America First?
Think 8th…and the outlook isn’t promising.
Looking for evidence that Pax Americana is lumbering towards decline? The 2018 “Best Countries” ranking should serve as a wake up call. Developed in partnership between U.S. News, Y&R’s BAV Group, and the Wharton School, the new ranking shows the United States has slipped four spots since the ranking was christened in 2016. To fill the vacuum, nations are turning to liberal democracies in Europe for guidance.
Released today (January 23rd), the Best Countries ranking is one of the best measures yet that the axis of culture, commerce, and cachet is slowly spinning away from the melting pot. At its heart, the ranking is look at global perceptions of individual. It is based on surveys measuring countries on nine criteria, including entrepreneurship, adventure, citizenship, cultural influence, heritage, economic movement, openness to business, power, and quality of life. Overall, Switzerland nabbed the top spot for the second consecutive year, with Canada and Germany trailing closely behind.
IS AMERICA IN RETREAT?
The continuing spiral of American power and prestige is the ranking’s big takeaway, however. That’s particularly true for MBAs, who understand that businesses flourish in environments that are dynamic, secure and transparent – and rife with possibilities and options. Over the past two years, the United States’ rank has fallen in five of U.S. News’ nine categories – and held steady in the remaining four. The nation’s biggest drop has occurred in the Open for Business category, which measures world opinion in areas like government corruption, bureaucracy, and transparency. Here, it fell from 23rd to 43rd in just two years.
America’s strength in this area, according to survey, was low corruption. On a 10 point scale, the United States scored a 0.2, slightly lower than Switzerland (0.0), but far better than China (4.7) and India (6.5). Beyond that, the United States lagged behind most nations in measures that comprised Open for Business. Namely, it produced the worst possible score for manufacturing and among the lowest for taxes. To add insult to injury, America’s level of bureaucracy is considered just slightly better than India, the barometer for byzantine. Worse yet, the world shows minimal faith in the transparency of its government practices, scoring just a 2.5. By comparison, northern neighbor Canada notched a 9.1.
Beyond that, the United States also slipped in adventure (27th to 33rd), citizenship (11th to 16th), economic movement (22nd to 29nd), and quality of life (14th to 17th). Notably, survey respondents levied low marks to the country in subcategories like sex appeal (0.5), environmental concern and trustworthiness (1.2 and 1.9 respectively), and being “different” and “unique” (0.4 and 1.3). More damning were the sentiments shown in the quality of life category. Although the United States ranked among the best for strong job markets and economic stability, it scraped near the bottom for affordability (0.8), income equality (1.4), and safety (2.0). In addition, American political stability (3.5) and public healthcare system (3.7) also scored below the norms.
That said, American exceptionalism remains potent in several areas. Respondents concede that the United States remains the most powerful nation, buoyed by strong alliances, economic influence, military force, and leadership. Economically, it ranked among the best – if not the best – for technological expertise, access to capital, and infrastructure. At the same time, it produced high marks for being “modern” and “dynamic” – not to mention a perfect score in “religious freedom.” At the same time, the United States carries a special burden on the world stage. A nation of immigrants, it is far less homogenous than most nations. In a fragmented world, it also acts as the de facto enforcer of global norms.
IMD in Lausanne, Switzerland
SWITZERLAND AND CANADA LEAD THROUGH SOFT POWER
Still, this ‘might makes right’ mentality has grown increasingly archaic as nations have become more connected – and interdependent – than ever. “For the countries that rose to the top of this year’s rankings, it is once again clear that military vigor and economic power are no longer the key determinants to a country’s brand success,” explains David Sable, Y&R Global CEO, in a press release. “The Best Countries rankings continue to show us that just as brands must focus on a wide range of attributes to raise profiles and win over audiences, nations that are multidimensional and that reflect a wider range of qualities, such as innovation and compassion, have the brand appeal that propels them on the global stage.”
Switzerland personifies such “soft power” values. Home to IMD and St. Gallen, the Swiss are popularly known for being peacemakers (and bankers). They were the only nation to notch a perfect 10 index score, exercising influence through business savvy and heavy investment in their infrastructure. Survey scores showed that respondents viewed them as a “trustworthy” broker with a vibrant politic elite that cares deeply about human rights and the environment. The nation also earned perfect scores for its “well-developed legal framework”, “educated population”, “safety”, “easy access to capital”, and “economic stability.” It added a near perfect mark for its “well-developed public health system.”
To see how the United States, China, India and others fare by category, go to the next page.
Toronto, Canada
Canada finished as the runner-up for the third consecutive year, no shame considering its near perfect 9.9 index. Home to graduate business juggernauts like Rotman and Ivey, Canada follows the Swiss model to a T, excelling in citizenship and quality of life, while also scoring high for its business savvy. Notably, the Great White North reaped perfect marks in respecting property rights, trustworthiness, job markets, safety, and political stability. What’s more, it ranked among the top nations for religious freedom, public health and public education systems, transparent business practices, and economic stability. True to stereotype, they made high grades for friendliness and happiness too. Where does Canada lag behind? Simple: It finished dead last in terms of having a rich history. The quality of its food (1.2) dragged it down as well.
Germany, the inaugural #1, rounded out the top three. Unlike Switzerland and Canada, Germany excelled in entrepreneurship, earning a perfect 10 index in this category. In particular, Germans owned decisive advantages in infrastructure, education, technological expertise, and global connectivity according to survey respondents. Like Canada, respondents knocked Germany for its climate and food – with few respondents associating the country with being “different” or “fun.”
