This year’s Global Competitiveness Report is being published amid uncertainty in the global economy and a continuing shift in the balance of economic activity away from advanced economies and toward developing ones. Despite significant government stimulus spending aimed at dampening the recession, growth in advanced economies remains sluggish as they are mired in persist- ent unemployment and weak demand. Recent concerns about the sustainability of sovereign debt in Europe, and the stability and efficient functioning of financial mar- kets more generally, have added to the list of concerns. The present situation emphasizes the importance of mapping out clear exit strategies to get economies back on a steady footing.Yet charting out such a process remains elusive in many countries for fear of a “double dip” as well as for political considerations. On the other hand, developing economies have for the most part fared comparatively well during the crisis: countries such as Brazil, China, and India are expected to grow at rates of between 5.5 and 10 percent in 2010, with growth holding up well over the next few years. Indeed, the world increasingly looks to the developing world as the major engine of the global economy.
