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Assessing Barbadian competitiveness Findings from the Global Competitiveness Index 2009-2010. Margareta Drzeniek Hanouz Director, Senior Economist Global Competitiveness Network World Economic Forum. Outline. - PowerPoint PPT Presentation
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Assessing Barbadian Assessing Barbadian competitivenesscompetitivenessFindings from the Global Competitiveness Index 2009-2010
Margareta Drzeniek Hanouz Director, Senior Economist Global Competitiveness Network World Economic Forum
2
Outline
The Global Competitiveness Network and the Global Competitiveness Report (GCR) series.
The Global Competitiveness Index (GCI) and our data sources.
The GCI rankings for 2009-2010 with a focus on CARICOM economies’ performance and selected comparators.
3
The Global Competitiveness Network
Flagship product: The Global Competitiveness Report: launched in 1979 covering 16 countries; it has since expanded its coverage to 133 countries.
Editor: Professor Klaus Schwab.
Goal: to provide a benchmarking tool for policymakers and business leaders.
4
The Global Competitiveness Report 2009-2010Geographical coverage
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The Global Competitiveness NetworkThematic coverage
Regional, topical and industry report series:
The Travel and Tourism Competitiveness Report
The Global Information Technology Report
The Global Enabling Trade Report
The Lisbon Review
The Mexico Competitiveness Report 2009
The Brazil Competitiveness Report 2009
The Africa Competitiveness Report 2009
The Global Gender Gap Report
6
The Global Competitiveness IndexData sources
Use of hard data (publicly available information from sources such as the International Monetary Fund, the World Bank, UNESCO, International Telecommunications Union, among others).
And survey data (from the Executive Opinion Survey), which records the perspectives of business leaders around the world; survey data is indispensable, particularly for variables where no reliable hard data sources exist.
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The Global Competitiveness IndexData sources: The Executive Opinion Survey
The Executive Opinion Survey is structured around eleven major issue areas, each of significant relevance to the current state of an economy’s business environment,
Survey respondents are asked a total of 144 questions based on their own experiences of operating a business in the country in which they are based.
The Survey is translated into over 20 languages and is available online.
In 2009, over 13,000 business leaders from 133 countries responded to the Survey.
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The Global Competitiveness ReportWhat are we trying to measure?
Source: International Monetary Fund, World Economic Outlook, September 2009
Gross domestic product based on purchasing-power-parity per capita, 1980-2009
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
20,000.00
Barbados Jamaica Suriname Guyana
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Competitiveness is defined as the set of factors, policies and institutions that determine the level of productivity of a country.
Productivity is the main driver of investment in an economy. Investment, in turn, determines the rate of growth of the economy.
We say that a more competitive economy is one that is likely to grow faster over the medium to long run.
We try to shed light on “the factors, policies and institutions” that determine the sharply different growth experiences of 134 economies worldwide.
The Global Competitiveness ReportWhat do we mean by competitiveness?
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The Global Competitiveness IndexThe 12 pillars of competitiveness
Key for
efficiency-driven economies
Key for
factor-driven economies
1. Institutions
2. Infrastructure
3. Macroeconomic stability
4. Health and primary education
5. Higher education and training
6. Goods market efficiency
7. Labor market efficiency
8. Financial market sophistication
9. Technological Readiness
10. Market size
11. Business sophistication
12. Innovation
Key for
innovation-driven economies
BASIC REQUIREMENTS
EFFICIENCY ENHANCERS
INNOVATION & SOPHISTICATION FACTORS
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The process of economic development evolves in three stages captured by the model:
a. "Factor-driven stage"Firms compete in prices, taking advantage of cheap factors.
b. "Efficiency-driven stage"Efficient production practices to increase productivity.
c. "Innovation-driven stage"Economies need to produce innovative products using sophisticated production methods (incorporating and taking full advantage of ICT, among other things.)
The Global Competitiveness IndexStages of development
12* Based on GDP per capita and resource intensity
The Global Competitiveness Index CARICOM countries by stage of development*
CARICOM countries/comparators Other countries in this stage
Stage 1 (factor-driven) GDP per capita of less than US$2,000 Transition from 1 to 2 GDP per capita of US$2,000-US$3,000 Stage 2 (efficiency-driven) GDP per capita of US$3,000-US$9,000 Transition from 2 to 3 GDP per capita of US$9,000-US$17,000 Stage 3 (innovation-driven) GDP per capita more than US$17,000
GuyanaIndia, Madagascar, Honduras, Nigeria, Pakistan, Philippines
Jamaica
Algeria, Egypt, Guatemala, Paraguay, Saudi Arabia, Venezuela
Trinidad and Tobago, Cyprus, Ireland, Malta
Hong Kong SAR, Iceland, Israel, Taiwan, China, United States
Suriname, Costa Rica, Dominican Republic, Panama, Mauritius
Argentina, Brazil, Peru, South Africa, Thailand
BarbadosChile, Croatia, Mexico, Russian Federation, Turkey, Uruguay
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The Global Competitiveness Index Weights
