Scandinavian countries, with Sweden leading the way, are ranked high in the global Sustainable Competitiveness Index, but even they have a long way to go to become truly sustainable and competitive. The report’s authors call for the introduction of a global climate tax. Slovenia has won the most points in South-Eastern Europe. It also achieves the highest score in the world for economic sustainability.
First published in 2012, the Global Sustainable Competitiveness Index (GSCI) measures the competitiveness and sustainability of countries. It draws on 190 quantitative indicators from international organizations such as the United Nations, the World Bank and the International Monetary Fund. Index values represent the percentage of the best possible score.
The GSCI is envisioned as an alternative to gross domestic product, to assess country-specific and issue-specific risks. Its sub-indicators are natural capital, resource efficiency and intensity, social cohesion, intellectual capital, economic sustainability and governance effectiveness.
The average GSCI score is only 43.4 points, which means only 43.4% sustainable competitiveness achieved.
In the new edition, the average score is 43.7. Sweden tops the ranking with 59.6, showing that even the most advanced countries are far from being truly sustainable and competitive, according to the report’s authors. Scandinavia is the highest ranked region, with all five countries occupying the top six spots, while Africa and the Middle East are the worst. Sudan is the lowest country, with 32.7, followed by South Sudan (33.1).
Japan is the only non-European country to appear in the top 20. For the first time, China (30th) overtook the United States (32nd). China is strong in intellectual capital, defined as the ability to generate wealth and jobs through innovation and value-added industries, but weak in natural capital and resource efficiency. The United States scores particularly poorly on resource efficiency as well as social capital – health, security, freedom, equality and life satisfaction.
Climate change is a market failure
“Climate change is a gigantic market failure. We need a global climate tax – introduced in stages, returned to people in cash and reinvested in renewable energy infrastructure,” according to the report. He highlighted the real cost of fossil fuels which is not included in his prices.
The pace of small, positive changes is insufficient to avoid climate disaster, the authors explain. The necessary technology is available, but there is no political vision to direct the markets, they argued.
Slovenia and Croatia achieve the best overall scores in Southeast Europe
As for the region tracked by Balkan Green Energy News, Slovenia achieved the highest score, 55.7, and ranked tenth in the world! Croatia is the only other country more than halfway to full competitiveness and sustainability, with a score of 52.9. He is ranked 23rd out of 180 overall. Next come Albania (49.8), Romania (49.4), Cyprus (48), Greece (47.9), Bulgaria (47.9), Bosnia and Herzegovina (46.4), Serbia (46.3) and Montenegro (46.2).
North Macedonia and Turkey both have 45.3 points, the lowest rate of all countries in Southeast Europe. They occupy positions 62 and 63 respectively.
Serbia ranks at the bottom of the resource efficiency index
In the natural capital segment, Albania ranks 11th in the world, with 57.6 points. Croatia, Serbia, Bosnia and Herzegovina and Romania are from 17th to 22nd position. Bulgaria is 44th with 50.1, while the rest of the region is well below 50. Greece has 38.8 points and landed in 136th place.
The only country with a lower result is Cyprus, with 32.7. It is almost at the bottom of the list, at position 170. Natural capital is the given natural environment, including resource availability and level of depletion.
Croatia and Romania have the highest resource efficiency in the region
Croatia is the best in the Balkans in terms of resource efficiency, ranking 27th with 54.6 points, followed by Romania, with the same result. They are followed by Greece, which scored only 49.8 points and ranks 74th. Serbia ranks second among the 176 countries in the subindex. Its score is 31.7, only 0.1 point more than that of Kazakhstan.
Slovenia is the best in the world in economic sustainability
In intellectual capital, Slovenia is 20th with 56.5, followed by Turkey, 26th (52.6). At the other end of the list, BiH has the lowest rate in the region, 32.6, in position 106.
With 43.4 points and ranked 96th, Turkey is by far the lowest country in the social capital ranking in Southeast Europe. Bulgaria is the only other country below 50 points, with 49.7 and in position 57.
Slovenia ranks fourth in the world (62.8 points). But it tops the global list for economic sustainability, with 61.6. The other countries in the segment are between 19th (Croatia) and 103rd (North Macedonia).
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