Globalization Index

In 2004 Russia ranked 52nd and Ukraine 39th in the world in terms of their globalization level among 62 nations that account for 88% of the world’s population and over 91% of the global economy. This data is from the Globalization Index published annually by Foreign Policy magazine.

Russia’s ranking in the 2004 index has dropped significantly from 44th place in 2003. Meanwhile, Ukraine moved up from 42nd place in 2003 to 39th place in 2004. The compilers of the index attribute Russia’s slide to the fact that its economy is becoming increasingly dependent on energy exports, while its market reforms have stalled. No other countries of the former USSR are listed in the index. The index is based on four key parameters. In the past few years the list of the most globalized nations has remained virtually unchanged. Insignificant changes have occurred in the top ten countries. The index is currently topped by Singapore (2nd place in 2003) followed by Ireland (1st in 2003), and Switzerland in 3rd place (unchanged from 2003). They are followed by 20 other most globalized nations (in order of their appearance in the index): the US, Holland, Canada, Denmark, Sweden, Austria, Finland, New Zealand, the UK, Australia, Norway, the Czech Republic, Croatia, Israel, France, Malaysia, and Slovenia. Iran, India, Indonesia, Egypt, and Bangladesh have the lowest rankings. Compared to the 2003 index, the biggest gains are in Croatia and Morocco, which have moved up 7 places. The biggest losers are Argentina (down 13 places), Russia (down 8), and Portugal (down 6).

According to the well known economist Joseph Stiglitz, 2003 was a bad year for globalization processes. Isolationist moods have intensified in many countries, the result of the complex situation in the international arena, primarily the Iraq conflict. To illustrate, retailers and consumers in a number of countries boycotted Coca-Cola, while in the US consumers refused to buy French wines and cheeses. A few trade wars have taken place around the globe.