Switzerland profits most from globalization: report

People in industrialized countries benefit most from increasing globalization –and none more so than the Swiss.

Switzerland profits most from globalization: report
Photo: Pasqua

That is the key finding of the Globalization Report 2018, carried out by Prognos AG for the Bertelsmann Stiftung foundation. 

The report calculates the degree of international interconnectedness and the resulting increases in real gross domestic product (GDP) per capita for 42 industrialized and emerging countries.

It is based on figures from 2016.

The report found that the countries that gained the most from globalisation were often those where anti-globalisation voices were loudest.

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“The Swiss benefit the most: in Switzerland, the GDP per capita resulting from increasing globalization grew on average by 1,910 euros per year between 1990 and 2016,” the report’s authors said.

Second and third in the rankings were Japan and Finland. Ireland took fourth place.India came last in the ranking with respect to globalization-related welfare gains and China, which was second bottom, also recorded below-average gains.

Two other developing countries, Russia and Argentina, came out just above them at the bottom of the ranking.

“One of the biggest construction sites of globalization is the unequal distribution of globalization gains between industrialized and emerging countries,” the authors said.

They said that since the industrialized countries had had a higher economic performance for a long time it was difficult for emerging economies to catch up.

The Bertelsmann Stiftung said the benefits of globalization needed to be distributed more widely.

It also called for globalization gains to be shared more equally in the industrialized countries so that everyone benefits.