Competitive Economies for MBA students
READ ORIGINAL @ WWW.INSEADBLOGGER.COM !
The IMD Yearbook of Competitiveness:
The 20th annual World Competitiveness Yearbook is published by IMD, a European TOP MBA(not as great as Insead- I am biased). The Yearbook ranks 55 economies on various competitive factors. IT tracks their path through the future Challenges. It is no surprise that US is number 1 for 15th Years in a row. I believe there can be many people who will dispute that but remember the one who does the ranking doesn’t need to do them in a way that everybody agrees.
I am posting some of the results here so B-school applicants can think about places where they can get a job. It is very important since I believe everybody would rather work in a growing economy than to be in a slump. Opportunities await, take advantage of them.
One may complain that this is a European research, therefore more countries are represented. IT is true that European countries have 5 out of the 10 first places. Let me explain this is not a rnaking about how attractive an economy is but how competitive. For example Japan the world’s biggest economy is absent form the first 12 spots. That should surprise nobody. Japan may be big, but definitely not competitive. Another big absence is China. China is big and growing at trailblazer speeds is not the most open, competitive economy(you must have heard about state-owned companies).
Students should use this guide to decide where they would like to get employment after graduation. This is important because competitive countries/economies are always open to foreign talent(although this is not anymore for the USA).
Let the rankings begin:
Nr 12: Ireland
World Competitiveness Rankings:
Economy: 24
Government Efficiency: 7
Business Efficiency: 4
Infrastructure: 23
True Ireland is not what it used to be. It is not the only place with low taxes and the Euro is hurting. What Ireland was offering has already been copied by other countries and now Ireland is becoming an expensive place to do business. Opportunities abound in the pharma industry although it is moving eastward. Ireland has fallen behind in Telecommunications and Information technology. It is not Ireland’s fault that the center of the world is going eastern…
No. 11
Norway
Per Capita GDP: $55,610
Real GDP Growth: 3.5%
World Competitiveness Rankings:
Economy: 10
Government Efficiency: 15
Business Efficiency: 13
Infrastructure: 10
One word: OIL! North Sea oil. Did you know that After Saudi Arabia and Russia, Norway is the 3rd largest Exporter of oil? One of the richest countries in the world but at the same time most expensive too. I once bought a burger for almost 5 Euros(and that was 5 years ago, before inflation). I do not know where there are opportunities in this country other than the oil sector
No. 10
Netherlands
Per Capita GDP: $37,743
Real GDP Growth: 3.5%
World Competitiveness Rankings:
Economy: 7
Government Efficiency: 17
Business Efficiency: 12
Infrastructure: 9
A country that has a great football team but never win any competitions. Great language abilities, very open economy(based on trade and international relations). Netherlands embodies the type of country that can make it on the 21st century. There are some problems like entrepreneurship and research but I hope they will be fixed. A lot of opportunities exist in Holland due to European HQs
No. 9
Sweden
Per Capita GDP: $34,703
Real GDP Growth: 2.6%
World Competitiveness Rankings:
Economy: 22
Government Efficiency: 11
Business Efficiency: 8
Infrastructure: 5
IKEA, H&M Volvo and other hail from Sweden(along with tall Scandinavian models).
Sweden ranked first for computers per capita and Internet users, and second for secondary-school enrollment, the efficiency of large corporations, and expenditure on research and development. Fiscal policy and tax regulations need to be tweaked. 60% income tax, I am sorry this is a bit too much.
No. 8
Canada
Per Capita GDP: $37,383
Real GDP Growth: 2.7%
World Competitiveness Rankings:
Economy: 11
Government Efficiency: 8
Business Efficiency: 11
Infrastructure: 8
Think of US lite… Canada is a good mix of Europe and US. A very international place, Vancouver is more Asian than Caucasain. Oil is bringing in Billion of dollars, healthcare exists. Trade is booming. Canada is focusing resources on energy and letting foreign talent pour in. Microsfot opened a software center in Canada instead of the US because it was easier to bring foreign engineers.
