The World Economic Forum recently released it’s Global Competitiveness Report. Finland was deemed the most competitive nation on earth. The US was second. Sweden was number 4, Denmark 6, and Norway 7. Britain was 13, China 49 and India 50. Placing Finland, Sweden, Denmark and Norway on the same playing field as the US, China, India and Britain is like mixing apples and oranges. That is if you’re using the real definition for competitiveness. But the WEF has their own take on competitiveness. Forbes had this to offer on WEF’s methodology:
"Finland is given high marks for prudently running budget surpluses in preparation for the future claims on its social security, pension and health care systems expected to be incurred as its population ages. The WEF also says that Finland and its neighbors may show that it is not the burden of taxes that makes for a good or bad economy, but how well the money raised is spent."
Two comments: 1) Finland running surpluses to pay for future social services (as opposed to investing in technology, infrastructure or programs designed to increase Finlands share of the global market) diminishes their competitiveness; 2) higher relative tax rates designed to generate surpluses to pay for social services (as opposed to lowering tax rates to encourage investing in technology, infrastructure or programs designed to increase Finlands share of the global market) does not increase Finland’s competitiveness.
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