United Kingdom Climbs Global Competitive Market
By Haider Ali
Posted: 13th September 2012 09:40The United Kingdom like much of the economically advanced countries in the west has suffered from a shifting focus of economic power towards eastern powerhouses like India and China. But based on the recent tables released by the World Economic Forum, which focuses primarily on the competitiveness of a state, the United Kingdom is slowly but surely making a dignified comeback.
Last year the United Kingdom was ranked tenth, but this has changed as they leapt two places to eighth in the recent league table. The league was again topped by Switzerland followed by countries from Asia and of course the United States.
There surge in the United Kingdom’s league position pertaining to the competitiveness of its economic capabilities have been mainly two-fold. The first and certainly most pertinent of the two has been the “efficient economic labour market”.
Its efficacy has been supported by the influx of migrant workers from Eastern Europe who have managed to utilise the movement made permissible by the European Union to take advantage of the labour market in the United Kingdom.
Willing to work at a cheaper rate than British labourers and in some cases for much longer hours, they have managed to tear down the stereotypes of foreigners stealing jobs. They not only work hard but have contributed significantly to a fledgling economy, badly in need of growth via taxes contributions and consumer spending.
The second important reason behind the United Kingdom jumping up the league table has been investment in the auto-motive and manufacturing industries. One such example has been of Japanese car maker Honda. They have recently invested £267m in helping develop new lines of their latest models and refurbishing their factory plant in Swindon, growing its workforce. Chinese investment in Jaguar and Land Rover are also helping the UK economy, as are business innovations.
Many believe businesses becoming more sophisticated and innovative will be the key to the UK’s revival as a global force. As manufacturing and exporting continue to boom in India and China, technological advancements will be instrumental in the UK remaining at the forefront along with the United States as one of the world’s leading economies. With technological improvements, Chinese and Indian businesses will become reliant on them to help keep apace with their competitors.
The United States itself has found itself in a quagmire economically. With stimulus packages failing to ignite their economy and unemployment lines growing, they have fallen from fifth place to seventh in the World Economic Forum tables. Their fall from grace will continue unless they manage to continue using the tools they have at their disposal to innovate technologically and help grow their hi-tech industries, which they still dominate.
Currently still the leading nation in hi-tech industry, many financial experts believe this will America’s saving grace. Upon the release of the table the United States was still described as to being the most innovative country for business. This is by no means an ingratiating comment, as the United States searches for ways to maintain its economic relevance in a globalised world that is changing at a rapid pace.