Lanka slips further down in global competitiveness ranking

Switzerland beats US to the top whilst Singapore rises to third place

Sri Lanka has slipped further down in the latest global ranking of competitiveness compiled by the Davos-based World Economic Forum (WEF).
Sri Lanka which was ranked at number 70 out of around 130 countries in 2007-8, has slipped to the 79th place in the 2009-10 ranking whilst in the previous year it was ranked 77.Amid the present crisis, it is critical that policy-makers not lose sight of long-term competitiveness fundamentals amid short-term urgencies.
The WEF report said that Sri Lanka’s gap with the other countries of the region was widening. Sri Lanka is also in the primary stage 1 in the phase of development though there are several South Asian countries in the same league. As per WEF classification, Sri Lanka has a long distance to cover to get through four other advanced stages of development.
In contrast several other developing nations are either placed above Sri Lanka or have progressed rapidly in the rankings. For example Bangladesh though below Sri Lanka has moved up five ranks to place 106th whilst India is the most progressive South Asian country. Vietnam is also above Sri Lanka though it had slipped a few notches.
Switzerland has topped the overall ranking in The Global Competitiveness Report 2009-2010 beating the US to the second position. Singapore, Sweden and Denmark round out the top five. The People’s Republic of China continues to lead the way among large developing economies, improving by one place this year, solidifying its position among the top 30. Several Asian economies perform strongly with Japan, Hong Kong, Republic of Korea and Taiwan, China also in the top 20.
Xavier Sala-i-Martin, Professor of Economics, Columbia University, USA, and co-author of the Report added, “Amid the present crisis, it is critical that policy-makers not lose sight of long-term competitiveness fundamentals amid short-term urgencies. Competitive economies are those that have in place factors driving the productivity enhancements on which their present and future prosperity is built. A competitiveness-supporting economic environment can help national economies to weather business cycle downturns and ensure that the mechanisms enabling solid economic performance going into the future are in place.”

See also...

Business must counter corruption to foster economic sustainability; Lanka ranked 92 in Corruption Index