Argentina has once again recorded a significant decline in the global Elite Quality Index (EQx) ranking. The “EQx 2026” report was developed under the academic leadership of the University of St. Gallen (HSG), Switzerland, in collaboration with the St. Gallen Foundation for Value Creation.

The Argentine chapter, as in previous years, was led by Pablo San Martín, President of SMS Latinoamérica and Fundación SMS Argentina, and International Academic Partner of the University of St. Gallen (HSG).

The Elite Quality Index (EQx) measures whether a country’s most powerful actors create value or extract it, revealing the true drivers of long-term prosperity. By going beyond GDP and traditional institutional rankings, the EQx shows how elite business models shape the trajectory of nations: economies based on innovation and productive investment rise in the ranking, while those driven by rent-seeking tend to fall.

To define a “healthy elite,” the index considers two key dimensions: political influence and value creation. For middle- and low-income countries, it serves as a strong predictor of economic growth, highlighting that the quality of elites is a foundational step toward stronger institutions and higher development.

In its 2026 edition, Argentina ranked 104th out of 151 economies, marking a drop of nearly 20 positions compared to the previous year and confirming a sustained downward trend.

This decline is not an isolated event. In recent years, the country has shown a continuous deterioration, consolidating its position in a structurally disadvantaged segment of the global ranking.

The index analysis indicates that there is no single cause behind this result. Instead, the EQx presents a systemic reading, where the main gap lies between political and economic dimensions.

While indicators related to power—both political (rank 39) and economic (rank 60)—remain relatively stronger, performance in economic value creation is significantly weaker.

In particular, the country ranks critically low in key variables: the Economic Value indicator is positioned at 128, while Capital Value drops to 142, one of the lowest scores in the ranking. This dynamic reflects an economy that fails to translate its level of power into sustainable value.

According to the report, although economic elites are able to extract value, they do so at a high cost, in a context where assets—from equities to land—remain undervalued. This directly impacts growth capacity and constrains long-term development.

Recent reforms aimed at international integration and increased domestic competition have not been sufficient to reverse this situation. Persistent weaknesses remain in macroeconomic variables and capital flows, reflected in indicators such as inflation (position 130), GDP deflator (146), and gross capital formation (126), as well as in low levels of openness and trade freedom.

At the same time, the index highlights certain contrasts. Efforts to contain public spending are reflected in improvements in that indicator, although the report points out the difference between spending cuts and effective public investment.

Another relevant aspect is the performance of social indicators related to the future of human capital. Argentina shows high levels of talent outflow (ranked 23rd in brain drain) and weak performance in youth employment (ranked 114th), reinforcing the idea of a system that fails to retain or develop its resources.

Structurally, the EQx highlights that the main challenge lies in the inability to translate accumulated power into value creation. This limitation not only affects the present but also constrains future development by discouraging investment, innovation, and genuine competition.

Looking ahead, the report underscores the need for reforms that reshape system incentives, including changes to the tax framework, improvements in competitiveness, increased infrastructure investment, and stronger educational quality.

“It will be interesting to see whether Argentina, immersed in a form of hegemonic stagnation that generates a value-destroying environment, can shift its paradigm. Key reforms are needed, including improvements to the tax system, better incentives for competitive and productive business models, infrastructure investment, and further enhancements in education quality,” said Pablo San Martín.

The global EQx 2026 ranking confirms a structural shift in elite quality worldwide. Singapore retains the #1 position, and the United States consolidates #2, driven by advances in artificial intelligence. China emerges as the biggest climber in the ranking, highlighting how execution speed and technological adoption have become critical competitive advantages.

You can access the full ranking here.

On August 4, Fundación SMS Argentina, together with the University of St. Gallen and with the support of the Swiss Embassy, the Swiss-Argentine Chamber of Commerce, La Nación and Clarín, will host “RETHINKING ARGENTINA 2026”, a meeting to reflect on the main findings of the Index. The event will feature Tomás Casas i Klett, Lead Researcher of the global Elite Quality Index initiative, faculty member at the University of St. Gallen (HSG), and author of“Towards an Elite Theory of Economic Development” (Berlin: De Gruyter Brill https://www.degruyterbrill.com/document/isbn/9783110734638/html, at Amazon https://www.amazon.com/Towards-Elite-Theory-Economic-Development/dp/3110738902) among other panelists.