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India 36th on WEF competitive nations survey

Ruth David

Finland beat the US to emerge the most competitive nation in the world at present, while India stands 36th in a survey of 75 nations by the World Economic Forum.

"India heads the list of low income countries with upside potential that could be unlocked by governmental and political reform," says the Global Competitiveness Report 2001.

Harvard University professors Jeffrey Sachs and Michael Porter and Geneva-based WEF have prepared the 352-page report. The report, which has been released annually since 1979, focuses on the growth competitiveness and current competitiveness indices and economic creativity of nations.

Both the indices are based on a nation's gross domestic product. A nation's expected growth for the next five years is measured by the growth index, while the current index indicates present economic performance.

India ranked 36th on the current competitive index as against 37th last year and slumped to 57th place on the growth index from 48th last year.

Finland and the US were first and second respectively on both the indices. Canada moved up to the third spot from last year's sixth position on the growth competitive index.

Singapore, which topped the list for four years before falling to second last year, slipped to fourth spot. Australia moved up seven places to fifth.

The survey added 17 new countries to its list this year, including the Baltic states, Nigeria, Bangladesh, Jamaica and Uruguay. Zimbabwe was at the bottom of the list, just below Paraguay, Nicaragua and Nigeria respectively.

Bangladesh ranked 71st on the growth index. Japan, which continues to experience economic stagnation, was at 21st on the list, down one slot from last year.

A "flash survey" conducted between September 26 and October 1 to analyse the impact of the US attacks on the indices said the attacks would have a slight but not overwhelmingly negative effect, as the global economy is more resilient in the long-term than most observers would think.

The post-attack survey said the US should comprehensively revamp its assistance efforts for the world's poorest nations, because the lack of economic development is the root cause of social unrest and violence and rich nations need to recognise the "strategic benefits" of supporting poor nations.

"Developing nations that have improved their current competitiveness rankings on a comparable basis include India, Russia and China," the report said.

Around 4,600 business executives have provided opinions about economic factors for which there is no reliable data- efficiency of government institutions, strength of local supplier networks and nature of competitive practices.

This year's report emphasises the problems facing countries as they move from resource-based economies to knowledge-based economies. It says the findings highlight the need to align a nation's economic priorities with its levels of development.

Indo-Asian News Service

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