Switzerland is at the top of the U.S. News and World Report Best Countries list for 2024, landing at No. 1 for the third year in a row and the seventh time overall.
Japan jumped to second place, up from sixth last year. And the United States, which has never taken the top spot, climbed to No. 3 for the first time since the list began in 2016.
Wharton marketing professor David Reibstein, who helped create the survey-based rankings, said the changes are worth noting because the list measures internal and external perceptions of nations. The U.S. was fourth in 2016 and fell to a low point of eighth in 2018, scores that he attributes to the first election of President Donald Trump. A polarizing leader, Trump’s ascension to the White House marked a change in American exceptionalism.
“Going into 2016, we had an election that was so vitriolic, in many ways more so than the recent election. A lot of dirty laundry was aired publicly, and it didn’t help the global perception of the United States,” Reibstein said, adding that the U.S. has notched up since the election of Joe Biden, who is seen as less isolationist than his predecessor.
“I’m already anxious to see, when I do this survey next year, where the United States has gone,” he said. “Trump talks about making America great, but I don’t know how we measure that.”
Among the list’s 10 sub-rankings, the U.S. was No. 1 in both power and agility, and No. 2 for entrepreneurship. Yet it scored only 52 for “open for business.” America’s high labor and manufacturing costs, coupled with a challenging tax structure, likely contributed to the lower score, the professor said.
Businesses Love Luxembourg
For Reibstein, tiny Luxembourg is one of the biggest surprises on the list. Landlocked between Belgium, France, and Germany, it might be easy to miss the wealthiest country in the European Union. But companies certainly don’t. Luxembourg is rated No. 1 for “open for business,” with a perfect score of 100.
“If you asked me, a Wharton professor, what country was most open for business, I would have been shocked to see Luxembourg at the top of the list. But it comes up almost every year,” he said.
After visiting Luxembourg and talking to business executives who work there, Reibstein said he understands. Luxembourg’s small size makes it less bureaucratic. It has a large banking and finance sector, and it’s known as a tax haven for multinational corporations.
“If you asked me … what country was most open for business, I would have been shocked to see Luxembourg at the top of the list.”— David Reibstein
“When I ask people in business about it, they say it’s a great tax environment, and that works to Luxembourg’s advantage,” Reibstein said.
Optimism About AI
Attitudes about generative artificial intelligence are markedly different across the globe, with Western countries feeling less optimistic than Eastern countries.
Overall, 65% of respondents agreed with the question, “Do the benefits of AI outweigh the risks?” But a breakdown of the answers reveals the geographic rift. The nation most supportive of AI is China, with 83.5% in agreement, followed by Vietnam, Kenya, Thailand, Egypt, India, Saudia Arabia, Indonesia, and South Korea. At the other end of the spectrum is Denmark at 43% agreement, followed by Canada, Australia, New Zealand, and Sweden.
Reibstein said the survey results reflect what he sees in his work and travel around the world. Western countries are grappling with a host of concerns over AI, while Eastern countries are moving faster to implement it.
“I just came from Vietnam, and there was AI everywhere,” he said. “In the U.S., there are red flags going up and a need to be cautious and move a bit slower. If this persists over time, I definitely think it will put Western countries at a disadvantage.”
Bringing up the Bottom
Cameroon, Algeria, Lebanon, Serbia, and Belarus are the bottom five on the Best Countries list. But Reibstein said there’s no need for low-scoring countries to despair. The list reflects perceptions, and perceptions can be changed.
“If the perceptions are wrong, then it’s just a communications issue,” he said. “But more often or not, the perceptions are not wrong. If those things are true about your country, then you need to clean up your act.”
He singled out Saudi Arabia as an example. It’s poorly rated for “social purpose” attributes, including religious freedom and gender equality. But the kingdom has been working to improve its record on women’s rights in recent years, allowing women to drive and work in certain jobs where they were once prohibited.
“I’d like to believe it’s because it’s the right thing to do, but most likely it’s because it was hurting the brand of Saudi Arabia,” Reibstein said.
There’s no doubt that marketing and branding can help shift perceptions, the professor said. Qatar inched up the list to No. 25 this year, and Reibstein thinks that’s largely due to multibillion-dollar investments in building a new international airport in Doha and hosting the 2022 FIFA World Cup. Similarly, he credits the massive outreach of K-pop for helping South Korea climb to No. 18 this year. It’s arguably the country’s most influential export.
“To create a global image, what leads to that is the identification of products and other things coming from your country are identifiable outside of your country,” he said.
