This is from the Economist Intelligence Unit, an affiliate of the weekly Economist magazine. It ranks countries according to labor supply, labor quality, transportation, regulation, taxes etc. The winner is Denmark, which is surprising. No. 2 is Finland. No. 3 is Singapore. The United States is 10th, after Sweden and before Ireland. Some highlights on Denmark:

The Danish labour market model wins plaudits. One of the most attractive aspects of the Danish business environment is the labour market-Denmark's "flexicurity model" has become the yardstick for reforms in other European countries. The system combines low non-wage labour costs and few restrictions on hiring and firing with high unemployment benefits (funded by the state via income tax, not business) and opportunities for workers to upgrade their skills. This provides a high degree of flexibility for employers, while generating a high level of employment and income security.

A "globalisation fund" has been established to prepare Danish workers and businesses for greater global competition through higher spending on education, and research and development. Following the reduction in the corporate tax rate in 2007, income tax cuts will be introduced in 2008-09. A "tax commission" will also meet during 2008 to propose a more comprehensive reform of the tax system.

If Denmark is to hold onto its number one rank in the long term, it will need to ensure an effective response to the projected decline of the working-age population.