Singapore tops Elite Quality Index 2024, beating Switzerland

SINGAPORE: Singapore has clinched the top spot in the Elite Quality Index (EQx2024), a comprehensive analysis of 151 countries utilizing 146 indicators to evaluate the quality of a nation’s elite and its impact on societal value creation.

The report, developed by the University of St.Gallen (HSG) in collaboration with global academic partners such as Singapore Management University and the St.Gallen-based Foundation for Value Creation, offers a thorough examination of elite influence in driving or extracting national value.

The EQx2024 examines conceptual elements such as Power, Creative Destruction, and Unearned Income to measure the extent to which elites create or extract value from their countries. Elites are defined as the top 1% of a society’s political, economic, or knowledge sectors and play a critical role in shaping business models and maintaining institutional power.

Singapore’s climb back to the number one spot, after conceding to Switzerland in last year’s index, reflects its continued focus on regulatory quality, control of corruption, and economic openness. The city-state’s state-capitalist framework and elite commitment to value creation have allowed it to thrive amid ongoing global political and economic challenges.

The rise of Asian countries in the EQx2024 is notable, with three of the top six positions held by Asian nations. Japan ranks at #4, and South Korea at #6, demonstrating a robust showing. Meanwhile, the continent’s emerging superpowers, China at #21 and India at #63, also signal their growing influence in the global economic landscape.

The United Kingdom, meanwhile, experienced a slip in the rankings, moving out of the top ten to #11. Among the factors contributing to this decline are concerns about the drop in global university rankings and reduced competitiveness since Brexit. The UK also faces challenges in attracting foreign investment, raising questions about its long-term economic trajectory.

The United States and China both improved their rankings, with the USA advancing five spots to #16 and China moving up one place to #21. The United States continues to generate significant value through its financial markets and AI technology but struggles with ensuring an inclusive economy. China, however, with its goal to double GDP in the next two decades, can leverage its more inclusive elite system to drive national growth.

Switzerland, despite slipping to #2, maintains a formidable elite system but must address the fallout from the integration of Credit Suisse and UBS. It is advised for Swiss elites to seek new sources of value creation while retaining their core strengths. Germany, steady at #8, is recognized for its strong institutions and low extraction by elites. However, it lacks creativity and fails to generate sufficient new value for society.

Overall, the EQx2024 offers a nuanced perspective on elite quality across the globe, emphasizing the importance of a constructive elite class that contributes to broader societal growth and economic resilience. The report serves as a valuable resource for policymakers and business leaders aiming to navigate the complexities of elite influence and national value creation in an increasingly interconnected world.