bloom consulting country brand raking trade 2011

7/30/2019 Bloom Consulting Country Brand Raking Trade 2011

1/[email protected] / +34 91 308 0286 (CET)Bloom Consulting 2003 - 2011 Page 01

Bloom Consulting Country Brand Ranking 2011 TRADE -TOP 25 Performers Edition

Development of CountriesHuman Asset ManagementBusiness Strategy


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Bloom Consulting, has created this World Ranking in order to answer the fundamental

issue at the heart of every country, corporation and soul: how does one become attractive?

Luckily, the rationale behind such a question for a nation is quite simple.A country wishes to draw the interest of people in order to create wealth.

In other words, the purpose ofcountry branding is to bring economic growth.

[email protected] / +34 91 308 0286 (CET)Bloom Consulting 2003 - 2011 Page 01

Bloom Consulting Country Brand Ranking 2011 TRADE - TOP 25 Performers Edition


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As a result of every country branding individual strategy, foreign direct investment

(FDI) net inflows worldwide from 2005-2009 were $7.8 trillion. During the same period,

FDI inward stock worldwide experienced an 11% annual growth rate.

The Asian and Latin American countries have grown significantly, at a rate of 17%

and 14% respectively, followed by European and African countries which have grown

at a lower rate of 13%. This is a remarkable figure for Europe as they hold 53% of world

FDI net inflows from 2005-2009.

In absolute terms, Europe has been able to attract the vast majority of global trade

inflows, followed by the US. US inward stock is the highest in the world, about

6.7 times the size of African inward stock.


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It is essential for countries to realize that the image a nation projects has a significant impact on

the economy as a whole. The country brand strategy you convey will undoubtedly affect the

way your country is perceived. The current global financial crisis has proved this. For instance,we can now see how credit rating agencies are highly influencing external perceptions about

countries and more importantly the strong impact they have on a countrys economic perfor-

mance. The interesting fact is that how these ratings are calculated are not in the public domain,

but rather the speculative effect they have is; it has proven country branding is more than a

capricious political idea, but rather a definite national necessity countries now need to face and

manage as a priority. Countries can no longer afford to allow third parties to play with their

national asset their brand.

Traditional country branding studies and rankings have used public opinion and stereotypes in

order to draw conclusions. Bloom Consulting has created the first study which captures the

links between the image a country projects and the effect this has on the countrys success. We

have merged macro and micro country facts and statistics, and correlated them with the commu-

nication strategies conveyed by every country in the world. This has enabled us to reach deeply

meaningful conclusions that mathematically prove that positioning your country in a specific

way will have a direct impact on your GDP. Such consequential conclusions are what other

studies in the past have lacked.

This report will help you understand the delicacies ofcountry branding. It will let you compre-

hend the current situation worldwide, and which communication strategies should be empha-

sized or ignored. It will unearth the regional complexities in this global competition, by unleash-

ing the truth behind how a country is perceived and the way it can differentiate itself in the

international arena.

We sincerely believe that this report will expand your knowledge on how to brand your country,

and will contribute to guiding your country down the path to success.

Jos Filipe Torres - CEO of Bloom Consulting

Bloom Consulting 2003 - 2011 Page [email protected] / +34 91 308 0286 (CET)

Introductory NoteA word from our CEO


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The main objectives for creating a country brand strategy rely on three main areas:

T1- Attraction of Trade

T2- Attraction of TourismT3- Attraction of Talent

The traditional approach to face these challenges is to create, or simply improve, perceptions

of the country both domestically and internationally.

Most of these initiatives are developed under one umbrella strategy.

This means countries try to create one single strategy for 3 different objectives.

However, the ideology and objective behind each one is simply different and ultimately will not

work; the 3 objectives are completely antagonistic. As an illustrative example, one cannot com-

municate leisure and entertainment to investors at the same time as communicating a qualified

and hardworking workforce to potential tourists. They automatically repel each other, therefore

destroying their core objective. Most of the time, what countries try to do is reach a compromise

to better understand the objective of the overall country brand strategy.

Fig. 1 - Bloom Consulting's 3T Approach

Bloom Consultings country branding methodology separates these objectives, trade, tourism

and talent and treats them individually, not as an umbrella strategy. Thus, we are able to derive

growth projections and calculations in order to better understand the objective of the overall

strategy (see Fig. 1).

