Competitiveness Report 2021

Global competitiveness is not another term for cheap labour or low taxes. It’s a unique blend of individual freedoms and collective decision-making, of entrepreneurship and social protection.

Pascal Raidron

President
of Eight Advisory
& Eight International

Pascal Raidron

President
of Eight Advisory
& Eight International

The unique combination of rankings makes up the socio-economic DNA of a country. However, these metrics and rankings are not set in stone. Impact of the covid pandemic, which affected every country in the world in different ways, has made in abundantly clear. For Europe the following years will be decisive. Not only will the economic and societal outcomes of the pandemic become apparent, but also on a geopolitical level there is increased tension that sooner or later will impact all regions.

Alexis Karklins-Marchay

Partner at Eight Advisory
& General Secretary
of Eight International

Alexis Karklins-Marchay

Partner at Eight Advisory
& General Secretary
of Eight International

In this edition, we have added a particular emphasis on Europe, which is much more than a simple sum of individual countries. Together, Europe can truly compete with the other big powers in the world. Given that the coming years will prove crucial, the European Union has an important role to play. A strong united Europe is needed to defend and protect our common values.

Competitiveness Revised

Global competitiveness is not another term for cheap labor or low taxes. It’s a unique blend of individual freedoms and collective decision-making, of entrepreneurship and social protection.

Europe as the next Big Power

If Europe were to be a country, it could rival with the likes of China and the United States. Europe is the second economy in the world, ranks first in the ranking of universities and is the third biggest supplier of companies to the Fortune Global 500. Europe must step up and take on its responsibility as the world’s next big power.

The Beauty of Being Different

Within Europe we look at different economic models: Benelux, British Isles, Viségrad, Nordics, Med7 as well as DACH. Not a single economic model tops each and every ranking. The conclusion is clear: European societal models are clearly complementary, and every European region has its own characteristics - as is the case in countries such as China or the United States. We should embrace those differences and explore how to turn them into our advantage.

Switzerland, the Netherlands and Nordics take it all

Despite being a mid-sized country Switzerland remains very high in all rankings related to competitiveness. Switzerland still has the most advanced business environment, but the Netherlands are also well positioned. The country can claim elevated positions in a number of rankings - whether it comes to global competitiveness, economic freedom or infrastructure quality. In case of Nordics the situation remains unchanged: Sweden, Denmark, Finland and Norway top almost all rankings, have the most productive businesses, are the best places to live and raise kids and are well positioned to compete in the global economy.

Italy – Excellent national healthcare system

Italians pride themselves on having one of the best national health systems in the world. Though the pandemic might have challenged that perception, the country excels in terms of overall health with a second place in the healthiest country index. The government is now shifting the focus away from big hospitals to next-door healthcare systems providing Italians with top quality medical services in towns and villages, which will only make the system work even more efficiently.

Poland – Master of infrastructure

When it comes to infrastructure quality, Poland moved up sharply in the rankings. This is a welcome development for this country, whose prosperity could use some catching up to its European peers.

Big in Russia & India

Both India and Russia are the countries to keep an eye on, as their business climates became much more attractive to foreign investors. The ease of doing business improved in Russia as well as India – these are very welcome developments and should further add to these large countries’ ability to attract foreign investment.

Germany – Striking the Balance

As a big and open economy, Germany maintains its strong balance between economic competitiveness and high social standard., but faces challenges on infrastructures.

Home of Global Companies

With a leading position in the world, France is truly the home of global companies as it is the 4th biggest supplier of companies to the Fortune Global 500 list. France is also recognized for its business schools and its infrastructures.

Brave, Little and Open

Belgium can be seen as an example of a small, but very open economy that can boast of quality education and freedom in its broadest sense, which positions the country as a democratic hub, centrally located in northwestern Europe.

Authors

This report has been prepared under the supervision of Alexis Karklins-Marchay, Partner at Eight Advisory & General Secretary at Eight International, with the collaboration, Nicolas Hangard, Manager at Eight Advisory, Agathe Dejoie, Analyst at Eight Advisory and Marta Marczak, International Communications and Marketing Coordinator.

We would like to give our special thanks to the authors and coordinators of all rankings and indices that were used in this report, who kindly permitted us to quote their data. We would also like to acknowledge the work of Peter de Keyzer and the whole Growth Inc. team who assisted us in the making of this report.