Source - Brief Article

Reason, Feb, 2004

The world's power-house economy to beat is ... Finland's? So says the World Economic Forum's Global Competitiveness Report, which ranks the long-term growth potential of 102 countries by examining the macroeconomic environment, public institutions, and technological development and innovation. Rounding out the top five were the United States, Sweden, Denmark, and Taiwan, while "economic miracle" China fell in the rankings due to "concerns about red tape, corruption, judicial independence, and trade barriers." The index underscored the centrality of stable public institutions, finding that an increase in the quality of the rule of law from "the current relatively low level of Ukraine to the 'middling' level of South Africa" would be associated in the longterm with a fourfold increase in incomes. The study found no statistical relationship between foreign aid and improvements in growth or competitiveness. The report is at www.weforum.org/gcr2003.>