Italy slips down competitive list while Nordic countries remain supreme
Italy has sunk down the list of the world's most competitive countries because of bureaucracy, infrastructures and high taxes, a report by the World Economic Forum has revealed. The Global Competitiveness Report 2004-2005, which put Finland at the top of the list for the third time in four years, places Italy 47th, while Poland brings up the rear for the EU as a whole in 60th place. According to the report, Italy has dropped six places in a year and 21 places since 2001. 'The persistent fall of Italy in the World Economic Forum's list cannot be regarded as an effect of firms' negative frame of mind, because there are some real data that confirm the thesis,' said Augusto Lopez-Claros, chief economist at the World Economic Forum. The report therefore urges Italy to 'continue with economic and institutional reforms, most of all in those areas that are facing public weaknesses.' Italy has also lost nine places in terms of manufacturing competitiveness, coming in 34th because of a worsening of the entrepreneurial sector. According to the report, the areas where Italy has lost the most ground are innovation, collaboration between manufacturing and research, foreign relations, public contracts and capital-venture supply. The world economic forum quotes the unnecessary and complicated bureaucracy, the unsuitability of infrastructures, excessive taxes and a strict labour policy as Italy's main barriers to competitiveness. Other problems include criminality, corruption, inflation and political changeability. The report, however, awards Italy first place in terms of number of mobile phones and fixed telephone lines, Internet users and computer users. The Scandinavian countries, which all feature in the competitiveness top ten, stood out thanks to a private sector showing a high proclivity for adopting new technologies and nurturing a culture of innovation, said the report. Furthermore, 'the Nordic countries are characterised by excellent macroeconomic management overall - they are all running budget surpluses - they have extremely low levels of corruption, with their firms operating in a legal environment in which there is widespread respect for contracts and the rule of law,' explained Mr Lopez-Claros. Elsewhere in Europe the most notable developments are the improvement in the position of the UK, which moved up four places to 11 in the overall rankings and the 'stellar performance' of Estonia (20), which has the most competitive economy among the ten countries that joined the EU in May 2004. Estonia has overtaken France which ranks 27th, Spain (23), Portugal (24), Belgium (25) and Luxembourg (26). Ireland, which ranked 11th in 2001 is now 30th. According to the global competitiveness report, the overall decline is related to the country's performance in innovation and technology. The US, which ranked second, is burdened by the poor quality of its public institutions and the instability of its macroeconomic environment, despite its 'overall technological supremacy,' says the World Economic Forum.
Countries
Belgium, Denmark, Estonia, Spain, Finland, France, Ireland, Italy, Luxembourg, Poland, Portugal, Sweden, United Kingdom