Global Competitiveness Index 2023: Denmark, Ireland, and Switzerland Lead the Way
Global Competitiveness Index 2023: Denmark, Ireland, and Switzerland Lead the Way
2023 Global Competitiveness Index, published by the International Institute for Management Development (IMD), has named Denmark, Ireland, and Switzerland as the top three most competitive economies among 64 nations surveyed. The report highlights the unique approaches taken by these countries to achieve competitiveness and emphasizes the importance of long-term value creation. In this article, we will delve into the rankings, key findings, and notable advancements and challenges faced by various countries.
Global Competitiveness Index 2023: Top Three Economies
Denmark: Retaining its first-place position from last year, Denmark continues to demonstrate exceptional competitiveness. The country’s efficient utilization of markets and trading partners contributes to its success.Ireland: Making an impressive leap from 11th place in the previous year, Ireland secures the second spot. Its ability to capitalize on market access and trading opportunities enhances its competitiveness.
Switzerland: Despite dropping from second place in 2022 and first place in 2021, Switzerland maintains its position in the top three. The country’s strategic utilization of its market access and trading partners sustains its competitiveness.Global Competitiveness Index 2023: Denmark, Ireland, and Switzerland Lead the Way
Top 10 Economies in the 2023 Global Competitiveness Index Rank
Denmark
Ireland
Switzerland
Singapore
Netherlands
Taiwan
Hong Kong
Sweden
United States
United Arab Emirates
Global Competitiveness Index 2023: India’s Position: Progress Amidst Challenges
India, despite experiencing a slight drop of three ranks, finishes in 40th place in the 2023 Global Competitiveness Index, indicating an improvement compared to its consistent 43rd position between 2019 and 2021. The IMD report highlights several areas of advancement and challenges faced by India in its pursuit of competitiveness.
Areas of Improvement:
Government Efficiency: India demonstrated improvement in government efficiency, reflecting positive developments in governance and public administration.
Exchange Rate Stability: The stability of India’s exchange rate played a significant role in boosting its competitiveness score, contributing to a favorable business environment.
Compensation Levels and Pollution Control: India’s competitive score benefited from its compensation levels and efforts to improve pollution control, emphasizing a focus on sustainable practices.
Global Competitiveness Index 2023: Noteworthy Advancements:
Ireland’s Remarkable Leap: Ireland’s ascent from 11th to second place demonstrates its commitment to competitiveness. The country’s access to markets and trading partners has played a pivotal role in its remarkable progress.
Singapore’s Consistency: Despite falling one spot to fourth place, Singapore remains a highly competitive economy. The country’s ability to leverage its market access and maintain consistency in competitiveness is commendable.
India’s Progress: India, ranking 40th, experienced an improvement from its previous position of 43rd. Notable strengths for India include exchange rate stability, compensation levels, and advancements in pollution control. However, there are challenges to address, such as maintaining high GDP growth, controlling inflation and fiscal deficit, and accelerating digital transformation.
Challenges and Regional Insights:
Europe’s Prominence: European economies dominated the top 10 rankings in 2023, with five countries featured. Denmark, Switzerland, Ireland, Netherlands, and Sweden showcased their competitive prowess, although Sweden slipped four places from the previous year.
South American Lag: Six South American countries occupied the bottom 10 positions in the index, with Venezuela ranking last at 64th place. Argentina, Mongolia, South Africa, Brazil, Botswana, and Colombia also faced competitiveness challenges.
Arab World Advancements: Saudi Arabia climbed seven places to reach the 17th rank globally and ranked third in the Arab world. Qatar improved by six places, securing the 12th position worldwide and second in the Arab world. Bahrain advanced five places to claim the 25th spot globally and fourth in the Arab world. The United Arab Emirates maintained its leadership in the Arab world, securing the tenth position globally. Jordan saw a two-place advancement, ending at 54th place globally but last in the Arab world at the sixth position.
The World’s Most Talent Competitive Countries, 2023
Bruno Lanvin and L. Felipe Monteiro , INSEAD
The tenth anniversary edition of the Global Talent Competitiveness Index reveals changing attitudes and persistent trends.
A country’s talent is its powerhouse. Attracting, developing and retaining skilled individuals isn’t just a strategy – it shapes a nation’s success in the global arena.
For ten years, the Global Talent Competitiveness Index (GTCI) has evaluated the talent performance of countries, guiding decision makers in shaping policies and practices to boost their competitive edge.
In this year’s GTCI rankings comprising 134 countries, Switzerland emerges as the leading nation in cultivating talent, closely followed by Singapore and the United States. Denmark, the Netherlands, Finland, Norway, Australia, Sweden and the United Kingdom complete the rest of the top ten.
GTCI data from the past decade reveals that Switzerland has maintained its top position for ten consecutive years. Singapore has held second place every year except 2020, and the United States, while somewhat less steady, has predominantly stayed within the top four.
