Eight Competitiveness Report 2021

The 2021 edition contains insight and understanding of the performance over time of 11 countries: Belgium, France, Germany, Italy, the Netherlands, Poland, Spain, Switzerland, the UK, as well as the strategically significant economies of Russia and India. The report, which was first published in 2013, continues to gain traction in senior government and policymaking circles. It functions as an early screening of expected economic policy challenges for European countries as well as a comprehensive analysis of the international economic playing field.

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The global situation has undergone significant changes since Eight Advisory’s last Competitiveness Report in 2019. In 2020, we faced the first true global pandemic in a globalised world, which continues to have a significant impact on societies, economies, health systems, and government budgets. Amidst the present instability, assessing economies according to traditional financial models falls short of providing insight into their fitness and resilience. The volatile landscape asks that analysis of economic resilience and business performance be aggregated into a multi-factor system combining business environment, political and social stability, education and quality of life. The 2021 Competitiveness Report is unique in that it uses 25 rankings covering four thematic categories—Economic Strength, Business Opportunities, Political & Social Stability, and Education & Quality Of Life—to do this.

This fifth edition of the report places a special focus on Europe and highlights certain key points. Europe continues to hold its rank as top-tier destination for businesses and investors despite today’s incremental environmental, sanitary, and migratory crisis.

Beyond cheap labour: Redefining global competitiveness

Global competitiveness is not another term for cheap labour or low taxes. It’s a unique blend of individual freedoms and collective decision-making, of entrepreneurship and social protection.

United Europe: The next big global power

If Europe were to be a country, it could definitely rival the likes of China and the United States. Europe is the second-largest economy in the world. It leads in the ranking of universities and is the third-largest contributor of companies to the Fortune Global 500. The conclusion is clear: a united Europe would truly be able to compete with the other global powers.

Europe’s collective strength will prove to be important during the geopolitical shifts in the coming years. The next few years will be determined by economic recovery from the pandemic, geopolitical tensions, and climate change. During these crucial times, Europe must step up and take on its responsibility as the world’s next big power.

Strength in diversity: Embracing regional models

Within Europe we see different economic models—Benelux, the British Isles, Viségrad, Nordics, Med7, as well as DACH (Germany, Austria, and Switzerland). No single economic model tops each and every ranking. DACH is a very advanced and innovative region, the British Isles have a favourable business environment, and the Nordics score well on political and social stability. It thus becomes apparent that European societal models are complementary, and every European region has its own characteristics, much like in China or the United States. It is important to embrace those differences and explore how to turn them into an advantage.

Pascal Raidron, Managing Partner of Eight Advisory and President of Eight International, said:

“As individual actors, European countries are ill-equipped to become global leaders. Every time a European country or region profiles itself in opposition to its neighbours, they miss the opportunity of establishing themselves on the world market. Only those who can allow themselves to see Europe as a single economy rather than a sum of countries will see a global player who can truly compete with the other big powers of this world.”

Alexis Karklins-Marchay, co-author of the report, Deputy Managing Partner at Eight Advisory, and Secretary General at Eight International, said:

“If the health crisis has taught us anything, it is that standard economic and business models no longer suffice to measure national resilience. Social security, political efficiency, health safety, sustainability, innovation and data protection are just some of the factors that will determine an economic actor’s fate on the international markets.”

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