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US Falls, China Rises in Global Competitiveness Rankings

   Lisa Schlein | Geneva 09 September 2010
   Unemployed  people  use  computers  to  search  for  jobs  as  well as
   telephones  to  seek out unemployment insurance benefits at the Nevada
   JobConnect Career Center in Las Vegas, 01 Sep 2010

Photo: AP

   Unemployed  people  use  computers  to  search  for  jobs  as  well as
   telephones  to  seek out unemployment insurance benefits at the Nevada
   JobConnect Career Center in Las Vegas, 01 Sep 2010

   The  World Economic Forum's [1]Global Competitiveness Report finds the
   United   States  has  fallen  to  fourth  position  behind  top-ranked
   Switzerland,  Sweden  and Singapore in its competitiveness rankings of
   139 countries. The report notes China has moved up in the rankings and
   sub-Saharan African countries continue to hold the bottom.

   The report finds the recent economic crisis is having an impact on its
   competitiveness rankings. It notes the United States is continuing its
   decline.  After being toppled from first to second position last year,
   it now has fallen two more places to fourth position.

   Despite  this, co-author of the Global Competitiveness Report, Thierry
   Geiger,   tells  VOA  the  United  States  is  still  among  the  most
   competitive  economies  in  the world. And this he says is because the
   United  States  remains  strong in areas, such as innovation, business
   sophistication, education and infrastructure.

   "Now  we  see  a deterioration in the situation of some macro-economic
   indicators,  including  obviously the government budget," said Geiger.
   "The  budget  deficit is deepening, the debt level is also rising. The
   financial  market development category is one of the twelve pillars we
   capture.  So,  the situation there in the financial market and banking
   sector is still going down. The assessment is still deteriorating from
   last year."

   The  report  finds the Nordic countries continue to be well positioned
   in the rankings, with Sweden, Finland and Denmark among the top 10. It
   says  Germany  leads  the Euro-zone countries, moving up two places to
   fifth position. And, the United Kingdom, it says, has moved back up to
   12th position after falling in the rankings over recent years.

   The  report  notes China is becoming more competitive. Geiger says the
   country  is  making improvements in its financial and banking sectors,
   areas  where  it  has  been  historically weak. He says this and other
   factors have boosted China from 29th to 27th place.

   "This  is  quite  remarkable  given  the level of development of China
   now," added Geiger. "It is still an emerging economy and now really it
   is  almost  at  the  level  of  many advanced economies. And, they are
   actually widening the gap with the other BRICs; namely, India, Russia,
   and Brazil, which are much lower in the rankings."

   The report focuses on, what it calls, two interesting regional trends.
   It   cites  the  strong,  dynamic  performances  of  Asian  countries,
   including China, India, Indonesia, Vietnam and Sri Lanka.

   The  report  notes  several  countries  from the Middle East and North
   Africa  region  occupy the upper half of the rankings. It says most of
   the  Gulf  States  are  becoming  more  competitive  because  they are
   diversifying away from oil into other areas of economic pursuit.

   In sub-Saharan Africa, 54th and 55th placed South Africa and Mauritius
   feature in the top half of the rankings. They are followed by Namibia,
   Botswana and Rwanda, who figure among the best performing countries in
   the lower half of the rankings.

   But  the report says Chad, Burundi and Malawi continue to be among the
   worst performing countries.

References

   1. http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm