Posted on 05/11/2007 7:12:48 PM PDT by WesternCulture
The results of the 2007 edition of IMD’s World Competitiveness Yearbook highlight a big shake-up in economic and business power. Emerging nations are quickly catching up in competitiveness. New companies and new brands are appearing all over the world. They now contest the long-standing competitive supremacy of industrialized nations. “This could lead to an increase in protectionist measures in Europe and the US”, says Professor Stéphane Garelli, Director of IMD’s World Competitiveness Center.
Of the 55 economies ranked by IMD, the US still ranks No. 1 in 2007, closely followed by Singapore and Hong Kong. However, 40 economies are now increasing or maintaining their competitiveness compared to the US – in other words, “closing the gap”. Only 15 are losing ground. For the first time, the ranking indicates not only the competitive position of nations in 2007 but also their ability to catch up with the leader (the US). These trends are based on past competitive performance, drawn from the world’s most comprehensive database on world competitiveness built up over two decades by IMD.
China, Russia, India, the Slovak Republic, Estonia, Sweden, Austria, Australia, Denmark, Switzerland and Hong Kong have displayed a strong improvement in their competitiveness performance in recent years. This does not imply that all of these nations are already at the top of the competitiveness league. However, they are catching up quickly. Such strong performances will obviously impact future rankings.
On the other hand, Indonesia, Italy, Argentina, Brazil, Mexico, Turkey, the Philippines and France have tended to lose ground compared to the top league. Despite some real and specific competitive advantages, these nations will, sooner or later, lose their standing in world competitiveness if they do not improve their overall performance.
Economic and business power is shifting to new countries: China, Russia and India have together stacked up more than $1,700bn in foreign currency reserves. Local companies from South-East Asia, India, China, Russia and the Gulf countries are buying industrial assets the world over.
In all likelihood, industrialized nations will find it hard to tolerate such a power shift. They will not accept the loss of some of their “business jewels” to newcomers without a fight. We shall thus face a year of rising protectionist measures. An increase in the number of complaints filed at the WTO for unfair practices can be expected.
But the new faces of protectionism will be subtler than in the past: corporate governance, environmental protection, intellectual property or social rights are the new key words. In 2007 and beyond, economic relations will be more tense than ever as emerging markets turn into emerging powers and challenge the established order for competitiveness.
(All quotes can be attributed to Professor Stéphane Garelli, IMD)
I don't know about Florida, but in California there are huge areas where you will find almost nothing but those high-end cars...and other areas where you won't see one at all. The United States has become many separate nations in one large geographical area - we've lost much of our national unity over the last quarter century. These categorizations arent about race or nationality, but outlook: We have a "Sweden", consisting of much of California, Oregon, Washington, New England; we have a "Poland/Ukraine" consisting of much of the Midwest; we have an "African/Caribbean/Latin American" nation in the Southeast; we have a multi-racial criminal underclass in most major cities; and we have a Mexico everywhere...for reasons that are self-explanatory. To Europeans trying to look at the USA as one country, the symptoms they see are understandably very confusing. In most cases, these internal "nations" don't understand each other, either. ;)
- Very interesting.
In one way, I think immigration to the US is an advantage, as long as we’re talking people who come to your country to work hard and become moral, law abiding citizens.
From other aspects, this influx might not be beneficent for the country as a whole.
“we’ve lost much of our national unity over the last quarter century.”
- I keep hearing this from a lot of Americans.
Being a person with high regards of the US and many positive memories from visiting the US, I must say this not only worries me. It also saddens me.
Despite of this, I’m convinced Conservatism and love of freedom will prevail.
It’s been well over a century since the American Industrial Revolution that put the USA from about fifth place to first in industrial power. Since then not much on that front, which allows any other country to follow a similar path and end up in a competitive position. If the USA wants to regain its former overwhelmingly dominant position it will need another Economic Revolution. This could be done quickly and strongly by Repealing the Treaty.
“If the USA wants to regain its former overwhelmingly dominant position it will need another Economic Revolution”
- I’m not saying it’s impossible, but what could be done?
I sure would like the US to find its way back to the values that once made USA great, but at the moment there seems to be too much of division and hatred among different categories of US citizens.
I really hope I’m wrong. A strong, united USA will benefit every other nation on Earth.
What countries will enjoy the most of economical development in the coming decade or so?
There are many nations around that have aquired a taste for competition and economical progress. The Eastern European nations are one such example.
The US will remain the single most prosperous and influential nation for many years, but I think big changes are to be expected especially in Eastern Europe. People in Eastern Europe are very Capitalist friendly and the will to work hard is widespread.
Furthermore, Europeans in general are becoming more and more tired of Socialism. Look to what happened recently in Swedish, German and French elections.
Europe has become a more Conservative, Capitalist friendly part of the world during the last year. And soon, the Tories will come to power in the UK...
Repeal the Treaty; establish private property rights in outer space.
The USA and its formal trading partners with all its vast wealth would benefit proportionately more than any other countries.
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