Praise for the Nordics - Finland retains a high position in the competitiveness index for 2008-2009
Once again Finland has been ranked among the top ten in the annual Global Competitiveness Index, GCI, published by the Geneva-based World Economic Forum. The United States retained the top spot, while Finland was ranked sixth, the same as in 2007-2008, ahead of Germany, the Netherlands and Japan. Finland, like the other Nordic countries, has among the best functioning and most transparent institutions in the world.
In the words of the WEF, "The Nordic members of the European Union continue to hold privileged positions in the rankings. As in past years, the Nordic countries outperform the United States in a number of areas. For example, like Switzerland they receive among the best marks worldwide in terms of the macroeconomic environment, as they are also running healthy budget surpluses."
The GCI provides a holistic survey of factors that are crucial in boosting productivity and competitiveness. The index groups them into nine sectors: institutions, infrastructure, macro economy, health and primary education, higher education and training, market efficiency, technological readiness, business sophistication, and innovation.
Praise for the Nordics
According to the authors of the index, Finland and Sweden have the most open and transparent institutions in the world. Finland, Denmark and Sweden also continue to occupy the top three positions in higher education and training, where, says the WEF, "This has provided the workforce with the skills needed to adapt rapidly to a changing environment."
The Nordic countries show that transparent institutions, coupled with world class education and a focus on technology are a successful strategy for maintaining competitiveness in small, highly developed economies.
Finland's strengths
Finland has been high in the WEF competitiveness rankings for several years. Back in 2003 the organisation identified Finland's strengths as well managed economic policy, first class public institutions, and a private sector that adapts quickly to new technology and innovation.
To those assets, one might add the conclusion of the respected ethical organisation Transparency International that there is virtually no corruption in high places in Finland. WEF's chief economist, Augusto Lopez-Claros, sees good prospects for economies like Finland's. "Countries that, like the Nordics, are investing heavily in education are likely to see rising levels of income per capita, growing success in reducing poverty and an increasing ability to establish a presence in the global economy," he says.
A few years back the New York Times carried sent out the same message in a rather different way, urging readers to forget stereotypes of Scandinavian socialism, including the misconception that high taxes and a costly public welfare system asphyxiate the spirit of enterprise.
According to the NYT, the Nordic countries, Finland in the lead, are among the world's most interesting economies and among the best places to do business. According to Virtual Finland, anyone who knows Finland knows that it's a place where things get done - expeditiously and well. Investors take heed.
By Joe Brady / Virtual Finland
Published November 2003 / Updated June 2009
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