China has slipped six places to 54th in the World Economic
Forum's (WEF) global competitiveness rankings, a report said
yesterday.
The WEF's Global Competitiveness Report (2006-07) highlighted
positive aspects of China's economy, largely due to its cautious
macro-economic management such as buoyant growth rates, low
inflation and manageable levels of public debt. However, structural
weaknesses across several areas, including the primarily
state-controlled banking sector, need to be corrected. the report
warned.
Low penetration rates for the Internet and personal computers
persist in China and secondary and tertiary school enrolment rates
are low by international standards.
China also needs to improve environmental qualities of various
institutions both private and public, said Augusto Lopez-Claros,
Chief Economist and Director of the WEF's Global Competitiveness
Network.
Switzerland, Finland and Sweden are the world's most competitive
economies, according to the report. Denmark, Singapore, the United
States, Japan, Germany, the Netherlands and the United Kingdom
complete the top 10 list. The biggest loser is the United States,
dropping from first to sixth.
The rankings are drawn from a combination of hard data in the
public sphere and the results of a comprehensive annual survey
conducted by the WEF among 125 economies worldwide.
"By providing detailed assessments of the economic conditions of
nations worldwide, the report offers policy-makers and business
leaders an important tool in the formulation of improved economic
policies and institutional reforms," said Klaus Schwab, the WEF
Founder and Executive Chairman.
However, the WEF rankings differ from a report released by the
Lausanne-based International Institution for Management Development
in May, which indicated China's global competitiveness rose from
last year's 31st place to 19th this year.
(China Daily September 28, 2006)