WE’RE NUMBER…SIX?: United States Drops from Number One to Number Six in Global Competitiveness Rankings

Previously number one in the world, the United States fell five places in the 2006–07 competitiveness rankings of the World Economic Forum (WEF). The rankings are based on the WEF’s Global Competitiveness Index (GCI), which considers the factors that are critical to driving productivity and competitiveness. It groups these factors into a number of categories: institutions, infrastructure, macroeconomy, health and primary education, higher education and training, market efficiency, technological readiness, business sophistication, and innovation.

Top Ten Countries by GCI

Among the top ten countries, the report credits Switzerland’s “combination of a world-class capacity for innovation and the presence of a highly sophisticated business culture” for its top ranking. The Nordic countries in positions two, three, and four benefit from their budget surpluses and low levels of public indebtedness. Finland and Sweden also occupy places in the top ten in health and primary education. The United States receives strong marks for its market efficiency, innovation, higher education and training, and business sophistication.

Singapore, Japan, and Hong Kong (11th) get credit for their high-quality infrastructures, flexible and efficient markets, and healthy, well-educated workforces. The report also singles out India (43rd) for the quality of its scientific research and for the number of its scientists and engineers but notes that its secondary and tertiary school enrollment rates are low by international standards.

The United States ranked 40th in health and primary education and 5th in higher education and training. The top five countries in health and primary education were Japan, Canada, Iceland, Denmark, and Spain.

More information on the report is available at http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm.