Sunday, September 18, 2005


Desperately trying to tidy up, I found an old "Economist: World in 1994" publication. Aside from excitement over the forthcoming Apple Newton, it has a table showing the world's "most competitive" economies, from IMD, who still do the most quoted of these indices.

This is the relationship between their measure of "competitiveness" and their GDP growth in the following 10 years, ie there is no relationship (removing Ireland makes little difference). The UK is the red dot, at 100 on the competitiveness index.

Essentially these measures are backward-looking. Japan was top in 1994, at 150, with America, then Germany. But backward-looking measures aren't particularly useful as anyone can tell which economies have been more successful over the past decade.