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Policy & Stability

Policy & Stability

Singapore offers a stable setting for launching a business or conducting R&D

A lawless country is a bad place to do business, no matter how enticing its other perks might appear, while a dependable and predictably safe environment attracts many entrepreneurs. Security is among the qualities explored in our Policy & Stability category.

To assess each nation, we used the following measurements from the World Bank’s World Governance Indicators: “political stability and absence of violence/terrorism,” “government effectiveness,” “regulatory quality” and “rule of law.” Taken together, these components gauge perceptions of the likelihood that the government will be destabilized or overthrown by unconstitutional or violent means, including politically-motivated violence and terrorism. This category also incorporates perceptions of the quality of public and civil services in a country, as well as the government’s ability to formulate and implement sound policies and regulations.

Last year, Finland, Singapore and New Zealand—in that order—topped this category. This year Finland drops to third and Singapore and New Zealand advance to first and second place, respectively. Interestingly, a country’s Policy & Stability score does not generally align with perceptions about growth. Countries regarded as having strong growth potential—for example, Brazil, Russia, India and China (the BRICs)—generally have low Policy & Stability scores. This illustrates a common theme in business: Opportunities exist where companies can enter neglected markets and address challenges that have kept others away.