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China at No. 49 on Global Competitiveness Chart
(Reuters)
Updated: 2005-09-29 09:07

GENEVA - China dropped for the second straight year to No. 49 from No. 44 in 2003, as the survey said it continues "to suffer from institutional weaknesses which, unless addressed, are likely to slow down their ascension to the top tier of the most competitive economies in the world." India rose three places to come in just behind at No. 50.


Northern Europe and key east Asian countries are the most competitive economies in the world, retaining their positions in the top 10 in the "Global Competitiveness Report." [weforum.org]
Northern Europe and key east Asian countries and regions are the most competitive economies in the world, retaining their positions in the top 10 of a survey released Wednesday by the World Economic Forum.

For the third straight year, Finland has the most competitive economy, followed by the United States, according to a survey of almost 11,000 business leaders in the "Global Competitiveness Report." The poll was conducted for a 26th consecutive year.

Rounding out the top 10 in the survey — expanded this year to include 117 countries and regions — were Sweden, Denmark, Taiwan, Singapore, Iceland, Switzerland, Norway and Australia.

The success of the Nordics is based on their "very healthy macroeconomic environments and public institutions that are highly transparent and efficient, with general agreement within society on the spending priorities to be met in the government budget," said Augusto Lopez-Claros, chief economist and director of the Geneva-based institute's global competitiveness program.

Japan slipped to No. 12 from No. 9 last year as a result of poor management of its public finances, but reforms proposed by Prime Minister Junichiro Koizumi to privatize the sprawling postal service could help turn things around, the study said.

At the bottom of the list were countries in South America, sub-Saharan Africa, and southeast and central Asia: East Timor, Zimbabwe, Bangladesh, Cameroon, Cambodia, Paraguay, Benin, Guyana, Kyrgyzstan and Chad, which was last for the second straight year.

The aim of the survey, the World Economic Forum says, is to examine the range of factors that can affect an economy's business environment and development — including the levels of judicial independence, protection of property rights, government favoritism and corruption.
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