8th).
The United States (7th), Hong Kong (9th) and Japan (10th) complete the ranking
of the top 10 most competitive economies, says WEF release.
The report shows that competitiveness gap widening among European countries.
The United States remains world’s innovation powerhouse despite decline in
overall ranking to 7th position from 5th rank in previous year’s index.
The report says: "Although many structural features continue to make its economy
extremely productive, a number of escalating and unaddressed weaknesses have
lowered the US ranking in recent years. US companies are highly sophisticated
and innovative, supported by an excellent university system that collaborates
admirably with the business sector in R&D. Combined with flexible labor
markets and the scale opportunities afforded by the sheer size of its domestic
economy—the largest in the world by far—these qualities continue to make the
United States very competitive."
China is most competitive among large emerging markets in spite of decline
in its GCI rank to 29th from 26th in preceding year. "The country continues
to lead the BRICS economies by a wide margin,2 ahead of second-placed Brazil
(48th) by almost 20 ranks," says the report.
India & Russia among the BRICS group have suffered also fall in their respective
rankings.
As put by the report, "India ranks 59th overall, down three places from last
year. Since reaching its peak at 49th in 2009, India has lost 10 places. Once
ahead of Brazil and South Africa, India now trails them by some 10 places and
lags behind China by a margin of 30 positions."
The report notes: "The Russian Federation, at 67th place, drops one position
since last year. A sharp improvement in the macroeconomic environment—up from
44th to 22nd position because of low government debt and a government budget
that has moved into surplus—has not been enough to allow the country to compensate
for the poorer assessment of its already weak public institutions (133rd) and
the innovation capacity of the country (85th this year, down from 57th in the
2010–2011 edition of the GCI)."
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