Assessing the Competitiveness of Assessing the Competitiveness of UNECE EconomiesUNECE EconomiesThe Global Competitiveness Report 2010-2011
The Global Competitiveness Report
Launched in 1979 covering 16 European countries
Most recently covering 139 countries, from all regions of the World
Goal: to provide a benchmarking tool for policymakers and business leaders
The Global Competitiveness Report 2010-2011 Coverage
All UNECE members are covered except for Andorra, Belarus, Liechtenstein, Monaco, San Marino, Turkmenistan, and Uzbekistan.
How we define competitiveness: How we define competitiveness: “The set of institutions, policies, and factors that determine the level of productivity
of a country”The level of productivity, in turn, sets the sustainable level of prosperity that can be
earned by an economy.
The Global Competitiveness Index The Framework
A. Basic Requirements B. Efficiency Enhancers
C. Innovation & Sophistication Factors
5. Higher education and training
6. Goods market efficiency
7. Labor market efficiency
8. Financial market development
9. Technological readiness
10. Market Size
11. Business sophistication
12. Innovation
3. Macroeconomic environment
2. Infrastructures
4. Health and primary education
1. Institutions
Key for efficiency-driven economies
Key for innovation-driven economies
Key for factor-driven economies
The Global Competitiveness Index The Framework
A. Basic Requirements B. Efficiency Enhancers
C. Innovation & Sophistication Factors
5. Higher education and training
6. Goods market efficiency
7. Labor market efficiency
8. Financial market development
9. Technological readiness
10. Market Size
11. Business sophistication
12. Innovation
3. Macroeconomic environment
2. Infrastructure
4. Health and primary education
1. Institutions
Key for efficiency-driven economies
Key for innovation-driven economies
Key for factor-driven economies The Global Competitiveness Index
Stage 1 Transition from 1 to 2 Stage 2 Transition from 2 to 3 Stage 3
Bangladesh Senegal Algeria Albania Bahrain AustraliaBenin Tajikistan Angola Argentina Barbados AustriaBolivia Tanzania Armenia Bosnia-Herzegovina Chile Belgium
Burkina Faso Timor-Leste Azerbaijan Brazil Croatia CanadaBurundi Uganda Botswana Bulgaria Estonia Cyprus
Cambodia Vietnam Brunei Darussalam Cape Verde Hungary Czech RepublicCameroon Zambia Egypt China Latvia Denmark
Chad Zimbabwe Georgia Colombia Lithuania FinlandCôte d'Ivoire Guatemala Costa Rica Oman France
Ethiopia Guyana Dominican Republic Poland GermanyGambia, The Indonesia Ecuador Puerto Rico Greece
Ghana Iran, Islamic Rep. El Salvador Slovak Republic Hong Kong SARHonduras Jamaica Jordan Taiwan, China Iceland
India Kazakhstan Lebanon Trinidad and Tobago IrelandKenya Kuwait Macedonia, FYR Uruguay Israel
Kyrgyz Republic Libya Malaysia ItalyLesotho Morocco Mauritius Japan
Madagascar Paraguay Mexico Korea, Rep.Malawi Qatar Montenegro Luxembourg
Mali Saudi Arabia Namibia MaltaMauritania Sri Lanka Panama NetherlandsMoldova Swaziland Peru New ZealandMongolia Syria Romania Norway
Mozambique Ukraine Russian Federation PortugalNepal Venezuela Serbia Singapore
Nicaragua South Africa SloveniaNigeria Thailand Spain
Pakistan Tunisia SwedenPhilippines Turkey Switzerland
Rwanda United Arab EmiratesUnited Kingdom
United States
The Global Competitiveness IndexCountries by Stage of Development
Countries in red are the UNECE members
The Global Competitiveness Index 2010 Top 10 ranking
Countries in Italic are NON UNECE Countries
Rank Economy Score1 Switzerland 5.62 Sweden 5.63 Singapore 5.54 United States 5.45 Germany 5.46 Japan 5.47 Finland 5.48 Netherlands 5.39 Denmark 5.310 Canada 5.3
The Global Competitiveness Index 2010 UNECE economiesRank Economy Score1 Switzerland 5.62 Sweden 5.64 United States 5.45 Germany 5.47 Finland 5.48 Netherlands 5.39 Denmark 5.310 Canada 5.312 United Kingdom 5.314 Norway 5.115 France 5.118 Austria 5.119 Belgium 5.120 Luxembourg 5.024 Israel 4.929 Ireland 4.731 Iceland 4.733 Estonia 4.636 Czech Republic 4.639 Poland 4.540 Cyprus 4.542 Spain 4.545 Slovenia 4.446 Portugal 4.447 Lithuania 4.4
