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

Turkish Public Fears Jihadists More Than Kurds

Turkey facing twin threats of terrorism by Islamic State and PKK Kurdish separatists, says President Erdogan’s ruling AK Party More

Video One Year After Massacre, Iraq’s Yazidis a Broken People

Minority community still recovering from devastating assault by IS militants which spurred massive outrage More

‘Malvertisements’ Undermine Internet Trust

Hackers increasingly prey on users' trust of major websites to delivery malicious software More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Iraqi Yazidis Fear Death of Their Communityi
X
Sharon Behn
August 03, 2015 2:23 PM
A year ago on August 3, Islamic State militants stormed the homelands of Iraq’s Yazidi minority, killing hundreds of men and enslaving thousands of women. The scenes of desperate Yazidi families crowding on the top of Sinjar mountain without food or water spurred Kurdish fighters into action, an emergency airlift and the start of the U.S. airstrike campaign against the Islamic State Sunni extremists. VOA's Sharon Benh reports from northern Iraq.
Video

Video Iraqi Yazidis Fear Death of Their Community

A year ago on August 3, Islamic State militants stormed the homelands of Iraq’s Yazidi minority, killing hundreds of men and enslaving thousands of women. The scenes of desperate Yazidi families crowding on the top of Sinjar mountain without food or water spurred Kurdish fighters into action, an emergency airlift and the start of the U.S. airstrike campaign against the Islamic State Sunni extremists. VOA's Sharon Benh reports from northern Iraq.
Video

Video Bangkok Warned It Soon Could Be Submerged

Italy's Venice and America's New Orleans are not the only cities gradually submerging. The nearly ten million residents of the Bangkok urban area now must confront warnings the city could become uninhabitable in a few decades. VOA Correspondent Steve Herman reports from the Thai capital.
Video

Video Inclusive Gym Gets People With Disabilities in Fitness Spirit

Individuals with special needs are 58 percent more likely to be obese than the general population. According to the U.S. Centers for Disease Control, they also have an increased likelihood of anxiety, depression and social isolation. But a sports club outside Washington wants to make a difference in these people's lives. With Carol Pearson narrating, VOA's June Soh reports.
Video

Video Astronauts Train Underwater for Deep Space Missions

Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Special Olympics Show Competitors' Skill, Determination

Special Olympics competitions will wrap up Saturday in Los Angeles, and the closing ceremony for athletes with intellectual disabilities will be held Sunday night. In a week of competition, athletes have shown what they can do through skill and determination. VOA's Mike O'Sullivan reports.
Video

Video Civil Rights Leaders Struggled to Achieve Voting Rights Act

Fifty years ago, lawmakers approved, and U.S. President Lyndon Johnson signed, the Voting Rights Act of 1965. The measure outlawed racial discrimination in voting, giving millions of blacks in many parts of the southern United States federal enforcement of the right to vote. Correspondent Chris Simkins introduces us to some civil rights leaders who were on the front lines in the struggle for voting rights.
Video

Video Shooter’s Grill: Serving Food with a Touch of the Second Amendment

Shooter's Grill, a restaurant in Rifle, Colorado, attracts visitors from all over the world as well as local patrons. The reason? Waitresses openly carry loaded firearms as they serve food, and customers are welcome to carry them, too. VOA's Enming Liu and Lin Yang paid a visit to Shooter's Grill, and heard different opinions about this unique establishment.
Video

Video Despite Controversy, Business Owner Continues Sale of Confederate Flags

At Cooter’s, a store in rural Sperryville, Virginia, about 120 kilometers west of Washington, D.C., Confederate flags are flying off the shelves. The red, white and blue battle flag, with 13 white stars representing the Confederate states, was carried by southern forces during the U.S. Civil War in the 1860s. The South had seceded from the Union over several key issues of disagreement, including slavery. VOA’s Deborah Block has the story.
Video

Video Booming London Property a ‘Haven for Dirty Money’

Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Hometown of Boy Scouts of America Founder Reacts to Gay Leader Decision

Ottawa, Illinois, is the hometown of W.D. Boyce, who founded the Boy Scouts of America in 1910. In Ottawa, where Scouting remains an important part of the legacy of the community, the end of the organization's ban on openly gay adult leaders was seen as inevitable. VOA's Kane Farabaugh reports.

VOA Blogs

World Currencies

EUR
USD
0.9118
JPY
USD
124.31
GBP
USD
0.6420
CAD
USD
1.3048
INR
USD
64.136

Rates may not be current.