What The Donald
…maybe should be looking at.
Or: why the US is only ranked 32 in the Global Sustainable Competitiveness Index.
An analyis of the sustainable competitiveness of the USA, derived from the Global Sustainable Competitiveness Index
The US is currently only ranked 32 of 180 nations in the GSCI, scoring only 10% above average, but nearly 25% below the best. While the US scores above average in natural capital, intellectual capital and governance, the country is considerably below the global average in both resource intensity and social cohesion.
Why the US is not in the top league:
- Natural capital, rank 31: The US is a big and beautiful country with abundant natural resources. However – water scarcity and efficiency are issues that need to be looked at urgently, especially in the dry plains and on the West Coast.
- Resource intensity, rank 161: the US uses significantly more energy, water, and raw materials than other economies to achieve economic output. High resource intensity is equal to higher cost for the economy, and urgently needs to be addressed in order to MAGA.
- Intellectual capital, rank 19: compared to global peers the performance of US student is simply dismal, and R&D investments are scarily low, raising serious doubts over US’ ability to compete in an innovation-driven global economy.
- Governance, rank 41: No real news here – the lack of investment in infrastructure, and a high structural deficit remain the main concerns.
- Social capital, rank 114: high crime rates, and social inequality are not only dividing the nation – they are also costly.
Download the full analysis: What The Donald
The Global Sustainable Competitiveness 2016 is topped by Sweden
Scandinavia tops the GSCI (again); Germany ranked 14, Japan 15, UK 21, US only 32, China 37
SolAbility releases the rankings of the 5th edition of the Global Sustainable Competitiveness Index (GSCI). The GSCI is based on an inclusive competitiveness model, analysing 109 indicators. In order to exclude any subjectivity, all indicators are measurable, quantitative indictors derived from the World Bank and UN databases. The GSCI 2016 is topped by Sweden, followed by the other 4 Scandinavia nations. Countries from Northern Europe, the Baltic States and Eastern Europe dominate the top 20. The only non-European economies in the top 20 are New Zealand (12) and Japan (15).
The World’s largest economies show a mixed picture: Germany is ranked 14, Japan 15, the UK 21, and the US 32. The US is scoring particularly low in social issues, and resource intensity – indicating not only development potential, but also cost reduction opportunities.
Of the BRIC countries, China scores highest on rank 37, Brazil 41, Russia 45, and India 153. Social cohesion is the basis for any working economy. China is amongst the leading Nations when it comes to Intellectual capital and investments; however, the combination of limited natural resources, arid areas, and low resource efficiency could possibly jeopardise the future development of the country.
While there seems to be a certain correlation between the rankings of this index to current wealth levels as expressed in the GDP, these correlations are superficial. Some of the World’s richest countries, particularly the oil-rich countries of the Middle East, score significantly lower on the index than their GDP output would suggest. Some of the nominally poorest countries, on the other hand (e.g. Bhutan, Bolivia, Laos) are ranked considerably higher than their current GDP would indicate.
The Global Sustainable Competitiveness Index 2016 is out!
The 5th edition of the Global Sustainable Competitiveness Index is out!
The USA is ranked 41th of 180 countries in the Global Sustainable Competitiveness Index 2015
The US scores below the global average in resource intensity and social cohesion, and while the intellectual capital score is considerably above the global average, it is also significantly below the global best score. In none of the fundamental 5 criteria the US scores in the global top 10. Key findings include:
- Natural capital: rank 50 of 180. While the US has large biodiversity, the decline of several resources (in particular the availability of fresh-water), environmental degradation and pollution negatively affect the natural capital score compared to higher ranked nations
- Resource intensity: 159 of 180. Not surprisingly, the US does not score well in resource efficiency. The US not only uses significant amounts of resources per head and GDP, but efficiency gains are also slow compared to leading economies
- Social capital: 113 of 180. High crime and violence rates, and the growing inequity amongst society groups, negatively affect score and prevent the country on fully capitalising on internal human resources
- Intellectual capital: 22 of 180. High school enrolment rates and high number of patent applications (both per capita and GDP) ensure a fairly high score. However, the gap in education quality (the US has the World’s best, but probably also the World Worst universities), decreasing quality of school, and declining expenditure for R&D undermine the future growth potential
- Governance capital: 19 of 180. The sheer size of the US economy gives the country an undisputed advantage in influencing World policies and treaties according to its will. However, declining investments in infrastructure, services, and industrial manufacturing are a worrying sign in the perspective of future development.
Sustainable competitiveness is the ability to generate wealth and income, and provide security and freedom for all citizens without compromising the ability of future generations to sustain or increase current levels of the same
Read the press release – USA only ranked 41 in GSCI 2015
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