Emerging economies are out of fashion with investors. The findings of the World Economic Forum's annual competitiveness report won't change their minds.
BRICS sound something solid, but the trends in the WEF rankings suggest weak foundations for strong growth. China's 29th place is not an improvement but keeps it well ahead of the other BRICS - despite serious concerns about corruption and the banking sector. Russia's ranking did improve from the previous year, but to a still poor 64th place.
Then, there is India. The WEF reminds investors that its problems are bigger than a large current account deficit and high inflation. The country's ranking has been declining since 2009. Poor infrastructure is the biggest obstacle. Electricity blackouts are frequent. Health and education are poor.
Brazil is moving, but in the wrong direction. Its ranking plunged eight places to 56. Good intentions - to upgrade roads, railways, ports and airports - have not translated into much action. Transport costs are a big burden for workers whose pay reflects poor education and low productivity. Unrest seethes.
In some countries not even the intentions are good. Once wealthy Argentina now suffers from government corruption, inefficiency and favouritism. It plunged 10 places in this year's table to 104 out of 148. Venezuela, immersed in "institutional crisis," dropped eight places to 134.
There is good news for some developing economies. Indonesia has made progress on infrastructure and storms up the table, gaining 12 places to 38. Malaysia, in 24th place, has succeeded in liberalising markets, eroding some of the cosy oligopolies that dog many emerging economies.
Unsurprisingly, rich countries are the most competitive. The top ten include Nordic countries, the United States, Germany, Japan, the UK, the Netherlands, Hong Kong and Singapore. Switzerland is number one. An uncomfortably strong Swiss franc does little to hinder a highly-educated, innovation-oriented country, with government and infrastructure that works like clockwork.
Not every country can be Swiss. But most emerging economies could do far better. Governments need to tackle inefficiencies and injustices. The WEF study shows them where to look.
