Finland is the most competitive economy in the world, according to the World Economic Forum.
The Fins beat the US to hold on to their top place in this year's Global Competitiveness Report 2004-2005. The top two were followed by Sweden, Taiwan, Denmark and Norway consecutively.
"The Nordic countries are characterized by excellent macroeconomic management overall – they are all running budget surpluses – they have extremely low levels of corruption, with their firms operating in a legal environment in which there is widespread respect for contracts and the rule of law, and their private sectors are on the forefront of technological innovation," said our chief economist, Augusto Lopez-Claros.
See the competitiveness rankings in full.
Some interesting facts:
1. The UK moved up four places to 11th spot
2. Estonia put in a stellar performance, ranking 20th
3. Italy has dropped from 26th place in 2001 to 47
4. At number 22, Chile is the most competitive economy in Latin America
5. China had a mixed performance and was ranked 46th
For more info, check out these links:
Webcast: watch the launch I video interviews I video transcript I press kit I fact sheet I GCR photo gallery
Vapautus' comments show the problem with the word "competitiveness." S/He seems to think the economists are talking about how competitive the people are. They are talking about how well the country competes for the world's wealth.
My question is this: Doesn't the very idea of competitiveness presume that all countries are fighting over a limited pool of wealth and that corporate decisionmakers all follow the same criteria in choosing where to locate?
If one place were really all that much better than the others, wouldn't all corporations be rushing to locate there? For over a decade, for example, California has heard that it is uncompetitive compared to other regions of the United States. Canada has heard the same thing about its position in the world. I have lived in both places and have found that they both have plenty of companies and plenty of investment. Real economic performance seems like a better measure of competitiveness than a survey.
I must be missing something. The survey appears to measure how well different countries measure up to the survey-writer's ideals, not how well they take advantage of their historical circumstances.
Posted by: steven bodzin | December 10, 2004 at 05:59
Let me expand on Smith Sylvanus Onyenaturuchi's comment about corruption. The Forum has an anti-corruption initiative called PACI (http://www.weforum.org/paci). It was launched because we realised that corruption is an enormous obstacle to economic and social betterment.
Fluor is one of the leaders in this initiative - they are on the steering committee - and I hope to interview one of their executives in the next few weeks. If I get some good content on corruption I'll post it on the weblog.
Posted by: Nina Joyce | December 09, 2004 at 10:32
pls i wish to commend ur effort in fighting against poverty where by preventing curruption in the world. buti want to sujest that u esterblish this norble forum to the ural areas in the world.
eg i m from Nigeria , where corruption is swinming , so i plead that this forum willextended to its local or state governments
Posted by: smith sylvanus onyenaturuchi | November 19, 2004 at 13:22
Check out...
Finland for Thought | Politics, current events, culture - In Finland & United States
www.finlandforthought.net
Posted by: FfT | November 17, 2004 at 22:43
He he he...Yes economic is very competitive and so on and so on.... but the taxes are probably higher than in any european country. And labour is for sure most expensive. This will make all huge enterprises to move abroad to avoid all these problems and to get more income. By the way its also problem of Norway and Denmark.
Posted by: Drey | November 17, 2004 at 15:55
Recent critics about Finland push me for not to shut up anymore. Im an American Citizen and haved studied in many europeans countries. Social balance on a capitalism globalize society is very difficult. We can count on many problems and can rate them about countries. 30 millions without medical insurance, 50 millions on housing problems, 50 millions drugs and alcohol dependants, that is USA. Welfare state can't exist where war state do. At the States we don't care about us and we are trying to convince others to copy our model? With over 200 billions dollars spend at IRAQ we do care about others. USA have a leader and competitive economy but its citizens are not part of it. We are just buyers at a big mega mall called MALL OF AMERICA. I forgot the Arms. We produce it, distribute, sell it and of course use them. How many thousands died at our streets, at the richest country of the world?
I have no complains against Finland, Denmark, Sweden and Iceland or their systems. Is very arrogant of our part to critize how they live without basis. Let's compare then our social systems and examine who's country care more about people.
USA, my country and its contradictions can't rule the world. Congrats to Nordic Countries.
Posted by: Hector Luis | October 16, 2004 at 01:08
Why has China been ranked so low?
Sweden was ranked high.
May I quote your competitiveness rankings
on the page http://www.scaiecat-spa-gigi.com/it/svezia.html where I am writing about Sweden?
Please e-mail me an answer.
Best regards
Luigi Donatello Asero
Posted by: Luigi Donatello Asero | October 15, 2004 at 13:18
All these comments are fascinating ... and represent very different points of view. The GCI measures one particular phenomenon: competitiveness. However, you've brought up interesting points on Finland's welfare system and I'd be interested in hearing more from you.
Posted by: Saadia Zahidi | October 14, 2004 at 16:45
it's always easier to criticise another country than your own one. by all means, finns live much better than at least any other 95% of the world population. and if they are more competitive than anybody else, that's good for them. there are plenty of the rich and plenty of the poor everywhere. for example, look at the streets of paris, which is not exactly only the "chic boutiques". that's where I live, paris. nothing to complain about the finns.
Posted by: v. | October 14, 2004 at 10:26
People are forgetting too quickly what this World Economic survey is all about - Competitiveness. The 'award' is, "Most Competitive Country in the World."
And this is true, Finland is probably the most competitive country in the world. I've spent most of my life in the second most competitive country in the world (the US) and now I live in Finland. Finland is a VERY competitve country. Why is it so competitive...?
Well first off, Finland has what I like to call "Education Inflation." Since a smart citizen is basically paid a salary and given free housing to goto school, it's very common for students to have multiple master's degrees. Anything less than a master's degree is basically worthless. So when you're looking for a job in Finland, you're competing with a ton of people equipped with high degrees. But if you're not so fortunate to be a very intelligent person, you'll goto work at 18 and make minimum wage to pay for your fellow citizens to get their multiple degrees so they can graduate and compete (and win) against you later in life.
Secondly, Finland has very high unemployment. Don't believe the government's estimate of 9-10% unemployment, real unemployment is closer to 15-20%. The Finnish government thinks just because you work 5 hours a week at the local kioski, you are therefore "employed." Oh, and alcoholics aren't considered "unemployed" either due to health concerns. So, with high unemployment, there are a lack of available jobs which raises its competitiveness.
Thirdly, Finns are generally hard-working, devoted, intelligent people. They strive to be successful and are good at what they do.
So, combine an over-educated workforce along with high unemployment and a naturally hard-working society ...you get high competitiveness.
Now for some reason, people and the media are interperting this survey as, "Finland has the best ECONOMY in the world." - This is FAR FAR from the truth.
The media are saying, "See, socialism MUST be working because the Scandinavians are fairing so well on this survey." Obviously they're not researching this survey too well. Look at some of these main attributes each country is rated on....
"Budget surpluses" - Finland isn't running a budget surplus. What does that have to do with high taxes and socialism??
"Low levels of corruption" - Again, what does that have to do with socialism and high taxes. If anything, more government control = more corruption. (BTW, Finland's Prime Minister was just basically booted out of office a few months on corruption-related charges)
"Respect for legal contracts" - High taxes? Socailism??
"Technological Innovation" - Well we can thank Nokia and other PRIVATE companies for that, it has NOTHING to do with the government. In fact, the Finnish government only hinders technological growth.
So, I agree with the World Economic Forum, Finland >IS< a very competitive country, possibly the most competitive country. But, that has NOTHING to do with socialism, the welfare state, and high taxes. Personally, I don't want to live in a competitive country, it makes it a hell of a lot harder to get and keep a job!!
Posted by: Vapautus | October 14, 2004 at 09:12
It's clear that ZingoFinno has no idea what he or she is talking about, as evidenced by labelling Finland as a virtual Communist nation - what rot. Finland may have high taxes and a strong social welfare system, but it has also achieved a high standard of living for all of its citizens and a social cohesiveness and progressiveness which is hard to find elsewhere.
I have lived for a number of years in Finland and travelled extensively within the Scandinavian nations, and found that there is a high level of innovation, and entreneurial spirit but also a realisation that its economy must be geared to serving the society, not the other way around.
No system is perfect but the high rankings of the Scandinavian nations makes a mockery of those who advocate a complete laissez faire, economic rationalist model where there is no social support for the disadvantaged. Trickle down economics has failed miserably yet these evangelists for the model continue to advocate it - maybe because they stand to profit at the expense of other's. Not the kind of society I personally wish to live in.
No country is perfect and yes there is a high level of unemployment and of alcohol abuse, both of which have very little to do with the economic and social models pursued there. The fact is Finland is a small nation that has achieved an extremely high standard of living for all of its citizens, a highly competitive and innovative corporate sector despite the miniscule population, their servere climate, historically agrarian base, and scarse natural resources (forsts excepted).
Does ZignoFinno advocate that people with drinking problems and other illnesses, or those unable to find work be simply thown on the scrap for the sake of some competitive edge? Finland has already proven you can be competitive and you can exercise a duty of care and compassion for all its citizens, installing a sense of obligation to give to the society, not merely take from it. Seems like a reasonable balance to me, and it seems like its working.
I think a more balanced and more indepth analysis is required into the success and relative weaknesses of the Scandinavian model, without looking at it through the highly distorted prism of rightist ideology.
Posted by: G. Regan | October 14, 2004 at 05:08
Such a joke with Finland's competitiveness!
By any measures, Finland is a Tax Hell on Earth for private citizens and small businesses, ruled by socialdemocratic government and leftist-communist worker's union. The Bubble of Government spending can only expand -until it bursts, soon !
But in modern world there is not going to be a future, nor entepreneurs and businesses, who are going to pay the taxes for and in a country like Finland. This nation is continuously shelling more and more money for its half a million unemployed and 200 000 drunks living nicely on tax money, and without any reason or incentive to work. This system is making Finland the Russia of Western World !
It is ironic that Finland who fought three wars in the 1900's against Soviet union to keep its independence and western culture, is now making all efforts learning people to live in a Communist way -ie. no responsibility, just gimme the money -behaviour while post-Communist Russia is trying to make a move for the Democracy !
At the same time eg. old people and mentally sick are ill kept in undermanned institutions or without necessary care.
Please evaluate the horrendous situation of 100.000's of really needy people in Finland, and renew Your evaluation !
Finland does not deserve the pole position in any economic comparison - unless its about a country where one can get most money for doing nothing but crime.
Finland is a country where way too high a level of lavish social benefits have created an ever-expanding "social predator" class. It will bring the nation to a grinding halt before 2010.
This country is totally without political capability, willpower, wisdom and Leadership to make a change. Avoid Finland, get out while You can (with what ever is left of You money) !
Posted by: ZingoFinno | October 13, 2004 at 16:19