The top ten list has remained remarkably stable over the past ten years, primarily dominated by smaller European countries. This year, European nations also secured 17 positions in the top 25. The most notable change in the top 25 is the absence of Japan, replaced by South Korea for the first time.
All eyes on emerging economies
Over the past decade, we’ve seen an unwavering link between a country's wealth and its talent competitiveness, with richer economies continuing to outshine poorer economies.
While the global talent scene remains uneven and unequal, the progress made by emerging economies provides reason for optimism. Each year, we assess how talent performance changes over extended periods, categorising countries as talent “champions”, “movers”, “limpers” or “laggards”.
Notably, in the past year, China has risen in the rankings from 47th to 40th place, transitioning from a talent mover to a talent champion. Indonesia maintained its status as a talent mover but has made remarkable strides in talent competitiveness over the past decade. Mexico has shifted from being a talent laggard to a talent mover.
Although Brazil is still among the talent laggards, it has progressed within that quadrant and may well soon shift to becoming a talent mover. All four countries have improved their ability to retain talent.
The proportion of countries from Latin America classified as talent champions has risen from 3 percent in 2020 to 6 percent in 2023. Similarly, Western Asia's representation among the talent champions has increased from 9 percent to 13 percent over the same period.
Deepening divides and changing attitudes
Year after year, talent inequalities have persisted within societies. Gender inequalities prove remarkably hard to reduce. GTCI data show significant progress in legal and regulatory environments, whereby an increasing number of countries have committed to reducing gender gaps in labour markets. However, such efforts have been slowed (and sometimes reversed) by Covid-19. Altogether, they remain insufficient and need to be accelerated.
In large parts of the world, our analyses show thatwomen continue to face unequal pay and limited career growth. In many poorer and emerging economies, the gender divide is even stronger, as girls struggle to access higher education. While Covid-19 worsened these divides, pushing some to irreversible levels, the post-pandemic recovery may deepen them even further.
The pandemic years reshaped our global talent landscape in more ways than one. New norms have emerged and are here to stay, including remote and online working. Workers, especially high-skilled individuals, are no longer bound by physical locations and can now choose where they live and work.
We observed that the correlation between a country's quality of life and its talent performance was strong before Covid, and we anticipate that it will only grow stronger in the years ahead.
Before the pandemic, we identified a positive trend of global “brain circulation” – a departure from the concepts of brain drain or brain gain. For national economies and enterprises, it had become advantageous to perceive talent as a fluid resource, benefitting from international exposure.
However, the pandemic disrupted the flow of talent across nations. While travel has resumed, persistent uncertainties and geopolitical tensions continue to hinder direct cooperation and limit the exchange of talent between nations.
The 2021 edition of the GTCI predicted that the post-Covid recovery might follow a “K-shaped” trajectory, deepening inequalities among workers based on their skills. The upper branch of the “K” represents workers in strategic sectors, equipped with future-ready skills, while the lower branch spells a challenging path for less skilled or adaptable workers.
Given this scenario, we assumed that the new generation preparing to enter the workforce would prioritise acquiring high-demand skills and target the most dynamic sectors. Surprisingly, our analyses revealed a different trend. We found a growing proportion of younger individuals more focused on pursuing meaningful work, contributing to positive societal or environmental impacts and achieving a healthier work-life balance.
This shift has also given rise to a new generation of workers for whom the traditional concept of “employee loyalty” has rapidly eroded. An increasing number of workers are opting for gigs, “slashing” and short-term contracts, allowing them the flexibility to work independently and pursue diverse opportunities.
How talent competition will change in the next ten years
In the rapidly changing and uncertain decade ahead, the world of work will further transform, driven by evolving expectations from younger generations, new economic models and emerging technologies like artificial intelligence.
Attracting, growing and retaining talent will gain even more importance as a driver of competitiveness, innovation and geo-political soft power. This will be true for nations, cities and organisations alike.
Consequently, this heightened focus on talent will also fuel fiercer competition. As uncertainties and international tensions accumulate, we should expect more rather than less talent wars. Domestic labour market challenges and rising nationalism will further intensify these battles, in particular around immigration policies.
Cities and regions will stand as pioneers in this evolving scenario. Through our Global City Talent Competitiveness Index, we've witnessed the rise of new talent hubs in cities and how core issues such as sustainability, innovation and talent have largely shifted from national to local governments. Looking ahead, we anticipate that cities and regions will pioneer new talent and innovation strategies.
Over the next ten years, skills and education will remain vital tools to empower workers to make meaningful contributions to their economies and societies. It is our responsibility to build an inclusive global workforce, ensuring equal opportunities for all to contribute towards creating a fairer and more sustainable world.
While these are only predictions, in the last ten years, the GTCI has often anticipated patterns before they unfolded. Stay tuned to witness how these emerging trends might reshape the world of work as we know it.
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