Thailand slides one place in competitiveness ranking report

As part of its ranking of 61 economies for this year, the IMD World Competitiveness Centre looked at several aspects of each country as a place to conduct business.
“A general analysis of the 2015 ranking shows that top countries are going back to the basics,” said Professor Arturo Bris, director of the centre.
“Productivity and efficiency are in the driver’s seat of the competitiveness wagon. Companies in those countries are increasing their efforts to minimise their environmental impact and provide a strong organisational structure for workforces to thrive.”
The United States remains at the top of the ranking as a result of its strong business efficiency and financial industry, its innovation drive and the effectiveness of its infrastructure.
Hong Kong (2) and Singapore (3) move up, overtaking Switzerland, which drops to fourth place. Canada (5), Norway (7), Denmark (8), Sweden (9) and Germany (10) remain in the top 10. Luxembourg moves to the top (6) from 11th place last year.
Results for Asia are mixed. Malaysia (12 to 14), Japan (21 to 27), Thailand (29 to 30) and Indonesia (37 to 42) move down. Taiwan (13 to 11), South Korea (26 to 25) and the Philippines (42 to 41) slightly rise in the ranking.
Most Asian economies in decline have seen a drop in their domestic economies and are affected by weakening or ageing infrastructure.
Eastern Europe also experienced mixed results. Poland (36 to 33), the Czech Republic (33 to 29) and Slovenia (55 to 49) moved up. In the Baltic States, Estonia (30 to 31) and Latvia (35 to 43) rank lower, although Lithuania gains (34 to 28).
Elsewhere in the region, current events in Russia (38 to 45) and Ukraine (49 to 60) highlight the negative impact that armed conflict and the accompanying higher market volatility have on competitiveness in an increasingly interconnected international economy.
A pattern of decline is observed in Latin America. Chile moves from 31 to 35, Peru from 50 to 54, Argentina from 58 to 59 and Venezuela remains at the bottom of the table. Colombia stays at 51.
Among large emerging economies, Brazil (54 to 56) and South Africa (52 to 53) slightly drop, China (23 to 22) and Mexico (41 to 39) experience improvements while India remains at the same spot (44).
This trend shows the difficulty in grouping emerging markets in one category, as the issues impacting their competitiveness differ. China’s slight increase stems from improvements in education and public expenditure, whereas Brazil suffers from a drop in domestic economy and less optimistic executive opinions.

A question of business efficiency
The study highlights one particular commonality among the best-ranking countries. Nine countries from the top 10 are also listed in the top 10 of the business-efficiency factor.
Business efficiency focuses on the extent to which the national environment encourages enterprises to perform in an innovative, profitable and responsible manner.
It is assessed through indicators related to productivity such as the labour market, finance, management practices and the attitudes and values that characterise the business environment.
“Simply put, business efficiency requires greater productivity and the competitiveness of countries is greatly linked to the ability of enterprises to remain profitable over time,” Bris said. “Increasing productivity remains a fundamental challenge for all countries.”
Long-term business profitability and productivity are difficult to achieve because they are largely underpinned by the strategic efforts of companies striving to maximise positive externalities that originate in economic activities.