Weights of the three main groups of pillars at each stage of development
Factor-driven stage
Efficiency-driven stage
Innovation-driven stage
Basic requirements 60% 40% 20%
Efficiency enhancers 35% 50% 50%
Innovation and sophistication factors 5% 10% 30%
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The Global Competitiveness Rankings 2009-2010Top 20 and selected economies (rank out of 133, score from 1 to 7)
2009 2009 2008 2009 2009 2008 rank Economy score rank rank Economy score rank
1 Switzerland 5.60 2 22 Qatar 4.95 26
2 United States 5.59 1 26 Iceland 4.80 20
3 Singapore 5.55 5 29 China 4.74 30
4 Sweden 5.51 4 30 Chile 4.70 28
5 Denmark 5.46 3 31 Czech Republic 4.67 33
6 Finland 5.43 6 33 Spain 4.59 29
7 Germany 5.37 7 36 Thailand 4.56 34
8 Japan 5.37 9 40 Tunisia 4.50 36
9 Canada 5.33 10 45 South Africa 4.34 45
10 Netherlands 5.32 8 49 India 4.30 50
11 Hong Kong SAR 5.22 11 54 Indonesia 4.26 55
12 Taiwan, China 5.20 17 56 Brazil 4.23 64
13 United Kingdom 5.19 12 60 Mexico 4.19 60
14 Norway 5.17 15 61 Turkey 4.16 63
15 Australia 5.15 18 63 Russian Federation 4.15 51
16 France 5.13 16 70 Egypt 4.04 81
17 Austria 5.13 14 82 Ukraine 3.95 72
18 Belgium 5.09 19 99 Nigeria 3.65 94
19 Korea, Rep. 5.00 13 113 Venezuela 3.48 105
20 New Zealand 4.98 24 132 Zimbabwe 2.77 133
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The Global Competitiveness Rankings 2009-2010CARICOM countries and selected comparators (rank out of 133, score from 1 to 7)
2009 rank Economy 2009 score 2008 rank21 Luxembourg 4.96 2522 Qatar 4.95 2625 Ireland 4.84 2226 Iceland 4.80 2030 Chile 4.70 2834 Cyprus 4.57 4035 Estonia 4.56 3237 Slovenia 4.55 4238 Bahrain 4.54 3742 Puerto Rico 4.48 4144 Barbados 4.35 4752 Malta 4.30 5255 Costa Rica 4.25 5957 Mauritius 4.22 5759 Panama 4.21 5865 Uruguay 4.10 7586 Trinidad and Tobago 3.91 9291 Jamaica 3.81 8695 Dominican Republic 3.75 98102 Suriname 3.57 103104 Guyana 3.56 115
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The Global Competitiveness Rankings CARICOM countries: Evolution in the GCI, 2007-2009(rank out of 133)
126115
104
113
103
102
84
9286
7886
91
5047
44
1 21 41 61 81 101 121
Guyana
Suriname
Trinidad and Tobago
Jamaica
Barbados
2007 2008 2009
+ 22
+ 11
- 13
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The Global Competitiveness Rankings 2009-2010Most problematic factors for doing business in the region
14.1
11.9
10.9
10.8
8.6
8.3
7.1
5.9
5.1
4.4
4.4
3.9
3.2
0.8
0.6
0 5 10 15 20 25 30
Inefficient government bureaucracy
Poor work ethic in national labor force
Crime and theft
Access to financing
Corruption
Inflation
Tax rates
Inadequately educated workforce
Inadequate supply of infrastructure
Foreign currency regulations
Tax regulations
Restrictive labor regulations
Policy instability
Poor public health
Government instability/coups
Percent of responses
Source: EOS 2008, 2009. The question asked to the firm was: “Select among the above 15 constraints the five most problematic factors for doing business in your country.”
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The Global Competitiveness Rankings 2009-2010Barbados vs. selected comparators(score from 1 to 7)
1
2
3
4
5
6
7Institutions
Infrastructure
Macroeconomic stability
Health and primary education
Higher education and training
Goods market efficiency
Labor market efficiency
Financial market sophistication
Technological readiness
Market size
Business sophistication
Innovation
Barbados Latin American and the Carribean Transition from 2 to 3
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The Global Competitiveness Rankings 2009-2010Barbados: Areas of focus(score from 1 to 7)
Rank Score2009-2010 (out of 133 economies) 44 4.352008-2009 (out of 134 economies) 47 4.40
Basic Requirements 31 5.161st pillar: Institutions 20 5.182nd pillar: Infrastructure 21 5.373rd pillar: Macroeconomic stability 115 3.804th pillar: Health & primary education 9 6.28
Efficiency Enhancers 60 4.115th pillar: Higher education & training 26 4.916th pillar: Goods market efficiency 72 4.127th pillar: Labour market efficiency 48 4.588th pillar: Financial market sophistication 38 4.679th pillar: Technological readiness 41 4.4410th pillar: Market size 126 1.92
I nnovation Factors 49 3.8111th pillar: Business sophistication 58 4.2012th pillar: Innovation 47 3.43
Tra
nsit
ion
2
to 3
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The Global Competitiveness Rankings Barbados: Comparison by pillar, 2007 and 2009(score from 1 to 7)
1
2
3
4
5
6
7Institutions
Infrastructure
Macroeconomic stability
Health and primary education
Higher education and training
Goods market efficiency
Labor market efficiency
Financial market sophistication
Technological readiness
Market size
Business sophistication
Innovation
2007 2009
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The Global Competitiveness Rankings 2009-2010Most problematic factors for doing business in Barbados
Source: EOS 2008, 2009. The question asked to the firm was: “Select among the above 15 constraints the five most problematic factors for doing business in your country.”
17.7
14.8
13.9
10.7
8.8
7.8
7.3
4.1
3.7
3.5
3.4
3.3
0.6
0.5
0.0
0 5 10 15 20 25 30
Poor work ethic in national labor force
Access to financing
Inefficient government bureaucracy
Restrictive labor regulations
Inflation
Tax rates
Foreign currency regulations
Inadequate supply of infrastructure
Crime and theft
Tax regulations
Inadequately educated workforce
Policy instability
Poor public health
Corruption
Government instability/coups
Percent of responses
22Assessin
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THANK YOU FOR YOUR KIND ATTENTION
Visit our interactive website:
http://gcr.weforum.org/gcr/
The Global Competitiveness Report 2009-2010 is freely downloadable from our website at http://www.weforum.org/gcr