Global Competitiveness Report - Main Results of The 2010-2011 Edition

Main Results of The 2010-2011 Edition

The main outcomes to be highlighted from the 2010-2011 edition are the following:

Switzerland: Switzerland retains its 1st place position, characterized by an excellent capacity for innovation and a very sophisticated business culture, ranked 4th for its business sophistication and 2nd for its innovation capacity. Switzerland's scientific research institutions are among the world’s best, and the strong collaboration between the academic and business sectors, combined with high company spending on R&D, ensures that much of this research is translated into marketable products and processes, reinforced by strong intellectual property protection and government support of innovation through its procurement processes.

United States: the United States continues the decline that began last year, falling two more places to 4th position. While many structural features still make its economy extremely productive, a number of escalating weaknesses have lowered the US ranking over the past two years. The evaluation of institutions has continued to decline, falling from 34th to 40th this year. The report states that the public does not demonstrate strong trust of politicians (54th), and the business community remains concerned about the government’s ability to maintain arms-length relationships with the private sector (55th) and considers that the government spends its resources relatively wastefully (68th).

Ireland: Ireland’s decline in rank is attributable to a weakening macroeconomic environment as well as continuing concerns related to financial markets (with a precipitous fall from 7th two years ago to 45th last year and 98th position this year in this pillar). After already falling six places last year.

Iceland: drops a further five places to 31st position, mainly because of a continuing deterioration in the macroeconomic environment (from 119th to 138th) and weaker financial markets (down from 20th two years ago to 85th last year and 122nd this year). Yet despite these concerns, Iceland also benefits from a number of clear competitive strengths in moving to a more sustainable economic situation.

Spain: Spain drops nine places in edition to 42nd position. The decline is in large part attributable to an increasingly negative assessment of the labor and financial markets as well as the level of sophistication of the country’s businesses. On a more positive note, Spain’s competitiveness performance continues to be boosted by the large market (13th) available to its national companies, strong technological adoption (30th in the technological readiness pillar), first-class infrastructure (14th), and good higher education and training (31st).

China: up two positions to 27th place, China has reinforced its position within the top 30. It is the only BRIC country to improve in the rankings this year, thus increasing the gap with the other three. China’s performance remains stable in most areas measured with the Index compared with last year, with its main strengths its large and growing market size, macroeconomic stability, and relatively sophisticated and innovative businesses.

Chile: Stable at 30th, Chile remains the most competitive country in Latin America and the Caribbean, with a very convincing performance resting notably on solid basic requirements (37th) and efficiency enhancers (35th). The country has been at the forefront of market liberalization and opening, resulting in very efficient goods and labor markets (28th and 44th, respectively), one of the most sophisticated financial markets (41st), and the largest pension industry in the region.

Argentina: Argentina is fairly stable at 87th, continuing to feature in the bottom part of the rankings. The picture is rather mixed: important strengths, such as its extensive market size (24th) and fairly good educational system at the primary and higher levels (ranked 60th and 55th for health and primary education and higher education and training, respectively), do not seem to compensate for the serious and enduring shortcomings undermining Argentina’s long-term growth potential.

Qatar: ranked 17th, enters the top 20 this year and reaffirms its position as the most competitive country in the region. With a projected growth rate of 18.5 percent for 2010, the country is the fastest-growing economy in the world, as well as one of the wealthiest. Its strong competitiveness rests on solid foundations made up of a high-quality institutional framework, ranked 10th overall, a stable macroeconomic environment (8th), and an efficient goods market (12th). Low levels of corruption and undue influence on government decisions, high government efficiency, and excellent security are the cornerstones of the country’s solid institutional framework.