Governance isn’t a drag on competitiveness. It’s the source

The 2026 World Competitiveness Ranking from IMD challenges the conventional belief that poor governance hinders economic success, suggesting instead that strong governance is a key driver of competitiveness. The report reveals that neither the U.S. nor China stands at the top of the world competitiveness list, highlighting a significant shift in understanding global economic leadership. This insight is crucial as it urges policymakers to focus on governance improvements to boost their countries' economic positions. By redefining the relationship between governance and competitiveness, the report offers a fresh perspective on how to achieve and sustain economic leadership.