The Global Competitiveness Report is a yearly report published by the World
Economic Forum. Since 2004, the Global Competitiveness Report ranks countries
based on the Global Competitiveness Index, developed by Xavier Sala-i-Martin
and Elsa V. Artadi. Before that, the macroeconomic ranks were based on
Jeffrey Sachs's Growth Development Index and the microeconomic ranks were based
on Michael Porter's Business Competitiveness Index. The Global
Competitiveness Index integrates the macroeconomic and the micro/business
aspects of competitiveness into a single index.
The report "assesses the ability of countries to provide high levels of
prosperity to their citizens. This in turn depends on how productively a
country uses available resources. Therefore, the Global Competitiveness
Index measures the set of institutions, policies, and factors that set the
sustainable current and medium-term levels of economic prosperity."
Since 2010, Switzerland has led the ranking as the most competitive economy
in the world. The United States, which ranked first for several years, fell to
fifth place in 2009-10 due to the consequences of the financial crisis of
2007–2010 and its macroeconomic instability.
Description Since 2004, the report ranks the world's
nations according to the Global Competitiveness Index. The report states
that it is based on the latest theoretical and empirical research. It
is made up of over 110 variables, of which two thirds come from the Executive
Opinion Survey, and one third comes from publicly available sources such as the
United Nations. The variables are organized into twelve pillars, with each
pillar representing an area considered as an important determinant of
competitiveness. One part of the report is the Executive
Opinion Survey which is a survey of a representative sample of business
leaders in their respective countries. Respondent numbers have increased every
year and is currently just over 13,500 in 142 countries.
The report notes that as a nation develops, wages tend to increase, and
that in order to sustain this higher income, labor productivity must improve
for the nation to be competitive. In addition, what creates productivity in
Sweden is necessarily different from what drives it in Ghana. Thus, the GCI
separates countries into three specific stages: factor-driven,
efficiency-driven, and innovation-driven, each implying a
growing degree of complexity in the operation of the economy.
In the factor-driven stage countries compete based on their factor
endowments, primarily unskilled labor and natural resources. Companies compete
on the basis of prices and sell basic products or commodities, with their low
productivity reflected in low wages. There are twelve pillars of
competitiveness. These are: 1. institutions 2. appropriate
infrastructure 3. a stable macroeconomic framework 4. good health and primary
education 5. higher education and training 6. efficient goods markets 7.
efficient labor markets 8. developed financial markets 9. the ability to
harness the benefits of existing technologies 10. and its market size,
both domestic and international 11. by producing new and different goods using
the most sophisticated production processes 12. innovation
To maintain competitiveness at this stage of development, competitiveness
hinges mainly on well-functioning public and private institutions, appropriate
infrastructure, a stable macroeconomic framework, and good health and primary
education. As wages rise with advancing
development, countries move into the efficiency-driven stage of development,
when they must begin to develop more efficient production processes and
increase product quality. At this point, competitiveness becomes increasingly
driven by higher education and training, efficient goods markets, efficient labor
markets, developed financial markets, the ability to harness the benefits of
existing technologies, and its market size, both domestic and international.
Finally, as countries move into the innovation-driven stage, they are only
able to sustain higher wages and a higher standard of living if their
businesses are able to compete by providing new or unique products. At
this stage, companies must compete by producing new and different goods using
the most sophisticated production processes and through innovation.
Thus, the impact of each pillar on competitiveness varies across countries,
in function of their stages of economic development. Therefore, in the
calculation of the GCI, pillars are given different weights depending on the
per capita income of the nation. The weights used are the values that best
explain growth in recent years For example, the sophistication and
innovation factors contribute 10% to the final score in factor and
efficiency-driven economies, but 30% in innovation-driven economies.
Intermediate values are used for economies in transition between stages.
The Global Competitiveness Index's annual reports are somewhat similar to
the Ease of Doing Business Index and the Indices of Economic Freedom, which also
look at factors affecting economic growth.
2015–2016 rankings This is the top 30 of the 2015–2016
report 2014–2015 rankings
This is the top 30 of the 2014–2015 report
2013–2014 rankings This is the top 30 of the 2013–2014
report 2012–2013 rankings
This is the top 30 of the 2012–2013 report
2011–2012 rankings This is the top 30 of the 2011–2012
report 2010-2011 rankings
The following are the top 30 countries in the 2010-2011 Report.
2009-2010 rankings The following are the top 30 countries
in the 2009-2010 Report. 2008-2009 rankings
The following are the top 30 countries in the 2008-2009 Report.
You can find the computation and structure of the GCI p 49-50 of the
Global Competitiveness Report 2013-2013 See also
Competitiveness List of national quality awards
World Competitiveness Yearbook References
External links "Interactive Global Competitiveness
Report" Global Competitiveness Report
Top 20 countries of 2010 by competitiveness, United Explanations
http:www.imd.orgpublications