THE 12th edition of the Global Sustainable Competitiveness Index (GSCI) has been published. First published in 2012, the GSCI serves as inclusive alternative to the GDP, to assess country-specific and issue-specific risks for operators and investors, and to verify progress for countries.
Sustainable competitiveness can be defined as the ability to generate and sustain inclusive wealth without diminishing the future capability of sustaining or increasing current wealth levels.
GSCI is published by SolAbility, a Swiss-Korean think-tank with a history in sustainable management implementation.
Key findings from the report are as follows: Scandinavia continues to top the GSCI. Sweden is leading the Sustainable Competitiveness Index, followed by all other Scandinavian nations.
Only one country in the top 20 is not European: Japan on 12 (South Korea follows on 21). All three Baltic nations are in the top 20.
Brazil is ranked 65, India 121, and Nigeria, Africa’s most populous country, 156.
China, ranked 30, overtakes the US (32) for the first time – China is strong in Intellectual Capital, but low in Natural Capital and Resource Intensity/Efficiency.
The USA is ranked 32, scoring particularly low in resource efficiency and social capital. Germany ranks 15, the UK 16, France 18.
Some of the least developed nations have a considerable higher GSCI ranking than their GDP would suggest (e.g. Nepal, Bhutan, Bolivia, Suriname).
Asian nations (South Korea, China, Japan) lead the Intellectual Capital Index – the basis of innovation and success in the high-tech industries.
The Social Capital Index is topped by Northern European (in particular Scandinavian) countries, the result of economic growth combined with a widely accepted social consensus.
The GSCI measures sustainable competitiveness based on 190 quantitative indicators derived from international organisations (World Bank, IMF, various UN Agencies).
The indicators are grouped into six foundations of competitiveness of a nation-economy:
They are 1. Natural Capital Index: The given natural environment; 2. Resource Efficiency Index: Resource usage per capita and per economic output; 3. Social Capital Index: Social cohesion, health, freedom, security, equality; 4. Intellectual Capital & Innovation Index: This comprises education and innovation indicators; 5. Economic Sustainability: Sustainable economic development; business and economic frameworks & performance; 6. Governance Performance Index: Infrastructure, resource allocation, corruption, and fiscal considerations.
All indicators are evaluated as-is and analysed for trends. The outcome is a comprehensive view of strengths and weaknesses for each country, as well as indication of the future direction and potential.
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