JEDDAH – IMD, a top-ranked global business school based in Switzerland, announced its 25th anniversary world competitiveness rankings, in which the US regained the No. 1 spot for 2013, thanks to a rebounding financial sector, an abundance of technological innovation and successful companies. In the Middle East, two Gulf countries made it to the global top 10: The UAE jumped 8 places and is ranked 8th ahead of Germany (9) while Qatar (10) maintains its position. China (21) and Japan (24) are also increasing their competitiveness. In the case of Japan, Abenomics seems to be having an initial impact on the dynamism of the economy. In Europe, the most competitive nations include Switzerland (2), Sweden (4) and Germany (9), whose success relies upon export-oriented manufacturing, diversified economies, strong small and medium enterprises (SMEs) and fiscal discipline. Like last year, the rest of Europe is heavily constrained by austerity programs that are delaying recovery and calling into question the timeliness of the measures proposed. The BRICS economies have enjoyed mixed fortunes. China (21) and Russia (42) rose in the rankings, while India (40), Brazil (51) and South Africa (53) all fell. Emerging economies in general remain highly dependent on the global economic recovery, which seems to be delayed. In Latin America, Mexico (32) has seen a small revival in its competitiveness that now needs to be confirmed over time and by the continuous implementation of structural reforms. In addition to ranking 60 economies for 2013, the IMD World Competitiveness Center also looks at the winners and losers since its creation. Professor Stephane Garelli, director of the IMD World Competitiveness Center, said: “While the euro zone remains stalled, the robust comeback of the US to the top of the competitiveness rankings, and better news from Japan, have revived the austerity debate. “Structural reforms are unavoidable, but growth remains a prerequisite for competitiveness. In addition, the harshness of austerity measures too often antagonizes the population. In the end, countries need to preserve social cohesion to deliver prosperity.” “Over the past few years, the UAE government has intensified its efforts in introducing policies that help create a highly diverse, stable, and competitive business environment across the nation, said Abdullah Nasser Lootah Secretary General, Emirates Competitiveness Council. “The UAE's business and social environment is an exceptional value proposition for businesses, investment and talent from around the world; encompassing a dynamic economy, a business-friendly environment, quality of corporate governance and social cohesion. All of this gives the UAE a comparative advantage not only compared to countries in the MENA region, but internationally. “We at the Emirates Competitiveness Council work collaboratively with local and federal government entities, private sector enterprises and international organizations for the purpose of developing programs and strategies that can support the nation's growth and economic development agenda, and enhance UAE's regional and global competitiveness,” added Lootah. — SG
