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developedeconomy.Itspositioninthegroupofthemostdevelopedeconomiesof
theworldisleading.The2007/2008+crisishaschangedtheinternationalrankingof
competitiveness,thoughbigchangesdidnotreshufflemuchthefirsttengroup.This
provesthatthoseeconomiesarestrongenoughtoovercomesuchturbulences,but
muchbettersolutionwouldbetoeliminatedownturnsfromtheworldeconomic
cycles.Atthisstageofdevelopment,thedownturnscanbesupportiveineliminating
someoftheweaknesses.
ReturningtothepositionofJapan,itseconomyisplacedin6thpositioninthe
rankingmadefor2010/2011,afterSwitzerland(1),Sweden(4),Singapore(3),US
(2),andfinallyGermany(5).Figuresinbracketsindicatewhichpositionthecountries
enjoyedinthepreviousreport.Switzerlanddidnotchangeitspositioninranking,
Swedenissecondandwasfourth,Singaporewasthirdandstayedwiththatposition.
TheUSlostfromsecondpositiontofourth,Germanydidnotchangeitsposition.
ThelistofeconomieswhicharerankedbeforeChinaislonger.Chinaisintwenty
seventhposition,whileitwasthe29thpositioninthepreviousreport.Botheconomies
climbedupintherankingsbytwocountries.Isthistrendtemporaryoritmarks
alonglastingperspective?
Table1.JapanandChinaininternationalrankings
Japan
China
Contents
competitiveness
Global
Report
27
6
Freedom
Index
135↑
20↓
Development
Human
Index
11↑
89↑
Innovativeness
50/81↑
Index
1→
2.2/4.1↑
6.0/2.9↑
ofFDIx
Import
11.3/13.9↑
8.7/3.4↑
ofFDIy
Export
xWorldInvestmentReport.TransnationalCorporations,AgriculturalProductionandDevelopment,
UN,NewYork,Geneva2009,p.257(xshareofFDIinformationofgrossfixedcapitalandyshareof
FDIinGDP).
Sources:Reports:GlobalCompetitivenessReport2010/2011,WorldEconomicForum,Geneva2011,
p.15;WorldFreedomIndex2011,[in:]FreedomintheWorldReport,Washington,DC,New
York2011;HumanDevelopmentIndex2010,[in:]HumanDevelopmentReport2010,UNDP,
Geneva2011;Anewrankingofworldmostinnovativecenters2009.Economicintelligence
service,TheEconomist,29April2009.
Differencesarerelativelybigbetweenthetwoeconomies.China(PRC)isan
emergingmarket,whileJapanbelongstothegroupofadvanceddevelopedeconomies,
beingalsoamemberofOECD.Japanenjoysatradesurplusof84.4bnofUSD,
whileChinesesurplusistwiceasbigasJapaneseandamountsto169.3bnUSD.
Japanhasasurplusof194billionUSDonitscurrentaccount,whileChinahas331.1
bnUSDonitscurrentaccount.InthecaseofJapan,thecurrentaccountsurplusis
+2.9%ofJapaneseGDP,whileinthecaseofChinaitis+4.1%.Thissharealso
indicatesthedevelopmentgapbetweenthetwoeconomies.Botheconomiesare
characterized,despitethedifferenceinthelevelofdevelopment,bylowshareof