No. 7
Australia
Per Capita GDP: $36,460
Real GDP Growth: 4.1%
World Competitiveness Rankings:
Economy: 15
Government Efficiency: 5
Business Efficiency: 6
Infrastructure: 16
Mines, resources, Rio Tinto and others are showering in dollars. It ranks second to the U.S. among countries with more than 20 million people, thanks in part to fierce resilience to economic cycles, the ease of launching startups, and a high influx of foreign college students. But if I hear once again the phrase Mr. Rudd, the Chinese Speaking Prime Minister, I will go nuts! Australia has found itself near china and with great asian relationships: China and Japan. Cleantech is improving and the financial sector is strengthening itself. Though I do not believe it can become a Financial hub.
No. 6
Denmark
Per Capita GDP: $36,265
Real GDP Growth: 1.8%
World Competitiveness Rankings:
Economy: 26
Government Efficiency: 4
Business Efficiency: 5
Infrastructure: 7
Another Scandinavian country joins the club. The Nordics prove my belief that culture is incredibly important for economic success. Bad cases in point include the Balkans..
Denmark as plenty going for it, placing first in the world for education, the percentage of broadband subscribers, employee motivation, positive attitudes toward globalization, and labor regulation. Though if Denmark become more right wing and doesn’t let immigration any more they will face problems(look at Japan), Europeans do not have an issue since they can go and work without any restrictions.
No. 5
Luxembourg
Per Capita GDP: $77,187
Real GDP Growth: 5.2%
World Competitiveness Rankings:
Economy: 4
Government Efficiency: 14
Business Efficiency: 9
Infrastructure: 18
If one can call Luxemburg a country…. I have no comments about it. It was in the list so I have to refer to it.
No. 4
Switzerland
Per Capita GDP: $38,131
Real GDP Growth: 3.1%
World Competitiveness Rankings:
Economy: 9
Government Efficiency: 3
Business Efficiency: 7
Infrastructure: 2
It boasts the world's third-largest current account surplus (16.8% of GDP). Unemployment is also unheard at 3.6%. It is supposed to have the best quality of life(but there is no definition about what is considered quality)among economies surveyed. Switzerland also placed first in finance and language skills, 3 official languages, first for its credit rating, and second for health expenditure. But expensive as hell itself.
No. 3
Hong Kong
Per Capita GDP: $41,110
Real GDP Growth: 6.3%
World Competitiveness Rankings:
Economy: 5
Government Efficiency: 2
Business Efficiency: 1
Infrastructure: 19
Hong Kong placed first for stock market capitalization as a percentage of GDP: 902.6%. To do business is Hong Kong is as easy as it gets. Government has 1.3% of Debt(Italy and Greece have both 100% upwards). Proximity to China, English is spoken around the island. Good infrastructure. BUT small houses! Consider that.
Opportunities are to be found in Finance(This is the NY of the 21st Century), in trading and logistics, Consultancies. As a matter of fact a lot of Bschool Graduates make the move to HK.
No. 2
Singapore
Per Capita GDP: $47,052
Real GDP Growth: 7.7%
World Competitiveness Rankings:
Economy: 3
Government Efficiency: 1
Business Efficiency: 2
Infrastructure: 3
My sweetheart! Efficient Government= Singaporean Government. Located equal time between India and China. Chinese and Indian population abound. Immigration of talent and money is more than welcome. They are trying to create a city of millionaires and they seem to be doing a great job at it. Singapore works by targeting sectors and attracts talent. SO if you are into technology, biotech or Digital graphics look at opportunities in this island state. Unemployment stands at a crazy (2.1%), and zero foreign debt make Singapore one of the healthiest economies in the world. Though growth comes with a price, it is called higher cost of living. I personally enjoyed many cheap lunches.
No. 1
U.S.
Per Capita GDP: $43,987
Real GDP Growth: 2.2%
World Competitiveness Rankings:
Economy: 1
Government Efficiency: 18
Business Efficiency: 3
Infrastructure: 1
The U.S. has ranked first on the World Competitiveness Scoreboard every year since 1994. But Singapore is closing in fast: The city-state trailed the U.S. this year by less than 0.7 points. US wake up otherwise you will become irrelevant in the years to come. Remember all Empires crumble from within.
Alexander’s, Qin’s, Rome’s, Byzantium’s,
Are these comments based on your experience and the info from your INSEAD classmates??
Japan is the 2nd largest economy in the world, by the way. I would like to hear your detailed comments on Japan now that you work there. (Maybe in the near future post?)
Posted by: Ken | May 21, 2008 at 09:33