An annual survey by the World Economic Forum places the United States at fifth place in global economic competitiveness. The reason for this ranking is due to the country’s huge deficits and lack of public faith in the government. This is one drop in placing from last year, where the United States ranked fourth place. The last time the country ranked No. 1 was in 2007 prior to signs of the economic recession.
This year’s rankings placed Switzerland at No. 1 for the third consecutive year. Singapore and Sweden switched in rankings, with Singapore rising to second place and Sweden dropping to third. Finland bumped up to fourth place from a seventh-place ranking last year.
The survey ranks a total of 142 countries. The report is based around 12 pillars of competitiveness: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation. Business executives and economic data of the past year determine the placing.
The survey results commended the United States for its innovative and sophisticated companies, overall productivity, flexible labor market, and outstanding universities. According to the report, “these qualities continue to make the United States very competitive”.
One area where the United States ranked low was the Sustainable Competitiveness Index (SCI). According to the report, the country’s management of renewable resources is counterbalanced by its “insufficient resource efficiency and a fairly high level of environmental degradation.” The report also states that the country is showing movement toward an “increasingly unequal society” and lack of unity.
This rating provides an additional challenge to the Obama administration, along with raising unemployment, drops in the Dow Jones, and criticisms over the president’s recently proposed job plan.
Switzerland managed to maintain its top ranking by having one of the most solid economic environments in the world at this time. According to the report, “Switzerland is well assessed for its environmental policy measures, as well as for the management of renewable resources.”
In other areas of Europe, Germany ranked sixth, followed by the Netherlands and Denmark. The UK was 10th, France was 18th, Italy was 43rd, and Greece, drowned in debt, sunk to 90th.
In Asia, Japan ranked ninth, Korea ranked 24th, China was 26th, Thailand was 39th, India was 56th, and Russia was 66th.
Sources:
“The Global Competitiveness Report 2011-2012″, The World Economic Forum. Geneva, Switzerland 2011