For the third year in a row, Ireland ranks as the most globalised country in the world.
In 2002 it defied the downward investment trend throughout most of Western Europe, registering its highest-ever Foreign Direct Investment (FDI) inflow of $24.7 billion, including notable new investments in the high-growth IT and pharmaceutical sectors. However, Ireland's lead over other countries shrank in 2002 as portfolio capital investment dropped by a quarter from 2001.
Nevertheless, a strong showing in non-economic facets of global integration helped sustain the country's top position.
Ireland once again proved to be a leader in technological connectivity, ranking seventh worldwide in the number of secure servers per capita.
Western Europe claimed six out of the 10 most globally-integrated countries in 2002.
On the political front, European countries remained the most engaged participants in the international system. The top 10 per-capita aid donors in 2002 were all countries in Western Europe. The launch of the euro, on January 1st, 2002, marked deepening regional integration, and promised long-term economic benefits by increasing stability, lowering interest rates and removing exchange risk.
Despite a sluggish economy, foreign-investment inflows to the region fell only about 20 per cent in 2002, against some 60 per cent for North America.
The Scandinavian countries - traditionally among the index's top performers - slipped in 2002 (except Finland). Although the region continued to perform well in technological and political integration, economic integration retreated. Sweden exited the top 10 for the first time, falling from third to 11th place.
Greece was the region's worst performer, falling from 26th to 28th as trade deficits widened and inward FDI dropped off after two years of exceptionally high volumes. This is despite the 2004 Olympic Games.