|The GSCI is based on an inclusive model of competitiveness, looking at the fundamentals that allow a nation-economy to thrive. Contrary to conventional evaluation of “competitiveness” that are based on financial and/or economic figures, the GSCI evaluates the root cause of economic development and success.
Key takeaways of the 2017 Sustainable Competitiveness Index:
- The top 20 are dominated by Northern-European countries and Eastern European nations, with Scandinavia covering the top 5 spots. The Baltic states are also doing notably well.
- The only non-European contenders in the top 20 of the GSCI 2017 are New Zealand (13), South Korea (16), and Japan (20).
- The World’s largest economies show a mixed picture: Germany is ranked 13, Japan 20, the UK 22, and the US 29. The US is scoring particularly low in social issues, and resource intensity – indicating not only development potential, but also significant cost reduction opportunities.
- The BRICs: China scores highest on rank 32, Brazil 42, Russia 45, and India 121. China is amongst the leading nations when it comes to Intellectual capital and investments; however, the combination of limited natural resources, arid areas, and low resource efficiency could possibly jeopardise the future development of the country.
- Analyising he bottom-line impacts of the policies proposed by the new Trump-administration shows that the US is set to loose ground – particularely against China – if all policies were to be implemented
- Comparison of the GSCI results to sovereign bond ratings suggest that the latter do not sufficiently all investor risks.
While there seems to be a certain correlation between the GSCI rankings of this index to current wealth levels as expressed in the GDP, these correlations are superficial. Some of the World’s richest countries, particularly the oil-rich countries of the Middle East, score significantly lower on the index than their GDP output would suggest. Some of the nominally poorest countries, on the other hand (e.g. Bhutan, Bolivia, Laos) are ranked considerably higher than their current GDP would indicate.
The Sustainable Competitiveness World Map: