RI moves up on list of competitive nations
RI moves up on list of competitive nations
Associated Press, Lausanne, Switzerland
Indonesia inched up to the 47th spot this year from the 49th
position in 2001 on the list of the world's most competitive
nations, which is published by the Switzerland-based
International Institute for Management Development.
The country ranked 44th in 2000.
The United States remains the world's most competitive nation
in 2002, but other high fliers like Singapore and Hong Kong have
lost ground in the turbulent economic environment, according to
the institute's annual survey released on Tuesday.
Japan, which at one time headed the list for eight straight
years, fell to 30th place, while struggling Argentina dropped to
the bottom of the 49 countries covered in the poll of business
leaders.
The survey said 2001 was "a year to forget" in terms of
competitiveness, and predicted only a bumpy road toward
improvement in 2002.
"The economy rapidly lost steam and the stock market plunged,
dragged down by the technology sector. The dramatic events of
Sept. 11 accentuated the correction," the report said.
"The economy will remain highly volatile, especially in Asia."
Finland, Luxembourg and the Netherlands each moved up one
place to second, third and fourth, respectively, while Singapore
dropped from second to fifth on the list.
Switzerland's stable economy allowed it to move from 10th on
the list to seventh, and Canada picked up one place to move to
eighth. Hong Kong, the largest growing economy in 2000, and
Ireland, each dropped three places to ninth and 10th,
respectively.
The United States, which has topped the survey every year
since 1994, was ranked first for business efficiency, direct
investment flow and use of computers.
However, it came bottom of the 49 countries for its US$413.6
billion current account deficit and for its exports of goods as a
percentage of gross domestic product. Other areas where it ranked
low included cost of living, industrial disputes, alcohol and
drug abuse and youth unemployment.
The survey found that the scandal surrounding the collapse of
energy trader Enron Inc. and other high-profile bankruptcies had
eroded public confidence in corporate figures.
"A far-reaching overhaul of accounting and auditing practices
may be the price to pay for renewed business confidence," the
survey said.
Japan, the world's second-largest economy, is suffering a
"midlife crisis" that is longer and deeper than expected, the
report said.
"Consequently, it will not contribute to a recovery in the
world economy to the same extent as in the past. The successful
introduction of the euro will also challenge the yen's position
as an alternative to the dollar."
Overall, the report said, despite the economic slowdown and
increased market consolidation in 2002, "the continuous growth in
the size of world markets remains the most fundamental long-term
factor affecting world competitiveness".
"The opening of world markets, despite present trade tensions,
has provided access to huge potential markets, especially in
emerging countries," it added.
Rankings in the World Competitiveness Survey:
Country 2001 2000
1. United States 1 1
2. Finland 3 4
3. Luxembourg 4 6
4. Netherlands 5 3
5. Singapore 2 2
6. Denmark 15 13
7. Switzerland 10 7
8. Canada 9 8
9. Hong Kong 6 12
10. Ireland 7 5
14. Australia 11 10
24. Taiwan 18 20
26. Malaysia 29 27
27. South Korea 28 28
30. Japan 26 24
31. China 33 30
34. Thailand 38 35
40. Philippines 40 37
47. Indonesia 49 44