T2

T1 T3

Bloom Consulting 2003 - 2011 [email protected] / +34 91 308 0286 (CET) Page 04

Objective

Country Branding Current ChallengesBloom Consulting 3T Approach


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One of the key differences in the

Bloom Consulting Country Brand Rankingand Bloom Consulting Country Brand Rating

is the use of facts and official data as opposed

to surveys and interviews. It combines hard data,

such as economic indicators and country characteristics,

along with communication strategies, giving birth to the

Bloom Consulting Algorithm.

A consistent use of official and recognized sources

More than one source of information has been used throughout this project to elaborate the

global ranking. The United Nations (UN) provided a comprehensive list of 193 countries*,

which enabled us to avoid any bias in selecting and identifying specific territories.

The economic variables selected to measure the performance of the countries were taken fromthe World Bank (WB). This ranking uses 2009 data, the latest data available from all sources.

The communication strategies used by countries to attract FDI were taken from the Investment

Promotion Agencies (IPAs) of the respective countries associated with the World Association

of Investment Promotion Agencies (WAIPA).

When these IPAs were not accessible through the WAIPA, information was gathered

from embassies or chambers of commerce.

It can therefore be confirmed, that through the consistent use of official internationally

recognized sources, the data used is current and accurate.

*Hong Kong has been added to the list as Bloom Consulting considered the specific nature of the territory and the importance of its

economic variables. Treating them separately allows us to analyze the real potential of both Hong-Kong and China respectively.


The ResearchUnderstanding the research methodology


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A revised and validated use of data

With these sources at our disposal, we collected the country brand strategy informationof each country in order to understand how the country brand wishes to be perceived.

Naturally, the quality of the data used throughout this project is crucial. For this reason, the

research methodology includes a two-step approach to checking the information. Only con-

firmed and official data through the World Bank, UNCTAD, and the United Nations has been

used. Moreover, all IPAs have been contacted by email and telephone in order to verify the

veracity of our information.

Our methodology assumes that the communication strategies used by IPAs are accurate.

We do not question their authenticity as this is not the purpose of the study, we are only inter-

ested in the impact they have on a countries economy. Even though some countries may choose

to promote aspects that differ slightly from reality, this behavior is rare and eventually would

have a negative impact on their FDI and theircountry branding

This study examines 144 countries; it was not possible to include all 193 countries supplied by

the UN. If a country did not promote any significant messages or if economic data was not

accessible, then they were eliminated from the study.

An explanatory and comprehensive clustering of communication strategies

All country branding strategies are heavily reliant on the chosen communication strategies

as they have a huge impact on the country's performance. Overall, more than 3,000 messages

have been collected from official sources, and implemented as a basis of information

throughout this report.


The ResearchUnderstanding the research methodology


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8/22Bloom Consulting 2003 - 2011 Page [email protected] / +34 91 308 0286 (CET)

With the help of powerful multivariate statistical analysis tools, we successfully identified

correlations between a countrys level of success in trade and the perception that the country

projects through its communication strategy. Case-differential tables, as well as matrices,were used to better comprehend the most significant relationships found, leading to the

Bloom Consulting Algorithm.

Hence, we present a ranking which positions

a country brand according to its economic performance

based on previous economic history and

the Bloom Consulting Algorithm;a process which as yet, has never been done before.

It is safe to say that our research has indicated that countries lack differentiation when it comes

to attracting potential investors. It is also proven that the most popular communication strategies,

such as hard economic facts are not the most effective to attract investors. This provides a great

opportunity for countries to differentiate themselves.

The RankingBloom Consulting Country Brand Ranking


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Bloom Consulting Country Brand Ranking Top 25 Countries 2011 Trade

The list of top country branding performers is mainly composed of the US, European coun-

tries, BRIC countries, and Asian economic hubs. No African countries appear on the list, and

there is only one country from the Middle East region, Saudi Arabia.


Belgium6. Sweden19.

Canada7. India20.

8. Hong Kong Hungary21.

Germany9. Switzerland22.

Russian Federation10. Saudi Arabia23.

Italy16.China3.

Brazil13.

Luxembourg2. Australia15.

UK4. Singapore17.

France5. Mexico18.

Netherlands11. Japan24.

Turkey25.Spain12.

USA1. Austria14.

The Ranking - TOP 25Bloom Consulting Country Brand Ranking


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The country branding rating factor is derived from the

Bloom Consulting Algorithm which is designedto recalculate the rating factor depending on the eco-

nomic performance and the communication strategy

chosen by each country.

Therefore, we can conclude that the Bloom Consulting

Algorithm cannot be manipulated by any single action.Bloom Consulting has created the Bloom Consulting Country Brand Rating in order to

evaluate the effectiveness of a countrys chosen communication strategy.

