Business Commentary
It does not matter who is at fault, or which political party is responsible for today’s sinking U.S. competitiveness. In the long run, the issue revolves around getting America out of its present slump, getting people back to work, and showing the world that it not only has the brawn but also the vigor, energy, and determination to win back its number one competitive position.
For years, experts have screamed at the top of their lungs that America’s manufacturing base has eroded and with it the ability to be innovative. Americans are more and more lacking the ability to bring out groundbreaking new products.
“The ingredients of economic growth for the future seem to be at risk in the United States. Without action, there is a real possibility that the country will lose its competitive edge,” said a 2011 report by the Center for American Progress.
The problem is not just the business sector’s outsourcing of American jobs, research capability, and investments but also that the U.S. competitiveness policy is apportioned among many agencies, including the Department of Commerce, the U.S. Trade and Development Agency, the Department of Agriculture, and the Department of State. Each one has their fingers in export promotion, export negotiations, export processes and their execution, and none want to step back and lose part of its empire.
“The problem is that competitiveness policy is very fragmented in the United States by comparison to other countries,” said the Center for American Progress, a public policy research and advocacy organization, report.
For comparison purposes, the report goes into detail about the approaches and coherence by other countries, including Japan, France, Germany, India and Australia, allowing for quick responses and good coordination and cooperation to address competitiveness issues.
U.S. Global Competitiveness Sinking
The prior year’s warning signs were well placed, as the United States dropped to fifth from fourth place in 2010–2011 and from third in prior years, a year-on-year decline, according to the World Economic Forum (WEF) Global Competitiveness Report 2011–2012, rolled out on Sept. 7.
“The United States continues the decline that began three years ago, falling one more position to fifth place,” said the report.
Switzerland outranked every country, as in previous years. Singapore was ranked second, edging up one rank, replacing Sweden, which moved to third place. As a surprise came Finland’s ranking in fourth place, moving up 3 rankings, from the 7th position in 2010. As a consolation to the United States, Germany, considered to be a strong global competitor and stalwart nation, moved from fifth to sixth position, so the United States could at least stay in the fifth position.
“The results show that while competitiveness in advanced economies has stagnated over the past seven years, in many emerging markets it has improved, placing their growth on a more stable footing and mirroring the shift in economic activity from advanced to emerging economies,” said a September World Economic Forum (WEF) press release.
What makes America tick? Read more . . .
