US Still Competitive But Risks Japan-Style Recession: IMD

Reviewed by Takahiro MIYAO

Article:
US Still Competitive But Risks Japan-Style Recession: IMD
AFP (5/15/2007)
http://afp.google.com/article/
ALeqM5i0YLdkqpWnDMWuLrdj8SWsbZHMeA

Comments:

It is reported in the AFP article linked above that the U.S. is still No. 1 in the well-known competitive ranking published by IMD (Institute for Management Development) in Switzerland, but could be on the verge of falling from its top position due to the present turmoil in the U.S. economy. If the current recessionary trend deepens, the U.S. is likely to be taken over by Singapore and Hong Kong as No. 1 in competitiveness next year. This resembles Japan's downfall in competitive ranking from the top position due to its economic crisis in the early 1990s.

As for Japan's ranking this time, it remained at a low level of the 22nd place, although there was a slight improvement from last year's 34th position. It is a shame that Japan is ranked lower than China, which overtook Japan two years ago, according to the IMD competitive ranking. An IMD economist suggests that the U.S. seems more resilient than Japan, because the U.S. economy is so open and full of entrepreneurship to reinvent itself, whereas the Japanese economy seems to lack those means to revive its competitiveness.

Although this kind of international rankings tends to be ignored in Japan these days, at least the IMD competitive ranking should be taken seriously not only because Japan used to be No. 1 in this ranking but also because improving competitiveness is the only way for Japan to sustain its economic wellbeing with a rapidly aging and shrinking population in the future.

Acknowledgment:
This review is adopted from the following blog (with its Japanese translation):
http://glocom.blog59.fc2.com/blog-date-20080516.html