United States Flag

This time the United States has been moved two steps down in the World Economic Forum’s (WEF) competitiveness survey for 2010-11. As compare to US, Switzerland continued to maintain its position at 1st, while Sweden and Singapore succeed to achieve a position of 2nd and 3rd in this ranking.

Last year the United States was on 2nd place but according to the annual World Competitiveness Report, the United States ranked 4th this year. The WEF says that the reason behind is weakening of its public and private institutions, as well as remaining concerns about the state of its economic markets.

The ranking of country’s public institutions has dropped to 40th place from 34th among 139 countries because of the complexity of US companies.
It is reported that “The public does not demonstrate strong trust of politicians and the business community remains concerned about the government’s ability to maintain arms-length relationships with the private sector and considers that the government spends its resources relatively wastefully,”

The ranking of United States also slipped from 39th place to 55th on the matter of auditing and reporting standards this year.

In macroeconomic stability it is on 87th place. Comparatively this place is much better than last year ranking, it was 93.

WEF said that “Prior to the crisis, the United States had been building up large macroeconomic imbalances, with repeated fiscal deficits leading to burgeoning levels of public indebtedness; this has been exacerbated by significant stimulus spending”.

If we talk about other countries China moves up to 27th place, while India, Brazil and Russia remain in the same places as last year at 51, 58 and 63.