MBA students in China
CHINA MAKES STRONG ECONOMIC SHOWING
Overall, European nations dominated the top of the rankings. 6-of-the-10 highest-ranked nations hailed from Western Europe, with the number growing to 13-of-the-top-20. Japan was the highest-ranked Asian nation at 5th, 11 spots better than Singapore and 15 higher than China. Eurasia was also well-represented, as Australia (7th) and New Zealand (13th) both cracked the top 15. Three Scandanavian nations – Sweden, Norway, and Finland – also placed among the top 15. That doesn’t even count nearby Holland and Denmark, which finished 10th and 11th respectively. Regionally, the United Arab Emirates ranked 23rd, the best finish for any Middle Eastern nation – and ahead of Brazil (#29) and South Africa (#39), the crème de la crème of South America and Africa respectively.
Among world powers, India placed 25th overall. It was regaled for its diverse culture and history, yet dogged by dysfunctional politics, substandard infrastructure, and an archaic legal system. In contrast, 26th-ranked Russia grabbed perfect marks for its military prowess, leadership, and political influence. However, it scores less than one point – on a ten point scale – in fundamentals like safety, affordability, taxation, government transparency, trustworthiness, property rights, human rights, and environmental protection. More damning, Russia received an 8.8 score for corruption. China scores equally poor in those areas, along with gender equality and religious freedom. Unlike Russia, survey respondents credited China for its entrepreneurship, technological expertise, and innovation, each of which nabbed averages of 8.5 or above. The Chinese also ranked as the most “dynamic” with the lowest manufacturing costs, a nod to the country’s amazing economic growth.
Despite this, China has fallen three spots over the past two year in the U.S. News rankings. Spain suffered a similar three spot drop, as did Ireland and South Korea, which tumbled all the way out of the top 20. The biggest loser, however, was Austria, which has slid from 12th to 17th since 2016 due to lower marks on entrepreneurship, quality of life, cultural influence, and being open for business. The latter was Luxembourg’s strength, ranking 1st there for the second time in three years. However, it lost ground in every other category, resulting in an American-style four spot drop.
To see the top five countries in each category, go to next page.
CBC host Matt Galloway speaks with Canadian Prime Minister Justin Trudeau about social policy issues at the University of Toronto. Photo by Laura Pedersen
WHAT EXACTLY IS AN ELITE?
The Best Countries ranking is derived from data collected a survey administered to “more than 21,000 business leaders, informed elites and general citizens.” According to U.S. News, the respondents hailed from 36 nations – far fewer than the 80 countries ranked. In addition, “12,114 were informed elites and 6,016 were business decision-makers. Some respondents were considered both informed elites and business decision-makers.” Hardly scientific – with a respondent pool who’d merit low marks for transparency in the survey’s own methodology – the survey is an exercise in perception says David Reibstein, professor of marketing at the Wharton School. “The Best Countries report speaks to the effect a nation’s brand can have on its economic prosperity and perceived standing in the world.”
The survey featured 9 categories and 75 subcategory attributes total, with each category carrying a different weight. For example, the highest weights were accorded to entrepreneurship (17.42%), citizenship (16.95%), quality of life (16.89%), and open for business (11.99%).
Along with surveying respondents about countries, U.S. News also took their temperature on hot button global issues. A third of respondents pegged terrorism as the biggest threat to global security, which was followed by income inequality (25%) and climate change (16%). Immigration was another hot button, with just 54% agreeing that their home country should be more open to immigration. The irony? 87% placed high value on diversity and tolerance.
TRUMP FAILS THE LEADERSHIP TEST
It was also a pessimistic group. Three quarters viewed the world as worse off over the previous year. 73% considered technology to be a danger to displacing jobs. Another 60% trusted private companies more than government to tend to their private needs. Another 38% didn’t see women receiving the same opportunities as men. That was a crucial point, as 75% tied gender equality to national stability and happiness. The sample was also more inward-looking, with just 52% considering themselves “citizens of the world vs. their country,” a six point drop in just one year.
That said, the group had definite opinions on leadership. 81% associated it with transparency and trustworthiness. For them, the global leaders who best exemplified global leadership were Germany’s Angela Merkel and Canada’s Justin Thoreau. The worst? You guessed it: Donald Trump with a 58% disapproval rating. Among business leaders, Google’s Eric Schmidt won the highest approval from respondents.
See the top performing countries in each of the nine categories below.
DON’T MISS: WHARTON DISLODGES HARVARD TO TOP 2017 P&Q MBA RANKING
Adventure
Relates to tourism, which is measured by physical activity and cultural exchange.
1) Brazil
2) Italy
3) Spain
4) Thailand
5) Greece
Citizenship
Based on human rights, gender equality, and religious freedom.
1) Norway
2) Switzerland
3) Denmark
4) Canada
5) Sweden
Cultural Influence
Relates to countries with the greatest cultural influence according to variables ranging from museum visitors to entertainment.
1) Italy
2) France
3) United States
4) Spain
5) United Kingdom
Entrepreneurship
Relates to measures such as transparent business practices, well-developed legal frameworks, access to capital and skilled labor.
1) Germany
2) Japan
3) United States
4) United Kingdom
5) Switzerland
Heritage
Relates to country’s contribution to culture and history.
1) Italy
2) Spain
3) Greece
4) France
5) Mexico
Movers
Relates to national branding.
1) United Arab Emirates
2) India
3) Singapore
4) China
5) Japan
Open for Business
Relates to levels of bureaucracy, corruption, taxes, and transparent government practices.
1) Luxembourg
2) Switzerland
3) Panama
4) Denmark
5) Sweden
Power
Relates to economic and political influence and strength of international and economic alliances.
1) United States
2) Russia
3) China
4) Germany
5) United Kingdom
Quality of Life
Relates to affordable living, economic and political stability, and strong healthcare and education systems.
1) Canada
2) Denmark
3) Sweden
4) Norway
5) Australia
The post The Best Countries To Study, Work & Live In appeared first on Poets&Quants.
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