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Taiwan places in top five of competitive economies

Global competitiveness: * Taiwan, at No. 4, is the highest ranked Asian country in the latest report, followed by Singapore (7) * Finland was ranked No. 1 for the third time in the last four years * The US placed second and Sweden came in third * Denmark, Norway were ranked fifth and sixth, while Switzerland, Japan and Iceland rounded out the top 10

Northern Europe and key Asian countries retained the most competitive economies worldwide, cementing their ranks among the top 10 in an annual survey conducted by the World Economic Forum.

In the annual poll of 104 countries' competitiveness by the World Economic Forum, Finland held the top spot for the third time in the last four years, followed by the US.

Rounding out the top 10 in The Global Competitiveness Report 2004-2005, issued yesterday by the Geneva, Switzerland-based forum, were Sweden, Taiwan, Denmark, Norway, Singapore, Switzerland, Japan and Iceland.

The bottom of the list was rounded out by countries in South and Central America, Asia and Africa, including Nicaragua, Madagascar, Honduras, Bolivia, Zimbabwe, Paraguay, Ethiopia, Bangladesh, Angola and Chad, which was last.

The Nordics fared well because of their long-cemented ideals of curbing corruption, respect for contracts, rule of law and their dedication to one-on-one business relationships. In Sweden, for example, it's custom that a handshake on a business deal, be it the sale of fighter jets or providing stereo components, is just as binding as pages of contracts.

"The Nordic countries are characterized by excellent macroeconomic management overall -- they are all running budget surpluses -- they have extremely low levels of corruption, with their firms operating in a legal environment in which there is widespread respect for contracts and the rule of law, and their private sectors are on the forefront of technological innovation," said Augusto Lopez-Claros, chief economist and director of the forum's global competitiveness program.

Japan, which was No. 9, rose from 21 in 2001, boosted in part by its economic recovery. China, however, fell from No. 44 to 46, despite its roaring economic success of late. The decline was noted because of the country's extensive administrative control, red tape and poor accounting standards.

Taiwan (4) and Singapore (7) are the highest Asian countries, because of the former's strong grasp of technology production and research and the latter's solid economic environment.

Finland, home of mobile phone giant Nokia Corp, retained the top spot because of its quickness in adapting to new technology, proactive business practices and "nurturing a culture of innovation," the report found.

The US, which stayed at No. 2, was cited for its technical innovation, but was offset by the instability of its economy.

The results of the survey, done annually, were drawn from a survey by the forum of more than 8,700 business leaders in 104 countries.

The aim, the organization said, is to examine the range of factors that can effect an economy's business environment and development as it seeks to maintain sustained economic growth.
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