No. 5: Singapore

Market Size: 53
Innovation: 11
Education/Training: 8

The island city-state in Southeast Asia jumped to fifth place this year from seventh, largely as a result of a powerful institutional framework. The Singaporean government is the most transparent, least wasteful, and least burdensome on business of any country in the world. It also is the government most trusted by its citizens. Despite its small market size, Singapore also is buttressed by a world-class infrastructure and efficiency in all markets—goods, labor, and financial—where it ranks second globally.