The relationship between communication strategies and economic wealth varies substantially

between geographic locations and economic development stages. Therefore, these factors, along

with the number of countries within each region and the repetition rate of each message within

each communication strategy, were taken into account. This ensured that we could derive an

accurate and just algorithm in order to designate each country with a rating factor, a countrycoefficient detailing the effectiveness of its communication strategy.


The RatingBloom Consulting Country Brand Rating


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The Bloom Consulting Country Brand Rating scale has classified the rating factors into

7 categories according to the effectiveness of a countrys communication strategy.

Bloom Consulting Country Brand Rating Categories Rating


Major positive impact

Moderate positive impact

Minor positive impact

No impact

Minor negative impact

Moderate negative impact

Major negative impact

Triple Green

Double Green

Single Green

White

Single Red

Double Red

Triple Red

The RatingBloom Consulting Country Brand Rating


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This rating reflects the effectiveness of the top 25 performers chosen communication strategies.

Bloom Consulting Country Brand Rating Top 25 Countries 2011 - Trade Rating

The top 5 country branding performers have all achieved high positive rating factors; however

so have other countries located further down the ranking. Countries such as Japan, Mexico, and

Singapore all have a top rating due to the use of the most effective communication strategy.

On the other hand Saudi Arabia and Hungary both received negative rating factors despite

making it into the top 25 global ranking. This is because even though they attract a lot

of investment, they could be using a more effective communication strategy in order

to increase FDI.


Hungary

Saudi Arabia

USA China France Brazil Australia Singapore Mexico Japan

Belgium Germany Netherlands Italy India Turkey

Canada Spain

UK Hong Kong Russian FederationLuxembourg Swe den Swi tzer landAustria

The Rating TOP 25Bloom Consulting Country Brand Rating


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50% of all countries tend to use the same type

of communication strategy regardless of geographiclocation. The majority choose to communicate messages

related to investment incentives, strategic location,

and the ease of setting up a business.

The extent to which countries make use of messages, which messages they communicate,

and the number of messages they use among other key facts, varies greatly from region toregion. Most countries use different strategies when branding themselves.

Country branding differentiation can be achieved through the various messages a country

decides to communicate, all with the same intent, attracting FDI. In particular, the level of differ-

entiation varies from country to country. There are countries that have a high or low differentia-

tion rate based on the communication strategy they use, which allows us to see how many other

countries use the same communication strategy.

The most popular communication strategies worldwide are also the most popular communica-

tion strategies within every region. All of the messages in Table 1 have been used in communica-

tion strategies by more than 44% of countries worldwide.

Table1. Most popular messages used in a countrys communication strategy; World

1. Favorable Fiscal Policy 63%

2. Investor Friendly Environment 63%

3. Favorable Strategic Location 61%4. Qualified Workforce 53%

5. Social Political Stability 44%


The Country Branding StrategyHow the world is differentiating itself


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In fact, using popular messages does not guarantee a positive impact on the country branding

strategy; actually, its the opposite; the most valued messages according to the

Bloom Consulting Algorithm factor are not the most popular.

Table2. Most valuable messages used in a countrys communication strategy; World

1. Social Welfare

2. Market Size Characteristics

3. Legal Framework Characteristics

4. Available Workforce

5. Soft Economic Characteristics

Communication strategies related to social welfare are the most valued in the international arena.

Countries that decide to communicate social benefits, education, and security would rate highly.

Other valued messages help to communicate the soft aspects of a country such as stability, a safe

investment environment, innovation culture, as well as no corruption, legal transparency, and

a positive legal financial climate.

The communication strategies mentioned above are the ones that work best in the global arena.

However, we know that a regional approach is needed and that the most valuable messages in

each communication strategy vary from continent to continent. In Europe and Oceania, innova-tion and quality of life are the most valuable messages, whereas in Latin America, the most

valuable message is related to economic growth. Asian countries also value growth and they

include innovation in their most valuable communication strategy. Finally, African countries

tend to value low-cost and qualified workforces in their communication strategy.


