Tokyo (SCCIJ) – Switzerland has achieved remarkably high rankings in international comparisons again. It was judged as number one in the 2019 Change Readiness Index compiled by the Netherlands based global consultancy firm KPMG for the second consecutive time. Also, Switzerland ranked third in the 2019 Global Resilience Index of the U.S. mutual insurance company FM Global, one spot higher than in 2018. Japan came in at rank #18 (up by three positions) in change readiness and at #27 (down by three ranks) in the resilience comparison.
A view of the City of Zurich, Switzerland
Adjustment capacity
The KPMG Change Readiness Index is a broad measure of a country’s resilience to short-term disasters and the ability to adjust to longer-term structural changes, including rising temperatures and decarbonization. It examines how states are prepared for changes in the critical areas of enterprise, government as well as people and civil society.
The index, now in its fourth year of bi-annual publication, answers these questions by measuring 140 countries across three key pillars of capability: enterprise, government, and people & civil society. Switzerland took the top spot in enterprise and government capability and the third spot in people & civil society capability. Japan was ranked #13, #16, and #21 in the respective categories.
The KMPG researchers lauded the labor markets, health, and the rule of law as Switzerland’s strengths and named the Swiss macroeconomic framework, the economic openness and the technology infrastructure among its opportunities. Japan is considered strong in the inclusiveness of growth, public administration & state business relations, and health. Fiscal & budgeting, food & energy security as well as enterprise sustainability are counted among Japan’s opportunities.
Impressive resilience
In the 2019 Global Resilience Index for 130 countries, Norway retained its number-one position among a mostly reshuffled top 10. It is followed by Denmark (ranked 2nd), Switzerland (3rd), Germany (4th), Finland (5th), Sweden (6th), Luxembourg (7th), Austria (8th), Central United States (9th) and the United Kingdom (10th), with Japan ranked 27th.
The index is designed to help chief financial officers and other business leaders choose resilience as they manage their own risk, site facilities, extend supply chains, and cultivate customers. Corporate governance was added as new category to the other 11 economic, risk and supply chain-related measures driving the index rankings.
Strong in many fields
“According to the study, Switzerland boasts several strengths, in particular, economic security. The quality of its infrastructure, including transport and energy, is also rated as very high. Besides, Switzerland ranks high in terms of a very stable political environment and low corruption. The rate of urbanization and economic productivity are also far above the average,” Switzerland Global Enterprise, the export and investment promotion entity of the Swiss government, summarized the results.
Japan, at number 27, scored high in the resilience of its supply chain and impressed in the economic field. However, its risk quality score was comparatively low. The researchers referred to the effects of an earthquake and a typhoon last year on the economy.
Text: SCCIJ based on material by KPMG and FM Global; Photo: Pixabay CC0
