Canada Falls 9th To 16th Competitiveness Ranking

[Craig Read]

Canada has fallen hard in 2 recent surveys. Two weeks ago a German institution ranked Canada 25th in the world in corruption. Yesterday the World Economic Forum ranked Canada 16th - down from 9th last year.

Main reasons; fraud, political interference, high taxes, high spend.

Canada is just slightly ahead of Malta.

This is Chretien's real legacy.

The US was 2nd. Finland first.

I am sure the left lie-berals will bleat out their usual panegyrics and bromides.

Facts cry out for reform. Any takers in this country ?

[Cameron]

The conservatives can really use this information if they want to make an impact next election. The Liberals are getting a little to comfy with their position in Ottawa....

[sir_springer]

Economic ranking puts Canada 16th

Cynicism about politicians is new and should cause concern, expert says

By HEATHER SCOFFIELD

Thursday, October 30, 2003 - Page A4

OTTAWA -- Canada has plummeted to 16th place on the much-watched global competitiveness scale put together by the World Economic Forum.

Canada was in third place in 2001, then dropped to ninth place in 2002 and 16th this year, and the Geneva-based forum points to government policies and red tape as the key culprits.

Finland comes first, followed by the United States, Sweden and Denmark -- the same as last year. The annual ranking of the comparative strengths and weaknesses of the world's leading economies is based on economic data and surveys of each country's business community.

Canada's quick fall can be traced mainly to "a perceived decline in the quality of public institutions," the WEF said.

As well, Canada fell to 24th this year from ninth last year on the forum's public institution sub-index, which compares countries based on how conducive to business competition their governments and other public institutions are.

The new lower ranking is despite many years of the federal government strategizing on how to cut red tape, encourage innovation, promote Canada abroad and attract foreign investment. Since the deficit was eliminated in 1997, the Jean Chrétien government has put Canada's competitiveness at the top of its list of economic priorities.

Notable competitive disadvantages that led to Canada's 16th place in the overall ranking include distortive government subsidies, favouritism in decisions on government policies, bureaucratic red tape, foreign ownership restrictions and taxes.

On the other side of the ledger, the report lists some of Canada's competitive advantages as interest rates higher than those of the United States (which means interest-bearing investments can earn more money), the government surplus, Internet access in schools, collaboration between industry and universities for research, generous maternity leaves, and soundness of the banking system.

A spokesman for John Manley said the Finance Minister would not comment until he had studied the index after it is released publicly today.

Canada fared a bit better on the World Economic Forum's business competitive index, a ranking of countries' financial markets and business strategies, placing 12th, down from 10th a year earlier.

Many companies worldwide use the annual ranking by the World Economic Forum, a think tank devoted to promoting global economics and business, in their business decisions, and countries use it to promote themselves as good places to invest.

The Forum's Canadian partner played down the seriousness of this year's results.

"There's less there than meets the eye," said James Milway, executive director of the Institute for Competitiveness and Prosperity.

The survey researchers polled Canadian businesses in February, March and April, which was a tense time, he said.

Toronto was dealing with severe acute respiratory syndrome, Ottawa was dithering about whether to support the U.S. military action in Iraq, pundits were musing about Mr. Chrétien quitting and Ontario's premier, Ernie Eves, was facing a hydro crisis.

"There was a fair amount of angst among our business people," Mr. Milway said. "They took it out on public institutions."

Still, Ottawa should take the survey seriously, he added. While the list of complaints from business people about federal involvement in business is hardly new, the cynicism about politicians is, he said. "Politicians need to make sure they're not eroding trust in public institutions," he said.

Five cabinet ministers have acknowledged accepting hospitality from New Brunswick's powerful Irving family, and opposition politicians are demanding the resignation of Industry Minister Allan Rock, saying his vacation at the Irving fishing lodge placed him in a conflict.

Even if nothing has changed materially in the way government is involved in business in the past few years, if the perception of institutions is deteriorating, it's bad news for business investment, Mr. Milway said.

He said the fall to 12th from 10th on the business competitiveness index is more worrisome. That is because Canada has been slowly but steadily falling on that index and doesn't seem to be able to pull itself up.

Canadian companies need to develop strategies to be unique, said Roger Martin, dean of the University of Toronto's Rotman School of Management.

Competitiveness

Top 20 countries (2002 ranking in parentheses)

1-Finland (1)

2-United States (2)

3-Sweden (3)

4-Denmark (4)

5-Taiwan (6)

6-Singapore (7)

7-Switzerland (5)

8-Iceland (19-2)

9-Norway (

10-Australia (10)

11-Japan (16)

12-Netherlands (13)

13-Germany (14)

14-New Zealand (15)

15-United Kingdom (11)

16-Canada (9)

17-Austria (1

18-Korea (25)

19-Malta (-)

20-Israel (17)

[Craig Read]

Funny it lists the Federal Surplus as an 'Asset' - they do mean of course over taxation ? How about using this money to build up the military or ensure the safety of our borders or reduce the debt ?

