News / Economy

Economic Powerhouses Slip in Global Competitiveness Rankings

Two of the four iconic smokestacks of the former Battersea Power Station, which is to be redeveloped into retail units and housing by a Malaysian consortium, are seen in London, September 5, 2012.  Two of the four iconic smokestacks of the former Battersea Power Station, which is to be redeveloped into retail units and housing by a Malaysian consortium, are seen in London, September 5, 2012.
x
Two of the four iconic smokestacks of the former Battersea Power Station, which is to be redeveloped into retail units and housing by a Malaysian consortium, are seen in London, September 5, 2012.
Two of the four iconic smokestacks of the former Battersea Power Station, which is to be redeveloped into retail units and housing by a Malaysian consortium, are seen in London, September 5, 2012.
Lisa Schlein
The World Economic Forum is warning governments to enact long-term measures to enhance competitiveness or jeopardize their future economic prosperity. Switzerland, Singapore and Finland top this year’s Global Competitiveness rankings of 144 countries, while Burundi holds up the bottom. 

Northern and Western European countries dominate the top 10 most competitive countries in the world. Asia is heavily represented with Singapore, Hong Kong, and Japan figuring among the most competitive economies.
 
The United States remains an extremely productive economy, but has continued a four-year decline, falling two places to seventh position in the Global Competitiveness rankings.  

World Economic Forum Lead Economist Jennifer Blanke tells VOA the United States is still the world’s innovation powerhouse. She says its markets work efficiently and it has some of the best universities, but it has some serious weaknesses cutting into its competitive edge.

“There is continuing concern about the macro-economic environment, continuing debt levels - the inability to get the spending under control and really political deadlock about how to even deal with this issue," says Blanke. "And, this is leading to concern about political institutions in general. So, the business sector has concerns about its confidence in politicians to make the sorts of decisions that are needed going forward.

The report finds the Asian and Pacific remains among the fastest growing regions worldwide, with several economies performing strongly - notably Singapore, Hong Kong, Japan, Taiwan, China and South Korea.
   
But China has dropped three places to 29th position in the competitiveness ranking. Nevertheless, the report says China continues to lead the group of large emerging-market economies. Of the so-called BRICS group, which includes Brazil, Russia, India, China and South Africa, only Brazil has moved up in the rankings. Economist Blanke says it is not clear where the world will have to look for growth in the coming years as the Chinese and Indian economies slow down. She says countries need to consolidate their situations at home.

“The Europeans really need to deal with their sovereign debt crisis and get some of these countries growing again," she says. "They need to be thinking beyond the short-term. They need to get this macro-house in order, but then they need to be thinking about the sorts of investments that will get them there. Equally, the Chinese, as I mentioned, need to continue working on their markets."

The report says the Middle East and North Africa continue to be affected by political turbulence. Syria does not appear in this year’s list because researchers could not collect the data needed.

Authors of the report find Sub-Saharan Africa has grown impressively during the past 15 years, registering growth rates of more than five percent in the past two years.

South Africa and Mauritius are in the top half of the rankings. Ghana and Rwanda have moved up 11 and seven positions respectively. Liberia and Seychelles this year have entered the competitiveness rankings for the first time.

But the report says Sub-Saharan Africa lags behind the rest of the world in competitiveness, and the continent will continue to be a minor player until it undertakes necessary government and institutional reforms.

You May Like

Turkey's Erdogan: Women Not Equal to Men

Speaking at conference in Istanbul, President Erdogan says Islam has defined a position for women: motherhood More

Ahead of SAARC Summit, Subdued Expectations

Some regional analysts say distrust between Pakistani, Indian officials has slowed SAARC's progress over the year More

Philippines Leery of Development on Reef Reclamation in S. China Sea

Chinese land reclamation projects in area have been ongoing for years, but new satellite imagery reportedly shows China’s massive construction project More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Changei
X
November 24, 2014 10:09 PM
Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8050
JPY
USD
117.90
GBP
USD
0.6376
CAD
USD
1.1259
INR
USD
61.655

Rates may not be current.