We define competitiveness as the set of institutions,policies, and factors that determine the level of productivity of a country. The level of productivity, in turn, sets the level of prosperity that can be earned by an economy. The productivity level also determines the rates of return obtained by investments in an economy, which in turn are the fundamental drivers of its growth rates.
Switzerland, Singapore, Finland, Sweden, The Netherlands and Germany rate ahead of the United States. It is worth noting that not only do the nations have strong, open economies. They also have homogeneous populations. At the bottom of the list are Mozambique, Chad, Yemen, Guinea, Haiti, Sierra Leone and Burundi.
Douglas A. McIntyre
Contact [email protected] for any questions or corrections.