Posted by
L Gravel on Tuesday, September 26, 2006 10:03:10 PM
The World Economic Forum is an organization dedicated to the central planning of the world's economy (my words). Or if you prefer, they are "committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas," (
their words).
Their recently released
Global Competitiveness Report reads like a litany of Democrat talking points (see page 30):
While strengths in the technological and market efficiency areas explain the country’s overall high rank, the US economy suffers from striking weaknesses in other areas. To begin, the quality of the country’s public institutions falls short of the levels of transparency and efficiency seen in other OECD members. There is a fairly broad range of concerns among business leaders pointing to inefficiencies in the use of public resources (ranked 27th); insufficient even-handedness on the part of government officials in their dealings with private sector interests (rank 39th, well below top performers New Zealand, Denmark, and Finland); inadequate levels of trust on the part of the business community in the financial integrity of public officials (ranked 24th), low when compared with the likes of the Nordic countries, but also others such as Singapore, Switzerland, and Australia. It is clear that incidents such as the federal government’s inadequate response to and handling of the after-effects of Hurricane Katrina, may have dented public confidence in government.
Another, even more striking, weakness can be found in the area of health and primary education, where the United States ranks a low 40th overall in the index, below most countries at similar per capita income levels. This is particularly noteworthy since the GCI pillar which assesses this particular set of factors has a large number of hard data indicators. In particular, the United States suffers from weak health indicators compared with other wealthy nations, such as a lower life expectancy. It has higher infant mortality rates than countries such as Japan and Finland and even Slovenia, the Czech Republic, and Korea. A high prevalence rate for HIV/AIDS—placing the United States 79th in the world—is deemed costly to business, despite the fact that at almost 15 percent of GDP, the United States spends more on health care than any other nation in the world, including France and Germany (10 and 11 percent of GDP, respectively), and where coverage, unlike that in the United States, is universal. These indicators suggest that Americans receive worse health care than do the citizens of many countries that spend less, eroding the country’s overall competitiveness. Implementation of the long-discussed health care reforms in the country should therefore be seen as a priority for improving the country’s competitiveness in the future.
By far the greatest weakness in the United States, however, concerns the macroeconomic environment, as captured in the macroeconomy pillar of the GCI, where it ranks a very low 69th out of 125 countries assessed. This poor showing is in line with continuing international concern over the macroeconomic imbalances in the country, particularly public finances. According to the latest estimates published by the International Monetary Fund (2006), the fiscal deficit in 2006 is projected to exceed 4 percent of GDP, the sixth year in a row that the federal budget will have shown a deficit. The IMF also projects deficits through 2011. In the meantime, gross public debt levels have also risen sharply, from 57 percent of GDP in 2000 to a projected 64 percent of GDP in 2006 and are expected to continue to rise in coming years. This rising stock of public debt is a worrisome trend, as it has taken place in recent years against a background of a sustained increase in interest rates which the monetary authorities have put in place in order to deal with emerging price pressures from strong domestic demand and the international oil market. With potentially open-ended expenditure commitments linked to defense and homeland security, ongoing plans to further lower taxes, as well as other longerterm potential claims on the budget—e.g., the effects of global warming on weather patterns and associated consequences—the prospects for sustained fiscal adjustment do not seem bright. With a low savings rate, a record high current account deficit—well in excess of US$800 billion in 2006, equivalent to some 6.5 percent of GDP, an all time record—and a worsening of the US net debtor position, there is significant risk to both the country’s overall competitiveness and, given the relative size of the United States, the future of the global economy.
Yeah, I was planning to open a bakery here in Colorado Springs, but due to the fed's poor response to Katrina, lack of universal health care, and global warming, I've decided to invest in Swiss watches instead.
Oh, by the way:
Incorporated as a foundation in 1971, and based in Geneva, Switzerland,
the World Economic Forum is impartial and not-for-profit; it is tied to
no political, partisan or national interests. The World Economic Forum
is under the supervision of the Swiss Federal Government.
Switzerland is #1 in the rankings.