Posted on 09/09/2009 12:00:06 AM PDT by bruinbirdman
The US government’s sweeping intervention in the private sector has taken its toll on the country’s competitiveness, according to an annual survey by the World Economic Forum.
The country lost its number one spot to Switzerland in the WEF report on global competitiveness, partly because of “particular concerns on the part of the business community about the government’s ability to maintain arm’s-length relationships with the private sector and in the perception that the government spends its resources wastefully”.
Barack Obama, US president, has continued and deepened the government’s involvement in private industry that was started by his predecessor, George W. Bush, as a response to the financial crisis, with bail-outs of the automotive and banking sectors. The WEF stresses that the US remains a considerable competitive force at number two in the rankings with excellent universities and a flexible labour market.
Apart from Switzerland, the UK and Rwanda can also take comfort from a separate survey of competitiveness published by the World Bank on Wednesday.
The Doing Business report kept Singapore at the top in a survey that measures which countries have the most friendly business regulations, concentrating on ease of starting a business, property rights and dispute and bankruptcy legislation. The UK was the only country in the top 10 to gain in the World Bank survey, exchanging its sixth place for Denmark’s fifth. The report found that the UK had streamlined its planning procedures, reducing the time for construction permits.
However, the UK fell in the WEF study from 12th to 13th place. “The country benefits from clear strengths such as the efficiency of its labour market, standing in contrast to the rigidity of many other European Union countries,” the report found.
“The drop in rank is largely attributable to a weakening of the assessment of the country’s financial market ... rising concerns in the business sector about the soundness of banks on the back of several banking sector bankruptcies and bail-outs.”
For all the bragging rights exchanged between developed countries, it was a developing country that achieved the fastest rise up the World Bank rankings – Rwanda’s reform-minded government cut red tape to move up from 143rd place last year to 67th place this year, ahead of Italy.
“There is a story here about things you can do no matter who you are,” said Penelope Brook, acting vice-president for financial and private sector development at the World Bank. One reform in Rwanda was longer opening hours at the borders to help freight pass through.
She said “relatively inexpensive” reforms would pay dividends for Rwanda and like-minded countries keen to stir more small and medium-sized companies into life.
* 2008-2009
Be sure to send your ‘Thank You’ cards to the White House people.
America not ranked #1 in this ranking for the first time in history!!!!!!!one1!
* History defined as beginning in 2004
Congratulations, Barack Obama, George Soros and Bill Ayers.
Well this should enhearten the islamists in Switzerland.
There’s no African countries, this list must be racist.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.