Ireland has improved its ranking in a global competitiveness, according to a new survey that shows Government policies have made a positive contribution to economic growth.
The annual world competitiveness rankings compiled by IMD business school shows that Ireland has improved its competitiveness from 12th to 11th in a table headed by the United States.
A breakdown of the results reveals that Ireland performs very well in terms of attracting foreign investment, independence of public bodies and quality of services.
However Ireland was marked down for the poor quality of infrastructure, health service provision and the lack of basic scientific research.
"In 2006, competitiveness is a more compact race than ever before," said Prof Stéphane Garelli of the Swiss based IMD.
"Hong Kong and Singapore are catching up with the US because their governments are more in synchronisation with economic performance. Finland and Denmark also fare well; others less," he added.
Italy, France and Latin American countries such as Venezuela and Argentina were listed as countries where governments are hindering overall competitiveness. The failure to cut deficits, high taxation and protectionist policies were cited as the factors holding back performance in these countries.
The IMD report also highlighted the challenges that the governments of India and China will face to keep pace with rapid economic expansion.
"Failure to do so may create economic and social imbalances that could jeopardise what has been achieved so far. The lesson here: success has a price," Prof Garelli concluded.