By Molly Parker
Staff Writer

South Carolina came in near the bottom in the latest state-by-state economic competitiveness matchup, with the researchers citing high crime, poor infrastructure, high unemployment rates and dismal educational and human resource offerings as their reasons for ranking the state 42nd on the list of 50.

The seventh annual State Competitiveness Report 2007, released in late December by The Beacon Hill Institute at Suffolk University in Boston, ranks states in terms of their competitiveness based on a number of specific criteria. Those criteria include government and fiscal policies, infrastructure, education, human services, technology and business incubation.

South Carolina’s position has dropped steadily in the report during the past three years, ranking 29th in 2005 and 37th in 2006.

Kara Borie, spokeswoman for the S.C. Department of Commerce, said that for every report that portrays the state negatively, she can point to a dozen positive ones.

“Last year was another record year for jobs and investment recruited to the state,” she said. “South Carolina continues to receive national recognition for a strong business climate, which we believe has positively served recruitment efforts.”

She noted that the study did not examine workers’ compensation and tort reform or the state’s extensive worker training programs.

The human resources category was largely responsible for dragging down South Carolina’s ranking this time around. The report noted poor high school graduation rates, higher numbers of uninsured residents, higher rates of infant mortality and unemployment compared to other states. The state was 47th in this category.

The state also performed poorly on security, ranking 39th in terms of crime and murder rates.
David Desplaces, an assistant professor of entrepreneurship at the College of Charleston’s School of Business and Economics, said the ranking shows that the state has some “significant imbalances” in need of attention before it can attract and retain businesses. 

 “We must address now the human resources and educational weaknesses to remain competitive to avoid chasing away companies that have made South Carolina their home,” he said. 

The states making the top 10, in order, were Utah, Massachusetts, Colorado, North Dakota, Idaho, Minnesota, Washington, South Dakota, New Hampshire and Wyoming. Louisiana placed last.

View the full report at www.beaconhill.org/Compete07/Compete2007State.pdf.