The Country Branding StrategyHow the world is differentiating itself


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1. United States of America

2. Luxembourg

3. China

4. United Kingdom

5. France

6. Belgium

7. Canada

8. Hong Kong

9. Germany

10. Russian Federation

As opposed to surveys and qualitative interviews, this country brand ranking combines

the countries economic performance with the respective country branding strategies;

a process which as yet, has never been done before. Such combination of variables hasgiven birth to the Bloom Consulting Algorithm - which sets the world Ranking


Bloom Consulting Country Brand Ranking 2011 TRADE - WORLD Ranking


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17. Italy

11. Netherlands

12. Spain

14. Austria

13. Brazil

15. Australia

16. Mexico

18. Signapore

20. Hungary

22. Switzerland

24. Saudi Arabia

19. Sweden

21. India

23. Turkey

25. Japan

26. Egypt

27. Poland

28. Ukraine

29. Colombia

30. Nigeria

31. Kazakhstan

32. Chile

33. Peru

34. Israel

35. South Africa



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52. Cyprus

36. Indonesia

37. Romania

39. Thailand

38. Argentina

40. Malaysia

41. Czech Republic

43. Portugal

45. Denmark

47. Lebanon

49. Sudan

42. Pakistan

44. Republic of Korea

46. Bulgaria

48. Finland

51. New Zealand

53. Iceland

54. Croatia

55. Serbia

56. Morocco

57. Greece

58. Slovakia

59. Tunisia

60. Algeria

50. Jordan



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84. Jamaica

77. El Salvador

61. Republic of the Congo

62. Philippines

64. Oman

63. Iran

65. Estonia

66. Dominican Republic

68. Panama

70. Ghana

72. Bahrain

74. Trinidad and Tobago

67. Costa Rica

69. Lithuania

71. Democratic Republic of Congo

73. Belarus

76. Syrian Arab Republic

78. Iraq

79. Bosnia and Herzegovina

80. Yemen

81. Madagascar

82. Georgia

83. Latvia

85. Guatemala

75. Uruguay



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87. Bangladesh

88. Slovenia

89. Zambia

90. Honduras

92. Albania

94. Cambodia

91. Montenegro

97. Sri Lanka

99. Botswana

93. Bahamas

95. Uganda

96. Armenia

98. Uzbekistan

100. Ireland

101. Mongolia

102. United Republic of Tanzania

103. Nicaragua

104. The Forerm Yugoslav Republic of Macedonia

105. The Republic of Moldova

106. Senegal

107. Angola

108. Barbados

109. Ethiopia

110. Afghanistan

86. Malta



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111. Mauritania

112 Gabon

114. Mauritius

113. Antigua and Barbuda

115. Seychelles

116. Paraguay

118. Cape Verde

120. Liberia

122. Saint Lucia

124. Djibouti

117. Kenya

119. Cameroon

121. Fiji

123. Guyana

125. Mali

126. Saint Kits and Nevis

127. Belize

128. Benin

129. Kuwait

130. Grenada

131. Saint Vincent and the Grenadines

132. Papua New Guinea

133. Lesotho

134. Malawi

135. Sierra Leon



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136. Swaziland

137. Dominica

139. Rwanda

138. Maldives

141. Burundi

143. Vanuatu

140. Gambia

142. Zimbabwe

144. Azerbaijan



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Bloom Consulting is a strategy consulting firm specialized in country branding.

Jos Filipe Torres founded Bloom Consulting in 2003 and is a regular spokesperson at confer-

ences and universities worldwide. He has been interviewed by both The Economist and Forbes,where he was identified as one of the top 3 country branding experts in the world.

At the moment Bloom Consulting have offices in Bulgaria, Brazil, Italy, India, Portugal and

Spain (headquarters), as well as research centers in Tokyo and London. Bloom Consulting work

closely with presidents, monarchs, ministers and institutions in order to define their strategy,

establish their vision, and implement it. Blooms clients include the Bulgarian, Latvian, Polish,

Portuguese and Spanish governments, and also regions such as Madrid, Castilla y Leon in Spain,

and Alqueva and the southwest regions of Portugal.

Bloom Consulting has developed a 3T approach to separate Trade, Tourism, and Talent

strategies. One fundamental point for the success of all of Bloom Consultings country brand-

ing projects, is the CAMPRO methodology . This methodology is a combination of academic

and professional knowledge under Bloom Consultings management and control, key to obtain-

ing the most accurate recommendations and insights for all clients.

More information

While this report provides a general global overview, the information presented here is anything

but a glimpse of the findings we have at our disposal. Please do not hesitate to contact us if you

would like a catered and detailed version of the Bloom Consulting Country Brand Ranking

report for your country or region.

For more information, please visit:

www.bloom-consulting.com/country_branding_ranking

www.bloom-consulting.com/country_branding_rating

d il t t b di @bl lti

AboutBloom Consulting


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bloom consulting country brand raking trade 2011

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