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June 22, 2018 www.intellinews.com I Page 10
Emerging Europe struggles to benefit from globalisation
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Developed markets in Europe have seen more benefits from globalisation within the last 26 years than emerging Europe, shows the 2018 Globalisation Report from German foundation Bertelsmann Stiftung.
The study of 42 global economies concludes that emerging countries have benefited from globalisation to a much lesser extent than is suggested by public discussions on their above- average export growth, or the relocation of production facilities to emerging economies such as India and China.
The 2018 Globalisation Report analyses globalisation’s effect on growth in a total of 42 countries – which collectively account for over 90% of global economic output. The analysis of all highly developed economies and the most important emerging countries determines the extent to which they globalised between 1990 and 2016 and the degree to which they could profit from this.
Switzerland made the highest absolute gains in per capita GDP due to globalisation between 1990 and 2016, making it the “globalisation champion”. Behind it are Japan, Finland, Ire- land, Israel and Germany. The champion from Central and Southeast Europe is Slovenia, which was ranked ninth just after Denmark and the Netherlands.
The report notes that “Slovenia opened up considerably leading up to 2004”, the year it joined the EU. While fellow states from former Yugoslavia are among the poorest in Europe, “Per capita GDP in this former Yugoslav republic was already level with Portugal in 1990. On this basis, Slovenia’s increasing globalisation led to substantial gains in income.”
On this list, Hungary is 22nd, Slovakia 27th, Czech Republic 31st, Turkey 32nd while Roma- nia, Bulgaria and Russia took 34th, 36th and 39th spots. India is in the last spot while
China is close to the bottom at 39th.