In another sign of the rising financial strength of Pacific nations as a key center for financial activity, the World Economic Forum analysis of economic growth and the financial systems of 55 countries found that the financial crisis was acutely felt by most global financial systems, and resulted in climbs in rankings for a number of Pacific nations.
The scores of most countries in the Index in the annual Financial Development Report fell significantly from last year, with some of the largest economies taking the biggest hit.
Germany and France suffered such heavy falls in overall scores and they dropped out of the top 10 list.
Britain, buoyed by the relative strength of its banking and non-banking financial activities, claimed the Index's top spot from the US, which slipped to third behind Australia due to its poorer financial stability scores and a weakened banking sector.
In addition to Singapore and Australia, Hong Kong came in particularly strong at No. 5.
The rankings are based on more than 120 factors, including institutional and business environments, financial stability, and the size and depth of capital markets.
Rankings are below with last year's rankings indicated in brackets.
1. Britain (2)
2. Australia (11)
3. United States (1)
4. Singapore (10)
5. Hong Kong SAR (8)
6. Canada (5)
7. Switzerland (7)
8. The Netherlands (9)
9. Japan (4)
10. Denmark (NA)
As Von Mises taught, knowledge of causal relations generates infinite value and wealth.
ReplyDeleteThe western worlds historic generation of wealth in the recent past was based on the wide-spread understanding of and belief in individual rights. Until the Pacific cultures come to the same understanding they will never be more than a weak imitation.
Here's another index put out by the Heritage Foundation:
ReplyDeleteEconomic Freedom Index
http://www.heritage.org/Index/