Let's face it, on bald comparisons, not using UNO left wing sloganeering, and exempting the sneers of the academics, Canada has some serious economic and tax issues to sort out vis a vis its position with the US - which is the only comparison that matters.

Reforms must strike at the heart of the issue - the abusive nature of Confederation and of taxes.

[SirRiff]

if we went from 9 to 16 in one year its obviously proximate causes over just 12 months. like the economy or politics. it has nothing to do with the design of our economy since that couldnt change over 12 months anyways.

hell we could bounce right back to 9th again next year then.

Canada was in third place in 2001, then dropped to ninth place in 2002 and 16th this year, and the Geneva-based forum points to government policies and red tape as the key culprits.

oh gee this is genius...lets see....2001...2002...2003...what does these years all have in common...duh...

MASSIVE AMERICAN RECESSION????

my god, the drop in our ranking correlates perfectly with the 9/11 attacks, the american recession, the tech buble and stock market crash. so its all external effects that were of no control to us, since in 2001 we were 3rd, then after 3 bad years we are 16th. its not a sign of internal change so much as external change. we cant control when the american economy stalls or national security slows down the economy.

same with the other ranking, a one year change could just be a blip, it can reflect a massive change in just 12 months. we could be ranked #1 next year, it doesnt mean we suddenly became perfect. trends are more important then anything.

SirRiff

[theWatcher]

The index this is measured on comprises of many different categories some of which might have been influenced by 9/11.

But many of the categories have not. Bribery, corruption, graft are all measured in different areas to make this rating.

Canada could never hit #1 next year on this test. Not as long as the Liberals are in power. In fact we've probably been lowered with all the recent revelations about the hunting lodge that all of the Liberals love to stay at for free.

[SirRiff]

Canada could never hit #1 next year on this test. Not as long as the Liberals are in power

because we all know conservatives dont like money and dont sell thier souls to interest groups to get elected right?

uh now, by definition to get into gov you need to raise money and sell your soul to interest groups. every party is the same in that regard.

SirRiff

[sir_springer]

Sirif...

I notice that while the American economy was tanking, and thus dragging down our own...

We went from 9th to 16th...

And they went from 2nd...???

To...???...2nd...???

I can certainly see how this caused Canada's problems...???

Please elaborate.

[Craig Read]

Yes those stupid Americans. They are so dumb. Besides doing all of the work in the war on terror and in Iraq and paying for the world's security even while they hand over 25 % of the monies needed for that democratic and accountable Useless Nattering Org, headed by a Ghanaian, a country of course that epitimizes Western enlightenment values, the US has produced the strongest economy in over 20 years.

Let me see Q3:

Exports up 9 %

Business investment up 15 % [thanks to tax cuts]

Consumer spending up 11 %

And the kicker that the Cdn media never discusses because facts and details do not matter in Canada, is that inventory levels are far lower than demand. This means that in the next year, US GDP will rise by at least an extra 2 % GDP as inventories are created. It also means an extra few hundred thousand jobs per quarter.

The news is so good south of the border that even I can hardly believe it, though 2 months ago i posted that the US would grow at 6 % in Q3.

Q4 should be 5 %.

This means jobs, as profits and investments climb.

I disagree with China bashing, currency management and subsidies, but on tax cuts, supply side stimulus and investment reforms, the US is perfectly right on track.

Stupid Americans, why can't they be more like Canadians?

[SirRiff]

I can certainly see how this caused Canada's problems...???

Please elaborate.

i dont know, we are far more sensitive to the effects because our economic model is different? its perceived to be a larger blow to a smaller nation? we didnt react fast enough? the dollars lower value?

the important point is the our economy could not have possiblely undergone a complete transformation in 12 months. period. it just didnt happen. a slip of 7 slots may be due to a drop in 0.5% raw values. if all that seperates the top 15 nations is a few points on a 100 point scale, then it will vary year to year. that is why i said, its possible that we might be right back up there in a year or two like nothing happened, and this while drop was meaningless in the reality.

Yes those stupid Americans. They are so dumb. Besides doing all of the work in the war on terror and in Iraq and paying for the world's security

what a completely insane way of characterizing american actions.

the US gave weapons to osama crew which is terrorism

the US supported saddam while he was gassing and killing people- that is terrorism

the US supported Iran while the extremists were in power- that is terrorism.

so if they have been among the largest contributer to terror in the last 30 years, its no shock they have the responsability to deal with thier former allies, afganistan and iraq.

the US was in saudi arabia to get cheap stable oil flow. that is why they support the kuwaiti and saudi regimes. its blood that keeps that oil flowing and teh US rich.

thus they do nothing great when they go bomb people. they are not protecting the world. they are just taking care of people who get in their law and thus maintaining thier strategic influence.

SirRiff