Abstract—Baltic competitiveness is quite controversial. In a situation with the rapid structural changes, economy develops in balance very rarely - in different fields will always be more rapid changes in another more stagnation. Analyzing different economic indices developed by international organizations the situation in three Baltic countries are described from a different competitiveness positions highlighting strengths and weaknesses of each country. Exploring the openness of the economy, it is possible to observe certain risks included in the reports describing situation of competitiveness where government policies competing in the tax system, the rates of labour market policies, investment environment, etc. This is a very important factor resulting in competitive advantage. Baltic countries are still at a weak position from a technological perspective, and need to borrow the knowledge and technology from more developed countries. Keywords—Baltic countries, Baltic region, competitiveness, indices of competitiveness. I. INTRODUCTION ACROECONOMIC and microeconomic situation in the country can be analyzed at the global level when assessing general competitiveness of the country, tendencies of economic development, and driving forces of economy in comparison with other countries. However, regional development of the country and assessment of its factors of influence are not less important As soon as the country enters in the international circulation policy makers are engaged with state’s development planning, opposition, electorate and media worry about loss of competitiveness as a result of a particular decision, and economists post factum conclude that monetary or fiscal policy in a particular period enabled increase or loss of competitiveness [1]. This tendency is familiar in every country operating in the international market. However, the most well- known products are indices of competitiveness - complex indicators calculated according to selected criteria and state’s competitiveness success measurements. They allow to rank a country in a particular position in comparison with the entire world and to assess development within a period of time. Traditionally in economy by index we understand changes of the particular indicator within a period of time [2]. The index within the context of this study is a complex indicator calculated on the basis of mathematical compilation of I. Stokmane is with the Department of Architecture and Building, Faculty of Rural Engineering, Latvia University of Agriculture, 2 Liela street, Jelgava, Latvia (e-mail: ilze.stokmane@llu.lv). selected simple or complex indicators. A rating traditionally is a sequence of particular objects depending on value of the particular parameter, indicator or index (a term “rank” is used to describe such a serial number). The results of international studies can be described in two ways: from the view of international and state policy. Therefore, certainly the studies have wide international publicity. High indicators create a positive image of the country, institution, field or another object, increase value of the brand, authority of particular institution and person. II. INTERNATIONAL RATINGS OF COMPETITIVENESS A. Global Competitiveness Index The Global Competitiveness Index (GCI) included in the Global Competitiveness Report [3] compares macro and microeconomic indicators describing competitiveness. Retaining the idea of a “pillar” the GCI is based on 12 pillars or factors determining global competitiveness of the country. These factors can be relatively divided into three basic groups where each of them is more leading contributor of competitiveness for a particular country depending on the level of development. In general, countries are divided into five groups depending on the level of their development. There are three large basic groups – resources (1), productivity (2) and innovation (3) based economy; and two transition periods – from resources to productivity (1-2) and from productivity to innovation (2-3) based economy. Apart from Baltic countries (Estonia, Latvia, Lithuania) there are also such countries as Russian Federation, Poland, Hungary, Croatia and others falling within the group of transition period from productivity to innovation economy (2- 3), however, countries directed by innovation economy (3) are Scandinavian countries which are close neighbors in Baltic Sea Region, also such post soviet countries as Czech Republic, Slovak Republic, Slovenia, and one of the biggest emigration destination for inhabitants of Baltic countries – Ireland. There are many other advanced countries in this group (3). In 2009 Estonia also was evaluated as innovation based economy. In the Report on Global Competitiveness Index assessment Latvia is lower than Lithuania and Estonia, and in 2012 it was ranked 55 th of 144 countries reflected in the Report [3], Estonia was ranked on 34 th place (it is ranked in first thirty’s also in previous five years), and Lithuania – 45 th . Latvia within a year has increased 9 positions concerning competitiveness assessment by the World Economic Forum (142 countries in all are included in the latest publication, in the previous one - 144); Estonia and Lithuania lost 1 position. Besides, at the top of the Global Competitiveness Report Ilze Stokmane Competitiveness of the Baltic States within the International Ratings M World Academy of Science, Engineering and Technology International Journal of Economics and Management Engineering Vol:7, No:9, 2013 2492 International Scholarly and Scientific Research & Innovation 7(9) 2013 scholar.waset.org/1307-6892/16601 International Science Index, Economics and Management Engineering Vol:7, No:9, 2013 waset.org/Publication/16601