Rank Economy Score48 Italy 4.449 Montenegro 4.450 Malta 4.352 Hungary 4.357 Azerbaijan 4.360 Slovak Republic 4.261 Turkey 4.263 Russian Federation 4.267 Romania 4.270 Latvia 4.171 Bulgaria 4.172 Kazakhstan 4.177 Croatia 4.079 Macedonia, FYR 4.083 Greece 4.088 Albania 3.989 Ukraine 3.993 Georgia 3.994 Moldova 3.996 Serbia 3.898 Armenia 3.8102 Bosnia & Herzegovina 3.7116 Tajikistan 3.5121 Kyrgyz Republic 3.5
The Global Competitiveness IndexDifferences within UNECE and most significant gaps
The Global Competitiveness IndexGlobal Comparison
* The Asian Tigers include Hong Kong, Korea, Singapore and Taiwan
Europe’s performanceGoods market efficiency pillar
5.5
6.1 6.3
5.86.0
5.0
5.96.3
6.8
3.9
4.5
4.0
3.3
4.2
3.03.3
2.3
4.1
1
4
7
Goo
ds m
arke
t eff
icie
ncy
Inte
nsity
of l
ocal
co
mpe
titio
n
Pre
vale
nce
of fo
reig
n ow
ners
hip
Eff
ectiv
enes
s of
ant
i-m
onop
oly
polic
y
Deg
ree
of c
usto
mer
or
ient
atio
n
Buy
er s
ophi
stic
atio
n
Ext
ent o
f mar
ket
dom
inan
ce
Num
ber o
f pro
cedu
res
requ
ired
to s
tart
a bu
sine
ss*
Tim
e re
quire
d to
sta
rt a
busi
ness
*
Score
Highest/Lowest EU member EU 27 average United States Asian Tigers
Europe’s performanceLabour market efficiency pillar
5.5
5.9
6.7
5.0
6.56.0
5.8
7.0
5.4
3.7 3.53.3
3.13.5
2.4 2.32.7
2.2
1
4
7
Labo
r mar
ket
effic
ienc
y
Coo
pera
tion
in la
bor-
empl
oyer
rela
tions
Fem
ale
parti
cipa
tion
in
labo
r for
ce*
Pay
and
pro
duct
ivity
Rel
ianc
e on
pro
fess
iona
l m
anag
emen
t
Flex
ibili
ty o
f wag
e de
term
inat
ion
Hiri
ng a
nd fi
ring
prac
tices
Red
unda
ncy
cost
s*
Bra
in d
rain
Score
Highest/Lowest EU member EU 27 average United States Asian Tigers
Europe’s performanceHigher education and training pillar
6.16.2
7.06.8
5.6
6.4
5.7
4.1
3.1
6.2
1.6
2.9
3.6
2.8
1
4
7
Hig
her e
duca
tion
and
train
ing
Qua
lity
of m
ath
and
scie
nce
educ
atio
n
Sec
onda
ry e
duca
tion
enro
llmen
t rat
e*
Terti
ary
educ
atio
n en
rollm
ent r
ate*
Qua
lity
of th
e ed
ucat
iona
l sy
stem
Inte
rnet
acc
ess
in s
choo
ls
Ext
ent o
f sta
ff tr
aini
ng
Score
Highest/Lowest EU member EU 27 average United States Asian Tigers
Europe’s performance Technological readiness pillar
6.1
6.8
6.4 6.3
6.8 7.0
3.8
4.34.0 4.0
3.3
2.7
1
4
7Te
chno
logi
cal r
eadi
ness
Ava
ilabi
lity
of la
test
te
chno
logi
es
Firm
-leve
l tec
hnol
ogy
abso
rptio
n
FDI a
nd te
chno
logy
tra
nsfe
r
Inte
rnet
use
rs*
Bro
adba
nd In
tern
et
subs
crip
tions
*
Score
Highest/Lowest EU member EU 27 average United States Asian Tigers
Europe’s performance Innovation pillar
5.65.9 6.0 6.0 6.0
5.65.9
2.92.5
3.33.6
2.4
3.0
1.01
4
7In
nova
tion
Cap
acity
for i
nnov
atio
n
Qua
lity
of s
cien
tific
re
sear
ch in
stitu
tions
Ava
ilabi
lity
of s
cien
tists
and
en
gine
ers
Com
pany
spe
ndin
g on
R
&D
Uni
vers
ity-in
dust
ry
colla
bora
tion
in R
&D
Util
ity p
aten
ts p
er m
illio
n po
pula
tion*
ScoreHighest/Lowest EU member EU 27 average United States Asian Tigers
Views from Annual Meeting in Davos 2011 Europe: Back to the drawing board
Ensuring strong growth requires: –Stable macro-economic environments–Continued investment in infrastructure(particularly in transport and energy)
–Improving skills through education and training
–Investing in R&D–Structural reforms to hardwire
competitiveness into the economy
Panellists in this session:- George Papandreou, Prime Minister of Greece- Nick Clegg, Deputy Prime Minister of the United Kingdom - Jean-Claude Trichet, President of the European Central Bank- Jacob Wallenberg, Chairman of Investor AB
“With the new competitive powers, it is not a matter of whether they are going bypass us – the risk is that they will run us over”
–Jacob Wallenberg
Irresponsible fiscal policies created a fragile financial system which generated a fragile real economy.
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www.weforum.org/gcr