Ranking the Best to Invest for 2011 Around the Globe

Site Selection magazine is well known for its tracking of business projects and rankings of economic activity. One of its newest projects (in its fourth year) is Best to Invest ratings. Half of the evaluation is based on its comprehensive database of new and expanded facilities, with the other 50% an analysis of business environment, business risks, foreign direct investment and infrastructure.

Here are top countries in five global regions. The metro rankings in these regions are based on similar factors as above, but with a slightly different weighting formula.

Western Europe

  • Top five countries: Ireland, United Kingdom, Germany, Austria and (tie) Switzerland and Italy. Top five metros: Dublin, Ireland; Frankfurt, Germany; Edinburgh, Scotland; Birmingham, England; and (tie) Belfast, Northern Ireland and Paris, France.

Eastern Europe

  • Countries: Hungary, Poland, Slovak Republic and (tie) Estonia and Czech Republic. Metros: Budapest, Hungary; Moscow, Russia; Bucharest, Romania; Prague, Czech Republic; and Warsaw, Poland.

Asia-Pacific

  • Countries: Singapore, Australia, (tie) Malaysia and South Korea, Vietnam. Metros (first three in China and last two in India): (tie) Beijing and Shanghai; (tie) Chongqing and Chennai; and Bangalore.

Africa and the Middle East

  • Countries: South Africa, Bahrain, United Arab Emirates, Saudi Arabia and Qatar. Metros: Port Elizabeth, South Africa; (tie) Nairobi, Kenya; Cairo, Egypt; and Kinsasha, Congo; and Casablanca, Morocco.

Latin America

  • Countries: Mexico, Brazil, Costa Rica, Chile and Argentina. Metros: Sao Paulo, Brazil; Rio de Janeiro, Brazil; Mexico City, Mexico; (tie) Guadalajara, Mexico and Monterrey, Mexico.

 

U.S. Not Tops in Global Technology Use

This info is a bit surprising, but according to a recent study, the U.S. trails countries like Sweden, Singapore and Switzerland in technology use. In order to make up the difference, I plan to spend the next two weekends watching hours upon hours of YouTube videos of house pets whose owners insist they are talking (they think they’re people). USA! USA! PR Daily offers:

You wouldn’t know it judging by the sea of smartphones and mobile tablets on public transportation every morning, but the United States is lagging (relatively speaking) in its use of computing and communications technology.

According to an annual study by the World Economic Forum, the U.S. finished fifth among 138 counties in technology use.

Sweden, Singapore, Finland, and Switzerland topped the U.S. in tech use. Canada ranked No. 8, and Great Britain was No. 15.

The rankings are based on 71 economic and social indicators.

A surprise: China and India each fell five places from 2009, ranking 36th and 48th, respectively.

Economic Freedom: Where We Rank

Everybody: "We’re number 9! We’re number 9!"

The Heritage Foundation released a list of the best and worst countries on the economic freedom scale. For more on the actual criteria, see the full post. But here are the top 10 lists:

Most Free

  1. Hong Kong (1st)
  2. Singapore (2nd)
  3. Australia (3rd)
  4. New Zealand (4th)
  5. Switzerland (5th)
  6. Canada (6th)
  7. Ireland (7th)
  8. Denmark (8th)
  9. United States (9th)
  10. Bahrain (10th)

Least Free

  1. Timor-Leste (170th)
  2. Iran (171st)
  3. D.R. of Congo (172nd)
  4. Libya (173rd)
  5. Burma (174th)
  6. Venezuela (175th)
  7. Eritrea (176th)
  8. Cuba (177th)
  9. Zimbabwe (178th)
  10. North Korea (179th)

Freedom Takes a Hit

The good news is that the United States ranks eighth out of 179 countries in the 2010 Index of Economic Freedom. The bad news, according to John Stossel (via Reason Magazine), is that the U.S. ranks behind Canada and that policies (both past and current) are threatening that freedom even more.

For the past 16 years, the index has ranked the world’s countries on the basis of their economic freedom—or lack thereof. Ten criteria are used: freedoms related to business, trade, fiscal matters, monetary matters, investment, finance, labor, government spending, property rights, and freedom from corruption.

The top 10 countries are: Hong Kong, Singapore, Australia, New Zealand, Ireland, Switzerland, Canada, the United States, Denmark, and Chile.

The bottom 10: Republic of Congo, Solomon Islands, Turkmenistan, Democratic Republic of Congo, Libya, Venezuela, Burma, Eritrea, Cuba, Zimbabwe, and North Korea.

The index demonstrates what we libertarians have long said: Economic freedom leads to prosperity. Also, the best places to live and fastest-growing economies are among the freest, and vice versa. A society will be materially well off to the extent its people have the liberty to acquire property, start businesses, and trade in a secure legal and political environment.

Bill Beach, director of the Heritage Foundation’s Center for Data Analysis, which compiles the index with The Wall Street Journal, says the index defines "economic freedom" to mean: "You can follow your dreams, express yourself, create a business, do whatever job you want. Government doesn’t run labor markets, or plan what business you can open, or over-regulate you."

We asked Beech about the U.S. ranking. "For first time in 16 years, the United States fell from the ‘totally free’ to ‘mostly free’ group. That’s a terrible development," he said. He fears that if this continues, productive people will leave the United States for freer pastures.

"The United States has been this magnet for three centuries. But today money and people can move quickly, and in less than a lifetime a great country can go by the wayside."

Why is the United States falling behind? "Our spending has been excessive. … We have the highest corporate tax rate in the world. (Government) takeovers of industries, subsidizing industries … these are the kinds of moves that happen in Third World countries. …"

Beach adds that the rule of law declined when the Obama administration declared some contracts to be null and void. For example, bondholders in the auto industry were forced to the back of the creditor line during bankruptcy. And there’s more regulation of business, such as the Dodd-Frank law for the financial industry and the new credit-card law. But how could the United States place behind Canada? Isn’t Canada practically a socialist country?

"Canada might do health care the wrong way," Beach said, "but by and large they do things the right way." Lately, Canada has lowered tax rates and reduced spending.

Broadband Buildout: Public or Private?

Australia has an intriguing plan to build a state-of-the-art broadband fiber network covering most of the nation. A public-private investment of $33 billion over eight years would reach 90% of homes and businesses, with wireless and satellite technology used to access the remaining 10%.

A senior adviser to President Obama is reportedly a big fan of the idea. Susan Crawford, a member of the National Economic Council, noted in a recent policy forum that Singapore is making a similar investment and that plans are being considered in Britain and the Netherlands.

The Federal Communications Commission is to present a national broadband strategy to Congress by early next year. A public network in the U.S. would equal the $33 billion in Australia — and an estimated $400 billion more.

Benefits: increased access and lower monthly rates. Pitfalls: another huge tax increase to pay for the project and a potential decline in private sector investment — decreasing competition in the long run.

In local communities, there are a few stories of public ownership success, but more examples of failures. Increasing access is critical, but at what cost? With government already on a spending spree, a better alternative would seem to be to make it easier for enhanced private sector investment.