The Latest World Economic Forum World Competitiveness Report is Out

The World Economic Forum (think of the UN for people who actually run the world), just put out its annual rankings of global competitiveness.  If you want to sift through 600 pages of data it can be found here http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf.  In it, the competitiveness of 141 different countries are assessed on 12 broad categories.  Unlike many similar reports, the Nordics, while performing well do not dominate the list.

Overall the U.S. ranks second after Singapore, with an overall score of  84. Implicit in these figures is the fact that the U.S. can effectively compete in international markets, and what problems the U.S. faces is largely of its own making.

Large countries such as the U.S. and China score high in market size, and the U.S. ranks first in business dynamism and innovation capability.  The U.S. also ties for first with several other countries in terms of macroeconomic stability.  Inflation and interest rates are low as is unemployment.  For the most part our labor markets are in pretty good shape. Compared to most countries our educational and job training system is reasonably competent although it is not as good as Switzerland, Germany or Finland.  A big problem that perhaps helps explain the disparity of incomes in the U.S. is the low level of workers rights where the U.S. only ranks 81st. 

Despite the positive attributes there are several areas of concern.  The U.S. only ranks 20th in the strength of its institutions, and 99th in terms of shareholder governance.  This might explain the pay levels of senior management.  It also explains why The Economist calls the U.S. a flawed democracy. A nation that is governed by Executive Order and judicial fiat has serious institutional problems that transcend whoever controls the executive branch of federal or state government. 

Policies that address issues relating to corporate governance and worker rights may be more effective than raising taxes on the affluent.  This has not been a major point of discussion in the developing Presidential campaign, and a platform that promotes class warfare has seldom been successful in the U.S.

The U.S. only ranks 55th in terms of healthy life expectancy.  While the average lifespan is approaching 80, the number of healthy years appears to be stuck at around 66 or 67.  Lifestyle probably has more to do with this than the quality and access to health care.  We eat too much, don't exercise enough, and take too many drugs.