Who Will Win in the 21st Century?

As rankings go, it may not have the popular appeal of Mr. Blackwell's annual Worst-Dressed List. But business leaders and policymakers pay plenty of attention to the World Competitiveness Yearbook issued every May by the International Institute for Management Development (IMD), a business school in Lausanne, Switzerland. Derived from a battery of data, the competitiveness ranking is a global scorecard for how well nations are preparing themselves for the challenges of the 21st century economy.

The 2007 edition, released on May 10, confirms a few long-term trends. For the 14th time in the yearbook's 19-year history, the U.S. ranked No. 1, thanks to its fundamental economic strength, best-in-class business infrastructure, and highly ranked business efficiency. Following close behind are two Asian tigers, Singapore and Hong Kong, and a half-dozen recurring champs from Northern Europe: Luxembourg, Denmark, Switzerland, Iceland, the Netherlands, and Sweden.