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Globalization Index, a recently released report by the KOF Swiss Economic Institute, has placed Canada in 13th place on its list of 100 countries. The index measures volume of trade and investment as well as the extent to which governments restrict foreign trade and capital movement in order to protect their national economies. It also deals with social aspects of globalization – the amount of free exchange of ideas and information or the degree of political co-operation and integration.
Getting over the hurdle
The report data showed that the rate of globalization has slowed down for a while due to the global financial crisis, but not as radically as initially anticipated. Canada has weathered the recession fairly well and seems to be more than prepared to compete globally. The index hints that the more globalized and interconnected Canada’s economy, the wealthier and happier Canadians become. The process is also linked to increasing GDP per capita, and a higher proportion of the labour force employed in the creative and knowledge-based segments of the economy. The Globalization Index creators recommend further opening up the Canadian economy and removing its trade barriers, as well as supporting innovations and trade diversification in order to ensure that Canada plays an important role in the world economy.
The top five places in the overall globalization index were taken by Belgium, Austria, the Netherlands, Sweden, and Switzerland, while Canada ranked fourth on the social globalization index. The U.S. is not to be found among top ranking states, as the country’s more inward-oriented economy ranked 50th overall. The U.S. can afford staying outside the global trend since, as the world’s largest economy, it has reason to trust the strength of its internal market more than others.
