Russia drops in competitiveness index

Corruption, lack of rule of law, inefficient government bureaucracy and lack of protection of property rights are some of the main reasons why Russia falls down three places and find its position between Vietnam and Peru.

The World Economic Forum report also argues that Russia’s fall on the index comes due to deterioration in areas like quality of institutions, labour market efficiency and innovation.

Russia’s competition, both domestic and foreign, was negatively affected by markets dominated by a few large firms, inefficient anti-monopoly policies, and restrictions on trade and foreign ownership, the report reads.

Switzerland tops the ranking, followed by Singapore. The two Barents members Sweden and Finland take third and fourth place, while Norway is on the 14th place.

Earlier this year, BarentsObserver reported that Russia is the 10th riskiest country in the world for investors, according to the annual Political Risk Atlas.